Travel demand across China is expected to remain robust during the five-day Labour Day holiday beginning May 1, but rising fuel costs and widespread flight cancellations are driving more holidaymakers to opt for domestic travel.
Industry experts and travel agencies say a growing number of Chinese tourists are choosing road trips and independent local tours over overseas holidays, extending a trend seen in recent years as economic pressures weigh on consumer spending.
Higher jet fuel prices — exacerbated by the ongoing conflict in Iran — have made international travel significantly more expensive, triggering disruptions across key regional routes.
According to data from the China Air Transport Association, international flight cancellations during the May Day holiday have risen sharply to 7.4%, with about 785 flights scrapped — more than double the level recorded last year. Several carriers, including Air China, China Eastern, Spring Airlines and AirAsia, have reduced or suspended services between China and major Southeast Asian destinations such as Bangkok, Phuket and Kuala Lumpur.
Sienna Parulis-Cook, Marketing and Communications Director at Dragon Trail Research, said the impact of the conflict is already being felt across the aviation sector.
“We are starting to feel the impact of the Iran war on the availability and price of jet fuel, and this is leading to some major cancellations of flights between China and Southeast Asia, especially by low-cost carriers,” she said.
She added that even where flights are still operating, travellers are facing higher costs.
“Flights between China and Southeast Asia that were still operating were about 18% more expensive on average than at the same time last year,” Parulis-Cook said.
Despite the disruption, some travellers have managed to avoid the fallout. May Pan, a 39-year-old Beijing resident, said her planned trip to Malaysia had not been affected.
“We planned this trip a long time ago, and I bought the air tickets six months ago,” she said. “I heard that many flights to Southeast Asia have been cancelled, but luckily, so far, ours remains unchanged.”
With uncertainties surrounding international travel, many Chinese tourists are turning to rail transport and domestic destinations as more reliable and affordable alternatives.
China Railway Group expects 158 million train trips to be made between April 29 and May 6, up from 151 million during the same period last year.
“People may choose to travel domestically by train. They can also get to Hong Kong and Macau by train, so not risking any flight cancellations that way,” Parulis-Cook explained.
The shift towards domestic travel is also reflected in booking trends. Travel agency Tuniu reported that bookings for self-driving group tours during the Labour Day holiday have surged more than 50% year-on-year, while demand for independent travel packages has risen nearly 20%.
In Zhejiang province, where school spring breaks coincide with the public holiday to create an extended “3+5” break, travel bookings have jumped 135% compared to last year, with reservations from nearby cities such as Huzhou and Hangzhou more than tripling.
Zhou Weihong, Deputy General Manager at Shanghai-based Spring Tour, said domestic travel is expected to dominate during the holiday period.
“The number of domestic trips ordered via our platform increased 20% year-on-year,” he said.
However, it remains uncertain whether overall spending per traveller will return to pre-pandemic levels, as budget-conscious consumers continue to seek cost-effective options.
The impact of the Iran conflict extends beyond aviation. According to Dragon Trail’s latest Chinese Traveller Sentiment Report, 43% of respondents said their travel plans had already been affected, while two-thirds reported a significantly reduced willingness to visit the Middle East and North Africa.
China’s tourism sector has increasingly become a key indicator of consumer confidence, as authorities attempt to stimulate domestic demand amid a slowing economy.
Retail sales growth rose by just 2.4% in the first quarter, lagging behind overall GDP growth of 5%, highlighting the challenges policymakers face in driving a consumer-led recovery.
In response, local governments have introduced a range of incentives to boost holiday spending, including cultural and tourism campaigns focused on spring outings, flower viewing and educational travel. Authorities have also distributed more than 284 billion yuan (about $41.6 billion) in consumption vouchers and subsidies to encourage spending during the holiday period.
Boluwatife Enome
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