Hotel Market Analysis

The Case of Beijing, China

Authored by: Jichul Jang , Misun (Sunny) Kim , Hyunghwa Oh

The Routledge Companion To International Hospitality Management

Print publication date:  November  2020
Online publication date:  November  2020

Print ISBN: 9781138386372
eBook ISBN: 9780429426834
Adobe ISBN:


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Since the open door policy in 1978, China’s hotel industry has experienced rapid growth in the past 30 years, resulting in a $44 billion business with 2.5 million hotel rooms. However, China’s gross domestic product (GDP) growth has gradually slowed down since 2012 and is undergoing major adjustment for a transition to more balanced and sustainable growth. With an economic downturn, China’s hotel industry is facing market saturation in big cities such as Beijing, China’s capital city and main commercial center and home to over 200 multinational companies. Therefore, understanding the current Beijing market of hotel industry and developing effective strategies to overcome market saturation is extremely important for hotel developers and hotel operators to gain a competitive advantage. The purpose of this book chapter is (1) to provide an overall outlook for the hotel industry and (2) to analyze trends for future directions of hotel industry in Beijing in China. Data were drawn from STR (Smith Travel Research) for 1,533 hotels with 239,594 hotel rooms in Beijing in China. Based on our analysis of current hotel industry in Beijing market, we expect that the popularity of weekend getaways and short stay holiday package has given rise to mid-scale hotels in Beijing market. Furthermore, with increasing middle-class household with disposable income, Chinese travelers seek unique and new travel experiences. Such new desires by Chinese travelers ask potential hotel developers to prepare for new competitive models of hotels in Beijing market.

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