Hotels look for new ways to entice more stays

Branding is expected to play a key part in the recovery of China’s hospitality industry after the chaos caused by COVID-19, according to industry experts.

Domestic hospitality has been hit hard by the COVID-19 outbreak with annual turnover dropping 31 percent year-onyear in 2020, according to an industry report released by online travel news provider Wenlv and data analysis company Analysys.

Due to epidemic control and consumption upgrading, customers have higher expectations and requirements for hospitality services.

In response, a growing number of hoteliers are revamping their brands and services to receive more attention.

Analysts said many hotel brands are engaging in inter-industry cooperation as an effective strategy to expand brand influence. Most have developed diverse products and souvenirs with unique brand characteristics.

More than providing accommodation, hotels have become a versatile space to create a special experience for guests.

The report shared an example of the hotel brand Atour, which has 10 or so themed hotels around the country. Atour’s partners range from internet companies to celebrities, and the themes cover music, sports and constellations.

The cooperation has earned wide recognition, making Atour a popular hotel brand among middle-class consumers, the report said.

Following the trend of industrial upgrading, major hoteliers are improving their membership management to secure customers’ brand loyalty.

As the market becomes more saturated, membership will play a vital role in competition among hotel chains, the report said.

Based on internet technologies, pioneers in the industry have set up their own online communities or channels using apps such as WeChat.

The self-operated accounts can help maintain closer relationships with members and provide customized services, according to industry insiders.

To date, China’s top 40 hotels in terms of brand influence have launched 28 applications and 295 WeChat public accounts, according to rankings released by Wenlv and Analysys.

Huazhu Group, which ranked first on the list, boasts a membership of nearly 170 million. The number of downloads of its own application exceeds 23 million. The huge group of loyal members was a contributing factor in driving up Huazhu’s occupancy rate amid the outbreak, according to the report.

Analysts predict midrange hotels, or three and four-star hotels, will become major market entities in the future as hoteliers strive to accelerate upgrading.

China’s midrange hotels have witnessed rapid growth over the past few years, while the market is still dominated by economy hotels with a share of 65 percent, versus midrange with 27 percent and luxury with 8 percent market share, data from the Zhongshang Industry Academy show.

Huazhu Group, for example, currently operates a total of 6,669 hotels but more than 60 percent at the low end.