May Day travel trends in China: Railway and road trips on rise | Travel

Travel by rail and car via China It rose on Wednesday, the first day of a large audience vacationas consumers remained focused on keeping expenses low in a challenging economy.

In the lead-up to the five-day holiday that began with Labor Day, locally Airline Prices have fallen and expectations are that more travelers are choosing to drive rather than fly, or booking early to save money.

Travel of all kinds has rebounded since China lifted strict coronavirus control measures at the end of 2022, but consumer spending on those trips has failed to keep pace, limiting a boost to the broader economy.

China has set an economic growth target for 2024 of about 5%, which many analysts say will be a challenge to achieve without further stimulus.

China’s manufacturing and services activity grew at a slower pace in April, official surveys showed on Tuesday, indicating a loss of some momentum.

“There is already a lot of pressure,” said Lin Yu, 38, who was visiting Beijing from Hangzhou. “Every family’s situation is different, and obviously it also depends on the industry you’re in.”

By the fourth week of April, the average price of an economy flight in China had fallen 38% from the first week of the month to the equivalent of just under $97, according to VariFlight, an aviation data services provider.

“Chinese airlines must adapt to these changes,” said Cheng Hongfeng of VariFlight, adding that the price decline showed that travelers were booking early in a highly competitive market.

State media reported that about 58 million cars are expected to be on the roads daily during the holiday, while railways carried more than 20 million passengers on Wednesday alone.

The number of trips taken during the first quarter rose about 17 percent from a year earlier, according to state broadcaster CCTV.

The three-day public holiday during April was the first time average spending per trip rose beyond 2019 levels. By that measure, spending was up just over 1%.

Some companies have pivoted to try to appeal to consumers who are watching their spending as they watch the road.

Yum China, operator of the KFC chain in China, said this week that 30% of its new stores will be in lower-tier cities or roadside locations such as highway rest stops.

Same-store sales at those locations rose 20% during the Lunar New Year in February, said Joey Watt, CEO of Yum China.

“They are key to monitoring the spike in holiday travel volume,” she said.

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