In recent years，A new hotel format is quietly emerging in China’s big cities: budget hotels。Provide clean and hygienic guest rooms，Delicious and nutritious breakfast，Convenient transportation and prosperous location，Well-known brand chain operation...such hotels have become a very popular accommodation facility and are booming in the streets and alleys of coastal cities。

However, government regulatory agencies are unprepared for the development of this emerging industry，The academic discussion on the concept of budget hotels has just begun。

The lag in research and the absence of industry management have led to some conceptual confusion and operational misunderstandings in the budget hotel industry。This article combines the development of foreign economic hotels，Summary on the characteristics of China’s budget hotels，Trying to make a preliminary concept of a budget hotel，Analyzed the market demand for the development of budget hotels in China，And proposed the future development trend of this industry，Hope it can provide some ideas for researchers and managers of budget hotels。

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Budget Hotel is a hotel format that exists relative to the traditional Full Service Hotel。The development of budget hotels around the world has gone through four historical stages: budding and early development；Vigorous development period；Brand adjustment period；Redevelopment period。

The period from the late 1930s to the late 1950s was the budding and early development stage of budget hotels。The main feature of this stage is the emergence and development of motels。1930s，With the rise of mass consumption in the United States and the development of the road network，Motels start to appear，Provide low-cost accommodation services for civilians’ travel。For example，As early as 1939, several motels in Florida, USA, spontaneously formed the industry joint organization Quality  Courts），Renamed Quality Courts United the following year，Providing industry services to independent motel owners。After World War II，The prosperity of the American economy has driven the development of mass tourism，Triggered a large demand for low- to mid-range accommodation facilities；The completion of the intercity highway network promoted the popularity of motels。The Holiday Inn Motel, established in 1952, has improved service quality based on the experience of past motel development，And the first attempt to replicate products and services in a standardized way，Rapid growth along America’s highway network in just ten years。

From the early 1960s to the late 1980s，Budget hotels have entered a period of vigorous development。The number of hotels is growing rapidly，And the product form presents rich layers，Start to develop in the direction of diversification。Chain operation begins to replace the traditional decentralized operation model，Independent hotels have opened up a rapid development path for expansion，Some relatively mature budget hotels have begun to merge and integrate independent hotels。At the same time，Budget hotels have begun their international development，Spread from the United States to Canada、Central America、South America and Europe。This expansion also stimulated the rise of local budget hotels，Especially in Europe, budget hotels have begun to develop rapidly。By the end of the 1980s, budget hotels had become a mature hotel industry in developed countries in Europe and the United States。

From the late 1980s to the late 1990s，The budget hotel industry begins to make brand adjustments。After a long period of rapid development，Budget hotels have entered the market maturity stage，The driving force for rapid growth and large-scale expansion is gradually weakening。The diversified strategies and investment policies of large hotel groups have prompted hotel groups to be more inclined to purchase and integrate brands in the original industry through capital operations，Rather than a self-innovated brand。Market competition has 188bet Online Sports Betting and Casino eliminated some weak management，A brand with poor financial operations，Some large and powerful brands have become stronger due to their capital strength and management strength。Intensified competition forces companies to turn to service quality management and brand building。Brand Building、Market Segmentation、Market Segmentation、Internal management of enterprises such as product diversification has received unprecedented attention。

Enter the 21st century，Budget hotels have entered a new period of rapid development。This is mainly reflected in the market expansion of budget hotels in developing countries and the development of local brands。In China、Southeast Asia and other regions，The expansion of budget hotels is very rapid。World-famous budget hotel brands are entering one after another，For example, Accor Group’s Ibis、Formula 1，Sundart Group’s Super 8、Days Inn、Intercontinental Group’s Holiday Inn Express, etc.，They are all targeting the Asian market。At the same time，Some local budget hotel brands in Asia have also begun to develop，For example, Jinjiang Inn and Home Inn in China。

2. Definition and characteristics of budget hotels    

Currently，The academic community has not yet formed a generally accepted definition of budget hotels。The classification of budget hotels in foreign countries is mainly based on price，For example, Powers (1995) believes，Budget hotels refer to hotels that do not provide full service，Hotels with room rates below $33 between 1991 and 1993。Based on the characteristics of budget hotels and the actual situation in China，The author thinks，The definition of a budget hotel can be summarized as: “Mainly serving mass travelers and small and medium-sized business people，Taking guest rooms as the only or core product，Low price (generally less than 300 yuan)，Service Standard，Comfortable environment，Excellent hardware，Modern hotel format with high cost performance。”

