Surge in Chinese Overseas Tourism Set for Lunar New Year

Chinese travelers are showing a keen interest in visiting East and Southeast Asian destinations for the upcoming Lunar New Year holiday, indicating a slow but steady recovery in outbound travel. During the period from January 28 to February 4, searches for travel to Japan and South Korea have more than doubled compared to the previous year's holiday period, while interest in Southeast Asia has risen by 47%, according to Trip.com. Japan, Thailand, Malaysia, Indonesia, Singapore, Vietnam, and South Korea top the list of destinations for Chinese travelers during this holiday season, as per hotel booking data from Trip.com and Qunar. This period, known as “chunyun,” is notable for the significant travel surge among the Chinese mainland, with millions traveling home for family reunions. [para. 1][para. 2][para. 3]

The popularity of East and Southeast Asia as travel destinations for Chinese tourists can be attributed to their proximity, affordability, cultural familiarity, and convenience. However, some Chinese travelers utilize Japan and South Korea as transit hubs to reach Europe and the U.S., as direct flights to these areas remain limited. Several European airlines, including Virgin Atlantic and British Airways, have reduced or suspended routes to China due to higher costs, longer flight routes, lower demand, and competition from Chinese airlines. [para. 4][para. 5][para. 6]

For the Spring Festival, destinations within a four-hour flight radius, such as those in East and Southeast Asia, are particularly attractive to travelers. Affordability plays a significant role, with international flights and hotels being cheaper on platforms like Qunar compared to domestic destinations. Many travelers availed themselves of discounted travel packages during events like the Double 11 shopping festival to book their holidays early. For instance, international airfares during the Spring Festival are approximately 12% lower year-on-year, with notable drops in destinations like Hanoi, Jakarta, and Tokyo. Comparatively, hotel prices have also decreased, with less popular destinations seeing costs drop by more than 40%. Domestic travel prices tend to spike during the holiday, influencing travelers to consider international options. Visa-free policies in Southeast Asia further boost travel demand, with significant flight booking increases observed in Malaysia, Thailand, and Singapore. [para. 7][para. 8][para. 9][para. 10][para. 11]

Travel agencies report a growing shift towards independent travel among younger Chinese tourists, moving away from large group tours. Platforms like Alipay, WeChat, and Xiaohongshu have helped solve previous barriers such as language and payment issues. Independent bookings for flights, hotels, and attractions are rising, overtaking traditional group tours. Travelers now prefer smaller groups and less mainstream attractions. Despite increasing demand, international flight routes have yet to return to pre-pandemic levels. The number of Southeast Asian routes has been notably reduced. Many charter flights from smaller Chinese cities, previously subsidized by local governments, haven’t resumed due to financial constraints. Additionally, understaffed airports have further challenged the recovery of flight routes, with Japan's civil aviation workforce only reaching pre-pandemic levels by April 2024, yet unable to keep up with rising international flight volumes. [para. 12][para. 13][para. 14][para. 15][para. 16]