The great change in tourism: from outbound to county-level, the high-end scene is gone.

"The May Day" is one of the most important festivals in China and also a golden period for the tourism market. During the "May Day" holiday, many scenic spots across the country are crowded with people.

For example, on the first day of the "May Day" holiday, Shandong welcomed a booming start. The 200 key monitored tourist attractions in the province received a total of 3.577 million visitors on the day, an increase of 33.8% compared to the same period last year. The ticket revenue and business income also achieved double-digit growth, reaching 59.609 million yuan and 2.02 billion yuan, an increase of 42.1% and 35.2% respectively. According to the monitoring data of Shanghai tourism, during the "May Day" holiday, Shanghai received a total of 16.2394 million visitors, an increase of 3.77% compared to the same period last year; the major tourist attractions in Shanghai received a total of 7.32 million visitors, an increase of 15% compared to the same period last year.

It is worth mentioning that the tourism market saw a structural change during the 2024 "May Day" holiday: the growth rate of outbound tourism exceeded that of domestic tourism, and "county tourism" became a new trend, with niche tourist destinations rising rapidly.

Although Beijing, Shanghai, Guangzhou, Chengdu, Hangzhou, and Xi'an are still hot tourist cities, the barbecue in Zibo, Shandong, the "Wang Po" in Kaifeng, Henan, the spicy hot pot in Tianshui, Gansu, and the "CunBA" in Taijiang, Guizhou, also attracted a large number of tourists, and even the growth rate of tourism orders exceeded that of hot tourist cities. With the surge of "county tourism," the tourism market seems to be undergoing a major transformation.

01. "County Tourism" Welcomes "Prosperity"

During the "May Day" holiday, a significant change in the tourism market is the more obvious trend of tourism sinking.

The data from online travel platforms (OTA) confirms the popularity of "county tourism." Ctrip's "2024 May Day Holiday Travel Summary" pointed out that the growth rate of tourism orders in the county market and third- and fourth-tier cities has exceeded that of first- and second-tier cities. During the "May Day" holiday, cities such as Yangzhou, Luoyang, Qinhuangdao, Weihai, Guilin, Kaifeng, Zibo, Huangshan, Tai'an, and Shangrao were relatively popular third- and fourth-tier destinations, with an average growth of 11% in tourism orders. The average growth of tourism orders for popular county tourism destinations such as Anji, Tonglu, Dujiangyan, Yangshuo, Mile, Yiwu, Wuyuan, Jinghong, Kunshan, and Pingtan reached 36%.

A report on "May Day Holiday Travel Consumption" released by Tongcheng Travel showed that the search popularity for "niche" related tourism increased by 172% compared to the previous period, and the search popularity for "off-the-beaten-path" related tourism increased by 113%. The hotel booking volume in domestic third-tier and below cities during the "May Day" holiday increased by more than 150% compared to the same period in 2019.

Alibaba's Fliggy data also showed that the average growth rate of tourist bookings in destinations such as the Qianxinan Buyei and Miao Autonomous Prefecture, Liupanshui, Ali, Jiayuguan, Lingshui Li Autonomous County, Ulanqab, Hainan Tibetan Autonomous Prefecture, Anshun, Jingdezhen, and Shuozhou was twice that of the previous year.

The trend of tourism sinking is driven by the changing consumer demand for tourism, namely the upgrade from "sightseeing" to "vacation." Experience-based travel is replacing traditional sightseeing.

Zhang Xuefei, who gave up the "special forces" style of tourism in Beijing and chose to vacation in Weihai, said that compared to the crowded tourist attractions in Beijing, Weihai is more suitable for relaxing and enjoying the holiday, and it offers better value for food, accommodation, and entertainment.

Liu Yang, who works in Beijing, said that places like Shanghai and Wuhan are definitely crowded, and during the "May Day" holiday, he just wants to find a seaside to relax and unwind, "I have already booked a homestay in Lianyungang. I rarely have the opportunity to travel since I started working, and I can't waste this holiday suitable for a seaside vacation."

In fact, more and more tourists have new demands for tourism, especially in terms of personalization, differentiation, and relaxation, such as paying more attention to the uniqueness of regional culture, which can bring a different cultural experience, while maintaining a lower degree of commercialization to preserve some imprints of the times. In addition, it should have local characteristics that can make people feel unique and novel.

An industry insider told DoNews, "The emphasis on immersive experiences is the biggest highlight of 'county tourism.' Tourists can simply go to a music festival, stroll along narrow streets, or chat with locals to understand the local customs. Overall, the 'experience' is replacing the 'destination' and becoming the primary demand for travel."

02. Outbound Tourism Market Sees a Boom

Since 2023, several countries including Georgia, Thailand, Tunisia, Malaysia, and Sri Lanka have announced visa-free entry for Chinese tourists. Under the influence of visa-free policies, the demand for outbound tourism by Chinese tourists has significantly increased. During the "May Day" holiday, outbound tourism once again heated up.

Alibaba's Fliggy released the "2024 May Day Holiday Travel Quick Report," showing that this year's "May Day" holiday saw a faster recovery in outbound tourism, with nearly double-digit growth on the basis of last year's substantial rebound. Among them, the hotel booking volume for outbound tourism increased by about 1 time compared to last year; self-driving tours from domestic to overseas destinations saw a more than 3-fold increase in booking amount compared to last year; international cruise supply quickly recovered, and cruise tourism experienced a surge, with booking volume increasing by more than 15 times compared to last year.

