During the May Day holiday in 2024, China's tourism industry has ushered in a new wave of enthusiasm, among which the hotel industry is particularly eye-catching. The surge in searches for hotels in China not only indicates a strong recovery momentum for the industry, but also puts forward new requirements for the development strategies of hotel groups and brands.
According to the latest "2024 China Hotel Group and Brand Development Report", the trend of centralization in China's hotel market further intensified last year, and the top 10 hotel groups accounted for more than 55% of the room size in the chain hotel market. Behind this figure, large hotel groups continue to consolidate and expand their market share by virtue of their brand influence, capital strength, operation and management capabilities, and technological innovation. These groups not only have a deep layout in first-tier cities, but also extend their tentacles to the sinking market and new first-tier cities, accelerating the pace of expansion nationwide through various forms such as brand output and management contracts.
Opportunities in sinking markets and new first-tier cities
Compared with first-tier cities such as Beijing, Shanghai, Guangzhou and Shenzhen, which have a high degree of saturation, the sinking market and new first-tier cities provide a broad space for the development of the hotel industry due to the rapid improvement of economic development level, the growth of consumption capacity and the rise of tourism. The hotel industry in these regions is in a period of rapid growth, on the one hand, the growing demand for high quality of life from local residents has promoted the layout of mid-to-high-end hotel brands, and on the other hand, as these cities become more and more tourist destinations, the demand for tourist accommodation has also increased, providing opportunities for the development of budget hotels and specialty B&Bs.
Top 10 hotel groups in China
6-10 on the list: Shangmei Digital Intelligence Hotel Group, Atour Group, Dehao Group, Yibo Hotel Group and Qingzhu Group. Shangmei Digital Intelligence Hotel Group ranked 6th, headquartered in Qingdao, with a total of 210,000 hotel rooms. With 13 years of experience in the hospitality industry, he is determined to provide a better user experience for hoteliers and guests. The Group's Thank Inn Chain Hotels have spread to 326 cities across the country, with a coverage rate of 100% in third- and fourth-tier cities, and the brand influence of the hotel group in the sinking market ranks among the forefront.
List 1-5: Jin Jiang International Group, Huazhu Hotel Group, BTG Homeinn Hotel Group, Green Hotel Group and Dongcheng Group. Headquartered in Shanghai, Jin Jiang International Group topped the list with 1.19 million hotel rooms and more than 12,000 stores. Focusing on the strategy of "deep cultivation of domestic and global layout, and transnational operation", the Group has accelerated the innovation and transformation of traditional business formats, and its hotel brands include Jin Jiang, Vienna, Radisson Blu, Rock Garden and Campanile, with annual revenue exceeding 10 billion yuan.
After the hotel industry has entered the stock era, extensive expansion is no longer the mainstream path of industry development. Hotel managers have begun to pay more attention to the improvement of the efficiency of a single store, emphasizing refined operations on the basis of existing resources. This means that we need to have a more accurate grasp of market demand and a deeper understanding of the target customer group, so as to develop more accurate market positioning and marketing strategies. At the same time, by improving service quality, optimizing cost structure, strengthening brand image and other means, we will build a more healthy, rational and sustainable hotel industry ecological model.
The tourism heat wave during the May Day holiday in 2024 not only reflects the strong recovery of the tourism industry, but also brings unprecedented opportunities and challenges to the hotel industry. In this era of uncertainty, the hotel industry must keep up with market changes, constantly innovate service models, enhance brand value, and dig deeper into market segments, especially in lower-tier markets and new first-tier cities. Through refined management, intelligent upgrading, and continuous optimization of experiential services, we can build a hotel industry ecology that meets the needs of the new era, so as to be invincible in the fierce competition and jointly promote China's hotel industry to a higher level.