Chinese travel media Travel Daily has released a report on the short- and medium-term impacts of the coronavirus crisis on China’s travel industry. Based on survey results, the report looks at what changes the crisis is likely to catalyze within the industry, which areas are hardest hit, and what view travel industry professionals in China have about recovery prospects. Click here to read the original report, in Chinese.
The crisis has prompted changes in the Chinese travel industry, as people see the importance of creativity and changing development strategies.
The virus is an alarm bell for the industry. After 20 years of rapid growth, the Chinese travel industry is now facing serious challenges, forcing the travel trade to look for new opportunities for business generation and growth.
Most of the industry does expect either marginal growth or an expansive rebound once the crisis abates.
For the Chinese hotel industry, domestic chains, international chains, and independent properties have all been hard hit. 70% of hoteliers reported sales declines of at least 20%. 67% said that occupancy was down by 20% or more. 26% said that the average room rate has fallen by 20% or more.
Looking specifically at the online travel and distribution market, we can see that hotels have been most negatively impacted, followed by outbound travel.
Looking at the travel industry as a whole, 70% predict recovery within six months, though 13% think it will take more than one year. 70% of reported that reservations were at least 20% lower than originally projected for the year. 68% saw revenue that was at least 20% below original estimates. 43% said that the average spend per traveler has fallen by 20% or more.
The travel industry expects that recovery will start with short trips taken to nearby locations, such as a weekend just outside the city where one lives. However, around one-third predict that outbound travel will recover quickly. Inbound travel is seen by nearly everyone as the segment that will recover last.
Which outbound destinations will be the first to see the recovery of Chinese tourism? The responses from the travel industry in this Travel Daily report line up exactly with consumer sentiments shared in Fliggy’s Post-Coronavirus Consumer Sentiment Report.