Shangri-La examines new trends in China

Hong Kong based Shangri-La Hotels and Resorts is gearing up to focus on consumer trends of the mass market, says Sarah Chen, vice-president of the group's sales & marketing department.

With an increasing number of competitors, revenue growth of the first six months this year slowed down slightly, compared with that of last year, says Chen.

The group is expanding its business to different parts around the world, especially the second- and third-tier cities in China. It has just settled down in Tianjin and later this year there will be three more openings in Qinhuangdao, Nanjing and Sanya.

In a recent sales tour in Beijing, the group's 51 hotels presented their latest projects to the public.

Chen says that there is a sharp rise in the purchasing power of consumers in second- and third-tier cities in the recent two or three years.

"With more airline routes, both domestic and international, as well as better transportation infrastructures, economy and tourism in these cities are booming. We believe there is huge potential in these cities," she says.

Many of these second- and third-tier cities are the country's famed tourist spots, like the seaside city of Sanya in Hainan province and Nanjing, an ancient city with a range of historic sites.

During the sales tour, a sales representative from Shangri-La Hotel, Yang Zhou said their hotel targets mostly tourists from around the country and most rooms have already been booked now because of the approaching Mid-Autumn Festival and National Day holiday.

Chen says the potential of developing tourism, especially domestic tourism, has become a crucial factor today when the group chooses new locations.

"The central government has been promoting the idea of 'citizen tourism' and in the recent three to five years, the number of holiday goers among the general public is increasing. Our business will expand following where they are traveling," she says.

Besides branding the hotel group with a less luxurious touch and more targeted to the general public, the group has also stepped up efforts in maintaining its position as a high-quality service provider with wide market coverage.

In the hotel industry as well as the expo, conference and meeting industry, an influx of new competitors has caused a sudden plunge in room rates and therefore service quality, says Chen. She noted that as a leading player in the industry, the group will not compromise its standards by joining the price competition.

For the changes and challenges ahead, Chen added that the group will also be working on new media promotion and cooperation projects with other industries.

"Our expanding business needs more efforts in marketing and promotion. We are placing larger importance in using new technology and the big data," she says.