Budget hotels as an emerging business format，It is the product of economic development and social life，It is completely different from the full-service hotels catering to the upper class of society，It is a product and facility that meets the travel and accommodation needs of ordinary people。The basic characteristics are as follows:

First of all, the product is limited.Budget hotels closely adhere to the core value of the hotel-accommodation，Take guest room products as the soul，Other non-essential services removed，Thus significantly reducing costs。Generally speaking，Budget hotel only provides rooms and breakfast (Bed         & Breakfast)，Some limited-service hotels also offer simple meals、Fitness and conference facilities。

Secondly, the quality of products and services.What is different from ordinary social hotels，Budget hotels place great emphasis on the comfort of guest room facilities and standardization of services，Emphasis on cleanliness、Comfortable and convenient features。

Again，Affordable price。Compared to the price of high-end hotels, which can easily cost thousands of yuan，The price of budget hotels is generally less than RMB 300，Some youth hostels and motels only cost tens to a hundred yuan。

Fourth，The target market of budget hotels is general business people、Working class、Ordinary self-funded tourists and student groups, etc.。High-end hotels often cater to high-end business guests、High-income class、Public-funded passengers are the main target market。

final，In terms of external performance，Budget hotels generally operate as chains，Achieving economies of scale through chain operations，Improve brand value。This is also an obvious feature that distinguishes budget hotels from other star hotels and social hotels。

3. The development status of China’s budget hotels        

The initial development of my country’s budget hotels began in 1996，Jinjiang Inn, a subsidiary of Shanghai Jinjiang Group, was launched as China’s first budget hotel brand。Enter the 21st century，Various economical brands are springing up like mushrooms after a rain，Exhibits the following characteristics:

First，China’s budget hotel industry is growing rapidly，There are some nationally created brands with great influence。Those with national influence include: Jinjiang Inn created by Jinjiang Group in 1996；Capital Tourism International Hotel Group and Ctrip Travel Service Company jointly invested in the Home Inn chain established in 2002。Also，There are also some regional brand budget hotels，Such as Motel 168 and Baolong Home in Shanghai、7 days in South China、Xin Yandu, etc. in Beijing area。These brands are showing a booming development trend，Rapid expansion 188bet online sports betting in just a few years，Some regional brands are actively working towards becoming national brands。

Secondly，China’s budget hotel market has strong demand，Several large cities and areas have become hot spots。Beijing、Shanghai、Guangzhou、The demand for budget hotels in Chengdu and other large cities is very prominent，Market conditions are relatively mature。And the Yangtze River Delta、Pearl River Delta、The higher overall level of economic development in the three regions of Beijing and Tianjin also determines the demand level for budget hotels。So budget hotels in China have developed rapidly in economically developed areas based on the pattern of combining points and noodles。

Again，Budget hotels have attracted a large influx of all types of capital。Because the investment in budget hotels is relatively small，The return on investment is significantly higher than that of ordinary hotels；At the same time，China’s current investment environment is relatively good，Adequate supply of funds，Many idle funds have been trying to find suitable investment projects，This high-quality project that combines properties and hotels is particularly attractive to the influx of capital；Also，The appreciation space of China's real estate has also led to investors' expectations for the appreciation of economic hotel real estate，So，Funds from various industries in society are optimistic about this type of project。

Finally, competition between foreign brands and national brands is intensifying.Many foreign mature budget hotel brands are optimistic about China’s market potential，High profile entry。Their mature management experience，Strong financial strength and talent reserve，World-renowned brand，Developed marketing network，Strict quality control has incomparable advantages，Develop locally、Chinese national brands with only a few years of experience form strong pressure。China’s local budget hotels must learn quickly，Rapid growth，Only in order to gain a certain status and advantage in market competition。

IV. Analysis of China’s Budget Hotel Market Demand      

The development of budget hotels is stimulated by mass consumption。The reason，The market driving force for the development of budget hotels comes from three aspects:

1.The development of mass tourism in China requires cheap and high-quality hotel accommodation facilities    

With the development of economy，China has gradually begun to enter a moderately prosperous society。Since 2000，Gross domestic product grows at the level of 1 trillion yuan every year；The per capita GDP of some economically developed coastal cities exceeds US$3,000；China’s total domestic tourist arrivals exceed 60% of the country’s total population，Has basically reached the standards of mass tourism。China’s economic development has laid a broad market foundation for domestic tourism，Pushes the curtain on the arrival of the era of mass tourism。

