The Zhitong Finance App learned that UBS released a research report saying that China's demand for outbound travel remains resilient, but the recovery is more selective. The overall travel frequency has improved, mainly driven by consumers in Tier 1 and 2 cities, while the frequency of travel in Tier 3 and 4 cities has declined. The number of travel days and the desire to travel in the future have also slowed down. The bank still has a constructive view on outbound travel volume, but it is expected that consumers will be more careful in their calculations.

The report points out that in the past six months, the frequency of outbound travel for first-tier and second-tier cities increased from 2.3 to 2.5, while third-tier and fourth-tier cities dropped from 2 to 1.8, falling back to 2019 levels. The average cost of each trip fell by about 15% year over year to 27,600 yuan, with the third- and fourth-tier cities falling even more significantly.

In terms of consumption structure, travelers are reducing expenses in non-essential categories such as shopping and entertainment, and shifting to essential travel expenses such as air tickets and lodging. In terms of destination, UBS pointed out that Japan is still the preferred travel destination, but the actual travel conversion rate has weakened due to safety, risk of natural disasters, and rising travel costs. Hong Kong, China, Macau, and Singapore remained resilient among some tourist groups.

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