Last-minute trips are becoming more popular among cautious Chinese travelers as the economy struggles.

• At the Bank of America Gaming and Lodging Conference last Thursday, Anthony Caputano, president and CEO of Marriott International, stated that there is a "real crisis of consumer confidence" in China.
• The shorter booking metric often indicates that consumers are more uncertain and cautious with spending, making it difficult for businesses to accurately forecast and plan for demand.

As the economic recovery remains lackluster, Chinese travelers are increasingly opting for last-minute trips while being more cautious with their spending.

Anthony Caputano, president and CEO of Bank of America, stated at the Gaming and Lodging Conference last Thursday that there is a "real crisis of consumer confidence" in China.

The booking window for Chinese consumers is shorter than the global average, with many booking hotels only three days in advance.

Oxford Economists informed CNBC that travelers are increasingly choosing to plan trips closer to departure in order to take advantage of last-minute deals, indicating a shift in consumer preferences towards spontaneity in travel plans.

The shorter booking metric indicates that consumers are more uncertain and cautious with spending, making it difficult for businesses to predict and prepare for demand, particularly due to China's slow recovery, according to Patrick Body at the Cheung Kong Graduate School of Business.

Due to the protracted property crisis and high unemployment, Chinese consumers have become more frugal in their spending on groceries and travel.

Despite the desire for vacations among individuals, economists at Oxford Economics report that opinions about incomes and spending remain negative.

According to a report by the World Travel & Tourism Council in 2021, China has been recognized as a market with consistently short booking windows. In 2019, 70% of hotel bookings on travel agency Trip.com were made within three days of check-in. This ratio increased to over 80% in the first two years of the pandemic due to the high uncertainty of travel restrictions during the pandemic.

In July, Marriott International revised its revenue per available room growth forecast for this year due to "current weak demand and pricing trends" in China.

The decline in average rates for domestic hotels and flights continued this year, with the pricing pressure being felt across the industry, including at domestic travel booking agencies.

Despite the decline in average spending per traveler, China experienced more domestic trips and tourism spending during the Labor Day holiday in May compared to 2019, according to the Ministry of Culture and Tourism.

The prediction by Oxford Economics is that the trend of individuals choosing short-haul trips to smaller cities or counties will persist, potentially benefiting these local economies.

The economists predict that travel demand during early October's Golden Week will exceed the 2019 level.

Trip.com CFO Xiaofan Wang stated that the company has "very limited visibility" due to short booking windows when asked about the second half of the year. The platform anticipates booking activities to increase after the National Day holiday, as there was a lower base in the same period last year, it said.