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Growth without lift in China’s $151.8B travel market

  • phocuswright.com
  • 13 September 2025
  • 2 minute read
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This article was written by Phocuswright. Click here to read the original article

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China’s travel market advanced 5.5% in 2024 to reach $151.8 billion, a slower pace than many expected. According to Phocuswright’s research report China Travel Market Essentials 2025, the growth highlights both the scale of demand and the ongoing challenges of restoring pre-pandemic momentum. Despite more than 5.6 billion domestic trips, oversupply and subdued economic confidence kept fares and rates from rising.

The structure of the market is distinctive. Domestic suppliers control rail, car rental, online travel agencies and much of the hotel sector, while three state-backed airline groups continue to dominate the skies. International hotel brands are expanding in major cities and beginning to reach lower-tier markets, while Chinese chains still hold the advantage in budget and mid-range properties.

Outbound travel is strengthening, led by affluent and independent travelers. Although volumes will not return to 2019 levels until 2026, outbound trips are projected to surpass the 155 million benchmark in 2025. Rail and self-drive travel are flourishing, group tours are becoming leaner and more tailored, and business travel is constrained by tighter corporate budgets.

OTAs like Ctrip, Fliggy, Tongcheng, Meituan and Tuniu have invested huge sums in proprietary AI engineering and data science, expanded their customer acquisition strategies and reframed their membership programs with aspirational rewards and incentives. In addition to launching tour products for target demographics like solo travelers, seniors and graduates, OTAs are expanding their offline store networks in lower-tier cities to broaden their sales channels and customer bases. Since China reopened in 2023, OTAs have been notable beneficiaries.

Why Connectivity Is Now Central to Hotel Performance
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Why Connectivity Is Now Central to Hotel Performance

Unlock the full picture of China’s complex travel market in Phocuswright’s China Travel Market Essentials 2025. This new Essentials format delivers top-level takeaways, complete with charts and analysis on the trends, segment highlights and market sizing datapoints that matter most.

Explore how online revenue reached 73% of the market in 2024 and is projected to climb to 82% by 2028, how OTAs are driving growth both domestically and abroad, and why hotel revenue remains under pressure. Learn what’s behind slower-than-expected expansion and when gross bookings are expected to finally surpass 2019 levels.

This report is part of the Asia Pacific Travel Market Report 2025 series, which also features in-depth coverage of Australia-New Zealand, India, Japan, Northeast Asia, Southeast Asia and more. Subscribers gain exclusive access to the Asia Pacific Travel Market Data Sheet for at-a-glance insights across the region.

Get the full report and see what’s shaping the future of China’s travel market.

Phocuswright Open Access

Phocuswright Open Access gives your entire team unlimited access to the travel industry’s most trusted research—no seat limits, no paywalls. Get instant insights from in-depth reports, interactive dashboards, and downloadable datasets, plus tailored answers from analysts and a dedicated concierge to guide your journey.

It’s more than research—it’s your competitive edge. Validate opportunities, support internal strategy, and stay ahead of change with always-on intelligence organized by sector, region, and trend. Move faster, with confidence, and lead the industry forward. Get your competitive advantage started now.

Please click here to access the full original article.

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