Worldpay expects online sales for airlines and travel agents in China to have soared in the run-up to this year’s ‘Golden Week’ Festival. The yearly boost in retail, travel, and tourism in the weeks leading up to the October holiday continues to grow, helped by the increasing spending power of Chinese consumers.
Compared with 2013 sales, global payment provider Worldpay saw its transaction volumes surge by over 120% in China in the two weeks leading-up to Golden Week last year. In 2014, average transaction values were also 7% higher than average the week before Golden Week, marking a turnaround from 2013 when transactions values were actually slightly below average over the same period.
Despite reports of slower growth in China in recent months, the outlook is bright for online travel merchants and airlines during Golden Week. In 2014, online travel merchants saw last minute sales volumes in China jump 180% in the period leading up to Golden Week, nearly doubling 2013 figures. The value of an average transaction over the same period actually dropped 21% in between 2013 and 2014, suggesting online players have started competing more aggressively on price in China to attract the country’s fast-growing customer base.
Airlines also saw last minute sales take off in China ahead of Golden Week in 2014, with transaction volumes rising more than 30% compared with 2013 in the two weeks leading up to the holiday.
Thomas Helldorff, VP of Global Travel at Worldpay, said: “The ‘gold rush’ ahead of Golden Week has quickly become one of the major focusses of the year for businesses operating in China, and doubly so for travel agents and airlines. If last year’s spikes are any indication of what’s to come, companies that prepared themselves to make the most of this year’s holiday can expect a short but significant jump in sales.”
With autumn comes the second of two annual Golden Weeks in China. Kicking off on “National Day” each 1st October, the week-long public holiday has become the prime time for Chinese consumers to travel internationally and domestically to visit friends and family.
For more information please contact:
Golin for Worldpay, WorldpayeCommTeam@Golin.com
About the data:
Figures quoted are according to Worldpay transactional data, covering online customer transactions, during September-October 2014. Figures refer to authorisation data for airlines and travel websites visited by Chinese cardholders during the weeks prior to Golden Week 2014 and are compared to average authorisation data over the same period in 2013.
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