Competitor analysis for a Chinese hotel
Competitor analysis for Loong Palace hotel
Module: Research Method
1. Introduction
With the socio-economic development, advances in science and culture, technology and transportation development, the hotel industry is rapidly developing in China, what's more, with the prosperity of the world tourism and thriving of business, the competition of business hotel is increasingly fierce (Yang, 2011). Therefore, how to survive and develop becomes the main problem for those hotels. Under the pressure, a five-star hotel established in North Beijing, and it named Loong Palace. Loong Palace is located in Changping district and near to Chinese “silicon valley” Zhong Guan Cun which is the high technology park, and it is a five-star luxury business hotel in the WORLD HOTELS organization (Chai, 2006). In order to understand the market competitive environment to make the hotel develop better, the report analyzed current situation of hotel industry and the competitive environment for it.
2. The current situation of hotel industry in Beijing
The number of four and five star hotel over the years in China
Figure 1
(Xu, 2012)
Figure 1 shows the number of four and five star hotel over the years in China. The histogram clearly showed that from 2003 to the third quarter of 2012, the number of four and five star hotels was roughly upward trend, the total number has increased from 925 in 2003 to 2872 in 2012, and it is almost tripled! Therefore, the fierce competition is accompanying, and this competition is fiercer in Beijing.
The land area of China is 9,326,410 square kilometers (CIA, 2013); the area of Beijing is 16,807.8 square kilometers (Ge and Jin, 2008), so the land area of Beijing is accounted for only 0.18% of China's land area, but there are total of 186 four and five star hotels in Beijing (Zhu, 2011), about 6.5% of the total number (2872) in China. In another word, Beijing carries 6.5% of the China's luxury hotels with 0.18% of the
Module: Research Method
1. Introduction
With the socio-economic development, advances in science and culture, technology and transportation development, the hotel industry is rapidly developing in China, what's more, with the prosperity of the world tourism and thriving of business, the competition of business hotel is increasingly fierce (Yang, 2011). Therefore, how to survive and develop becomes the main problem for those hotels. Under the pressure, a five-star hotel established in North Beijing, and it named Loong Palace. Loong Palace is located in Changping district and near to Chinese “silicon valley” Zhong Guan Cun which is the high technology park, and it is a five-star luxury business hotel in the WORLD HOTELS organization (Chai, 2006). In order to understand the market competitive environment to make the hotel develop better, the report analyzed current situation of hotel industry and the competitive environment for it.
2. The current situation of hotel industry in Beijing
The number of four and five star hotel over the years in China
Figure 1
(Xu, 2012)
Figure 1 shows the number of four and five star hotel over the years in China. The histogram clearly showed that from 2003 to the third quarter of 2012, the number of four and five star hotels was roughly upward trend, the total number has increased from 925 in 2003 to 2872 in 2012, and it is almost tripled! Therefore, the fierce competition is accompanying, and this competition is fiercer in Beijing.
The land area of China is 9,326,410 square kilometers (CIA, 2013); the area of Beijing is 16,807.8 square kilometers (Ge and Jin, 2008), so the land area of Beijing is accounted for only 0.18% of China's land area, but there are total of 186 four and five star hotels in Beijing (Zhu, 2011), about 6.5% of the total number (2872) in China. In another word, Beijing carries 6.5% of the China's luxury hotels with 0.18% of the