HAIKOU, CHINA – SEPTEMBER 8: Passengers wait in line to check in at Haikou Meilan International Airport in Haikou City, Hainan Province, China on September 8, 2024. (Photo by Luo Yunfei/China News Service/VCG via Getty Images)
Luo Yunfei|China News Service|Getty Images
Amid a sluggish economic recovery, Chinese tourists are taking more last-minute trips as they become more cautious about spending.
President and CEO Anthony Caputano says there’s a ‘real crisis of consumer confidence’ in China Marriott International Hotel Said about Bank of America Gaming and Lodging Conference Last Thursday.
More and more Chinese consumers are booking hotels up to three days in advance, which he said is the lowest ever and much shorter than in recent years. 20 day booking window For consumers in other parts of the world.
Economists at Oxford Economics told CNBC that travelers are planning trips closer to departure as they try to “take advantage of last-minute deals,” noting a shift in consumer preferences that says, “Modern travelers prefer to be spontaneous with their travel plans. ”.
Shorter bookings indicators often indicate increased consumer uncertainty and caution about spending, making it difficult for businesses to forecast and prepare for demand, especially given China’s slow recovery, according to Patrick Bodie. Cheung Kong Graduate School of Business.
As the world’s second-largest economy grapples with a prolonged housing crisis and high unemployment, Chinese consumers are becoming more frugal on everything from groceries to travel.
Economists at Oxford Economics said, “While people still want to go on vacation, sentiment on incomes and spending remains low.”
In fact, according to one report, China has been considered a market with a consistently short booking window. world travel and tourism council 2021. Due to the high uncertainty of travel restrictions during the epidemic, this proportion rose to more than 80% in the first two years of the epidemic.
In July, Marriott International Lowered growth forecasts Revenue per available room this year, citing “current weak demand and price trends” in China.
This pricing pressure is reflected across the industry, including domestic travel booking agencies ctrip.comreporting average prices for domestic hotels and flights Continued decline this year.
China’s domestic travel and tourism spending increased during May’s Labor Day holiday, one of the country’s longest holidays of the year, compared with 2019, according to the National Bureau of Statistics. Ministry of Culture and Tourism. But average spending per traveler remains below 2019 levels.
Oxford Economics says the trend of people choosing short-distance trips to smaller cities or counties will continue, potentially boosting these local economies.
Economists say travel demand during the upcoming Golden Week period in early October is expected to exceed 2019 levels.
When asked about prospects for the second half of the year, Ctrip Chief Financial Officer Wang Xiaofan said the company’s “visibility is very limited due to the short booking window.” The platform said it expects booking activity to pick up after the National Day holiday, given the low base in the same period last year.
