Tourist hotel development trends

——The following data and analysis are from the "China Boutique Hotel Industry Development Prospects Forecast and Investment Strategic Planning Analysis Report" by the Qianzhan Industry Research Institute.

According to the "Boutique Tourism Hotels" (LB/T066-2017) issued by the Ministry of Tourism in 2017, the definition of boutique hotels is: superior geographical location, unique design style, rich cultural connotation, excellent quality, Professionally operated small exquisite tourist hotels, also known as boutique hotels.

Boutique hotels: small scale, fashionable and personalized

Internationally, boutique hotels first originated in the 1980s, and their original meaning in English is "Boutique Hotel". Boutique can be understood as small, fashionable or closely related to fashion and trends. It is generally believed that the Morgans boutique hotel opened by Ian Schrager on Madison Avenue in New York City in 1984 is the originator of boutique hotels.

From a domestic perspective, like the development process of hotels around the world, China's hotel industry has accelerated its move towards "personalization" after blindly pursuing the development of "the bigger, the better, the higher, the better". In the process of exploration, China also has its own boutique hotel (Boutique Hotel).

In 2017, the National Tourism Administration released the "Boutique Tourist Hotel" industry standard, which will be implemented from October 1, 2017.

"Boutique Tourist Hotels" stipulates the definition, basic characteristics, essential requirements, general requirements and evaluation requirements of boutique tourist hotels, and is applicable to accommodation companies that require the creation of boutique tourist hotels. It is clear that boutique tourist hotels refer to small exquisite tourist hotels with superior geographical location, unique design style, rich cultural connotation, excellent quality and professional operation. Boutique tourist hotels are also called boutique hotels.

Boutique hotels generally have the characteristics of unique design concepts, considerate service models, and strong privacy. The details are as follows:

Supply side: The growth rate has slowed down in the past three years

According to Maidian Research Institute, a professional brand research platform for commercial space industries such as hotels, apartments, offices, and scenic spots. According to data, in the past ten years, thanks to multiple factors such as the economic environment and market drivers, boutique hotels have achieved rapid expansion in the domestic market. In 2014, there were more than 500 boutique hotels in China. However, this trend has slowed down significantly in the past three years. In 2016- The number of new supply in the boutique hotel market in 2019 was 38.

Due to the high requirements for the construction, management, and operation of boutique hotels, the long investment and return cycles, and the positioning of consumers in the middle- and high-income class, boutique hotels have a small share of the overall hotel market. In 2017, boutique hotels accounted for less than 0.1% of domestic boutique hotels, and in 2019, domestic boutique hotels accounted for less than 1% of the overall hotel market share.

Demand side: The consumer base and market scale continue to expand

In the context of the gradual rise of the "experience economy", boutique hotels provide personalized and higher-grade products and services. Winning the favor of more and more consumers, especially middle- and high-income earners and young people.

With the expansion of the light-middle class, the pursuit of brand services and customization as a result of consumption upgrades, and the development of the new generation’s personalized consumption preferences, my country’s boutique hotel consumer base will continue to expand.

At present, my country's representative boutique hotels have attracted a stable group of members with their unique design style, thoughtful service experience and brand premium, with high user stickiness and brand identity; or relying on their affiliation The group has rich membership resources and a stable user base.

Boutique hotels are relatively niche, with obvious personalization. Refined operating costs and high-end independent brand image make the average hotel consumption price higher, and the audience is still relatively limited. Therefore, the size of my country’s boutique hotel market Still small, and more cautious in brand expansion.

According to data from Fastdata, an American real-time stream processing company, the scale of my country's hotel industry has grown steadily. In 2019, the total volume of China's hotel accommodation industry was 677 billion yuan. In recent years, industry revenue has grown between 2% and 6%. According to a report released by the commercial space asset strategic research and consulting organization Maxian Research Institute, my country's boutique hotels accounted for less than 1% of the overall hotel market share in 2019. Combining factors related to industry development, it is preliminary estimated that the size of my country's boutique hotels market in 2019 will be approximately 5.416 billion yuan.

Multiple factors are favorable for the development of my country's boutique hotel industry, which has great potential

Resident consumption continues to upgrade and the middle class population expands

China's consumption upgrading process has roughly gone through three stages of development. , from mass consumption to brand consumption to personalized customized consumption. The driving force for China's consumption upgrade mainly comes from two aspects. First, as the national economy grows, residents' income increases, and residents' ability to accept product prices increases, resulting in obvious product structure differentiation. Some brands have captured a large number of consumers with their high prices and high quality. On the other hand, China’s consumer groups are gradually getting younger, and those born in the 1990s have become a new generation of consumers. Compared with the previous generation, the post-90s consumer group has higher academic qualifications, more mature and independent consumption decisions, and a higher demand for personalized high-quality products. Domestic consumer demand for quality goods is gradually transitioning to personalized demand.

In addition, as the domestic consumption structure is increasingly optimized, consumption hot spots are gradually changing from traditional physical consumption to service consumption that meets people's needs for a better life.

With the growth of domestic residents’ income, the renewal of consumption concepts and the upgrading of consumption demand, the main body of consumers has changed, and the pursuit of “non-mass” personalized fashion experience for boutique hotel products or services will become more obvious. With the rise of the urban middle class, the mid-to-high-end boutique hotel industry is increasingly favored by personalized and high-grade people.

