China has become a very important market in the hospitality industry as more and more people are choosing to visit China while more Chinese are making visits around the country and staying in hotels in China.
China, with the largest population of the world, is in huge economic transformation due to the fastest-growing middle-class. Nowadays the number of middle-class people Hospitality industry in china China has reached million and inthis figure is expected to increase up to 1.
Declined growth in the real estate market and fixed asset investment has led to a notable change in the hotel industry. International luxury hotel chains are making more efforts to take advantage of the growing Chinese middle-class with luxury desires.
Also, in these days, small luxury hotel or boutique hotel has gradually become popular in China, which is not as majestic and unified as large international chains, but draw consumers by their delicate and characteristic hotel culture. Indeed, hotel investors have become more sensitive to financial returns and thus have started to invest on select-service hotel products.
This article is intended to introduce the new trend of the luxury resort market in China. And this upward trend in occupancy rate maintained in the last quarter of The mid-scale segments will see the most significant growth in tier 2 and tier 3 cities.
A Large number of tourism projects and the outstanding number of high-tech and industry parks will also drive the demand. Recently large-scale meetings, exhibitions, incentives, and demand from state-owned companies has decreased in large amount due to the change of relative policies issued by the China government.
But domestic corporate and leisure free and independent travel demand are on the rise. In China, major cities and major secondary cities show strong performance, including Beijing, Shanghai, Guangzhou, Shenzhen, Wuhan, etc. It is also believed that the proportion of international demand will continue to decline.
Instead, in terms of nationality, domestic demand will keep dominating. Indeed, Chinese outbound travelers will continue to increase in number and look for familiar brands.
Brands from big groups such as Marriott, InterContinental, and Accor are still building hotels in China. Regional and domestics entrants will also emerge to seize the market opportunities before it consolidates further. After the downward hotel performance trend and the resultant slowing down of the hotel development wave, more hotel investors have changed their strategy.
They were more willing to turn their interest to brands that require less investment and offer faster payback.
Infourth-star level brands or some boutique hotels signed more deals than traditional market share winners such as Sheraton and Crowne Plaza. For instance, Emperor Hotel in Beijing, which is considered affordable and cost-efficient among Beijing luxury hotels.
It has become one of the hottest places for foreigners to have a Beijing-style night. Changing Behavior The players in the industry have also recognized the importance to build brand loyalty in China, a criterion that is even more important when knowing that Chinese consumers are more and more selecting and booking their accommodations by themselves through the internet.
More Sophisticated Travelers A recent research indicates that Chinese consumers are intended to choose boutique hotels where room number may be far less than those of traditional five-star hotel chains.
Most of those small luxury hotels have under hundred sets and some can even be less than 20 sets. Small size means excellent on privacy, low-density, as well as, elegance. Regarding the price, they are not inferior to five-star chain hotels, and sometimes even much higher, because of the better surrounding environment, the hotel building facilities, and the services provided.
In addition, those hotel developers are more diversified than ever.China’s Hospitality Industry—Rooms for Growth 6 Finally, an adaptation of standards and economics is vital for profitability and, consequently, for the development pace in China.
Daxue’s Expertise in the China’s Hotel Industry Given Daxue’s Consulting experience in the hospitality industries, the Daxue team is a leader in providing consulting services to the hospitality industry from international chain to small private Boutique.
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