Companies scramble to succeed in China's rising experiences economic system

This report is from this week’s CNBC’s The China Connection publication, which brings you insights and evaluation on what’s driving the world’s second-largest economic system. You’ll be able to subscribe right here.

The massive story

There’s nothing fairly like the vacation rush in China for the Lunar New 12 months.

The Beijing metropolis streets begin emptying out a number of days prematurely as the vast majority of residents return to their hometowns or journey elsewhere. A quiet calm replaces the usually tense environment of individuals speeding to work or faculty.

So the place are the locals going? Immersive experiences rank excessive.

Bookings for theme park accommodations almost doubled from a 12 months in the past, whereas demand for journeys with conventional performances and artisanal crafts rose about 40%, in keeping with preliminary figures from Fliggy, a journey platform owned by Alibaba.

“We have seen a number of youthful era doing rather more deep dive into the cultural expertise, testing native actions when it comes to arts in China,” mentioned Kenneth Chow, a principal at consulting agency Oliver Wyman.

Pictured right here is the mascot for Chinese language video, animation and gaming platform Bilibili as a part of a competition forward of the Lunar New 12 months in Shanghai, China, on Feb. 7, 2026.

Vcg | Visible China Group | Getty Pictures

These are all traits that companies are attempting to seize in an in any other case difficult financial atmosphere.

Thus far, one factor’s clear from the numbers: persons are shifting round extra seeking new experiences, thanks partially to inexpensive trains and accommodations.

The official vacation runs from Feb. 15 to 23 this 12 months, however China’s broader journey season stretches roughly 40 days, from early February to mid-March. China counts journey when it comes to “journeys” fairly than individuals, and is predicting data this 12 months: 110 million journeys out and in of Beijing alone and a whopping 9.5 billion journeys nationwide. That signifies that the majority of China’s 1.4 billion individuals shall be touring to multiple metropolis.

H World Group, which operates greater than 20 resort chains in China, mentioned demand is up for each “main transport hubs and leisure-focused cities akin to Xishuangbanna,” a distant area on the border with Myanmar and Laos. Along with lush nature, the area is understood for its historic Dai Buddhist temples, constructed tons of of years in the past.

Reserving web site Journey.com exhibits that greater than 800 accommodations opened within the area within the final two years, together with a Hilton Backyard Inn and one in all IHG’s new premium “voco” branded spots.

Final 12 months, Xishuangbanna already reported greater than 4 million visits and tourism income of 5.04 billion ($730 million) yuan in the course of the vacation.

Theme parks push

Leisure firms are additionally discovering methods to work together with viewers in individual.

Forward of the vacation, video streaming firm iQiyi opened its first theme park in Yangzhou, a metropolis simply over two hours away from Shanghai by high-speed practice. The indoor venue options stay theater and interactive digital actuality experiences based mostly on in style exhibits streamed on iQiyi, generally known as “China’s Netflix.”

Founder and CEO Yu Gong did not shrink back from emphasizing the theme park’s significance to his firm. “As demand for offline leisure surges, we see iQiyi Land as a brand new driver for our long-term development,” he mentioned in a press launch.

It is a wanted enhance for iQiyi, which has struggled to retain paying subscribers towards competitors from short-form movies and exhibits on different platforms. The Yangzhou theme park opening was additionally delayed by a number of months.

It is the primary theme park by a video streaming firm in China. Rivals Tencent, Bilibili and Alibaba-owned Youku have but to open year-round experiences, however there is a rising push for occasions.

Shanghai-based Bilibili’s annual multi-day expo, the place characters from its animated exhibits and video games come to life, bought out in seconds.

In an effort to faucet into the same alternative, Common Studios Beijing introduced plans forward of the Lunar New 12 months to incorporate themes from a significant Chinese language animated movie, a online game and different regionally in style characters into upcoming customer actions — not only for the vacation however the coming weeks.

Even Pop Mart, the toy maker behind the Labubu dolls, additionally operates a theme park in Beijing.

Tepid market

All these come towards a pullback in general shopper spending. Retail gross sales in China grew by simply 0.9% in December from a 12 months in the past.

That hasn’t stopped Louis Vuitton from opening two new shops within the final 12 months — with a transparent emphasis on cultivating a shareable expertise. The European luxurious big has used celebrities to generate buzz concerning the model, whereas opening a restaurant and utilizing iconic retailer structure to generate buzz on social media.

Procuring malls are additionally filled with luxurious manufacturers displaying off garments and jewellery designed with the theme of the upcoming 12 months’s Chinese language zodiac image — a horse.

However what increasingly more shoppers in China clearly pays for is an emotionally wealthy journey to a brand new vacation spot. That is one thing companies might want to modify to.