Chinese travellers are booking longer trips for the National Day holiday, but weak household demand means record travel volumes may not deliver a matching rise in spending, The Standard reported on September 29, citing Reuters.
The holiday period is an early test of whether tourism can carry more of China’s consumer economy while deflationary pressure and a long property downturn continue to weigh on household confidence. Golden Week usually acts as a barometer for retail and leisure demand, but travel growth has become less reliable as a guide to profit.
Holidaymakers are combining the seven-day break from October 1 with the Mid-Autumn Festival, creating a longer travel window for some households. Government measures include a National Day Cultural and Tourism Consumption Month campaign launched on September 22 and extra rail capacity during a 16-day peak transport period.
Travel volume rose during the last Golden Week, but average spending per trip fell to a three-year low of CNY911.04 ($135.70), according to Reuters calculations based on government data.
“Consumers still have a strong appetite for travel, but they remain cautious about how much they spend,” Forthright Securities senior analyst Ailsa Liao said, according to The Standard. “The result is a K-shaped spending pattern: volumes can be strong even as spending per consumer remains under pressure.”
Outbound demand is stronger this year. Dragon Trail International said 54% of respondents in an August survey planned overseas trips during the holiday period, up from 35% a year earlier. Trip.com said bookings for hotel stays of at least seven nights rose 123% y/y, while multi-destination itineraries climbed 84%.
Only 5% of surveyed travellers planned to stay in luxury hotels, while mid-range hotels were the largest category at 33%.