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Businesses scramble to reach China’s growing experiences economy

This report is from this week’s CNBC newsletter The China Connection, bringing you insights and analysis into what’s driving the world’s second-largest economy. You can subscribe Here.

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There’s nothing like the holiday rush in China for Lunar New Year.

The streets of Beijing city begin to empty a few days in advance as the majority of residents return to their hometowns or travel to other places. The normally tense atmosphere of people rushing to work or school is replaced by a quiet calm.

So where do the locals go? Immersive experiences rank high.

Bookings for theme park hotels have nearly doubled from a year ago, while demand for rides featuring traditional shows and crafts is up nearly 40%, according to preliminary figures from company-owned travel platform Fliggy. Alibaba’s.

“We have seen many younger generations delving much more deeply into the cultural experience, testing local events in China from an artistic perspective,” said Kenneth Chow. Director of consultancy firm Oliver Wyman.

Pictured is the mascot of Chinese video, animation and gaming platform Bilibili, as part of the festival held before the Lunar New Year in Shanghai, China, on February 7, 2026.

VCG | Visual China Group | Getty Images

These are all trends that businesses are trying to capture in a challenging economic environment.

One thing is clear from the figures so far: People are moving more in search of new experiences, thanks to affordable trains and hotels.

This year, the public holiday runs from February 15-23, but China’s broader travel season lasts about 40 days from early February to mid-March. China views travel in terms of “trips” rather than people and predicts records this year: 110 million trips He goes in and out of Beijing alone and makes a huge mistake. 9.5 billion trips nationwide. This suggests that most of China’s 1.4 billion people will travel to more than one city.

H World Group, which operates more than 20 hotel chains in China, said demand was increasing in both “major transportation hubs and entertainment-oriented cities”. xishuangbanna“It is a remote region on the border of Myanmar and Laos. In addition to its lush nature, the region is also known for its ancient Dai Buddhist temples built hundreds of years ago.

Booking site Trip.com shows more than 800 hotels have opened in the area in the past two years, including the Hilton Garden Inn and one of IHG’s new premium “voco” branded spots.

Last year, Xishuangbanna already reported more than 4 million visits and tourism revenue 5.04 billion ($730 million) yuan during the holiday.

Theme parks are under pressure

Entertainment companies are also finding ways to engage with audiences in person.

Video broadcasting company ahead of the holiday iQgood opened its first theme park in Yangzhou, two hours away from Shanghai by high-speed train. The indoor venue features live theater and interactive virtual reality experiences based on popular shows streaming on iQiyi, sometimes called “China’s Netflix.”

Founder and CEO Yu Gong did not shy away from emphasizing the theme park’s importance to his company. “As the demand for offline entertainment grows, we see iQiyi Land as a new driver for our long-term growth,” he said in a press release.

It’s a necessary boost for iQiyi, which has struggled to retain paying subscribers against competition from short videos and shows on other platforms. The opening of the Yangzhou theme park was also postponed by several months.

This is the first theme park built by a video streaming company in China. competitors Tencent, bilibili and Alibaba-owned Youku have yet to launch year-round experiences, but there is a growing push for events.

Shanghai-based Bilibili’s annual multi-day fair where characters from its animated shows and games come to life. sold out in seconds.

To capitalize on a similar opportunity, Universal Studios Beijing announced its plans ahead of the Lunar New Year. include themes From a major Chinese animated movie, a video game and other locally popular characters to visitor events not just for the holiday but in the coming weeks.

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

warm sunday

All of this comes in the face of a downturn in overall consumer spending. Retail sales in China It grew by only 0.9% in December compared to a year ago.

That hasn’t stopped Louis Vuitton from opening two new stores in the last 12 months; clearly emphasized developing a shareable experience. The European luxury giant used celebrities to generate buzz about the brand, while opening a cafe and using its iconic store architecture to generate interest on social media.

Shopping malls are also full of luxury brands displaying clothes and jewelry designed with the theme of the horse, the Chinese zodiac symbol of the coming year.

But what more and more consumers in China will clearly pay for is an emotionally rich journey to a new destination. This is something businesses need to adapt to.