Surge in trips expected for Chinese holiday, but travellers keep budgets tight
The holiday, which begins on May 1 and lasts for five days, is a prime time for travel, with pleasant spring weather making it more appealing than the wintery Lunar New Year break.
Domestic travel in China has boomed since the end of the country's pandemic-era restrictions, but while more people are taking a holiday many are keeping a tight rein on spending amid an economic slowdown and concern about employment and wage stagnation.
Liu Xiaoting, a 32-year-old bank employee, plans to travel to Hebei, a province close to her home in Beijing.
"I'll drive with friends to Handan to visit the grottoes there," she said, adding that part of the appeal of the trip was the "minimal" spending required. "Hotels in Handan cost just 300 to 400 yuan ($41 - $55) even during the holiday. As the Chinese saying goes, we want to 'spend a little, accomplish a lot'."
The tighter budgets have led to a surge in visits to more affordable smaller cities and villages, as well as road trips and camping holidays.
BOOKING BOOM
Tuniu, a leading Chinese online travel agent, reported that as of mid-April, domestic travel bookings for the May Day holiday were more than double the same period last year.
Beijing-based travel operator UTour Group said, as of April 15, the gross merchandise volume (GMV, a common measure of online sales) on its platform had increased by about 65% year-on-year.
Travel information provider Umetrip also said that as of April 17, the number of domestic flight tickets booked for the May Day holiday was more than 3.33 million, marking a 36% increase compared to last year. International flight ticket bookings on Umetrip have risen by about 25%.
International travel, meanwhile, is dominated by short-haul routes, with Japan and the UAE both emerging as popular destinations according to pre-holiday data.
Even a warning last month from China's embassy urging Chinese travellers to enhance safety precautions and pay attention to personal and food hygiene does not seem to have deterred holidaymakers.
"Japan has long-established a reputation of being clean, mature, and safe," said Su Shu, founder of Chinese firm Moment Travel in Chengdu. "Our tourists are not impacted by the warnings, especially those who have visited Japan before."
Domestically, while metropolises like Beijing and Shanghai continue to attract visitors, county-level tourism is rapidly gaining traction.
Trip.com Group (9961.HK), opens new tab data shows that the popularity of searches for smaller cities has increased by 25% year-on-year, with growth rates 11 percentage points higher than in China's biggest cities.
Searches for small and remote places such as Bortala, an autonomous prefecture in Xinjiang populated with ethnic minority Mongol people, and Puer, a famous tea-producing area in Yunnan, have surged by more than 50%, it said.
($1 = 7.2747 Chinese yuan renminbi)
Try Our AI Features
Explore what Daily8 AI can do for you:
Comments
No comments yet...
Related Articles
Reuters
25 minutes ago
- Reuters
Southwest Airlines earnings hit by weak US travel demand
CHICAGO, July 23 (Reuters) - Southwest Airlines (LUV.N), opens new tab reported lower-than-expected quarterly profit and revenue on Wednesday, hurt by tepid demand from U.S. consumers for travel. Lingering uncertainty about the broader economy due to President Donald Trump's trade war and rising living costs has hurt carriers that primarily service the U.S. domestic market and price-sensitive customers. To stimulate demand, they have been leaning on fare discounts. The Texas-based airline said domestic leisure travel demand stabilized after a slump in March and April and was showing signs of improvement. But underscoring the uncertainty, it forecast its unit revenue, or revenue per seat, in the third quarter to range from down 2% to up 2% from a year ago. For the second quarter, Southwest reported an adjusted profit per share of 43 cents, compared with analysts' average expectations of 51 cents, according to data compiled by LSEG. It reported operating revenue of $7.24 billion in the quarter, compared with $7.29 billion expected by analysts. Like most U.S. airlines, Southwest pulled its full-year financial forecast in April as the trade war made it difficult to project its business. On Wednesday, the company provided a new target for 2025 of $600 million to $800 million in earnings before interest and taxes. That compares with its previous forecast of $1.7 billion. Southwest has been struggling to find its footing after the COVID-19 pandemic. Its lackluster earnings have fueled pressure to revamp its business model. In the second quarter, it began charging customers for checked bags, ending a unique free policy. It also rolled out a new basic economy fare. The company said the bag fee revenue thus far exceeded its expectations. But sales of basic economy fares on its website suffered a hit after their launch in May, hurting its unit revenue in the second quarter. Southwest expects an impact on its third-quarter unit revenue as well. Meanwhile, its non-fuel operating costs were estimated to increase by as much as 5.5% in the third quarter from a year ago. Summer, typically the peak money-making season for airlines, is falling short this year as sluggish demand for standard economy seats forces carriers to cut fares, undermining their pricing power. Delta Air Lines (DAL.N), opens new tab and United Airlines (UAL.O), opens new tab have seen strong revenue gains from premium cabins, buoyed by affluent travelers willing to pay for upgrades. By contrast, low-fare carriers such as Southwest are under pressure to maintain profitability as price-sensitive travelers remain cautious with discretionary spending. The airline, however, held out hopes for the second half of the year to be stronger, citing stronger demand as well as the industry's efforts to limit seat supply and fend off discounting pressure. "While early, recent industry demand shows signs of improvement off of depressed second quarter 2025 levels," the company said. Other airlines including United and Alaska(ALK.N), opens new tab have also reported a recovery in bookings in recent weeks. But the industry's pricing power remains weak, particularly in the domestic market. Southwest, the largest U.S. domestic carrier, saw a 3% year-on-year decline in its unit revenue in the second quarter. Its overall passenger revenue was also down from a year ago, with a sharp drop in passenger volumes. The company said its capacity, or seats on its flights, was expected to be flat in the third quarter from a year ago. The company will discuss its earnings with analysts on Thursday.
