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Hotel Industry in China

Medium-sized hotels open there door handle and offer a limited amount of on-site amenities that only cater and market to a specific demographic of travelers, such as the business travelers. Most focused or select service hotels may still offer full service accommodations but may lack leisure amenities such as an on-site restaurant or a swimming pool. Here is our focus on Hotel Industry in China.

hotel industry in China

Boom of tourism in China

Recently, the rapid economic development and the growth in the living standard have vigorously promoted the development of tourism boom in China; in the international and domestic tourism activities. The consumer patterns and structure in China have been changed a lot. More and more Chinese people prefer to pay much more money on enjoying lives, especially on travelling and home design such as door handle or other fashion items. The growth of domestic tourism consumption is increasing every year for more than 100 million trips, which is 230 million and 220 million trips in 2004 and 2007 respectively. In 2008, the total domestic travel reached to 1.7 billion, which are 1.3 times more than the total of 2000.

Hotel industry face threats in China

However, Hotel Industry in China faces two huge threats. On one hand, high-end market is facing competition of international and famous hotel chain. On the other hand, low end market is facing domestic economy hotel competition. In the fierce market competition, Medium-sized hotels must be fundamentally satisfies the customer the demand to in the tactician.

Using tourism website to attract Chinese customers

Take orange hotel as an example, it is a modern, simple and artistic global hotel chains. It sticks to their own fashion, which aims to be different with hotels which are only providing basic room facilities. In order to keep their aims, they invested a large amount of money on building hotels. They have to increase their occupancy to 65%-70% in order to avoid losing money. At first, sales team had to drop in business areas and apartments around to attract more people. These methods make them increase 30% customers including regular customers. In addition, Orange Hotel believe agent websites, such as Ctrip and Elong are very useful to their business, which could bring half customers. Without these websites, they could not reach their goals and may have reduced their price.

hotel industry China

Hotel industry in China see spectacular growth of medium-sized hotels

According to the report of budget hotels in China in 2007, there has been 100 budget hotel chains and more than 1000 budget hotels in China. The development of medium-sized hotels is spectacular. However, medium-sized hotels have to find out their own characteristic in order to gain customers and build market share.

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