Trip.com Group Faces Challenges Amid Shifting Domestic Tourism Trends and Competitive Pressures

Domestic Tourism Shifts: Challenges and Opportunities for Trip.com Group

During China's Golden Week holiday from October 1 to 8, 2025, domestic tourism records indicate a total of 888 million trips taken, resulting in revenue of 809.01 billion yuan (approximately $113.63 billion). This represents a modest increase of 1.8% in trip volume and 7.6% in revenue compared to the previous year. However, these figures reveal a slowdown in growth relative to earlier holiday periods, particularly the May 1–5 holiday, which saw trip increases of 6.4% and revenue growth of 8%. The lower-than-expected growth raises concerns about the sustainability of the tourism sector, especially as consumer spending per trip lags about 3% behind pre-pandemic levels from 2019.

The implications of these trends are critical for Trip.com Group as it navigates a competitive landscape characterized by price wars and changing consumer behaviors. Mix Shi, founder of PoshPacker Hostels Chengdu Group, highlights the fierce market competition, noting that his fully booked hostels had to slash nightly rates by 60% to remain competitive against hotels offering even lower prices. This dynamic illustrates the pressure on profit margins and the need for innovative pricing strategies. Chengdu, which ranks second in tourism spending on the Meituan platform, exemplifies the shifting preferences of travelers, while HostelWorld reports that average bed prices in major cities like Chengdu and Shanghai have dropped significantly, reflecting a broader trend of price sensitivity among consumers.

As the Golden Week coincides with the Mid-Autumn Festival this year, traditionally associated with family reunions, businesses such as AJ Wang's X Hotel and Observatory Hill House in Qingdao report steep price reductions of 60% following the festival due to dwindling demand. Despite a reported 15.4% increase in revenue from the previous year during the holiday, the underlying competitive pressures pose challenges for companies like Trip.com Group. This environment calls for strategic adaptations to enhance customer engagement and loyalty, balancing pricing strategies with service quality to capture market share amid these evolving consumer dynamics.

Navigating Competitive Waters

The tourism sector's current state, marked by intense competition and fluctuating consumer demand, necessitates a proactive approach from Trip.com Group. As companies navigate these challenges, identifying niche markets and enhancing user experiences could offer pathways for growth.

Moreover, the drop in average spending per trip signals a potential shift in traveler priorities, emphasizing affordability and value. Trip.com Group must leverage this insight to refine its offerings and maintain relevance in a rapidly changing market landscape.