Diversified Accommodation in Need

According to the statistics revealed by Wuxi Tourist Hotel Association, in the first half of this year, the revenue of most star hotels is growing while the room prices and consumption per person are going down. It is analyzed that independent travel has changed the way of consumption. Tourist hotels should be diversified to meet the new requirements.


The consumption market of tourist hotels in Wuxi is recovering with slight increase of the total revenue. The income of five-star hotels increases by 6.92 percent YOY, among which Hubin, InterContinental and Nikko are on top. As to the occupation rate, four-star hotels grow by 15.58 percent YOY, and five-star hotels 6.62 percent. Express Inns revenue decreases by 1.42 percent and the occupation rate goes down by 1.71 percent.


It is related closely to the change in tour consumption market. Parents-children tours involve tourists in their 50s or 60s, and young people in their 20s or 30s tend to drive by themselves or travel with friends or lovers. They are inclined to enjoy life and choose high-star hotels, which is an opportunity for the tourist hotels.


However, the challenges are severe. Star hotels facilities and services are relatively backward, and no innovation is made to the dishes, which result in that the consumption per person drops to the lowest point in recently years, even about 100 yuan in some high-star hotels. The average room price of five-star hotels reduces by 4.43 percent YOY. As to the market of wedding banquet, the income decreases with the same number of banquets. According to Huang Jianzhong, the chief of Wuxi Tourist Hotel Association, loss of this industry in 2004 is more than that in 1999, and Wuxi is one of the 35 cities suffering the loss. As the battle between the hotel and E-commerce is more and more fierce, it is time to think about how to make it a win-win situation. Different from other on-line products, eye-catching methods do not replace the spot experience, without which the hotel products is incomplete. Net + is a concept that the hotel is run with support of internet.


It is said that there are too many Express Inns and high-star hotels which provide the same services, or do official reception. It is seldom to find hotels oriented to elders, children, motels or home stay. Independent travel appears, which results in that their accommodation needs are diversified. Home stay, inns, holiday villas, log cabins, tents or limos is welcomed.