Traditional Culture Encyclopedia - Hotel franchise - Why China’s hotel industry has entered an era of meager profits

Why China’s hotel industry has entered an era of meager profits

In the past two years, from budget hotels to high-star hotels, labor costs have become higher and higher, and the phenomenon of low-cost labor expenses that enterprises can "enjoy" has come to an end.

In the February hotel operation data statistical analysis report released by the China Tourism and Hotels Association, statistics on hotel operating costs appeared for the first time, in which the average labor cost rate accounted for 35.68% of the total revenue. Although this figure is still far from the hotel labor cost rate in developed countries such as Europe, which accounts for 50% of total revenue, it is unprecedented in the Chinese hotel industry.

“The rise in labor costs will become a long-term phenomenon.

Zhang Rungang, President of the China Tourist Hotels Association, spoke at the Third Council of the Sixth Session of the China Tourist Hotels Association on May 12 He said that high energy prices are becoming one of the bottlenecks plaguing the development of China's tourist hotel industry.

He pointed out that water, electricity and gas energy costs are the largest cost items for hotel companies in the long run. Since then, the unit price of water, electricity and gas used by Chinese hotel companies has been much higher than that of ordinary industrial companies, which has greatly increased the operating burden of hotel companies.

Data show that in 2009, the national hotel industry suffered a loss of more than 3 billion yuan. .

“The increase in market supply will dilute profits. "Xin Tao, vice president of the China Tourist Hotels Association and deputy general manager of China World Hotel, said that China World Hotel's performance has been the vanguard of Beijing's hotel industry in the past ten years. Even so, profits have been declining year by year. Especially After 2008, the labor costs, maintenance and energy costs of the entire Beijing hotel industry have doubled, resulting in an embarrassing situation of declining hotel income and rising costs year by year.