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Hotels- Hotels brands face new competition

Hotels: Hotels brands face new competition

But category value continues to rise

The hotel category increased 32 percent in value, a strong performance that followed a 13 percent rise a year ago. Of the two hotel brands represented in the BrandZ™ China Top 100, Hanting rose 58 percent and Home Inn rose 6 percent.

The growth occurred despite growing pressure in the budget segment of the market, and more competition from Chinese and foreign brands, most recently Oyo Rooms, an Indian budget brand. In addition, Muji, the Japanese design brand opened a couple of hotels in China. And Airbnb and other shared-economy brands are attracting hotel customers.

Two of China’s leading online platforms—Alibaba and Baidu—also entered the hotel category. Both brands are linking their artificial intelligence capabilities with their hospitality businesses to create smart hotels that with high levels of guest service provided by robots and other electronic wizardry. A robot receptionist operates in the Alibaba hotel, for example.