Date: 19 September 2024
Broker: MIB Securities (Hong Kong) Ltd
Travel Surge During Mid-Autumn Festival
Tongcheng Travel (780 HK) is set to benefit from the surge in both inbound and outbound travel during China’s upcoming Mid-Autumn Festival holiday. According to the National Immigration Administration (NIA), a significant increase in passenger trips is expected, with a daily average of 1.8 million trips forecasted during the holiday period. This represents a 21.9% rise compared to the same period last year.
Positive Outlook for Golden Week
The upcoming National Day Golden Week (1-7 October) is another critical period for the travel industry. If travel demand during the Mid-Autumn Festival exceeds expectations, investor confidence is likely to rise ahead of the Golden Week holiday. Historically, the Golden Week period has been a peak travel season for Chinese tourists, offering further growth opportunities for Tongcheng Travel.
Strategic Positioning
With the expected increase in travel volumes during these key holiday periods, Tongcheng Travel is well-positioned to capitalize on the higher demand for travel services. This could drive growth in its business and potentially enhance its market standing in the travel industry.
This detailed summary presents the relevant information regarding Tongcheng Travel (780 HK) as outlined in MIB Securities’ report dated 19 September 2024.
