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Local Hotel Chains Dominate on Chinese Market
While the majority of large hotel companies try to expand their presence on Chinese hotel market, local chains of economy hotels still dominate the local market. This is possible thanks to convenient distribution channels and advantageous rates that make budget chain hotels very attractive in the eyes of hotel guests.
Such data is provided by January 2012 issue of Hotel BASE report, which is published monthly by Phoenix Marketing International and covers the US, Canada, and China. According to the data from the report, local Home Inns win in two most important categories – the percentage of Chinese travellers that stay in these hotels, and the total number of guestroom nights purchased.
When Chinese guests need to stay in a hotel, 35% of them choose Home Inns, 23% select Jin Jiang Hotels, and, finally, 22% select Holiday Inns. As we can see, no major names are present in this list. This is not very surprising if we take a look at the total number of properties owned by these companies. For example, Home Inns and Jin Jiang Hotels together have as many as 1,500 hotels in China. They have a well working system of reservations and are familiar to Chinese visitors. The total share of room nights of Home Inns estimates 15.5%, 8.5% for Jin Jiang, and 8.1% for Holiday Inn.
When it comes to brand recognition, the first place is occupied by Shangri-La Hotels – an upscale chain of hotels headquartered in Honk Kong. 83% of respondents know this brand (60 brands participated in total). The reason for this is in massive advertisement campaign. Many travellers are encouraged to stay in Shangri-La hotels in China even though such choice may be too pricey for them.
Such popular American hoteliers as Hilton, Sheraton, Marriott, or Wyndham occupy middle positions in brand awareness, room share and penetration into the market. The positions of Radisson, Best Western and Comfort Inn are somewhat lower.
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