During the "May Day" holiday period on the Ctrip platform, Chinese tourists' outbound travel covers nearly 200 countries and over 3,000 towns worldwide. Short-haul destinations such as Southeast Asia, Japan, and South Korea are popular, while long-haul destinations mainly include the United States, Australia, and the United Kingdom. The Middle Eastern countries such as Oman, Saudi Arabia, and Kuwait have seen a high growth rate in outbound travel, with a year-on-year increase of over 3 times. Among the long-haul destinations, Spain, Turkey, Austria, Slovenia, Italy, and Georgia have also seen a high growth rate in outbound travel, with a year-on-year increase of over 1.5 times.

The heat of outbound tourism has continued from the Spring Festival holiday to the "May Day" holiday. The current heat of outbound travel far exceeds expectations, and this year's "May Day" is expected to set a new record in transactions. An industry insider revealed to DoNews, "It is very obvious that various airlines are still continuously increasing the supply of international routes, and most of the new flights are concentrated in Southeast Asia, Japan, and Europe."

For example, China Southern Airlines plans to add more than 900 extra flights from April 30 to May 6, with nearly 19,000 planned flights. In terms of international routes, the focus is on increasing flights from Guangzhou to Bangkok, Phuket, and Ho Chi Minh City, as well as adding flights from Guangzhou to Nha Trang and Manila. China Eastern Airlines has recently added and resumed multiple international and regional routes, including flights from Beijing, Shanghai, Lanzhou, Xi'an, Qingdao, and other cities to Thailand, Singapore, Japan, Riyadh, and Moscow. Air China also announced the opening of four new international routes before the "May Day" holiday, including the Beijing-Madrid-Sao Paulo route, which is the first route to South America in the history of domestic airlines, crossing three continents and being one of the longest routes in the world.

It is worth mentioning that compared to the past, tourists traveling abroad are now refusing to rush to "shop till they drop" or take a superficial sightseeing tour as they did in the past. Instead, they hope to have the opportunity to experience the authentic local lifestyle. Data from Fliggy shows that in the choice of outbound travel methods, the proportion of group tours has decreased compared to last year, while the proportion of independent travel continues to rise. The booking volume for overseas car rental services on Fliggy has increased by nearly 4 times compared to last year.

03. Traveling in groups of the same age has become a trend

The younger generation is becoming the main consumer group in the travel market.

According to the "2023 Tourism Big Data Report" released by Mafengwo, in 2023, the post-2000s and post-1990s generations accounted for 68% of the total, making the younger generation the main force in outbound travel. Data from Ctrip shows that during the "May Day" holiday period, young tourists represented by college students (18-22 years old) were very active, with post-2000s travelers accounting for 31% of the travel orders, a 20% year-on-year increase.

The post-2000s generation is taking over the tourism market, indicating a shift in consumer attitudes towards travel, which will bring about significant changes in the tourism market. The post-2000s generation tends to pursue individuality and uniqueness, emphasizing aesthetics and personal characteristics. This consumer mindset makes them pay more attention to experiences and quality rather than simple price factors when choosing travel products.

For example, during the "May Day" holiday period, there was a surge in consumption for "New Chinese-style" tourism. "New Chinese-style" tourism refers to a new type of cultural and tourism experience centered around visiting ancient cities and towns, experiencing intangible cultural heritage, visiting museums and exhibitions, and taking photos in traditional costumes. Data from Tongcheng Travel shows that during the "May Day" holiday period, the booking heat for popular museums and ancient towns increased by more than 4 times compared to the same period last year. The Terracotta Warriors and Horses Museum, the Palace Museum, the Sanxingdui Museum, and the Luoyang Museum were the most popular museums during the holiday. Ancient towns such as Zhangzhou, Lijiang, Luzhi, Kashgar, and Nanxun attracted attention with their respective cultural charm and architectural features.

In addition, during the "May Day" holiday period, travel groups targeting young people have also become a new trend, becoming the favorite choice for the post-2000s generation.

These same-age travel groups do not focus on shopping, do not require early rising, and not only offer customized travel routes but also provide professional travel photography and aerial photography services, turning travel into a social game.

An industry insider told DoNews, "Same-age travel groups pursue comfort, as everyone is young, there is no generation gap in communication. There are no psychological concerns with strangers, creating a more open and free travel atmosphere." "This generation of young travelers is more willing to pay for the experience, providing new ideas and directions for the transformation of the tourism consumption market."

Minsheng Securities pointed out in a research report that the travel of the younger generation can be summarized as follows: basic needs drive travel motivation, spiritual resonance anchors travel goals, and destination elements determine travel behavior. This means that to capture the younger generation, efforts need to be made in terms of price and value, destination service system and reputation, and novelty.

Overall, during the "May Day" holiday period, the tourism market has undergone many changes, and it has also served as a wake-up call for the tourism industry. After the post-2000s generation becomes the main force in tourism consumption, the previous market framework, business models, and development directions will all face adjustments and reshaping. Those who can seize the opportunity will be able to lead the new trend.