2024-11-20
October 31, at the WTA· Xianghu Dialogue 2024 in Sanya, Hainan, Mr. WANG Jianping, Chairman and President of Narada Hotel, President of Zhejiang Hotel Association, delivered a keynote speech on "The Evolution of Chinese-Style Resorts and Resort Hotels". Below is a summary of the key points discussed.
As China’s economy continues to grow and the consumption market evolves, domestic vacation styles have developed unique characteristics distinct from those in the West. Chinese-style vacations represent a lifestyle tailored to individual needs, offering flexible durations and a leisurely pace. This transformation in consumption patterns embodies the core logic of Chinese-style vacations. In the dynamic market landscape, it is ultimately the consumers who drive meaningful change.
The transformation of spending power underpins the evolution of Chinese-style vacationing. Since the reform and opening-up era, China has witnessed profound changes in consumer behavior. Consumption patterns have shifted from basic needs such as food and clothing to enhanced living standards, focusing on better housing and transportation. Today, as China’s per capita GDP advances from $12,000 toward $20,000, the dominant consumption trend is shifting from material needs to a pursuit of spiritual enrichment. A critical factor in this evolution is the expanding middle class, whose changing consumption patterns are redefining the market. The interplay between abundant supply and cautious demand has intensified competition, prompting more rational consumer choices. The middle class is the foundation of the Chinese-style vacation market and the intrinsic driver of the vacation industry’s development.
Tourism consumption diversity and segmented markets are key focus areas for Chinese-style vacations. Several demographic trends, including an aging population, smaller household sizes, and a youthful attitude toward life, have fostered a broad inclination toward high-quality, joyful living. Against this backdrop, Chinese-style vacations have emerged as a response to changing societal needs. Due to differences in age, geography, and urban-rural income, the market is shifting from a single, mass-oriented approach to a more layered, diverse, and personalized model. This diversification poses new challenges for designing vacation products that resonate with increasingly distinct consumer preferences.
Product innovation is a crucial driver of growth for Chinese-style vacations. Tourism has evolved from traditional sightseeing to destination-based experiences, and from single-attraction models to multi-faceted offerings. Leisure tourism is now shaping the industry’s future. In its early stages, domestic vacation products focused on basic infrastructure. This shifted to star-rated hotels with restorative amenities, and now we are witnessing the emergence of a comprehensive vacation industry ecosystem. Vacations are increasingly blending with everyday life, becoming essential to quality living. Resort hotels, as key players, have transformed from functional spaces to pleasure-oriented experiences. In this context, any vacation product that resonates emotionally with consumers will secure its place in the market.
As consumption patterns evolve, China’s cultural consumption upgrade is redefining leisure vacation lifestyles and enriching the meaning of Chinese-style vacations.
1. Consumers Are Willing to Pay for leisure time. The rich tradition of Chinese aesthetic living and lifestyle philosophy is becoming a hallmark of Chinese-style vacation products. This reflects a humanistic approach that emphasizes leisure and beauty. To adapt to this shift, we must rethink product strategies: ①. Reviving Traditional Elements: Incorporate unique Chinese styles into leisure activities, allowing traditional culture to resonate emotionally with modern consumers. Successful integration hinges on connecting with shared emotions to create vacation products that truly captivate. ②. Leveraging Local Culture: Embed local cultural resources into hotel experiences to create distinctive regional vacation destinations. For instance, the Junlan brand exemplifies how local living modes can be transformed into iconic Chinese-style vacation experiences. ③. Transforming Functionality into Market Appeal: Vacation products must not only serve practical purposes but also become marketable offerings that connect emotionally with guests. Given China’s cultural diversity, building a balanced commercial ecosystem is essential to meet the demand for meaningful leisure experiences.
2. Expanding the "Pan-Entertainment" Space. The potential for "pan-entertainment" in leisure consumption is immense. In the past, scenic beauty was the cornerstone of tourism – "no view, no travel". Today, leisure is all about immersive experiences – "no setting, no relaxation". Looking ahead, vacations will blend seamlessly with everyday life – "no lifestyle, no vacation". At its core, a vacation setting reflects human landscape in its purest, most abundant, and most delightful form. Moreover, the ongoing technological revolution is a driving force behind the innovation of leisure and entertainment products. Leveraging technology to craft immersive and interactive settings will open vast new possibilities for the industry.
3. Shifting Consumer Priorities: Identity Over Price. Consumers increasingly value "self-identity" and "personal discovery" in brand choices, sometimes more than cost-effectiveness. As times change, we must explore what draws guests to visit for the first time and, crucially, what inspires them to return. Deep, meaningful experiences are set to become defining features of leisure and vacation hotels. The essence of vacations lies in the harmony of natural beauty, historical depth, warmth of life, and spiritual joy. To integrate various independent demands, we must rethink traditional vacation models, redefine physical spaces, reimagine organizational structures, and enhance offline experiences. These efforts will enrich and refine the forms and business models of Chinese-style vacations.
Let us work together to ensure that every journey becomes a more beautiful landscape!