Key Success Factors In The Hotel Industry

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The historical growth rate: The hotel industry’s growth rate is 8.0% from 2012 to 2016, with a value of sales of $58.6 billion. Due to the development of the domestic tourism industry, the sales increased 9.9% in 2012 set a value of $43.9 billion. The decrease of international tourist, the tightening of the government spending and the economic slowdown affected the industry revenue growth, decreasing by 2.5% in 2013 compared with the previous year. In 2015, the number of international tourists increased by 3.5% in comparison with 2014. Industry sales increased 7.4% to $54.7 billion. The expected growth rate: According to ACMR-IBISWorld, the revenue for the Hotel industry in China is predicted to continue growing at the steady rate, at an annualised rate of 6.0% over the period. The trend of the industry: The share market of three-and four-star hotels will increase over the period as changes in the industry structure. The giant hotels are moving into the lower-star rated segments. Many foreign hotel management companies have started developing hotels with four-and three star ratings to adapt the larger customers and strengthen market positions. The key success factors: The key success factors in the Hotels industry include economies of scale. It can be seen that the companies increase their network construction, the number of hotels and are located in major cities across the country. Also the companies in the industry have to understand the needs of customers; it is a

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