China’s travel recovery gains steam: How families are planning their summer vacations
McKinsey’s latest China traveler survey shows a strong desire among Chinese families to resume their travel plans.
While the global travel sector continues to withstand the negative impact of the COVID-19 pandemic, some markets have started to show signs of recovery. In China, where the virus first broke out, domestic airline passenger levels have grown steadily, and now sit at 50 percent of precrisis levels. Hotel occupancy rates have also improved since the depths of the crisis, and are now back to 60 percent of last year's levels. Domestic travel is now positioned to accelerate as summer approaches, with segments that drive demand during this period, such as families, reporting an increased desire to travel in the near term. In this article we explore some key trends in travel, and how these have changed from the early stages of COVID-19 recovery, in April.
Last month, we published early insights of traveler sentiment gathered directly from consumers in China. To better understand how quickly sentiment is changing in China, which was among the first to recover from the crisis, we conducted the same traveler sentiment survey in mid-May, a month after we collected the initial findings. While many trends from the April findings persisted through May, the latest survey data indicates some changes in the profile of travelers expecting to make a trip over the summer season. The data shows a return to previous trends, with families and retirees showing an interest in getting back into the market.
To assess how traveler responses have changed over time, we used the same methodology as the previous survey. Respondents to our survey took a domestic or international leisure trip within the past year, and were based in Shanghai, Beijing, Guangzhou, Shenzhen, Chengdu, Xian, Xiamen, and Wuhan. We collected data from May 13 to May 19, and compared it with the results of our April traveler sentiment survey.
What trends have remained stable?
Four trends highlighted in April are consistent with the responses to our survey in May, which gives us confidence that these trends will persist through the summer and early fall. First, domestic destinations remain a top choice due to outbound travel restrictions, with 52 percent of respondents preferring this choice versus 55 percent in April. Second, trips to scenic outdoor spots, "foodie" tours, and trips to family attractions constitute the most popular types of trips, as people continue to avoid crowded tourist spots. Thirdly, we anticipate fewer leisure travel groups as people plan to travel mainly with immediate family members. Finally, guided group tours remain less attractive to travelers than self-guided and self-driven trips, compared with pre-COVID-19 traveler patterns.