Mass tourism is accompanied by the improvement of corresponding tourism facilities and the adjustment of the tourism industry structure。Initial stage of reform，The development of the hotel industry is concentrated in high-star hotels，This is in line with the country’s vigorous development of inbound tourism。However，With the increase in domestic consumption power，The domestic mass tourism market is experiencing explosive growth，Need tourism supporting facilities that meet the needs of domestic tourists and economic strength。And the price is moderate，High quality，Excellent service，There are very few mid- to low-end hotels with well-known brands。Therefore，Promoted by domestic mass tourism with more than 1 billion people per year，my country’s budget hotel market is booming。

2.China’s increasingly prosperous economy has stimulated the development of business tourism，Also creates huge demand for budget hotels    

In recent years，With the development of the world economy and the acceleration of globalization，Business exchanges between and within countries are becoming increasingly frequent，Business tourism is developing rapidly around the world。According to statistics，Global business tourism revenue exceeded US$400 billion in 2000，And increasing at a rate of more than 8% every year。International activities in China in 2003、The number of business tourists from Hong Kong, Macao, Taiwan and domestic countries reached 1.1.6 billion。According to estimates from the World Tourism Organization，China’s current annual business tourism expenditure is US$10.3 billion，Under the background of rapid economic development in China, it is also experiencing rapid development，Estimated，May grow at an alarming 188bet Online Sports Betting and Casino rate of 20% in the next few years。

Previous，High-star hotels are the main choice for business guests，But，With the development of private economy，And some companies’ restrictions on travel expenses，People pay more attention to cost-effective choices when conducting business activities。Some facilities and equipment are luxurious，Exquisite decoration，Excellent service，But only guest rooms and conference facilities are available，A new hotel format that reduces other non-essential facilities and can significantly reduce prices，Beginning to be favored by business travelers。

3.With the development of China’s inbound tourism，International tourists’ demand for budget hotels is also gradually increasing  

From the perspective of the demand of international tourists，More and more international tourists come to China，Young people aged 15 to 24 and self-guided tourists who do not join group tours are the main market targets of youth hostels and budget hotels。According to the survey of the National Tourism Administration，2004，Among the tourists to China, there are more than 1.2 million foreign tourists aged 15 to 24 years old，And self-guided tourists are growing rapidly。With internationally renowned brands such as Accor Ibis、Sundart Super 8， Days Inn and other budget hotels enter China，And the development of China’s local budget hotels，International tourists will increasingly demand budget hotels。

5. Problems with China’s budget hotels        

1. Market segmentation is incomplete and product hierarchy is unclear       

Budget hotels have just started in China，Especially some national brand hotels，No clear target market yet，Or the segmentation of the target market is not detailed and complete enough，Resulting in overlapping or overly broad markets，Product design has no hierarchy，Lack of products and services targeting the needs of different market segments。Based on foreign development experience，There are three types of budget hotels: Limited Service Hotel，Economy Hotel/Budget Hotel and Super Budget  Hotel)。Limited service hotels are high-end in budget hotels，Economy hotel mid-range，Cheap hotels are the lowest class。The prices of these three levels of hotels vary greatly，The gap in hardware facilities is also very large，The guest room facilities of a limited-service hotel are no less than those of a four- or five-star hotel，Some budget hotels try to simplify their equipment under the guidance of cost-cutting ideas，Room facilities are relatively simple。But in China，Currently there is no very clear division of product levels on the market。

2. Lack of management experience and insufficient human resources    

In the course of several years of development，Domestic budget hotels have accumulated certain management experience，But compared with the decades of management experience of some mature foreign brands，The shortcomings are still obvious。In cost control、Service quality、Training mechanism、Logistics and distribution、Corporate culture, etc.，Need to continue to improve。At the same time，China’s hotel talents in the past were trained according to the service standards and characteristics of high-star hotels，Unable to adapt to one person and multiple posts in a budget hotel，Skill requirements for one job。For senior managers，There are very few talents who are proficient in both chain operations and hotel management。Budget hotels face a shortage of talent at all levels, so，Budget hotels are facing a shortage of talent at all levels。

3. Lack of marketing methods and incomplete sales reservation network    

Compared with foreign brands，China’s domestic budget hotel brands obviously lack marketing awareness and means。Especially some regional brands，Very low visibility，The construction of brand image is not successful enough。The most important point is，Except Jinjiang Inn、Home Inn Express、A few hotel chains such as Xinyu Star have established independent sales reservation networks and call centers，Many other hotels mainly rely on professional reservation centers and travel agencies to sell rooms。Even for hotels with reservation network，The booking technology and efficiency are not very high，The design is not perfect。

