While saving costs for travel companies means cutting hotels’ profits, Hotelmize said hotels will need to improve pricing methods.
China saw a declined growth rate of 5.9% in business travel last year; 74.29% of the Chinese hotels and inns have ceased operation due to COVID-19.
The number of hotel-related new company registrations hit a five-year bottom in the first quarter in 2020, down by 38% from last year.
China’s business travel market posted a growth rate of 5.9% last year, while the average annual growth rate in 2013-2018 was 11%.
Over 80 million Chinese are expected to enjoy their first vacation since coronavirus lockdown; Virus outbreak severely impacted China's image as a travel destination.
IHG expects Q1 Global RevPAR to decrease 25%, including a 55% decline in March.
Dr. Guido Brettschneider believes that people in China and around the world will never stop dreaming and will want to travel again soon.
Same-hotel RevPAR growth continued to slow down in 2018-2019, reflecting oversupply in hotel market and intensified competition in greater accommodation industry with alternative lodging.
