Chinese outbound tourism demand faces obstacles post-pandemic, impacting Trip.com; mixed results for stock

From South China Morning Post: 2024-05-30 09:34:40

Visa delays and limited flight capacity hinder full recovery of Chinese outbound travel post-pandemic, Trip.com CEO Jane Sun reports. Overseas travel demand surge aids Trip.com but economic worries persist. Only 87M Chinese traveled abroad in 2023 vs. 155M in 2019. Sun notes visa obstacles, international flight at 70% of pre-Covid levels.

Trip.com achieves 29% revenue increase in Q1, with net profit up 28%. Domestic travel services revenue grows over 20%. China sees 24% higher domestic passenger volume during Labour Day holiday compared to 2019. Tourism spending rises 14% during holiday. Budget-conscious tourists opt for cheaper accommodations and dining.

Hotel chains struggle to benefit from travel boom as tourists choose lesser-known resorts, JLL report states. Sun notes stiff competition preventing hoteliers from raising room rates. China’s untapped smaller cities offer growth potential for hospitality sector as consumers tighten budgets.



Read more at South China Morning Post: Travel travails: China’s pent-up outbound tourism demand hit by visa, flight issues, Trip.com CEO says