Time Out
29 minutes ago
- Time Out
Chefs from Portugal and Japan come together for The Art of Tasting Portugal in Osaka
While dozens of countries have gathered at Expo 2025 in Osaka to showcase their innovative technologies and sustainable solutions for a better future, another exciting highlight at the mega-event is the remarkable gastronomic collaborations on show. One such project is The Art of Tasting Portugal supported by VisitPortugal, which showcases the culinary creativity of Portuguese chefs on a global stage. As part of the lead-up to the Expo, a special dinner brought together culinary visionaries from two Michelin-starred restaurants: Portuguese chef Vasco Coelho Santos of Euskalduna in Porto and Yuji Fujita, executive chef of Chi-Fu in Osaka. The chefs crafted a menu highlighting the appreciation of seasonal ingredients shared by the two countries. Chef Vasco presented refined takes on Portuguese classics such as seafood rice, beef tongue and his signature Portuguese French toast – the perfect sweet ending and one of our favourite dishes of the night. Meanwhile, chef Fujita showcased his twist of Japanese and Chinese cuisine with dishes including Ise lobster and lamb chops. The menu was complemented by a curated pairing of Portuguese wines and Japanese sake, highlighting the growing interest in Portuguese wines in Japan. Chef Vasco is a key figure in contemporary Portuguese cuisine, known for blending tradition with innovation across multiple acclaimed restaurants, including his very own Euskalduna Studio which renewed its Michelin star in 2025. In 2024, he contributed some of his signature dishes from Euskalduna Studio at Time Out Market Porto. Yuji Fujita, head of Chi-Fu since 2018, has elevated the Osaka restaurant into a leading name in fusion dining, combining Chinese culinary traditions with Western and Japanese influences. Chi-Fu was awarded a Michelin star in 2025.
Reuters
3 hours ago
- Reuters
US senators propose bill aimed at shortening airport security lines
WASHINGTON, July 23 (Reuters) - A bipartisan group of U.S. senators on Wednesday proposed new airport baggage screening systems and technology updates at checkpoints to improve security and shorten wait times as air travel hits records. Senator Jerry Moran, Republican chair of a subcommittee on aviation, along with Democratic Senators Chris Van Hollen and Michael Bennet and Republican John Boozman, proposed spending $500 million annually on explosive detection systems for checked suitcases and $250 million annually for technology improvements at airport security checkpoints. That money would come from existing fees paid by passengers -- $5.60 per each one-way ticket. Last year the fees raised $4.5 billion. The senators said that more than $13 billion in revenue from the fees has been diverted to non-security uses since 2014. Air travel set a record in 2024 and is expected to set a new one this year as air travel has boomed this summer. "Increased air travel, coupled with lack of investment in security checkpoints and aging systems, has resulted in outdated screening technology and longer security lines," Moran said. Airlines for America -- a trade group that includes American Airlines (AAL.O), opens new tab, Delta Air Lines (DAL.N), opens new tab, United Airlines (UAL.O), opens new tab and others -- praised the bill as "common-sense legislation that returns the fees that travelers pay for security to their original, intended purpose: improving security and facilitation for travelers." Sharing the goal of reducing delays, the Transportation Security Administration said this month it would stop requiring passengers to remove their shoes at checkpoints. Homeland Security Secretary Kristi Noem has also raised the possibility that passengers may be allowed to bring greater volumes of liquids through security checkpoints.
