Why Has “Reverse Travel” Become Less Attractive? Unraveling the Economic Logic Behind the High Hotel Prices in Small Cities During National Day
Hello everyone, I’m your financial journalist. Recently, many friends planning to travel during National Day have been complaining: They chose a lesser-known small city in Gansu, hoping to take advantage of “reverse travel” to find a good deal. However, when they checked the booking apps, they found that hotels which usually cost 300 yuan suddenly jumped to 800 yuan, and some homestays in the county towns increased from 97 yuan to 645 yuan.
Many people are wondering, “With the overall poor economic situation and declining consumption, how come even these lesser-known small cities are charging exorbitant prices? Has the ‘reverse travel’ guide to avoiding such issues become ineffective?”
Today, we’ll break down the reasons behind this in simple terms. It’s not just about hotel owners trying to make more money; there’s a complex interplay of algorithms, supply and demand, psychological factors, and local regulations at play.
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1. Algorithms and the Equality of Traffic: Your “Niche” Secrets Are Already Known by AI
In the past, the core logic of “reverse travel” was the information gap. If you wanted to go to a place few people knew about, like Wuwei in Gansu or Gaoping in Shanxi, hotel owners would lower prices to attract guests. You felt like you had an “exclusive advantage” and could get a big-city experience for a small price.
But in 2026, that logic has completely changed.
1. AI and Big Data Have Eliminated the Information Gap
You no longer need to search through obscure travel guides. Just ask apps like DouBao or DeepSeek, and they’ll immediately list a bunch of previously unknown cities. Meanwhile, algorithms on platforms like TikTok and REDnote are constantly promoting these destinations, making them more visible to you. As a result, you might think you’re the first to discover the “treasure,” but in reality, you might be one of thousands. When everyone is directed to the same place, it’s no longer considered a “less-known” destination.
2. “Reverse Travel” Has Become “Positive” Crowding
Data from TongCheng Travel shows that the popularity of county-town destinations during this year’s Mid-Autumn and National Day holidays increased by over 60% compared to July. This means that small-city hotels, which used to rely on local business travelers and family visitors, suddenly faced a surge in tourists from other regions.
In simple terms: Hotels in small cities used to be struggling to fill rooms; now, tourists are competing to stay there. When something becomes “popular,” prices naturally rise to match market levels or even exceed them due to scarcity.
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2. Supply Side Challenges: Why Can’t Small-City Hotels Expand Like Big-City Hotels?
You might ask, if demand is high, why don’t hotel owners expand to reduce prices?
This involves an economic concept called supply rigidity:
1. High Expansion Costs and Risks in Small Cities
In big cities like Beijing and Shanghai, hotels can temporarily add temporary rooms or use nearby homestays during holidays. But small counties face different challenges:
- Short Tourism Season: Many small cities in the northwest and southwest only have a two- to three-month tourism season. Expanding for the National Day holiday would mean no guests for the rest of the year, leading to significant losses.
- Limited Options: There are already few hotels in small cities. With tourists having high standards for cleanliness, location, and breakfast, only a few hotels would meet their requirements.
- Limited Capacity: Hotels can’t be quickly expanded; they’re not like businesses that can open new branches overnight.
2. Scarcity Leads to Price Surges
When demand surges and supply remains unchanged, prices inevitably rise. This is why a room that usually costs 300 yuan can sell for 800 yuan during the holiday.
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3. The “Price Discovery” Mechanism: The 800 Yuan You See May Just Be a “Test Price”
Many young people criticize the high prices, but hotel owners like Mr. Zhou are actually in a tough position. This is due to a common practice in the hotel industry called Price Discovery:
1. Dynamic Pricing
Hotel prices aren’t fixed like supermarket goods. Hotels sell “time” and “space,” and if rooms aren’t booked, they’re lost. Therefore, prices are adjusted based on booking progress:
- Early Stage: Prices are lower to attract early bookings.
- Mid-Stage: As the date approaches and rooms decrease, prices start to rise.
- Late Stage: If rooms aren’t full, prices may drop; if they’re almost full, they’ll surge.
2. The High Price Could Be Part of a Game
Mr. Zhou explains that current prices are often “test prices.” Many tourists place orders late, and the high prices are attempts to gauge market demand. If you see a high price and decide not to book, others might buy the room later, driving the price even higher.
In simple terms: It’s like an auction; the starting or current price doesn’t reflect the final transaction price. If you hesitate, someone else might buy the room before you.
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4. Regulatory Restrictions and Priorities: Why Focus on Hotels Instead of Air Tickets?
During holidays, local cultural and tourism departments issue price warnings or meet with hotels. People wonder why air ticket prices aren’t regulated:
1. Air Tickets Are Cross-Regional: Prices are set by airlines based on national supply and demand, making it difficult for local authorities to intervene.
2. Hotels Represent the City’s Image: Poor hotel experiences can harm the city’s reputation. Hotel price increases are more easily reported by the media, leading to public backlash.
3. Regulatory Constraints: Authorities can punish price fraud but can’t force hotels to lower prices. They can’t create additional rooms overnight.
5. Recommendations for Consumers in the Algorithm Age
Since “reverse travel” isn’t necessarily cheaper, here are some tips:
- Accept Higher Prices: Don’t expect to find hotel prices from normal times during the holiday. The “low-price” advantage in small cities has been eliminated by algorithms and demand.
- Use Free Cancellation Policies: Book a room with a free cancellation option to lock in your spot, then monitor prices. Cancel and re-book if prices drop; otherwise, stick to your original booking.
- Travel Off-Peak: Avoid the peak days (October 1-3) and choose dates like September 30 or after October 4, when prices usually drop.
- Explore Alternative Destinations: Consider less popular areas or opt for homestays, which may have more flexibility and stable prices.
In summary, the high prices in small-city hotels during National Day are a result of combined factors: algorithmic influence, supply and demand imbalances, dynamic pricing, and regulatory limitations.
The logic of “reverse travel” has shifted from information scarcity to competition over timing and choices. In this era, there are no absolute bargains; instead, you need to find the best deal based on your budget and travel preferences. The key is to adjust your expectations and use available tools (like free cancellations) to make the most of your travel experience. After all, the purpose of traveling is to enjoy the experience, not to outsmart hotel owners in price wars.