Advertising costs for travel-related keywords on Xiaohongshu (also known as RedNote) surged in 2024, catching many small travel companies off guard. Cost-per-click for popular destinations like Xinjiang has reached several hundred RMB, making it harder for advertisers to see meaningful returns without strong-performing content. Industry insiders attribute the spike to aggressive keyword bidding by major online travel agencies (OTAs) like Trip.com Group, which have significantly increased ad spend since May. Keyword prices for terms such as “Japan” and “homestay” have risen by up to 100%, shifting exposure toward deep-pocketed advertisers. Smaller operators are struggling to keep up, with some abandoning Xiaohongshu for platforms like Douyin and WeChat in search of better ROI. As Xiaohongshu reaches 320 million monthly active users, small agencies must focus on brand identity and conversion rates.