DUBLIN, Sept. 1, 2023 /PRNewswire/ — The “China Hotel Market, Size, Forecast 2023-2028, Industry Trends, Growth, Share, Outlook, Impact of Inflation, Opportunity Company Analysis” report has been added to ResearchAndMarkets.com’s offering.
The Chinese Hotel Market is anticipated to be US$ 166.02 Billion by 2028, growing at a CAGR of 8.86% from 2022 to 2030
China hotel market stands as a flourishing landscape. The momentum is fueled by a burgeoning middle class with heightened travel aspirations and greater disposable income, translating into a surge in hotel construction and investment activities.
Notably, the government’s strategic initiatives such as the Belt and Road Initiative and the establishment of special economic zones play a pivotal role in luring travelers. In this landscape, online platforms have ushered in accessibility, simplifying the process of hotel reservations.
A key catalyst in this trajectory is the hosting of major international events, which triggers substantial infrastructure development and investments in the hotel sector. As the market continues to evolve, new hotel brands adeptly cater to diverse consumer preferences, fostering a multi-dimensional market landscape. With a positive economic outlook and unwavering government backing, the China hotel market is poised for extended growth, a growth underpinned by a swelling influx of travelers, robust infrastructure expansion, and the expansion of hotel chains.
The dynamic expansion of the China hotel market is propelled by a realm of opportunities beckoning businesses and investors alike. The clamor for hotels equipped with an array of amenities and services, including Wi-Fi connectivity, fitness facilities, and dining establishments, has set in motion increased hotel construction primarily in Tier 1 and Tier 2 cities. What’s more, the burgeoning Meetings, Incentives, Conferences, and Exhibitions (MICE) market in China opens new avenues for businesses to host events while enticing investors to channel resources into hotel ventures.
Elevating the landscape is China’s growing prominence as a global business hub, manifesting in an uptick in MICE events and a concomitant demand for hotel accommodations. The rapid ascent of China’s online travel market has paved the way for an upsurge in online bookings for MICE events and hotel stays. Simultaneously, the burgeoning Chinese tourism sector has unfailingly spurred the demand for hotel lodgings in sought-after tourist havens.
Mid-range hotels will continue to remain popular in the China hotel market in the coming years
High-end hotel, Mid-end hotel, and Budget hotel are the types in the China hotel market. Mid-range hotels in the China hotel market dominate due to their wide appeal to business travellers, tourists, and budget-conscious individuals, capturing a significant market share.
They offer a balance of affordability and quality, providing comfortable accommodations and essential amenities at a reasonable price. With their widespread presence in urban and rural areas, mid-range hotels ensure accessibility and convenience across different regions. Their adaptability to changing consumer preferences and technological advancements, including online booking platforms and mobile apps, enhances the guest experience, contributing to their market dominance.
The expanding middle class and rising demand for cost-effective options drive the need for budget accommodations. These hotels, with smaller size and basic facilities, provide accessible and numerous establishments, meeting travellers’ convenience needs across regions.
The significant domestic tourism market in China further supports their dominance as affordable accommodation options are sought after. Budget hotels effectively cater to the growing demand within the domestic tourism sector with competitive pricing and widespread presence.
Hotel chains dominate China hotel market
By business models, the China hotel market is divided into hotel chains, and independent hotels. Hotel chains dominate the China hotel market due to their strong brand recognition appeals to travelers, who prefer familiar brands. The standardized quality offered by hotel chains ensures consistency and reliability, especially important for business travelers.
Moreover, hotel chains provide conveniences like loyalty programs, online booking, and 24-hour customer service, making the booking and stay experience easier. Their significant marketing power enables them to reach a wide audience and effectively promote their hotels, attracting potential customers.
Online booking aggregators has the highest share in the China hotel market
The growing trend of mobile usage in China, supported by smartphones and mobile apps, enhances the accessibility and seamlessness of online booking, allowing travellers to conveniently search, compare, and book accommodations on the go.
Direct booking from hotel websites is expected to grow in the China hotel market due to increased competition and the convenience it offers. Hotels are actively providing direct booking options to attract customers, offering features like price comparison, review reading, and direct booking. Travelers value the sense of control and transparency that direct booking provides, enabling a direct relationship with the hotel and potentially better customer service.
By customer age-group, the China hotel market is categorized into Before 1970, 1970-1980, 1980-1985, 1985-1990, 1990-1995, 1995-2000, and After 2000.
