Mass consumption becomes the main force, and hotels join the market of hotels in third tier cities

With the continuous development of the economy, the living standard of the people is improving day by day, and more and more consumers favor the express hotels that are cost-effective and suitable for the public consumers. Express hotels have expanded rapidly in just a few years by virtue of comparative advantages such as moderate price, service, convenience and quickness. With the creation of Shangkeyou Express Hotel, chain hotels have been transferred to third tier cities. With the vigorous development of tourism in third tier cities and the continuous advancement of urbanization, Shangkeyou Express Hotel has reached nearly 800 branches nationwide in just a few years, and more and more people are optimistic about the third tier city hotel franchise market.

Despite the overall decline of the hotel market in 2013, the development of the hotel market is far from over: the development of the first and second tier markets is unfavorable, and there are also broad third and fourth tier markets. Ji Qi, the founder and chairman of Huazhu Hotel Group, has publicly pointed out that the economy hotel market may be saturated in some cities, but "in the third and fourth tier cities, the development space is still attractive, and in the foreseeable tide of urbanization, the consumption upgrade in the third and fourth tier cities is inevitable."

The previous third tier market left many hoteliers with a bad impression of "poor member mobility", "talent shortage", "backward service facilities", etc., but with the successful establishment of Shangkeyou Express Hotel, hotel practitioners began to believe in the existence and development of county chain hotels, and more and more smart hotel candidates in third tier cities began to choose to join Shangkeyou Express Hotel.

According to the latest data released by Shangkeyou, Shangkeyou Express Hotel has reached nearly 200 branches in Shandong, with 17 prefecture level cities, 87 county-level cities and more than 80% county-level cities in the province. Shandong is the third largest province with strong economy, and has formed a spatial structure city group of "one group, one circle and one belt", which are respectively Shandong Peninsula Urban Agglomeration, Jinan Metropolitan Circle and Economic Belt. Shandong's tourism industry is developed, with an annual passenger reception of more than 350 million person times, ranking first in the country. The prosperity of the tourism industry has driven the rapid development of hotels, catering and other industries. In 2013, Shangkeyou Express Hotel added 66 branches in Shandong, far more than 7-day chain hotels.

Industry insiders pointed out that at present, the proportion of budget hotels in hotels is less than 30%, while in the United States, the proportion is more than 70%, and the development space of budget hotels is still large. Benefiting from the promotion of new urbanization construction, the enhancement of urban consumption power and the low cost of property and human resources in the third tier market, the hotel industry market in the third tier cities in the future will provide a new outlet and broad development space for the development of the hotel industry.