China travel surges for May holiday but consumers remain cautious
Travel by rail and car across China surged on Wednesday, the rst day of a major public holiday, as consumers remained focused on keeping expenses down in a challenged economy.
In the run-up to the veday holiday that began with May Day, domestic airline fares were falling and forecasts suggested more travellers were opting to drive rather than y, or booked early to save.
Travel of all kinds has rebounded since China lifted strict COVID control measures at the end of 2022, but consumer spending on those trips has failed to keep up, limiting the boost to the broader economy.
China has set an economic growth target for 2024 of around 5%, which many analysts say will be a challenge to achieve without much more stimulus.
China’s manufacturing and services activity both expanded at a slower pace in April, ocial surveys showed, suggesting some loss of momentum. “There is indeed signicant pressure,” Lin Yu, 38, who was visiting Beijing.
“Every family’s situation is dierent, and it clearly also depends on the industry you work in.”
By the fourth week of April, the average price for an economy ight in China slid 38% from the rst week of the month to the equivalent of just under $97, according to VariFlight, an aviation data service provider.
“Chinese airlines must adapt to these changes,” said Zheng Hongfeng, VariFlight, who said the fare declines showed travellers were booking early in a highly-competitive market.
About 58 million cars are likely to be on roads every day during the holiday while railways carried more than 20 million passengers on Wednesday alone, as per State media.