Market Development and Business Model of China’s Hot Spring Tourism

Market Development

The development trend of hot spring tourism in China is the same as that of China s economic development, from coastal areas to inland areas, from economically developed areas to less developed areas. Hot spring tourism started from Guangdong, then to North China, East China, and Central China, and now it develops to the Northeast, Southwest, and Northwest.

This is because after years of market cultivation, the hot spring market in the eastern and economically developed regions is gradually becoming saturated. With the development of the tourism market and the penetration of mobile Internet + tourism, people s consumption of hot springs is becoming more and more rational. In large markets, the hot spring consumer groups in the second and third tier regions have just emerged as the target group of hot spring capital. In addition, the investment and development costs in the second and third tier regions are relatively low. In the context of global tourism and the country s increased investment in health industries, Guizhou, Sichuan, Heilongjiang, Jilin and other provinces have been developed, especially in Guizhou, with diverse tourism resources and unique folk resources, the most suitable for vigorously developing tourism in all areas including hot springs, Guizhou Jianhe Hot Springs City, Kaili Cloud Valley Tangquan Yunyun Resort Hotel, Guiyang Poly International Hot Spring, etc. are examples of emerging hot springs in Guizhou.

In the early days, the hot spring project was a single body, and the hot spring + hotel + catering was standard. With the development of the market and the improvement of people s consumption level, it is also to cope with fierce market competition and avoid homogeneity. Many hot spring resorts have increased their supporting facilities. The project construction integrates entertainment, ecological agriculture, vacation, health, sports and other related industries. With more and more supporting projects, hot springs have gradually developed into a large and comprehensive integrated model, and billions of billions have appeared. Invested hot spring resorts, hot spring theme parks, hot spring cities, etc. Guided by the country s policy of accelerating the development of 1,000 characteristic towns, the hot spring town has become a new concept and new model for the development of the hot spring tourism industry. Regarding the related content of the hot spring town, we will conduct a specia l inquiry in the next issue.

Business model

Early hot spring enterprises were mainly Hong Kong-owned and private investment. Due to the lack of domestic hot spring management brands and the brand s high requirements for project location, most hot spring hotels or resorts use independent operating models for management operations.

Most hot springs are managed by professional managers, and some are managed by investors. These investors have both capital investment experience and rich hot spring management experience, which play a certain role in the management and control of corporate health and sustainable development. Entrusted management is one of the most adopted methods in emerging hot springs in recent years. This method can build teams as quickly as possible, enhance the brand, and generate benefits. When entrusting management, hotel managers generally do not participate in investment, and in principle have the initiative to make decisions on hotel management operations. Some spa brands will be involved in the early stage of investment and development.

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