Hotel market in China
Due to rapid growth and development, China is becoming a major center for tourism and business. As a result, there is an increasing demand for hotels and resorts, which offer high-standard service for tourists and businesses from different parts of the world. This led to rapid development of hotel market in China during the past decade.
Classification on hotel market in China
Hotels can be divided into two major categories: holiday’s resorts and business hotels. Beijing, Shanghai, Shenzhen and many other financial and industrial centers of China mostly offer hotels for business: such facilities as conference rooms and gym are necessary. In places such as Sanya, most of the hotels are resort-type, which offer swimming pool, all inclusive board and children facilities, which are more appropriate for tourist.
International hotel chains are highly rated by Chinese consumers
There is a huge number of hotels, located on the territory of China including hotel chains. Some brands as Shangri-la, Shanghai Jinjiang International Hotels, InterContinental Hotels, Guangdong (International) Hotel Management Holdings, and Jinling Hotel Corporation are market leaders. However, as long as the market is highly saturated and comprises a lot of brands-big and small-top 4 hotels currently account for only 4.3% of market share, according to market researches in China. Moreover, “love for luxury” among Chinese consumers plays a leading role in choosing a hotel. Sheraton, Hilton and Marriott are highly rated by Chinese consumers even though the hotels are not explicit market leaders. Such hotels as InterContinental and Shangri-la are also loved by Chinese consumers although these are evident leaders on hotel market in China.
What Chinese customers like about international hotel brands?
Chinese hotel chains constitute for the majority of market leaders of the industry except for InterContinental, which is originally a British company. However, international hotels are also extremely popular among the Chinese due to their “name” and high-quality hospitality standards. It is broadly accepted, that European brands are associated with high-standard service among the Chinese. It is a crucial fact on Hotel market in China.
Industry’s growth is promising
According to market research in China, the industry has been growing 9% annually for the past few years. Construction and urbanisation, which have accelerated in the country for the past decade, create more opportunities for hotel industry. Sanya, which is usually referred to as “Maldives of China”, has been recently developing and attracting more investment in the areas of hotel construction and tourism development. As a result, there are currently over 100 hotels on the island and an increasing number of tourists every year.
2010 was the most successful financial year for the industry since 2008 economic crisis. Since then, hotel market in China has been experiencing a slowdown: annual number of tourists has been reducing by 2% annually since 2011. However, massive construction and urbanisation are expected to stabilise the industry’s growth in the future.
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