The person-time of domestic tourists has now shared over 60% of the total population, which can nearly meet the standard of mass tourism.
Moreover, the rapid growth of China's economy has created huge market potentials for domestic tourism and this also marked the arrival of mass tourism era.According to investigations, the average price of China five-star hotels in 2005 was RMB 806, the four-star hotel was RMB 436, the three-star hotel was RMB 268 and the budget hotel RMB 180.
The data by the end of 2005 shows that the average occupancy rate of five-star, four-star and three-star hotels was among 69%-70%, while the occupancy rate of budget hotels reached as high as 92%.
The proportion of commercial guests in five-star, four-star, three-star and budget hotels was 48%, 49%, 40% and 46% respectively.
By the end of Sep 2006, Shanghai with the 189 budget hotels ranked first in China, followed by Jiangsu with 104 opened budget hotels.
The budget hotels also see a considerable development in Zhejiang.he number of hotels operated and authorized by Home Inns has reached 110 till Oct 25 2006.
The total revenue has achieved RMB 249 million with the net income of RMB 27 million in the first half of 2006.
The Home Inns mainly establishes its chain stores in capital cities and the central cities with GDP over RMB100 billion in China.
On Oct 2006, Home Inns listed on Nasdaq and became the first Chinese budget hotel listed abroad.The rapidly growing consumer market in China and the demands for hotel expansion stimulate budget hotels to go public successively.
Due to the huge development room of China budget hotel market, many enterprises such as JinJiang Inn, Motel 168, Super8, Green Tree Inn, and Xinyu Inn are throwing enormous investment in this field.
The report focuses on the development status of budget hotels in Chinese regional markets and analyzes the market performance and development strategies of the main participants.