The National Day Golden Week passed and Chinese touring industry is experiencing a cold season.
Travel agencies are huddling together to continue kindling traveling desire. Many agencies adopt the oldest trick and make deep price cuts in the hope to extend the Golden Week into a month. However, experts say problems in the industry is now very complicated and the financial tsunami is urging travelers to save up. It needs time for the industry to fly again. Stilltravel takes you a close look at the post-Golden-Week traveling industry in China.
A Market Overview
【Excursions】 Hot Springs Sell Well
The temperature is dropping. Good news for hot springs in Guangdong province. The cool weather announces the coming of the most important season of a year for them. In summer days rarely anyone visits the thermal water wells and travel agencies lose a large part of business. A source from the industry say hot spring tour ranks top in scenic areas in Guangdong and takes at least 1/2 of the entire in-province excursion sales.
Statistics from agencies show there is considerable increase in hot spring tours and mostly around the Pearl River Delta region. However, the also weather-relied island tour is badly sliced for the consecutive typhoon strike around the holidays. The Hailing Isle tour, which has been a major destination in 2 decades, is cut off from the mainland for the recent Hagupit. Though it reopens on Oct. 2, there are little visits till now — also a heavy blow to the excursion business.
【Inbound tour】 Beijing Leads the Inbound Tour
A popularity survey done collaboratively by Ctrip and Nielson shows that Beijing ranks top both in the most-visited and most-traveler cities during the Golden Week. Data from travel agencies also indicates that Beijing tour is the most popular in the 7-day holiday.
Popularity in Beijing has also triggered traveling fever in other cities that connects to the Olympics — Qingdao, Shenyang and Qinhuangdao all receive large number of visits during the holidays. “Qingdao tour registration has doubled by now.”
At the same time, Sichuan journey is back on track. Comparing to the post-earthquake era, visits to Sichuan has grown from 0 in the initial stage to 3,300 daily. Though still incomparable to the 20,000 visitors before the earthquake, the high-end travelers doubled for scenic spots are now far less crowded.
【Outbound tour】Riot in Thailand Hampers International Travel
Previously stabilized situation in Thailand deteriorates recently. The riot in front of the Thai Congress again holds back travelling to China’s biggest destination nation.
Travelling income slides 50% this year due to the riot during the Golden week and has urged the travel agencies to collaborate with local agencies and governmental departments to offer low-cost tours. Some tour bundles lower below RMB 1,000 (roughly USD 150). Sales has been very good for the nearly uncharged tours and another price cut is announced on Oct. 6, only one day after the Golden Week ended, and is again registered in just two days. However, there is still worrying over the situation in Thailand.
Post-Golden-Week Travelling Campaign Starts
Traditionally the days after the Week are a slack time for travelling industry. However, this year many people have taken the post-week days into their travelling schedule for fear of the crowds during the holidays and the Post-Golden-Week tour sales has been pretty this year.
As we are noticed by several travel agencies, traveling registrations have increased after the Week. Nanhu Agency reports a 30% rise comparing to the same time last year, reaching 40,000 in the rest 25 days of October. The agency says a slack-season price will be implemented in these days and a ticket to Tibet has fallen over 20% from the RMB 5899 during the Week to the RMB 4599 now. Other tours also made price cuts.
Unrest from the Financial Tsunami
Affected by world economic situation, spending on travelling is saved up for other things this year. We are acknowledged that since May air passenger capacity has been on the decline, showing a more frugal spending pattern. As an unimportant part in the spending chart, traveling is naturally set aside under such sluggish economic environment. Last year during the stock market boom, tours worth over 10,000 RMB was warmly welcomed. This year, things are very different.
Travelling Demand Restrained
Wang Jian, spokesman for Guangdong Zhonglu, says that travelling demand has been worse than the SARS days. “At that time you wanted to spend on travelling. But now? People does not want to spend anymore. That rings an alarm to the travel agencies.”
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