China’s 2025 Golden Week (October 1-8) delivered another surge in travel and consumption, as the last major public holiday of the year supercharged the nation’s transport, tourism, and retail sectors. According to the Ministry of Transport, a massive 2.36 billion passenger journeys were made—up 3.2% from last year—with train and flight traffic setting new one-day records. Despite the flood of travelers, however, average spending per trip dropped to 911 yuan, a recent low, highlighting both a relentless travel industry price war and the ‘consumption downgrade’ trend in China.

Fierce price competition drove companies to slash airfares, hotel rates, and even movie ticket prices (which hit a five-year low at just 36.6 yuan). Online travel platforms rolled out aggressive discounts on group tours and self-guided packages, pulling down overall tourist spending. Consumers—facing sluggish income growth and a fragile housing market—are increasingly opting for budget-friendly options.

Yet, the Golden Week economy still sent a strong signal of resilience. Retail and dining revenue surged, and overseas travel demand soared, with Japan and Southeast Asia among the top destinations. Interestingly, while budgets were tight for many, the luxury segment grew robustly—more Chinese travelers were ready to splurge on four-star hotels and bespoke experiences, underscoring a split in market preferences.

The travel industry’s price war is likely to persist as companies adapt to China’s rapidly transforming consumer landscape. As the market matures and competition intensifies, expect further innovation and specialization in the tourism sector—benefiting both value-seekers and experience-focused travelers.