This week’s edition of CNBC’s “The China Connection” newsletter highlights the significant shifts in travel and entertainment trends as China approaches the Lunar New Year, one of its busiest holiday seasons. As residents prepare to celebrate, urban areas like Beijing begin to experience a noticeable calm with many people returning to their hometowns or seeking immersive travel experiences. Preliminary data from Fliggy, Alibaba’s travel platform, reveals that hotel bookings at theme parks have nearly doubled compared to last year, and interest in culturally rich trips featuring traditional performances and artisanal crafts has surged by approximately 40%.
Kenneth Chow, a principal at consulting firm Oliver Wyman, notes this newfound penchant for cultural engagement, particularly among younger generations eager to delve deeper into local arts and activities throughout China. As the official holiday spans from February 15 to 23, the extended travel period-a remarkable 40 days-from early February to mid-March, is poised to witness an estimated 110 million trips in and out of Beijing alone, and an astonishing total of 9.5 billion trips nationwide. This suggests that many of the country’s 1.4 billion residents will embark on journeys across multiple cities, embracing experiences that go beyond mere leisure.
H World Group, which manages over 20 hotel chains in China, reports increased demand not only in major transport hubs but also in leisure destinations like Xishuangbanna. Nestled near the borders of Myanmar and Laos, this region is celebrated for its lush nature and ancient Dai Buddhist temples. According to Trip.com, over 800 hotels have opened in the area over the past two years, boosting its tourism potential.
Entertainment companies are also tapping into the holiday rush, with iQiyi, often likened to “China’s Netflix,” recently launching its first theme park in Yangzhou. This venue features live theater and interactive virtual reality experiences based on popular streaming content. Founder Yu Gong emphasized the park’s strategic importance, stating, “As demand for offline entertainment surges, we see iQiyi Land as a new driver for our long-term growth.” Notably, this marks a significant move for the company, which has faced challenges retaining subscribers amid fierce competition in all forms of entertainment.
While these developments across the entertainment landscape are noteworthy, they unfold against a backdrop of sluggish consumer spending. December retail sales in China were only up 0.9% year-over-year, creating a delicate balance for businesses vying for consumer attention. Nevertheless, brands like Louis Vuitton continue to expand, launching two new stores in the past year while creating shareable experiences through high-profile celebrity endorsements and engaging retail environments. Shopping malls now showcase luxury products that align with the themes of the upcoming Chinese zodiac year of the horse, catering to a consumer base eager for meaningful experiences over traditional shopping.
As the Lunar New Year approaches, it’s clear that luxury brands and travel companies alike are adapting to a landscape where emotional connections and rich experiences take precedence. According to Stephen Chang, a portfolio manager at PIMCO, investors should concentrate on high-quality credit issuers in China as they navigate these evolving trends.
As markets prepare to reopen following the Lunar New Year holiday, with mainland Chinese exchanges resuming trading on February 24, both retail and corporate sectors face pressures to innovate and capture the enthusiasm surrounding this festive period.
Tags: China, Lunar New Year, Travel Trends, Entertainment, Consumer Spending, Luxury Brands.
Original Source: https://www.cnbc.com/2026/02/17/cnbcs-the-china-connection-newsletter-businesses-scramble-to-reach-chinas-growing-experiences-economy.html
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Publish Date: 2026-02-18 09:52:00
