HK Stock Market Move | TONGCHENGTRAVEL (00780) rises by over 4% again, the optimization of holiday plans is expected to boost travel demand, OTA platforms are expected to continue to benefit.

TONGCHENGTRAVEL (00780) rose more than 4% again, up 4.04% as of the time of writing, to HK$18.02, with a turnover of HK$58.0662 million. On the news front, the State Council recently announced that there will be an increase of 2 days in the 2025 holidays, meaning that the Chinese New Year and National Day holidays in 2025 will be extended to 8 days each, and the Labor Day holiday will be extended to 5 days. Guosen released a research report stating that the extended Chinese New Year holiday is expected to strengthen the multi-segment travel mode, while the reduction in May Day holidays is beneficial for white-collar workers to enjoy long-distance travel. Soochow pointed out that based on the high willingness of residents to travel and the continuous improvement in the vitality of the cultural and tourism industry due to the frequent introduction of policies, OTA platforms will continue to benefit from the high growth of inbound and outbound tourism and the prosperity of domestic tourism. A stable structure is favorable for OTA platforms to maintain a stable realization rate. It is expected that the overall traffic growth rate for OTA platforms in 2024 will be in the range of 10-15%, with transaction volume growth rate around 15%; while in 2025, the traffic growth rate will be around 9%, with transaction volume growth rate slightly higher than 10%.