Have you ever planned a trip expecting a vibrant holiday escape, only to find yourself caught in a whirlwind of slashed prices and overcrowded hotspots? That’s exactly what unfolded during China’s Golden Week this year, a national holiday from October 1 to 8 that promised a travel boom but revealed a fiercer reality: a cutthroat price war shaking the tourism industry. As millions hit the road, businesses scrambled to attract customers, slashing rates and sparking questions about the sustainability of this frenzy. Let’s dive into what made this year’s holiday both a traveler’s paradise and a business owner’s headache.
Golden Week: A Tale of Travel and Tension
Every year, China’s Golden Week transforms cities into bustling hubs of tourism, with families and adventurers flocking to iconic destinations. This year’s holiday, extended by a day to include the Mid-Autumn Festival, saw a staggering 888 million domestic trips, generating over 809 billion yuan ($113 billion) in revenue. Sounds impressive, right? But beneath the surface, the numbers tell a more complex story—one of slowing growth, shrinking profits, and a race to the bottom in pricing.
Compared to the May holiday earlier this year, which saw domestic trips rise by 6.4% and revenue by 8%, Golden Week’s growth was modest at 1.8% for trips and 7.6% for revenue. Even more telling, the average spending per trip dropped by about 3% compared to pre-pandemic 2019. For travelers, this meant more bang for their buck, but for businesses, it was a wake-up call. I can’t help but wonder: is this travel surge a sign of economic vitality or a red flag for deeper challenges?
The Price War: A Double-Edged Sword
Imagine booking a cozy hostel in Chengdu, only to find that nearby hotels have slashed their rates by 60%. That’s the reality many business owners faced this Golden Week. One hostel owner in Chengdu shared that despite full bookings, he had to cut nightly rates drastically to compete with larger hotels. “The competition is insane,” he said, pointing out that an influx of investment in the hotel industry has flooded the market with options, driving prices down.
Way too much money has been pouring into the hotel industry lately. Some really nice places are going for dirt cheap. It’s great for travelers, but it’s a real blow to smaller businesses.
– Hostel owner in Chengdu
This price war isn’t just about hotels undercutting each other. It reflects a broader trend of involution—a term used to describe hyper-competition where businesses work harder for diminishing returns. For travelers, this means unprecedented deals, but for the industry, it’s a brutal squeeze on profits. In cities like Shanghai and Chengdu, average bed prices dropped by over 20%, with a night in a Chengdu hostel costing as little as 80.99 yuan ($11). As a traveler, I’d be thrilled, but as someone rooting for small businesses, this feels like a race no one wins.
Why the Frenzy? Understanding the Travel Surge
So, what’s fueling this travel boom despite the price cuts? For one, China’s infrastructure makes spontaneous travel a breeze. With an extensive network of high-speed trains and affordable flights—sometimes cheaper than train tickets—last-minute trips are more accessible than ever. This year, travelers leaned into this flexibility, often booking accommodations just a day or two in advance, hunting for the best deals.
The extended holiday, overlapping with the Mid-Autumn Festival, also played a role. Traditionally a time for family reunions, the festival boosted early-week travel, but demand tapered off after October 6. One hotel owner in Qingdao noted that after the festival, he had to slash prices by 60% to fill rooms. It’s a stark reminder that even during peak seasons, timing matters.
- Flexible travel options: High-speed trains and budget flights make spontaneous trips easy.
- Festival overlap: The Mid-Autumn Festival drove early-week bookings but led to a late-week slump.
- Deal-hunting travelers: Last-minute bookings pushed businesses to lower prices to stay competitive.
This dynamic created a traveler’s market, where savvy tourists could score incredible deals by timing their trips strategically. But for businesses, it meant unpredictable revenue and razor-thin margins.
The Rise of Smaller Cities and Road Trips
While megacities like Shanghai and Nanjing topped the charts for tourism spending, smaller cities stole the spotlight this year. Places like Chengdu, famous for its spicy cuisine and panda sanctuaries, saw a surge in visitors, with hostel bookings doubling compared to last year. Travel platforms reported that hotel bookings in over 30 smaller cities and less-developed areas more than doubled, driven by lower prices and a desire for unique experiences.
Road trips also gained traction, with an average of 304 million daily trips, mostly by car. This shift reflects a growing preference for flexibility and off-the-beaten-path destinations. Travelers aren’t just chasing landmarks anymore; they’re seeking authentic, budget-friendly adventures. In my experience, there’s something special about discovering a hidden gem in a smaller city—it feels like you’ve unlocked a secret the crowds haven’t found yet.
Economic Implications: A Boost or a Bust?
The Golden Week travel surge paints a rosy picture of consumer demand, but economists warn it’s not the full story. Despite the record-breaking trips, China’s consumer price index remains under pressure, with official figures showing a 0.4% year-on-year decline in August. Even the tourism sub-segment, while up 0.7% in August, was down 0.3% for the first eight months of 2025 compared to 2024.
The Golden Week unleashed a wave of energy across China: record-breaking travel and fresh spending trends gave domestic demand a solid boost. Still, it might take a while before consumer prices return to positive growth.
– Economics professor
This deflationary pressure, coupled with the price war, raises questions about the long-term health of the tourism industry. Businesses are working harder than ever, but profits remain elusive. For example, a restaurant owner in Guangzhou reported daily sales jumping from 3,000 yuan to 10,000 yuan during the holiday, yet the average customer spent just 30 yuan. “We broke our revenue record,” he said, “but we were too exhausted to celebrate.”
Tips for Navigating the Golden Week Chaos
If you’re planning to join the Golden Week frenzy in the future, a little strategy can go a long way. Here’s how to make the most of this vibrant but chaotic travel period:
- Book strategically: Travel just before or after the holiday to snag deals, as prices can drop by 20-30% outside peak days.
- Explore smaller cities: Destinations like Chengdu offer unique experiences at a fraction of the cost of major hubs.
- Leverage technology: Use travel apps to compare real-time prices for flights, trains, and accommodations.
- Plan for flexibility: With last-minute deals abound, keep your itinerary open to capitalize on sudden price drops.
By staying flexible and doing a bit of research, you can turn the price war to your advantage. It’s like finding a hidden treasure in a crowded market—thrilling and rewarding.
What’s Next for China’s Tourism Industry?
As China pushes to boost consumption through extended holidays and more vacation days, the tourism industry faces a pivotal moment. The Golden Week showcased the country’s appetite for travel, but the price war highlights a deeper challenge: balancing growth with profitability. Perhaps the most interesting aspect is how businesses adapt—will they innovate with unique offerings, or continue slashing prices in a race to the bottom?
Travelers, meanwhile, have more opportunities than ever to explore China’s diverse landscapes, from bustling cities to serene countryside retreats. The rise of smaller destinations and road trips suggests a shift toward more personalized, budget-conscious adventures. For me, that’s the real magic of Golden Week—not just the numbers, but the stories of travelers chasing new experiences and businesses fighting to keep up.
So, what’s the takeaway? Golden Week 2025 was a paradox—a record-breaking travel boom overshadowed by a bruising price war. For travelers, it’s a golden opportunity to explore on a budget. For businesses, it’s a wake-up call to rethink strategies in a hyper-competitive market. Whether you’re planning your next trip or just curious about global travel trends, one thing’s clear: China’s Golden Week is more than a holiday—it’s a window into the evolving dynamics of travel and economics.
