Full Breakdown
Chinese Travelers Favor Homebound Trips as Jet-Fuel Prices Surge Amid Iran Conflict
4/29/2026, 8:39:49 AM
Flight Cancellations and Higher Fares Prompt Domestic Shift
During the May Day holiday, soaring jet-fuel prices tied to the Iran war forced carriers like Air China, China Eastern, Spring Airlines and AirAsia to cut or suspend routes to Bangkok, Phuket and Kuala Lumpur. The China Air Transport Association said 7.4 % of international flights—about 785—were cancelled, and fares rose about 18 % year-on-year.
Geopolitical and Economic Backdrop
The fuel surge follows Iran hostilities that have doubled jet-fuel costs since February. At the same time, China’s wage growth and consumer confidence have stalled, pushing travelers toward cheaper domestic options.
Travel Statistics for the May Day Holiday
China Railway Group expects 158 million train trips from April 29 to May 6, up from 151 million a year earlier. Tuniu says domestic self-driving tours rose over 50 % YoY, independent packages 20 %, and Zhejiang bookings surged 135 % with trips from Huzhou and Hangzhou tripling. Tongcheng data shows outbound bookings to Seoul and Jeju up over 150 %.
Industry and Government Responses
Dragon Trail Research flagged the fuel-price shock as the cause of cancellations, while Spring Tour reported a 20 % rise in domestic orders. Tuniu and local authorities have promoted spring outings and issued 284 billion yuan in vouchers to boost holiday spending.
Public Sentiment and Reservations
Dragon Trail’s Chinese Traveller Sentiment Report found 43 % of respondents say travel plans were affected, and two-thirds reduced willingness to visit the Middle East and North Africa. May Pan’s experience shows lingering concern over flight disruptions.
Divergent Views on Outbound Travel
Reuters-cited data stress reduced overseas demand due to fuel costs, while Global Times reports robust outbound bookings to South Korea, Russia and other nearby markets, noting a 30 % rise in orders to Russian border cities and steady growth in Southeast Asian flights.
Economic Significance for China’s Tourism Sector
Tourism is a barometer of consumer confidence; retail sales grew 2.4 % in Q1 versus 5 % GDP growth. Domestic travel and voucher subsidies aim to offset revenue loss from cancelled international flights.
Outlook for Upcoming Holiday Periods
Analysts expect summer and National Day holidays to sustain strong travel demand, with Europe remaining a top long-haul market. Ongoing fuel-price volatility will continue shaping airline capacity decisions.
Verbatim Quotes
- “I heard that many flights to Southeast Asia have been cancelled, but luckily, so far, ours remains unchanged.” — May Pan, 39-year-old Beijing resident
- “The number of domestic trips ordered via our platform increased 20 per cent year-on-year,” — Zhou Weihong, deputy general manager, Spring Tour
- “On the contrary, due to geographical proximity and convenient travel arrangements, our orders have increased by about 30 percent compared with last year,” — Xu Fang, marketing manager, international travel agency, Harbin
- “Nearby regions with shorter distances, more controllable risks and more convenient visa policies are still considered relatively safe destinations, which helps attract outbound travelers,” — Yang Yong, deputy director, College of Economics and Management, East China Normal University
- “Europe still sees the highest levels of inquiries and confirmed bookings, as the period from Qingming Festival to the National Day holidays has traditionally been the peak season for travel to the Northern Hemisphere,” — Wang Sen, marketing manager, UTour
