People are tending to reduce travel cost due to recent economic crisis. Especially, travelers and business customers are reducing travel costs. While the accommodation rate of star-rate hotels in leading positions in global hotel business is continuou...
People are tending to reduce travel cost due to recent economic crisis. Especially, travelers and business customers are reducing travel costs. While the accommodation rate of star-rate hotels in leading positions in global hotel business is continuously decreasing, budget hotels providing clean and safe accommodations in cheap prices are popular among people.
In case of Korea at the point where it is being polarized to five-star hotels and tourist hotels, budget hotels which this is grafted for business customers are necessary. Worldwide brands of economy hotels already generalized in Japan and Europe have arrived in Korea and encroaching domestic market of which composed of five star hotels, by proposing convenient facilities and unconventional prices.
In case of China, although the first development of budget hotels begun in 1996, the development speed was little slow. Development speed of budget hotels tends to become fast as Chinese economy develops since the 21st century. Recently, over 80% of employees of small and middle sized firms or organizations accommodated in budget hotels for their public or private activities. Also, recently, over 90% of domestic travel groups resided in budget hotels. The demand of budget hotels of the market is very large.
The purpose of this study is to figure out the status and cases of budget hotels of Korea and China based on such backgrounds and to propose a development strategy of budget hotels of both countries based on the development of budget hotels of both countries.
Firstly, domestic and overseas scholars looked at the definition, characteristic and management format as to budget hotels. I summed up the development history of global budget hotels and looked at budget hotels of Korea and China according to the purpose of this study.
Next, I briefly introduced famous brands of global budget hotels and looked at the development status of Korea and China as to such brands. I figured out the development status of budget hotels in Korea and China. I introduced the development status of budget hotels focusing on Korea China and analyzed the cases targeted on well developing typical budget hotels in both countries.
Lastly, I proposed problems of budget hotels of Korea and China and development strategies such as collectivized development strategy, differentiated development strategy, brand development strategy, cost management strategy and personnel resource development strategy etc. In the development stages of Chinese budget hotels, not only global brand experiences should be considered and referred to as a role model, but a creative consciousness suitable for Chinese status should be possessed as well.