Citi: Travel demand steadily rising during the double holiday season; maintains "Buy" rating on TONGCHENGTRAVEL (00780) and Trip.com Group Ltd. Sponsored ADR (TCOM.US)

Citi issued a research report stating that nationwide passenger traffic during the first three days of this year's National Day holiday was roughly flat year over year. The relatively weak year-over-year performance in the first few days was not surprising, as some travel demand had already been released ahead of the holiday. The bank maintained its "Buy" rating on TONGCHENGTRAVEL (00780) and Trip.com Group Ltd. Sponsored ADR (TCOM.US), with target prices of HK$22 and US$61, respectively. Citing preliminary data from online travel platforms, the bank noted that the combined Mid-Autumn Festival and National Day holiday reshaped travel patterns, with about 10% of travelers extending their holidays, and overall travel demand during the dual holiday period rising steadily. Cross-provincial travel accounted for about 82% of total trips during the National Day Golden Week, indicating greater travel distances and a stronger preference for long-haul travel. Tongcheng data showed that travelers mostly began their first leg of the journey during the Mid-Autumn Festival and started their second leg around the beginning of the National Day holiday, with hotel bookings in popular destinations recording double-digit year-over-year growth in the first three days of the holiday. Fliggy stated that bookings for domestic attraction tickets on October 1 rose nearly 30% year over year, while bookings for overseas airport transfers and local activities increased 43% and 37% year over year, respectively.