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HOTELS - CHINA - MAY 2018

Published By :

Mintel

Published Date : May 2018

Category :

Hotels & Restaurants

No. of Pages : N/A

The rise of home sharing is posing a threat to conventional hotel business as consumers, especially young consumers, are craving unique and authentic experiences. Hotel groups should strengthen their own advantages, such as professional customer services and fitness facilities, to stay competitive in the market. In addition, a clear focus/positioning may also help hotel brands to differentiate themselves from the fierce competition.

Table of Contents

OVERVIEW
What you need to know
Covered in this Report
Inclusions
Exclusions
Definitions
Figure 1: Definition of low/mid/high MHI groups, by city tier
EXECUTIVE SUMMARY
The market
Figure 2: Best- and worst-case forecast for total travel accommodation outlets, China, 2012-22
Companies and brands
The consumer
Young consumers favour non-standard accommodations
Figure 3: Penetration of accommodations, by travel type, February 2018
Figure 4: Penetration of selected non-standard hotel accommodation, stayed with friends for leisure travels, by generation, February 2018
Hotels win over non-standard accommodations in most aspects, except local experience
Figure 5: Perceptions of different types of accommodations, February 2018
Location, amenities and brand reputation are the most critical in choosing a hotel
Figure 6: The most important consideration factors in choosing accommodations, leisure vs business, February 2018
Foodservice is largely explored, while there is an opportunity for beauty services
Figure 7: Amenities and services used, February 2018
Smart TV and air-purifying equipment worth investing in
Figure 8: Amenities and services worth paying more for, February 2018
Figure 9: Amenities and services worth paying more for, TURF analysis, February 2018
What we think
ISSUES AND INSIGHTS
How to cope with rising threat from home-sharing business?
The facts
The implications
How to better target parents?
The facts
The implications
Figure 10: Kid-friendly amenities, Martinhal Family Hotels & Resorts, Portugal
Figure 11: Music studios and baking room, Buds by Shangri-La, Singapore
How to win over young consumers?
The facts
The implications
THE MARKET – WHAT YOU NEED TO KNOW
Market supply returns to rationality
Booming of domestic leisure and business travel driving market growth
Healthy growth remains for the unclassified category while decline continues in the classified category
MARKET SIZE AND FORECAST
Market supply returns to rationality
Figure 12: Total travel accommodation outlets, China, 2012-17
A sustainable growth forecast in the next five years
Figure 13: Best- and worst-case forecast for total travel accommodation outlets, China, 2012-22
MARKET FACTORS
The booming domestic travel market
Figure 14: Market size of domestic travel market, by number of visits, China, 2012-17
Figure 15: Market size of inbound overnight travel market, by number of visits, China, 2012-17
Business travel market growing rapidly as well
More convenient transportation making travel easier than ever
Family trips with kids prevailing
Rise of sharing economy posing a threat to conventional hotel industry
MARKET SEGMENTATION
The classified category: decline continues
Figure 16: Classified travel accommodation outlets, by star rating, 2012-17
Figure 17: Best- and worst-case forecast for classified travel accommodation outlets, China, 2012-22
The unclassified category: healthy growth remains
Figure 18: Unclassified travel accommodation outlets, by types of accommodation, 2012-17
Figure 19: Best- and worst-case forecast for unclassified travel accommodation outlets, China, 2012-22
KEY PLAYERS – WHAT YOU NEED TO KNOW
The big three lead
Differentiating through themes, targeted demographics, and technology
Trends worth knowing
MARKET SHARE
The formation of the big three through mergers and acquisitions
Figure 20: Leading hotel brands in the accommodation market, by number of hotel rooms, China, 2016 and 2017
COMPETITIVE STRATEGIES
Leading brands put greater focus on mid-scale hotels
Themed hotels to differentiate
Greater focus on family stays with kids
Figure 21: Kids’ in-room fun pack, Hilton, China, 2017
Embracing high technology
Figure 22: Smart speaker in hotel room, InterContinental Hotel, Beijing, 2017
Go beyond accommodation hosters to be one-stop travel agencies
WHO’S INNOVATING?
The first co-working spaces in hotel
Figure 23: Prototype co-working lounge, Hotel Jen, Beijing, 2017
Conventional hotels tapping into home sharing
Pop-up hotels redefine glamping experience
Figure 24: Marriott’s pop-up hotel yurt at Coachella, US, 2018
The new entertainment hub
