Expedia Group (EXPE) Eyes Experiential Travel Boom Amid China’s Extended Lunar New Year

Expedia Group watches experiential boom in China’s extended Lunar New Year travel season

OTAs pivot to package experiences as travellers favour culture and themed stays

China’s extended Lunar New Year travel season, stretching roughly 40 days from early February to mid‑March, is driving a shift from simple bookings to experience‑led travel that online travel agencies (OTAs) such as Expedia Group are watching closely. Domestic platforms report sharp rises in demand for immersive offerings: Alibaba’s Fliggy says bookings for theme‑park hotels nearly double year‑over‑year and trips featuring traditional performances and artisanal crafts rise about 40%. Consulting firm Oliver Wyman notes younger travellers are digging into local arts and festivals, turning curiosity about regional culture into consumer demand.

The trend prompts OTAs to reconfigure product sets and marketing to sell bundled experiences rather than rooms alone. High‑speed rail networks and affordable train fares make two‑hour leisure trips viable, so packages that combine train tickets, themed hotels and curated cultural activities become a practical product for platforms that can integrate inventory. For Expedia Group, this means tailoring search and recommendation algorithms, expanding supplier partnerships with theme parks and performance tours, and promoting short‑haul experiential itineraries that appeal to younger demographics and multi‑stop holiday patterns.

Commercially, the shift offers both opportunity and complexity. Entertainment companies are creating physical venues — for example video streamer iQiyi opening a theme park in Yangzhou — while hotel chains and regional operators expand properties in leisure hotspots. OTAs must manage a broader mix of inventory and experiences, negotiate complex supplier contracts, and deliver frictionless booking across transport, lodging and events. With consumer spending under pressure, converting cultural curiosity into paid experiences is central for platforms seeking to capture incremental revenue during the peak season.

China braces for record travel volumes

Chinese officials measure movement in “trips” and forecast exceptionally large flows this season, with authorities projecting about 110 million trips in and out of Beijing and an extraordinary 9.5 billion trips nationwide, implying many residents make multiple short journeys during the holiday period.

Regional hubs and new supply accelerate conversion

Hotel operator H World Group reports rising demand for major transport hubs and leisure cities such as Xishuangbanna, which recorded over 4 million visits and 5.04 billion yuan in tourism revenue last year. Trip.com notes more than 800 hotels opened in the region in the past two years, underscoring expanding supply that OTAs can package with local performances and indoor entertainment to monetise the experiential travel boom.