The Chinese tourism sector reported a general drop in revenues per room available (RevPAR), throughout the second half of this year, within Greater China.
Marriott’s RevPAR is down 4 percent. IHG’s RevPAR is also down 7 percent. Wyndham has reported a 17 percent decline during the quarter.
Leeny O’Berg, Marriott Chief Financial Officer, said during a recent earnings conference that the weaker demand and current price trends in Greater China might persist through 2024. He also noted that the biggest RevPAR decline is likely to occur during the third quarter.
Winners and Losers
It’s interesting to note that China is not the only giant in tourism experiencing a major slump. The hospitality sector in the United States also saw a slight year-on-year decline in the first half of this year. Right now, the average RevPAR is approximately 5 percent below what was seen in 2019.
India, however, continues to show steady growth. According to McKinsey’s recent report, The State of Tourism and Hospitality (The State of Tourism and Hospitality), India is now the world’s sixth largest domestic travel market by spending.
The report stated that the growth of the Indian middle-class is the primary reason for this development. The country’s travel spending could increase by as much as 9 percent annually.
The report shows that India could surpass both Japan and Mexico in terms of travel by the end the decade, making it the fourth largest travel market on the planet.
Views: 3,677
Related to the topic:
- IndiGo system slowdown could lead to slower check-ins IndiGo, the domestic carrier, announced on Saturday that it was experiencing a temporary system downtime across its network. This is affecting its website as well as bookings. The airline said that this could also result in slower check-ins, and it is working hard to restore normalcy as soon as possible. "We're currently experiencing a temporary slowdown in our network. It affects both our website and our booking system. IndiGo warned that the increased wait time could affect customers, including longer queues and slower check-ins. The booking system has not been working since 12 noon. At…
- Golden Week: Chinese travellers get cost-conscious The Chinese government points out that the Golden Week, which began on October 1, may not necessarily lead to more spending from those who travel in and out of China. Due to China's economic slowdown and historically low confidence in consumers, many people will be taking longer holidays for the holiday. However, they intend to stay within their budget. Most have chosen to fly to cheaper domestic destinations or closer overseas destinations. This is because of the recent drop in airfares by a number airlines. Golden Week has traditionally been the peak travel period in…
- China's visa-free policies: More countries added China has announced that it will expand its visa free policy to allow visitors from up to 38 countries to remain for up to thirty days without requiring visas from November 30, 2020. The new policy will be in place until December 31, 2025. According to reports, the experiment is meant to encourage tourism and exchanges with other countries. This change will double the 15-day visa-free stay previously allowed. The list has been updated with the addition of: Bulgaria Romania Croatia Northern Macedonia Malta Estonia Latvia Japan Visa-free stay extended The Ministry of Foreign Affairs…
