Although the hotel market is continuously recovering, due to the reduction of international business travel, the performance of multinational hotel groups in China is still not satisfactory. Therefore, hotel giants are also constantly exploring to accelerate the recovery of hotel performance.
Not long ago, Marriott International announced its financial report for the first quarter of 2021. The financial report shows that the operating income of Marriott International in the first quarter was 84 million U.S. dollars, while the operating income for the same period in 2020 was 114 million U.S. dollars, a year-on-year decrease of 26%. At the same time, the net loss in the first quarter totaled 11 million U.S. dollars, a year-on-year decrease of 135%. At the same time, most of the first quarter performance of foreign hotel groups, including Hilton and Hyatt, also showed a loss. It can be seen that it is impossible to quickly restore performance based on room revenue alone.
However, nowadays tourists increasingly value quality travel for leisure and vacation, which also brings business opportunities to multinational hotels. According to data released by the Ministry of Culture and Tourism, privacy, customization, and miniaturization have become the mainstream, and high-star hotel listings are favored by tourists. In addition, the special room types of popular Internet celebrity cities such as Changsha, Xi’an, Hangzhou, and Chengdu are also popular where the room is hard to find. From the perspective of industry insiders, the hotel’s business travel market suffered a certain impact in the epidemic last year, and international exchanges have also been greatly affected. Therefore, the source structure of foreign hotels has changed. Major multinational hotels can only change their strategies and are forced to open up the leisure market for weekend vacations to make up for their losses.
In addition, a reporter from Beijing Business Daily also learned that Beijing Kerry Hotel, a subsidiary of Shangri-La Hotel Group, has also recently launched many parent-child activities. It is understood that the activities carried out this time include children’s adventure park, karting, parent-child roller coaster, parent-child DIY and so on. It is not difficult to see that this time the major multinational hotels are also struggling to compete for a larger market share.
According to Zhao Huanyan, Chief Knowledge Officer of Huamei Hotel Consulting, the rise in the proportion of children’s population has caused the parent-child travel market to heat up, and the structure of tourism consumption has changed. In recent years, the proportion of parent-child travel and self-driving travel (approximately 2 hours around large cities) has gradually increased, which is tend to be more and more in the future.
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Post time: May-24-2021