There will be eight major trends in hotel real estate industry in 2022. What are trends? I tell you

Original: Li Sheng

Normalization of epidemic

The impact on tourism and hospitality industry continues

Over past two years, entire travel and hospitality industry has moved forward in alarm and expectation

I highlight eight major hotel industry trends in 2022

Hotel staff have a lot to learn

1. The fall of chain hotel market and involution in development of shares

According to statistics from Dayu Cultural Tourism Research Institute

Last two years

The number of chain hotels in China increased by 20,000

Most in head group

3–5 years later

The number of local chain hotels is expected to reach 100,000

The network accounts for about 45% of entire hotel industry, and network speed has increased even more

With a chain of development of cities of first and second level to stage of Red Sea

Market decline is key to brand competition now and in next few years

China has over 300 prefecture-level cities

More than 2000 counties

Many more official cities

Sales chain ratio in these sinking markets is still very low

This is key to development of hotel market in future

In terms of development of Jinjiang, Huazhu, Dongcheng, Beijing Tourism and other groups

Over past few years, 70% of new hotels have come out of a declining market.

Almost 50% comes from inventory renewal

This share will continue to grow in future

No new market

Brands from all over world compete for resources, which means that industry has entered an involutionary competitive environment

2. Families down and resorts up

In context of flash

Traditional homestay resorts are taking a devastating blow

Relying on inter-provincial and long-distance travel and travel agencies

Bed and breakfasts in traditional places like Dali and Lijiang have a huge impact

To save itself, homestay industry is constantly grouping up

Development towards branding, quality products and industrialization of leisure

The industrialization of resort is determined by resort hotels

This is a residential complex

The simple concept of homestay can no longer meet needs of mainstream consumers

In future, resort hotels will focus on accommodation around big cities

This is also fastest recovery against background of epidemic in last two years

The plate with best effect

The epidemic has put an end to international and inter-provincial travel, but it cannot stop people's need for rest

High demand for surrounding tourism contributes to development trend of resort hotels and the entire resort industry

3. Spreading all-inclusive model

All Inclusive Leisure Market Active

Consumers are very interested in this mode of transportation

Currently

A total of 28 Marriott International Group hotels have launched an all-inclusive plan at same price

More than 8000 rooms

In Caribbean, Mexico and Central America

The all-inclusive package is not only popular among people living after 90s

Favorite after 00s, for families of parents and children after 80s

All inclusive for one price - choice without worries

High safety factor not only

Many resorts also provide professional childcare services so that parents who are struggling to care for their children can get a "relief" period

A trip to hotel

For today's trip to hotel, young people stay at hotel

Give hotel more hope

Satisfying hotel demand at a fixed contract price

Buy one for peace of mind

The all inclusive for one price model is becoming more and more popular among young people, so more and more hotel groups are coming into play

4. Opportunities for development of hotels for cultural and red tourism

Under big changes in countryside revitalization

The cultural tourism industry is still promising in future

Cultural tourism as a destination

This will be last chance for new hotel market

This is also an important direction for development of resort hotels

Standardizing development of cultural tourism market

This will contribute to sustainable development of resort hotel segment. It is based on design and implementation at highest level.

In recent years

Red tourism gradually began to gain popularity

Because there is a certain market share with strong demand

Some projects and forms of cultural tourism in red theme are under development

The market of some famous red tourist cities is constantly improving

For example, Yan'an and other places

future

In tourism and hospitality sector, you can also pay attention to some areas related to tourism in red, which can also be a new direction in future

5. Investment in budget hotels is on rise

The epidemic situation has made obvious a trend towards a decrease in consumption, but this does not mean that product line is budget-friendly.

Economy hotels are recovering as market needs more economical products and mid-range hotels have lost their price advantage

On other hand, huge sinking county market needs strong demand for chain operations, and low-cost hotels provide new opportunities for development

New era budget hotel chasing small but beautiful

It doesn't have to be huge in scale, it has to be exquisite

Small but full, beautiful and cheap

Combining several dimensions, new model of a budget hotel is more like a miniature coffee shop, calm and comfortable

At same time, budget hotels have attributes of investment security

In small towns, rent is several times lower than in large cities

Housing prices may not be much lower. In such conditions, low-cost hotels may enter second spring of development

6. Improved Operations, Digital Transformation Coming

Post-pandemic era

Digitalization is increasingly becoming a reliable weapon for hotels to beat competition in Red Sea

Over past two years, China's hospitality industry has entered a period of accelerated digital development

The creation of a pool of private domain traffic belonging to hotel's own brand and acceleration of direct sales model is an inevitable trend in digital development of industry

2022

Creating an efficient digital operating system will be key for a hotel to attract direct customers and drive repeat purchases

On one side

The direct selling model can increase number of repeat purchases of old customers

On other side

As local and peripheral travel becomes popular

Hotel hopes to improve user experience through direct sales to attract local and surrounding customers

7. Service virtualization. Metaverse infiltrates hospitality business

A new generation of consumers is increasingly committed to personalized consumption

Tuning and virtualizing services has become a trend

Virtual customer service, virtual employee representative and virtual live streaming are already under study

Increasingly diverse service scenarios, such as virtual environments and virtual stores, present unprecedented new challenges for hotel management

Embracing and discovering future of virtualization

The concept of metaverse has also begun to spread to hospitality business

Future metaverse technologies can help hotels innovate in customer service and hotel construction

From a screen or 360-degree panorama to a more vivid, real and immersive experience

Virtual workers are not only members of metaverse

This is also a product of artificial intelligence

In addition to IP image of company, thanks to accurate data calculation

Reducing labor costs, reducing errors and improving operational efficiency of hotel companies are goals for the future

8. Key Consumers and Future Directions for Hospitality Investment

Who are main consumers of hotel?

The main consumers of resort hotels are people over 80s, 90s and 00s, and main consumers of urban star hotels are people over 70s

The main strength of high-end chain brands in city is post-80s generation, while budget hotels are also post-70s and post-80s generation

Young people dare to spend and spend at high prices

Willing to pay for stage

In future, when investing in hospitality industry, it is necessary to take into account needs of key consumer groups in order to find right “password” for investing in hospitality business.

Focus on concept of technological empowerment, digitization and intelligence to be industries that empower hotels

2022 is still a volatile year for hotel industry

Be it a hotel brand, hotel owner or hotel employee

Be prudent, prudent and win, live and survive to face next round of change