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1. On insufficient consumer demand and the management strategy of the hotel industry Looking at the development of the hotel industry in China, the supply of hotel products, like the supply of many other commodities, has experienced a gradual improvement from a few years ago to a fundamental improvement in the past two years. After 1993, the number of newly-built foreign-related tourist hotels in China increased by 700- 1000 every year, with a growth rate of over 20%, accounting for 5-8% of the number of tourists. Economists tell us that in the buyer's market, due to abundant supply, consumption changes from passive to active, which not only has a negative effect on production, but also plays a decisive role. At this time, demand is more and more binding on production and operation, and consumer demand becomes the starting point and destination of business activities, thus making the market show a trend of demand constraint. The general feeling of "difficult business" of hotel general manager is a typical reflection of the demand constraint state of hotel industry entering the buyer's market. Under the constraint of hotel market demand, consumer behavior presents three types: differentiated consumption, rational consumption and perceptual consumption. This characteristic of the hotel industry market determines that hotel managers must carefully study the consumption demand of the market and adjust their business strategies in time according to the market demand to make themselves in a favorable position in the competition. 1. The current consumer demand and the new trend of the hotel industry in recent two years, because the national policy of expanding domestic demand has not had much effect on residents' consumption, if there is no obvious and effective policy, the main factors affecting residents' consumption psychological expectations will not change obviously, and the current consumer demand trend will continue for some time. 1. Changes in residents' income will have a greater impact on consumer demand. Due to the influence of economic adjustment in recent years, the income growth of urban residents has dropped significantly in the past two years, and there are obvious differences in consumption tendencies of different income classes. The marginal propensity to consume of the high-income class is low, while the potential consumption demand of low-income families is difficult to be transformed into actual demand due to the decline in income growth, and the overall marginal propensity is reduced. Therefore, the decline in income level will keep consumption in a relatively depressed state. 2. Consumer expectations have not changed much, which will make it impossible to make a big breakthrough in the situation of insufficient consumer demand. Because the income growth is not as fast as before, the uncertainty of residents' future life increases. People's expectations of future income are not very optimistic, and residents' expectations of future consumption are unlikely to be greatly improved. This situation of insufficient macro consumption demand directly affects the hotel industry as the intersection of the six elements of tourism: eating, living, traveling, shopping and entertainment. Although in recent years, with the increase of people's leisure time and the change of consumption concept, tourists have an increasing trend, but the situation is not optimistic. From 65438 to 0997, the daily consumption of domestic tourists coming to Zhejiang was only 142 yuan, and the per capita consumption growth was slowing down. This macroeconomic background has brought many new trends to the hotel industry: first, the operating income and operating profit of the hotel industry have deviated. In recent years, the operating income of hotel industry has increased obviously, but the operating profit has decreased year after year. Second, the occupancy rate of hotel rooms runs counter to the average house price. From 65438 to 0998, the occupancy rate of hotel rooms in Zhejiang Province increased by 3.4% over the previous year, while the average house price decreased by 9.3%, showing an abnormal trend in the opposite direction. This situation shows that demand has obviously risen as the main contradiction between supply and demand in the hotel market. If today's hotel market is simply oversupply, then the room occupancy rate and the average house price should drop at the same time. Therefore, the lack of effective demand has become the main factor of the hotel industry depression. Third, the hotel industry's operating costs and management costs are not synchronized. During the period of 1998, the operating costs of hotels in Zhejiang Province increased by 9% compared with the previous year, of which the direct costs increased by 5.5% and the management costs increased by 22. 1%, so the cost management is still a problem worthy of study by hotel operators. Fourth, the loss of the hotel industry has increased. Since 1997, the loss of hotel industry has increased rapidly. From 65438 to 0998, the hotel industry in China experienced the first overall loss, especially some old hotels and new hotels with no characteristics suffered serious losses. This situation shows that under the market condition of insufficient demand, the market competition in the hotel industry has become fierce, and it is imperative to seek new hotel management strategies. Second, the hotel management strategy under the condition of insufficient consumer demand. (A), the establishment of the hotel industry aims to expand the development strategy of * * * tourism cake.