China has begun its Golden Week holiday starting from Tuesday, October 1st, and many people are choosing to travel during this extended break. With the economy slowing down and consumer confidence hovering at historic lows, travel industry experts predict that many Chinese people will opt for cheaper domestic or short-haul overseas destinations, taking full advantage of the drop in airfare prices.
According to a report from Reuters, a white-collar worker named Wang Xin from Beijing mentioned that she and her family will be driving to Yangzhou during the holiday.
“There are no toll fees during the holiday, so we will drive instead of taking the train,” said Wang Xin, who is 45 years old. “In this economic situation, it’s best not to spend unnecessary money. Many people are unemployed, and at my age, if this happens to me, I won’t be able to find another job.”
Prior to the outbreak of the pandemic, Wang Xin’s family would choose to vacation in Southeast Asia or the United States during the same period.
Data from the travel platform “Flight Master” indicates that domestic airfare prices are expected to be 21% cheaper compared to the same period last year, while international economy class ticket prices are projected to be 25% lower than in 2023 and 7% lower than in 2019.
The company predicts that the top international destinations for outbound travelers will continue to be short-haul Asian hubs like Japan, South Korea, Thailand, and Singapore.
Ctrip previously released a “2024 National Day Travel Forecast Report,” stating that based on booking trends, the upcoming holiday period may see a trend of increased volume and decreased prices for both flights (including taxes) and hotels. The latest data shows an average price decrease of around 20% for popular flights and hotels during the National Day holiday compared to last year.
Analysts suggest that despite the significant stimulus measures implemented last week that may have some impact on consumer spending, the impact is limited. They anticipate that purchasing levels during this year’s holiday period may reach but not exceed the levels seen in 2023.
Due to insufficient demand and intense price competition from domestic airlines, some foreign airlines such as British Airways and Qantas have reduced or suspended flights to China this year.
Philippine Airlines announced this month that it will halt flights between Manila and China before the end of the fourth quarter. The CEO of the company stated in local media that China accounted for 30% of their passenger volume in 2019, which has now dropped to just 2% this year.