China’s Q2 2025 Business Travel Market: Controlled Growth with Strategic Global Focus

China’s business travel market in the second quarter of 2025 reflects a sector in deliberate expansion – cautiously balancing the momentum of domestic recovery with the strategic push for outbound engagement. While domestic trips remain robust, outbound travel patterns are shaped by cost discipline, compliance requirements, and sector-specific growth drivers. This article draws on data published by Travel Daily, Airwallex, and Data 100.

Market Context: Economic Conditions and Budget Discipline

Travel Management Companies (TMCs) identify corporate operating conditions as the most influential factor driving travel demand, scoring 4.12 out of 5. This link between business performance and travel activity remains unshakable.

However, tight cost controls dominate the current landscape. Over 86% of TMCs say that between 30–70% of their client base is actively cutting budgets. This has intensified competition on pricing, reduced trip volumes, and in some cases, created financial stress for service providers.

Outbound Travel Frequency: Steady but Selective Growth

Data shows a nuanced picture. Compared with Q1 2025, 21.12% of business travellers increased their outbound trip frequency, while 45.32% remained unchanged and 12.95% decreased. For domestic trips, the growth was stronger, with 33.73% reporting increases. Only 2.73% of travellers reported no involvement in domestic trips, versus 20.61% for outbound.

By company type, foreign enterprises lead outbound growth, with close to 40% reporting year-on-year increases and the lowest “no travel” rates. Sino-foreign joint ventures also show healthy expansion, followed by private enterprises. State-owned and centrally-administered enterprises, while active, are more conservative in increasing outbound frequency.

Why Outbound Travel is Declining for Some

Among companies that reduced travel in Q2 2025, the most common reason – cited by 61.33% – was an internal strategic shift, including reallocation of resources to other markets or priorities. 32% pointed to lower corporate revenues, while 31.33% adjusted in response to central government policy guidance. A smaller segment (20%) cited international relations and policy changes as a key influence, while 36.67% linked adjustments to ongoing US–China trade uncertainties.

Accommodation Preferences: Location and Brand Still Lead

For outbound trips, location is the dominant factor in hotel selection, cited by 64.40% of travellers, especially those in finance and professional services where time efficiency is critical. Hotel brand (53.49%) and star rating (47.02%) follow closely.

The data shows interesting company size differences:

• Small enterprises (under 500 staff) put more emphasis on price and proximity to training or meeting facilities.

• Large corporations (over 100,000 staff) prioritise brand, location, and star rating, reflecting brand image needs and procurement agreements.

AI-enabled or “smart” hotels remain a niche choice, attracting interest from only 22.32% of travellers – signalling that technology features are secondary to cost and convenience abroad.

Airfare Costs: Signs of Relief in a Competitive Market

From a TMC perspective, 27.91% reported Q2 airfare price increases for outbound travel compared with Q1, 18.60% saw stability, 23.26% recorded decreases, and 30.23% were not involved.

However, corporate travel managers’ data presents a more encouraging picture:

• Compared with 2024 Q2, 27.88% reduced outbound air costs, while 22.12% reported increases.

• Compared with Q1 2025, 33.65% saw reductions, with another 33.65% holding steady.

This suggests that effective procurement strategies, route optimisation, and favourable exchange rates are containing costs, even in competitive markets.

Conclusion: Controlled Growth with Strategic Focus

Outbound business travel from China in Q2 2025 is expanding in targeted ways, led by sectors such as finance, healthcare, and manufacturing. Growth is most visible in large and internationally oriented firms, while other sectors remain cautious or constrained. The challenge ahead will be balancing policy-driven cost control with agility in capturing overseas opportunities, particularly in high-growth regional markets like Southeast Asia. Companies that integrate strong cost management, compliant payment solutions, and reliable supplier partnerships will be best positioned to lead in this evolving global travel environment.

Stay ahead of the curve – explore how your organisation can optimise business travel strategies, streamline compliance, and seize growth opportunities in emerging markets. Contact our team today to learn how we can support your global travel goals.