The rapid growth of the online travel market in China has made online booking the preferred choice, especially among the 1990-1995 age group. This demographic is more inclined to book hotel rooms online and utilizes social media for hotel research and bookings.
Moreover, their preference for experiences over possessions and their interest in trying new things and exploring different cultures drive their travel decisions. The increasing disposable income of this age group further enables them to afford travel expenses, including hotel stays.
Municipalities and provincial capital cities in China are experiencing strong growth in the hotel market.
Municipalities and provincial capital cities serve as economic and political centers, attracting business travellers and government officials. They also offer cultural attractions and vibrant urban environments that appeal to tourists. Their role as educational, healthcare, and research hubs increases the demand for temporary accommodation. Ongoing infrastructure development and urbanization efforts further contribute to the growth, catering to the expanding population and business activities in these cities.
The volume of municipalities and provincial capital cities in the China hotel market is expected to grow due to their appeal as cultural and tourist attractions, leading to increased demand for hotel accommodations. Furthermore, the presence of educational, healthcare, and research institutions in these cities generates additional demand for hotel rooms.
1-star, 2-star, 3-star, 4-star, and 5-star hotel are prominent in the China hotel market.
The expanding middle class and focus on affordability contribute to increased demand for mid-range accommodations. The development of tourism infrastructure and growth in travel broaden the customer base, serving both leisure and business travellers with reasonable prices and comfortable amenities.
Online travel agencies and booking platforms facilitate convenient access and reservations, boosting volume and market share. Government initiatives support the growth by encouraging mid-range accommodations to meet the needs of domestic and international travellers.
Based on cities, the China hotel market is fragmented into Beijing, Shanghai, Guangzhou, Shenzhen, Hong Kong, Macau, and Others.
Shanghai’s dominance in the China hotel market can be due to its status as a major economic and financial centre attracts significant business travel, generating high demand for hotel accommodations. Shanghai’s popularity as a tourist destination, thanks to its renowned attractions, leads to a constant influx of tourists and increased demand for hotel rooms.
The city’s role as a major transportation hub and its accessibility further contribute to the need for hotel accommodations. Moreover, the large population and strong economy of Shanghai provide a substantial local market for hotels, ensuring a steady flow of guests.
Guangzhou’s potential for growth in the China hotel market stems from its increasing popularity as a tourist destination with notable attractions. Its strategic location and robust transportation infrastructure facilitate easy access for domestic and international travellers, fostering hotel market expansion. Government initiatives to promote tourism and investment have further led to the development of new attractions and business districts, creating opportunities for hotel expansion.
Company Analysis: Overview, Recent Developments, Revenue
- Huazhu Hotels Group Ltd
- Zhejiang New Century Hotel Management Co. Limited
- Emei Shan Tourism Co.,Ltd
- Expedia Group Inc
- Guangdong International Hotel Management Holdings Ltd.
- Huangshan Tourism Development Co. Ltd
- InterContinental Hotels Group PLC
- Shanghai Jin Jiang International Hotels (Group) Company
- Marriott International Inc
- Tongcheng Travel Holdings Ltd
Report Scope
Hotel Type – China Hotel Market breakup from 3 Viewpoints:
- High-end hotel
- Mid-end hotel
- Budget hotel
Business Model – China Hotel Market breakup from 2 Viewpoints:
- Hotel Chains
- Independent Hotels
Ordering – China Hotel Market breakup from 4 Viewpoints:
- Direct Book from Hotel Website
- Online Booking Aggregators
- Offline Booking
- Others
Customer age group – China Hotel Market breakup from 7 Viewpoints:
- Before 1970
- 1970-1980
- 1980-1985
- 1985-1990
- 1990-1995
- 1995-2000
- After 2000
Tiers – China Hotel Market breakup from 3 Viewpoints:
- First-tier cities
- Municipalities and Provincial cities
- other cities
Star Rating – China Hotel Market breakup from 5 Viewpoints:
- 1-star
- 2-star
- 3-star
- 4-star
- 5-star
Cities – China Hotel Market breakup from 7 Viewpoints:
- Beijing
- Shanghai
- Guangzhou
- Shenzhen
- Hong Kong
- Macau
- Others
For more information about this report visit https://www.researchandmarkets.com/r/x0f0kw
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