The hotel sector in China: preferences
The Chinese hotel sector, especially hotel chains, has experienced steady growth in recent years.
According to Zhiding Yuemei Technology Co. this dynamism was generated by China‘s continued rapid economic growth and strong domestic travel demand.
Above all, the increase in the penetration rate of hotel chains and the improvement in consumption and transformation of consumer preferences stand out as key trends.
On the one hand, the total number of rooms offered by hotel chains increased with a Compound Annual Growth Rate (CAGR) of 14.5% from 2016 to 2021 in China.
Meanwhile, the penetration rate of hotel chains stood at 34.4% in China’s hospitality market in 2021, much lower than the average penetration rate of hotel chains of 42.7% in the global market and the penetration rate of 73.0% in the more mature U.S. market.
But the penetration rate of chain operations in the Chinese hotel sector is expected to continue to increase.
Hotel sector
On the other hand, in line with continued improvements in consumer spending, Chinese hoteliers have observed a rising demographic of young, discerning travelers who demand creative, high-end yet affordable hotels designed to exceed customer expectations in a personalized way.
This favorable industry trend has led more and more customers to choose leading hotel brands capable of offering a wide range of appealing products and services in the areas of shopping, leisure, culture, dining and other lifestyles.
Against this backdrop, Zhiding Yuemei Technology, with revenue of $8.5 million in 2022, has the following key strategies to consolidate its market leadership and achieve sustainable growth:
Continue to expand its hotel network in China and strengthen its hotel brand portfolio.
Strengthen its retail offering to improve customer acquisition and monetization.
Continue to invest in technology and further enhance its SaaS hotel platforms and services to client hotels.
Zhiding Yuemei Technology is a hotel network with a differentiated portfolio of lifestyle brands, and also provides SaaS (software as a Service) hotel services to hotels in China.
