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Business & Management Opportunities for themed hotels in mainland China Opportunities for themed hotels in mainland China

PolyU study unveils the hotel preferences of tourists and the possibilities of developing themed hotels in the Chinese mainland.

  • Dr Philipp Wassler

    Dr Philipp Wassler

  • Dr Hung Kam

    Dr Hung Kam

 

One can easily come across themed hotels when travelling overseas, but that may not be the case in mainland China. While themed hotels have been widely used as a marketing tool in Western countries, they are far less common in mainland China, even against the backdrop of a booming tourism market that recorded a more than US$44 billion increase in investment over the past five years.

Locally owned hotels in the mainland suffer from a lack of differentiated products and services and poor brand management. Intensifying competition from international hotel chains will push them to rethink their marketing strategies to differentiate themselves and gain a strong foothold in the industry. Niche marketing in the form of hotel theming will be a way forward.

To explore the potential for themed hotels in the mainland, Dr Philipp Wassler, former Postdoctoral Fellow, and Dr Hung Kam, Associate Professor of the School of Hotel and Tourism Management, conducted interviews with midto upper-level managers, senior executives of hotel groups and hotel owners. The participants were invited to share their understanding of hotel theming, successful examples of themed hotels in mainland China, and strategies for developing themed hotels in the mainland.

The results suggested that themed hotels are far less common in mainland China than in the West, mainly due to the risk-averse nature of Chinese business culture and less adventurous nature of Chinese tourists. Chinese hoteliers consider hotel theming as a high-risk strategy that requires long-term investment in a niche market. Chinese travellers generally prefer more traditional hotel experiences, contrary to foreign tourists who are more likely to enjoy exotic experiences such as sleeping in trees, or even staying in prison-themed hotels.

Chinese tourists and foreign travellers also differ in their themed hotel preferences. Foreigners generally prefer retro-style themes based on traditional Chinese culture, and Chinese tourists tend to favour futuristic and foreignthemed hotels. Among Chinese tourists, those from rural areas prefer modern themes while those from urban areas prefer more nostalgic and simpler designs.

The researchers recommend developing local culture-themed hotels, with religious, ethnic, regional or historical traits of particular areas, combined with local food, music and decoration. By adopting local themes, hotels could become cultural ambassadors and help preserve local cultural heritage. Construction and staff training costs could also be lowered with the use of local materials and the employment of local staff.