With the policy of “internet +” in China today, a large number of consumers tend to research the hotel information through online search engines, book or reserve hotels in OTA and hotel official websites, and share the experience in the social networking platforms. Chinese consumers’ demands are showed on the Internet; therefore internet data become a powerful tool to understand Chinese consumers’ needs and behaviors.
Baidu has released a report on China’s hotel industry. Luxury hotels and budget hotels account for definitely large market share, and midrange hotels only makes up 7% of the total market. High-end hotels keep a fierce growth momentum and competition; the budget hotel market is eventually shared by several chain hotels. Midrange hotels only possess 7% of the market, and are less influenced by the season.
Resort hotels and premium luxury hotels are top 2 most searched high-end hotels. Basing on consumers’ major search words, high-end hotels pioneer in localized services, such as wedding feast, honeymoon tour, fitness and so on to enlarge marketing and maintain high growth.
Facility, location, price, service and catering are major focal spots of Chinese consumers. They always lay emphasis on facility and location when planning to live in budget hotels, attach importance to service and catering in luxury hotels, and price in midrange hotels. Different from the traditional three-star or four-star hotels, midrange hotels grow out of local budget hotels and usually are part of hotel chains. Prices are mostly set between 300 yuan to 500 yuan per night. To improve sales, midrange hotels need to broaden business items and foster brand loyalty.
Low price, convenience and good service are powerful merits for budget hotels to attract consumers. The search volume of budget hotels fell slightly, but comments and reviews increased. Cheap hotels should enhance public fame and publicity. Major budget hotels in China are Jinjiang Inn, 7 Days Inn, Home Inn, Huazhu Hotels and so on.
Since 2012, China had been the largest outbound tourism market in the world. With the rising living status, more and more Chinese would like to pay a visits in famous scenic spots. Many tourists prefer to book air tickets and hotels together in advance. For example, according to a report by the Chinese online tourism website (tao.117go.com), as high as 61% of Chinese tourists have ordered air tickets and hotels in advance for the tour in Chinese National Day. In the future, online hotel booking will become the major booking method, and it is expected to make a large step forward.