Trip.com Group Faces Challenges Amid Shifting Tourism Trends During Golden Week 2025

Tourism Trends During Golden Week Highlight Industry Challenges for Trip.com Group

During China's Golden Week holiday from October 1 to 8, 2025, domestic tourism sees a remarkable 888 million trips, generating a substantial revenue of 809.01 billion yuan (approximately $113.63 billion). While these figures reflect increases of 1.8% in trips and 7.6% in revenue compared to the previous year, they also indicate a noticeable slowdown compared to earlier holiday periods. For instance, during the May 1–5 holiday, tourism growth surged with a 6.4% increase in trips and an 8% rise in revenue. This trend raises concerns about the potential stagnation or "involution" within the industry. With travel patterns shifting, Trip.com Group faces the dual challenge of adapting to changing consumer behaviors while navigating a competitive landscape that pressures pricing.

Average spending per trip during this Golden Week is about 3% lower than pre-pandemic levels in 2019, prompting industry experts to question the sustainability of current growth rates. Mix Shi, founder of PoshPacker Hostels Chengdu Group, underscores the challenges of maintaining profit margins amidst fierce competition, as he reports having to slash nightly rates by 60% to remain competitive. Despite his hostels being fully booked, the pressure to offer lower rates reflects a broader trend affecting various accommodation providers. Chengdu's popularity surges, ranking second in tourism spending on the Meituan platform, but the overall pricing environment remains a concern for Trip.com Group and others in the sector.

The extended Golden Week, which coincides with the Mid-Autumn Festival, traditionally emphasizes family reunions and encourages domestic travel. However, business owners like AJ Wang from X Hotel and Observatory Hill House in Qingdao express frustration over declining demand post-festival, leading to aggressive price cuts of up to 60%. Despite reporting a 15.4% increase in revenue during this holiday period compared to the previous year, the competitive nature of the tourism sector continues to challenge businesses. For Trip.com Group, these market dynamics suggest an urgent need to innovate and differentiate offerings to remain attractive to travelers in a rapidly evolving landscape.

In addition to the overall revenue growth, Chengdu and Shanghai show significant price drops in accommodation, with HostelWorld reporting average bed prices declining over 20%. In Chengdu, prices reach 80.99 yuan ($11.27), while in Shanghai, they drop to 165.70 yuan ($23.27). Such reductions highlight the competitive pressures faced by operators in these key markets, compelling platforms like Trip.com Group to reassess their pricing strategies and value propositions.

Overall, the Golden Week holiday underscores a pivotal moment for the tourism industry, presenting both opportunities for growth and challenges that require strategic adaptation from key players, including Trip.com Group. As travel patterns evolve and competition intensifies, the need for innovation becomes paramount.