As China's National Day Golden Week approaches, a curious split is emerging in the country's travel industry. Traditional tour operators are seeing sluggish demand for their packaged trips, while car rental platforms are enjoying a surge in bookings. The trend, reported by Chinese outlet Huxiu, points to a fundamental shift in how Chinese consumers plan their holidays.
One tour operator in the Yunnan-Guizhou region, identified only by the surname Huang, told Huxiu that his rental business is booming despite minimal marketing. Huang rents out six Deepal G318 SUVs at over 400 yuan (about $56) per day during the holiday period and has no trouble finding customers. In contrast, his tour packages, which include a driver and guide, are struggling to attract interest, with potential clients repeatedly comparing prices and demanding discounts.
The pattern is echoed across the industry. Didi Chuxing's car rental arm reported that daily rental orders on its platform grew more than 50% year-on-year since July 1, with the average rental period extending from 2.6 days to 3.5 days. Notably, new energy vehicles have become the fastest-growing category, accounting for nearly 50% of summer rental orders.
Why self-drive is winning
Travelers are increasingly valuing flexibility over convenience. One tourist, identified as Lao Chen, told Huxiu that renting a car at his destination allows him to extend stays in places he likes and move on from those that disappoint. He avoids pre-booking hotels, preferring to find accommodation on the day, and is even willing to sleep in his car if necessary.
For many, the appeal of self-drive lies in control. Unlike chauffeured tours, where schedules must accommodate the group, rental cars let travelers decide departure times, routes and stops on a whim. This autonomy is worth paying a premium for, even during peak holiday periods when prices rise.
The rise of new energy vehicles is also changing what cars can do. Some travelers now use their vehicles as mobile accommodation, parking near hotels to access facilities while sleeping in the car. This "bed car" trend, previously reported by Huxiu, reflects the expanding role of automobiles in travel beyond simple transportation.
Tour operators squeezed from all sides
The shift is squeezing traditional tour businesses from multiple angles. With AI-powered tools making itinerary planning easier, consumers increasingly feel they can replicate what travel agencies offer by booking hotels and tickets themselves. The service fees that agencies charge are becoming the easiest line item for budget-conscious travelers to cut.
Some operators face even more serious challenges. Huxiu reported that a viral social media post is encouraging travelers to join group tours and then report the operators to authorities for using vehicles without proper commercial licenses, potentially getting refunds and compensation. This tactic exploits a regulatory grey area: in many regions, the five- and seven-seat vehicles commonly used for small group tours are classified as rental cars, which cannot legally provide driver services.
For the car rental market, the trend is a clear win. For tour operators, it means adapting to a world where consumers do their own booking, comparing and organizing - and where the only services worth paying for are those that clearly justify their cost.