4. Obstacles to localization of foreign budget hotels      

Many foreign mature brands are attracted by the Chinese market and enter it，But its localization transformation and adaptation will take some time。China’s market and customers are very different from those abroad，The differences in industry forms and supporting industrial chains are also worth noting。In the process of cooperation with domestic enterprises，Some hotel brands adopt overly hasty entry policies，Leading 188bet Online Sports Betting and Casino to brand alienation and loss of quality in China。For example, Super 8 adopted the franchise brand export method to quickly enter the Chinese market，Wangfujing opened in Beijing (Quotes，Forum) and Tuanjiehu stores is more than twice，Wangfujing(Quotes，Forum) branch prices have reached the level of high-end hotels。This large price gap will lead to the discontinuation of the brand，Thus destroying the brand’s expectations and image in consumers’ minds。Also，Obstacles to localization are also reflected in management concepts and methods。Management concepts based on foreign cultural backgrounds will inevitably face certain obstacles when they come to China，So improvement is imperative。

5. The influx of irrational capital has impacted the industry    

The high return on investment of budget hotels attracts a large amount of capital，But the influx of some irrational capital has caused many problems。Some original star-rated hotels were acquired by capital and rebranded as budget hotels；Management of some budget hotels、There are big problems in all aspects including operations；The real focus of some capital is real estate，I just want to enter through the shell of a budget hotel... These phenomena will disrupt the inherently unstable order of this industry，Leading to confusion among the general public about the concept of budget hotels，And lay hidden dangers for future price competition。

6. Forecast of the future development trend of China’s economical wine       

With the rapid development of domestic economy and tourism，The public’s demand for budget hotels is becoming stronger and stronger。Economic hotels that can be accepted by the mass consumer class have broad market prospects in China。Budget hotels in China will present the following three main development trends in the future:

1.Chain operation will become the main mode of economic hotel development  

Chain operation is the main trend in hotel development in the world。A British investment institution conducted a survey and statistical discovery on the hotel industry around the world，By the end of the 20th century，1/6 of the total number of hotel rooms in the world are operated by 34 hotel groups，More than half of the total number of hotels in developed countries such as Europe and the United States are chain operations。

Budget hotels are an emerging business format in China，Most investors do not have the corresponding experience，Requires a long learning and accumulation process。Therefore，The development of budget hotels usually starts from some independent hotels，After accumulating certain management experience and brand equity，Gradually promote chain stores。

The adoption of chain operations by budget hotels is the inevitable result of the development of two sets of contradictions: one is the spatial limitations of hotel sales and the dispersion of consumers；The second is the contradiction between the hotel’s pursuit of economies of scale and the weakness of individual hotels。

First，The contradiction between the spatial limitations of hotel sales and the dispersion of consumers leads to the hotel having to pursue the maximum possible spread in space。

Hotel management has a strong spatial nature，The attraction of a single hotel to tourists is strongly affected by spatial distance。The dispersion of tourists is mainly reflected in the polycenters in the areas where guests move within the city、Wide range of features。With the acceleration of urbanization，The gradual formation of urban industrial structure，The city gathers more and more tourists、Business、Conference function，Cities have experienced rapid expansion，The traditional small-area city center is no longer the only bustling area in the city and the core area for guest activities，More and more new areas、Development Zone、Xinxing Shopping Center、Financial Center、Attractions and resorts are springing up like mushrooms after a rain，Each area gathers corresponding crowds and passenger flow，and，Business between these regions、Exchanges in transportation and other aspects promote the flow of people，Intensified the dispersion of people’s activities in the city。So，The space limitations of the hotel and the spatial dispersion of the guests constitute a huge contradiction。Through chain operation, the spatial distribution of the hotel brand in a certain city can be expanded，Thus effectively solving its space limitations。

Secondly，The contradiction between the hotel’s pursuit of economies of scale and the weakness of individual hotels makes it necessary for hotels to expand their business scale as much as possible。

The pursuit of profit maximization is the ultimate goal of an enterprise，For this，Companies will take various measures to reduce costs，Improve efficiency。Expanding production scale is an effective way to reduce 188bet Online Sports Betting and Casino costs。According to production cost theory，Within a certain period，The increase in the marginal product of an enterprise will bring about the decrease in marginal cost，But this effect is limited，Exceeding a certain scale will lead to a decrease in enterprise efficiency，Rise in other long-term costs，The marginal cost will then increase as output increases。Therefore，Improving efficiency by expanding business scale，There are certain limits to pursuing profit maximization。Enterprise scale expansion has boundaries，After reaching the saturation point of enterprise scale, you can no longer use this method to reduce enterprise costs。In order for enterprises to win in the fierce market competition，Must find other ways to reduce costs，Increase profits。Chaining can greatly improve the efficiency of each hotel in the chain group，And it can enhance the overall image of the entire chain group。

