Countermeasures Study on Enhancing Competitiveness of Budget Hotels in China

Abstract

With the development of China’s economy, the number of foreign tourists and business visitors will increase significantly, which provides objective opportunities for developing economy hotels. In the background of the rapid development of budget hotels, we analyze the development of budget hotels from five aspects, i.e. existing competitors in the industry, potential or newcomer threat, threat from substitutes or services, buyer’s bargaining capability, supplier’s bargaining capability, and put forward strategies to promote competitiveness of budget hotels in China, that is, budget hotels should actively innovate, strengthen joint marketing with related industries, embrace consumer psychology of seeking the divergent and chasing the new, form their own unique brand characteristics and adjust the regional structure of hotels in order to master the right to choose suppliers, so as to enhance Chinese budget hotel competitiveness.