Changes in the holiday system have promoted the rise of the travel economy

The relevant national policies have shortened the May Day holiday and added small holidays such as the Dragon Boat Festival and Mid-Autumn Festival, driving the tourism, catering and entertainment industries and The development of secondary related industries, and these industries have the characteristics of "tourism economy as the center". The divergent economy, characterized by the divergence of sub-related industries, has strong industrial relevance, including shopping, hotels, transportation and other industries. As the country vigorously promotes cultural tourism, various colorful cultural exhibitions during the holidays attract a large number of tourists.

According to a report from the Data Center of the Ministry of Culture and Tourism of China, tourism consumption has repeatedly hit record highs, stimulated by positive factors such as price reductions in scenic spots, free highways, and the integration of culture and tourism. During the Spring Festival, Qingming Festival, May Day, Dragon Boat Festival and National Day in 2019, the total number of domestic tourists increased by 7.6%, 10.9%, 13.7%, 7.7%, and 7.81% respectively year-on-year, and domestic tourism revenue increased by 8.2%, 13.7%, and 13.7% year-on-year respectively. 16.1%, 8.6%, 8.47%.

National policies vigorously promote the in-depth integrated development of the cultural and tourism industries

From 2019 to the first half of 2020, the Ministry of Culture and Tourism of the People’s Republic of China and the Ministry of Culture and Tourism issued a series of policies to promote the cultural and tourism industry. and policy documents on the development of the tourism industry to vigorously promote the in-depth integration of the cultural industry and the tourism industry, cultivate new cultural and tourism formats, and further promote the resumption of work and production of tourism enterprises while doing a good job in epidemic prevention and control.

2019 is the 70th anniversary of the founding of the People's Republic of China. Mafengwo Tourism and People's Cultural Tourism jointly released "Poetry and Distance: Culture and Tourism Integration Development Report 2019". The report relies on Mafengwo's massive user data to conduct cultural and tourism integration An in-depth analysis was conducted, among which red tourism, rural tourism, and rising cultural consumption have become key words for the development of cultural tourism in 2019. It is reported that among the overall growth in the popularity of cultural tourism, the rapid increase in the popularity of red tourism is particularly eye-catching. The report shows that the popularity of red tourist destinations surged during the National Day Golden Week. Among them, the tourism popularity of Yan'an increased by 123.1% year-on-year, and the tourism popularity of Ji'an, Zunyi, Zaozhuang and other destinations all increased by more than 100%. Many tourists search Mafengwo for celebrations in major cities across the country, and red tourism-related tourist destinations and attractions have ushered in a new wave of passenger flow peaks.

The integration of culture and tourism makes holiday travel consumption more fashionable and high-quality. During the holidays, colorful folk festivals and holiday tourism products, especially experiential activities that deeply integrate intangible cultural heritage and natural heritage tourism, continue to be popular. Cultural performances, museums and scenic spots focusing on cultural IP gradually win the favor of tourists. It can be seen that the surge in tourists during the holidays is of great significance to tourism revenue, especially for boutique hotels, which is another big opportunity.

From the perspective of customer sources, the consumers faced by boutique hotels are mostly upper-class high-end consumers. At present, my country's boutique hotel consumers are gradually shifting from business travelers to individual travelers. The income of urban residents in my country's major cities, especially key tourist cities, continues to rise. The size of the wealthy group has continued to expand in recent years, which can fully meet the customer needs of boutique hotels. With the opening up and development of the economy, more and more wealthy foreigners come to China to participate in conference activities and invest, which has also created a large number of business customers

From the perspective of environmental resources, the rapid development of tourism in China has made our country It has gradually become one of the most popular tourist destinations in the world, and the influx of many high-spending overseas tourists has brought a huge market to boutique hotels. Our country currently has many international cities, which are not only the center of the world's trendy culture, but also the gathering place for boutique hotel customers. These big cities that are open to the world provide location advantages for boutique hotels. In addition, many of my country's internationally renowned tourist attractions and scenic spots also provide design themes and humanistic and natural environments for boutique hotels.

From the perspective of experience reference, the experience support and reference of the hotel industry promotes the sustainable development of the industry. The scale of China's hotel industry has reached a certain level. The brand, quality and accumulated management level and experience are gradually integrating with international standards. In particular, the operating conditions of high-star hotels in economically developed areas are relatively ideal, which will provide opportunities for the development of China's boutique hotels. Support and reference from management experience.

In the context of new infrastructure and supply-side reforms in the hotel industry, policy dividends will continue to be released. Based on optimistic predictions, the size of my country's boutique hotel market will reach 20.8 billion yuan by 2025. However, as there is still great uncertainty in the control of foreign epidemics, the risk of a deep recession in the global economy is intensifying, and trade frictions are escalating, there are still many challenging factors in my country's macroeconomic environment. It is cautious to predict the market for my country's boutique hotel industry by 2025. The scale will reach 16.6 billion yuan.

To sum up, in the longer term, with the stabilization of the domestic epidemic and the orderly resumption of work and production, as well as the continuous improvement of hotel intelligence and personalization, the cultural connotation of domestic boutique hotels will be more The brand building has become more mature, and the boutique hotel market has huge development potential.