Fliggy 2025 Travel Data Signals Strong Growth in Premium Travel Spending Amid Shift to Immersive Experiences

Chinese travelers are spending more, traveling longer, and seeking deeper cultural immersion, according to Fliggy’s 2025 Labor Day Travel Insights report. The data underscores a 12% year-on-year (YoY) rise in per capita outbound travel spending, driven by a strategic pivot toward luxury accommodations, niche experiences, and extended itineraries. This shift, combined with domestic trends like a surge in customized tours and car rentals, suggests robust opportunities for investors in premium travel services, tech-driven platforms, and culturally authentic destinations.

Domestic Travel: Luxury, Niche Experiences, and Remote Destinations Dominate

Domestic travel in China is undergoing a qualitative transformation. Travelers are no longer content with standard sightseeing; they are prioritizing authentic, immersive experiences. Fliggy’s data highlights:
- Customized tours saw an 80% YoY surge in bookings, with demand spiking for itineraries in culturally rich regions like Tibet, Shaanxi, Xinjiang, and Sichuan (up 300% YoY).
- Four- to five-star hotels and luxury stays rose 20% YoY, reflecting a preference for comfort and exclusivity.
- Car rentals in smaller cities like Pu’er and Datong jumped 100% YoY, as travelers embrace road trips to remote areas such as Golog (Qinghai) and Nujiang (Yunnan).

This trend signals strong demand for destination-specific operators and platforms offering tailored experiences. Investors might consider companies like Ctrip (CTRP) or niche players specializing in cultural heritage tours, which could capitalize on the 22% YoY growth in Fliggy’s “Buy Now, Plan Later” flexible travel products.

Ask Aime: "Domestic travel in China is booming, with a 22% YoY increase in customized tours and luxury stays. Where should I invest now?"

Outbound Travel: Japan Soars, Emerging Markets Blossom, and Cruise Demand Explodes

The outbound sector is diversifying rapidly, with Japan leading growth (passenger volume up 61% YoY) and destinations like Iceland, Qatar, and Nepal experiencing 170% YoY booking surges. Meanwhile, cruise bookings rose 60% YoY, fueled by demand for luxury and multi-day itineraries.

The 12% YoY rise in per capita outbound spending reflects travelers’ willingness to invest in longer trips and specialized activities, such as ACG-themed hotels in Japan or trekking in Nepal. However, Thailand’s bookings fell 13% YoY, attributed to social media-driven safety concerns, highlighting the fragility of destinations relying on mass tourism.

Tech and Policy: Digital Tools and Visa Flexibility Accelerate Recovery

Technological advancements and policy changes are enabling this spending boom. Fliggy’s partnership with Alipay+—which expanded cross-border e-wallet access to 70 markets—drove a 53% YoY rise in transit payments in Hong Kong and Macao. Meanwhile, visa-friendly policies between China and Japan, South Korea, and Iceland have spurred outbound demand, while inbound tourism to China grew 173% YoY due to improved visa-free access and tax refunds.

These trends favor tech-driven platforms like Fliggy’s parent company Alibaba (BABA), which benefits from its ecosystem of travel, payment, and logistics services.

Conclusion: A New Era of Premium Travel Spending

The Fliggy report paints a clear picture of a travel market rebounding stronger than pre-pandemic levels, with per capita spending growth, duration extensions, and preference for premium services defining the new normal. Key takeaways for investors:

1. Luxury and Personalization Are Winners:

2. The 20% YoY rise in luxury hotel bookings and 80% surge in customized tours suggest demand for high-end services will outpace mass tourism. Investors should target operators with niche offerings or tech platforms like Fliggy that facilitate tailored itineraries.

3. Emerging Destinations Offer High Growth Potential:

4. Markets like Iceland and Qatar, with 170% YoY booking growth, indicate untapped opportunities for travel agencies and airlines expanding into underpenetrated regions.

5. Cruise and Tech-Driven Services Are Strategic:

6. Cruise lines (e.g., Carnival Corp (CCL)) benefit from the 60% YoY surge in bookings, while platforms integrating digital payments (Alipay+) and flexible planning tools (Fliggy’s “Buy Now, Plan Later”) are critical to capturing the millennial/Gen Z market.

7. Policy and Infrastructure Matter:

8. Destinations with visa-friendly policies (e.g., Japan) or improved digital infrastructure (e.g., Alipay+) are attracting disproportionate spending, underscoring the need for companies to align with supportive regulatory environments.

With travel spending surpassing 2019 levels and per capita expenditures climbing, the sector is ripe for investments in premium services, tech platforms, and culturally rich destinations. Those positioned to deliver authenticity, flexibility, and luxury stand to benefit most from this new era of travel.