Evolving the healthy hotel room
Figure 25: Built-in wellbeing wall, Swissôtel, Switzerland
THE CONSUMER – WHAT YOU NEED TO KNOW
Young consumers favour non-standard accommodations
Hotels win over non-standard accommodations in most aspects, except local experience
Location, amenities and brand reputation are the most critical in choosing a hotel
Smart TVs and air-purifying equipment worth investing in
PENETRATIONS OF VARIOUS TYPES OF ACCOMMODATIONS
Mid-scale hotels are the most popular accommodation choice when travelling
Figure 26: Penetration of accommodations, by travel type, February 2018
Non-standard hotels are favoured among young consumers for leisure trips
Figure 27: Penetration of selected non-standard hotel accommodation, stayed with friends for leisure travels, by generation, February 2018
Figure 28: Penetration of hostels, by generation, February 2018
Travelling becomes an indispensable part of modern lifestyle
Figure 29: Penetration of travels, February 2018
PERCEPTIONS OF DIFFERENT TYPES OF ACCOMMODATIONS
Hotels win over vacation rentals and guesthouses in most aspects…
Figure 30: Perceptions of different types of accommodations, February 2018
…yet local experience needed for hotels to target leisure stays
Figure 31: Perceptions of different types of accommodations, leisure vs business, February 2018
Vacation rental offers better overall experience
Figure 32: Perceptions of vacation rentals, by attitudes towards accommodations, February 2018
Guesthouses can target current hotel lovers who seek value for money
Figure 33: Perceptions of guesthouse, by attitudes towards accommodations, February 2018
CONSIDERATION FACTORS
Location, amenities and brand reputation are the most critical
Figure 34: The most important consideration factors in choosing accommodations, leisure vs business, February 2018
High earners value brand reputation as much as location
Figure 35: The most important consideration factors in choosing accommodations for leisure travels, by income level, February 2018
AMENITIES AND SERVICES USED
Foodservice is largely explored
Figure 36: Amenities and services used, February 2018
25-39-year-olds are fans of working out
Figure 37: Amenities and services used, gyms and swimming pools, by age, February 2018
High earners use facilities and services more, except dining
Figure 38: Selected amenities and services used, by income level, February 2018
Opportunity in beauty services
Bars can target women
Figure 39: Amenities and services used, bars, by age and gender, February 2018
AMENITIES AND SERVICES WORTH PAYING MORE FOR
Opportunities in various aspects, from entertainment to health, from technology to customisation
Figure 40: Amenities and services worth paying more for, February 2018
Six amenities/services to reach maximum consumers
Figure 41: Amenities and services worth paying more for, TURF analysis, February 2018
Young consumers value technology and entertainment more
Figure 42: Amenities and services worth paying more for, selected entertainment, by generation, February 2018
High earners value a wide range of amenities/services
Figure 43: Selected amenities and services worth paying more for, by income level, February 2018
ATTITUDES TOWARDS ACCOMMODATIONS
The majority of consumers are willing to pay more for a more comfortable stay when travelling
Figure 44: Attitudes towards accommodations, willingness to pay more for accommodations, February 2018
A separate hotel package is in favour
Figure 45: Attitudes towards accommodations, hotel package, February 2018
Figure 46: Attitudes towards accommodations, hotel package, by age, February 2018
Similar level of preference of traditional hotel and non-standard accommodations
Figure 47: Attitudes towards accommodations, vacation rentals and hotels, February 2018
Figure 48: Attitudes towards accommodations, guesthouses and hotels, February 2018
A sizeable swath of consumers prefer niche accommodation brands
Figure 49: Attitudes towards accommodations, well-known and niche brands, February 2018
MEET THE MINTROPOLITANS
Most willing to pay more for health facilities and technology in hotel rooms
Figure 50: Amenities and services worth paying more for, by consumer classification, February 2018
Prefer vacation rental to traditional hotel
Figure 51: Attitudes towards accommodations, vacation rental and hotels, by consumer classification, February 2018
APPENDIX – MARKET SIZE AND FORECAST
Figure 52: Market volume of total travel accommodation outlets, China, 2012-22
APPENDIX – MARKET SEGMENTATION
Figure 53: Market volume of travel accommodation market, by market segments, China, 2012-22
APPENDIX – METHODOLOGY AND ABBREVIATIONS
Methodology
Fan chart forecast
Abbreviations

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