Train and car travel across China has increased | Image: Pixabay
The travel boom in China: At the start of a major public holiday in China, train and car travel saw a significant increase, reflecting consumers' continued focus on budget-conscious choices amid economic challenges.
Ahead of the five-day holiday that began May 1, domestic flight prices have declined, with projections indicating a preference for car travel over air travel, either through advance bookings or opting to the car.
Travel spending stagnates
Although travel activities rebounded following the easing of COVID-19 restrictions in 2022, consumer spending on these trips did not see a proportionate increase, thereby limiting the expected economic recovery.
As China targets an economic growth rate of around 5% for 2024, analysts predict difficulty achieving that goal without substantial stimulus measures.
Recent official surveys indicated a slowdown in manufacturing and services activities in April, highlighting a potential loss of momentum in the economy.
People like Lin Yu, visiting Beijing from Hangzhou, recognized the financial pressures, which vary depending on family circumstances and industry affiliations.
Discounts on flights to China
Flight prices in China saw a notable drop of 38 percent in the fourth week of April compared to the start of the month, indicating early bookings in an extremely competitive aviation market.
State media reported an expected daily presence of 58 million cars on the roads during the holiday period, alongside more than 20 million rail travelers on the first day alone.
Statistics for the first quarter showed a nearly 17 percent increase in the number of trips compared to the previous year, according to state broadcaster CCTV.
During the three-day holiday in April, average spending per trip exceeded 2019 levels for the first time, recording a marginal increase of just over 1 percent.
Yum China's expansion
Some companies have adjusted their strategies to meet the needs of cost-conscious consumers when traveling. Yum China, which operates KFC in the country, said it plans to open 30 percent of its new stores in new cities or roadside locations, such as highway rest stops.
Joey Wat, CEO of Yum China, noted a 20 percent increase in same-store sales at these locations during the lunar period. New Year holidays in February, highlighting their importance in capitalizing on the surge in holiday travel.
(With inputs from Reuters)