2.Operation differentiation and brand building are the way to survive for the competitive development of budget hotels       

At present, the market division of China’s budget hotels is still at a relatively early stage，Many budget hotels have vague positioning，Some only generally target self-funded travel and small and medium-sized business guests，Few further divisions。However，In the United States, where budget hotels are very developed，The target markets targeted by different budget hotels are very clear and unique。There are motels specially prepared for self-driving guests，There are hotels specially provided for elderly tourists，There are accommodation facilities specially provided for young backpackers，There are hotels dedicated to female tourists，There are also apartment-style budget hotels for family travel。

After reaching a certain number of domestic budget hotels，Market competition will inevitably intensify，General market positioning and undifferentiated products can no longer effectively attract customers，Especially the homogeneity of products will be a fatal flaw for budget hotels to compete in the market。Therefore，Market segmentation and product differentiation are issues that hotel operators must face。Also，In modern society，Brand has become a cultural carrier，The hotel industry is an industry that closely combines intangible services and tangible products，Brand is particularly important to its meaning。Every budget hotel brand must complete the positioning and connotation of its brand image in the next few years，Segmentation of target market and establishment of customer loyalty，Improvement of product design and improvement of services，Only in this way can we obtain a stable source of customers in the increasingly fierce market competition。

For this，According to the age of the customer group、Gender、Purpose of travel、Career、Income and other indicators，The current budget hotel customer source market can be further subdivided into many target markets，Such as the elderly tourist market，Youth Market，Medical Market，Student Market，Business Tourist Market，White-collar vacation market, etc.，Design different budget hotel products and services based on the consumption characteristics of these refined target markets，Fill the gap in the market，Form a stable target consumer group。

3.Management specialization and technological progress promote the development of budget hotels   

The main feature of budget hotels is “good quality and low price”，This requires operators to seek the best combination of service quality and cost control。Many new technologies，such as electronic reservation system、Financial Control System，And some advanced management systems，Like front desk management、Customer management, etc.，Can effectively improve service efficiency，Reduce management costs，Budget hotels have great demand for such technology and systems。But these management systems are currently aimed at high-star hotels，The management system of budget hotels is still in an exploratory stage。Faced with the growing development of budget hotels and the strong demand for management systems，Some mature hotel software and management systems will make corresponding improvements and upgrades based on the characteristics of budget hotels，This will promote the development and improvement of economic hotel management systems。

Specifically，The improvement of the economic hotel management system is mainly reflected in several aspects:

The first is the reservation system.As competition intensifies，Building a very smooth reservation and distribution system is a very important measure。"Homeinn" and "Jinjiang Inn" have established independent reservation systems，But many are just starting out，Small budget hotels are still blank 188bet sports betting app download in this aspect，There are many hotels whose sales and reservations imitate ordinary star-rated hotels，Through travel agency、Reservation Center、Travel booking website，Like Ctrip、E dragon is waiting to sell rooms。These sales channels capture a considerable portion of the profits of budget hotels，Not conducive to the control of operating costs。And，Ineffective control of sales channels will cause many unstable risks in future operations。Therefore，Establishing an independent reservation system can reduce sales costs，It is very necessary to stabilize the distribution channels。

The second is the personnel management system。Management talents for budget hotels are currently very scarce in this industry，The talents trained by traditional hotel management organizations are adapted to the operation system of star-rated hotels，It is rare to adapt to the "one person with multiple posts" in a budget hotel、Characteristics of “one job with multiple functions”。Therefore，Talent shortage is the biggest obstacle restricting the development of budget hotels。Some relatively mature budget hotels，For example, "Jinjiang Star" has established its own personnel training system，This system will definitely be promoted and improved in other budget hotels，It is also an important way for these budget hotels to establish talent cultivation。Therefore，Talent training system is an important aspect that future budget hotels must pay attention to。Also，Previous personnel management systems were developed based on the characteristics of star-rated hotels，Under the management framework of budget hotels，How to do a good job in personnel motivation and assessment management is a new issue facing operators。

Once again, it is operating cost control.The low prices of budget hotels completely depend on the strength and perspective of the operator's cost control。Some budget hotel operators have not completely gotten rid of the business ideas of star hotels，The cost remains high；Some operators are too strict on cost control，Seriously affecting the comfort of hotel products。Both extremes should be avoided。Therefore，The exploration and improvement of cost control will be the theme of future economic hotel management。The management experience of many well-known foreign budget hotel brands will be learned and promoted in China。