Optimism in Chinese hotel gross bookings forecast
- August 2022
- Phocuswright Research
Despite innumerable current challenges, future optimism is evident. According to Phocuswright’s latest travel research report China Travel Market Report 2021-2025, China's hotel pipeline has 477,245 rooms under construction. Hotel groups will rebalance their portfolios to meet variable demand for luxury, upper mid-tier, lifestyle, select service and economy hotels in different regions. This will create a wave of new-build hotel openings in the southern Greater Bay Area, western and central China. Hotel group Huazhu, for example, is targeting having properties in 2,000 Chinese cities, up from 885 in 2021.
In early 2022, international chains, including Accor, IHG, Marriott and Hyatt, committed to sign more hotels in China and introduce new brands. Thai hotel firm Minor International intends to open 100 hotels in China. Established brands will focus on third- and fourth-tier cities, while new lifestyle concept hotel brands will open in first- and second-tier cities.
Unquestionably, the first half of the 2020s will challenge all hotel operators, but gross bookings are forecast to reach $47.6 billion by 2025, easily surpassing 2019 revenue. Digital distribution will drive the hotel market rebound, with online hotel penetration climbing from 57% in 2020 to 67% in 2025 (see Figure below).
China Travel Market Report 2021-2025 provides travel executives with a comprehensive view of the China travel market, including detailed market sizing and projections, distribution trends, analysis of major travel segments, key developments and more.
Related insights article: Key developments in China’s online travel market
Specifically, the report gives analysis into, but is not limited to, what influences gross bookings and projections, how government COVID policies and consumer demand impact (reduced) growth, the impact of a strong domestic market, the distribution landscape for all major segments and insights into the future of the market.
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