Signs of optimism from lodging providers in China

As the world continues to address coronavirus (COVID-19) at different stages, China’s recent lift on travel bans shows the lodging industry valuable insights into what may be ahead of the lodging industry. 

In March 2020, we surveyed 445 of our lodging partners in China to get insights on their current operations and top priorities. While the survey shows the industry is still in recovery, we’re seeing partners open back up and more bookings slowly build.

• 75% of lodging partners are operating
• 50% of operating hotels have less than half their staff actively working
• 50% of hotels’ occupancy rates are above 10%

Additionally, the survey asked partners their top concerns for lodging recovery.

Right now, partners’ top priority is to recover business and revenue as soon as possible. Fifty-two percent of partners agreed they want Expedia Group to help support them increase lodging demand. Partners also requested Expedia Group provide industry data, current market trends and forecasts as well as competitor data to help their properties recover.

Additionally, partners prioritized updating health and safety practices for guests and staff while waiting for travel restrictions to lift.

What is your most important task at this time?

What support do you need from Expedia Group?

Booking trends

An analysis by McKinsey Consulting Group also showed guests are booking more rooms now than in early February 2020 when COVID-19 first halted travel. China’s market shows midscale and economy properties occupancy rate increased by 10 percentage points. 

Additionally, hotel searches increased about one week after flight searches; however, the booking window is shorter than before COVID-19. As booking windows continue to shorten, partners should update their property listings, revise availability and prepare for last-minute demand. You can read more about preparing your property for travelers to return. 

Emerging travel insights

According to the McKinsey report, travel growth in China shows we could see new industry trends.

• Shorter trip: Local governments are only allowing trips inside provinces, restricting long-distance travel across borders.
• Younger travelers: More travelers under 30 years old booked trips this year, possibly because they believe that COVID-19 poses less of a threat to younger age groups.
• Competitive prices: Travel demand in China increased when the cost of short-trip group tours reached the lowest point in 10 years, which suggests lower room rates can stimulate travel.
• Outdoor destinations: Travelers are choosing outdoor destinations, like national parks and forests, over indoor attractions, like museums. 

Stay connected

As the travel industry continues to address the evolving restrictions, we are committed to keeping our partners updated on trends and insights that help you prepare for when travelers return to your door. If your region is in the early stages of seeing demand return, be sure to visit our Bouncing back section for additional insights.