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A surge in hotel prices and bookings during the May Day Holiday: A promising post-pandemic comeback for China's hotel industry
Source: | Author:Clara | Published time: 2023-05-17 | 444 Views | Share:

During the Covid 19 outbreak, the hospitality industry's service business model was severely impacted, resulting in a significant decline in hotel sales volume. However, with the lifting of epidemic control measures in early 2023, hotel brands have seized the opportunity to "revive" their businesses, working tirelessly on digital marketing initiatives. As evidenced by successful marketing campaigns during the recent holiday season, hotels can combine marketing creativity with digital media to promote their brand and capture a greater market share. This article explores several proven strategies for achieving these goals.


1.  May Day Sparks surge in hotel sales: Promising sign for travel industry


The data center of China's Ministry of Culture and Tourism has reported a significant increase in domestic tourism trips during this year's May Day holiday, with the number reaching an impressive 274 million, a rise of 70.83% from the previous year. This surge in travel demand has resulted in a corresponding revival for the hotel industry. According to Qunar, a prominent online travel platform, hotel bookings in popular cities during the holiday period were 1.9 times higher than pre-epidemic levels, with prices rising accordingly, especially in proximity to popular tourist destinations.


Based on Qunar's data analysis, the average length of stay for this year's May Day holiday increased by 20% compared to the 2019 holiday, and stood at an impressive 1.6 days. Additionally, the proportion of bookings for three- and four-star hotels saw a sharp increase from 39% in 2019 to 48% in 2023, representing a rise of 9% points. These trends indicate that travelers have high expectations when it comes to their May Day holiday experience, particularly in terms of hotel accommodations. As such, hotels must prioritize the provision of top-notch amenities and customized services to meet the demands of discerning guests who are seeking exceptional service and support during their travels.


The recently concluded May Day holiday signaled untapped potential in the domestic tourism and hotel industry.  National tourism data from the period revealed a staggering year-on-year increase of 128.90% in domestic tourism revenue, reaching an impressive 148.056 billion yuan.  These figures strongly indicate that there is still significant growth potential to be realized in the demand end of the tourism and hotel industry this year.  As such, brand marketers can leverage targeted marketing strategies and invest in personalized hotel brand building to attract and retain discerning travelers seeking superior accommodations and memorable experiences.



2. Maximizing exposure: Baidu Ads help hotels make post-pandemic comeback

 

Baidu is a consistently reliable source of information and has demonstrated a strong track record of growth in recent years.  Notably, Baidu's market penetration among Chinese netizens has reached an impressive 98%, while its mobile app boasts over 657 million monthly active users.  Given these figures, there is significant potential for hotel brands to tap into Baidu's user base through creative advertising, translating into a surge in orders for these brands.  Specifically, during the May Day holiday period, what kind of creative advertising strategies did hotel brands deploy to capture the attention and interest of potential customers browsing on Baidu?

 

Ctrip's advertising efforts on Baidu have proven to be highly effective in attracting potential users.  The brand initially utilized imagery, specifically incorporating the "May Day" theme in image ads featuring visually alluring attractions and hotels.  The second key aspect of Ctrip's creative approach involved the use of persuasive copy centered around price points and discounts, effectively positioning their products as affordable and high-value propositions for potential customers browsing on Baidu.  This combination of visually striking imagery and compelling copy proved to be a highly successful strategy for driving click-through rates and boosting sales for Ctrip during the holiday period.



The spa lodge hotel's Baidu marketing strategy involved targeted search engine marketing using keywords like "spa hotel" and "resort," as well as infomercials to reach a wider audience.  This comprehensive approach boosted brand awareness, attracted more website traffic, and increased bookings.



In the feed ad for the spa hotel, the brand utilizes an eye-catching image of the hotel's picturesque landscape as the primary visual element to capture the attention of potential customers. To further pique their interest, the accompanying copy leads with a thought-provoking question followed by an exclamation that reinforces the idea that this hotel is the optimal choice.  By eliciting curiosity and presenting a strong and confident tone, the brand effectively communicates its value proposition and entices users into taking action.

 

Furthermore, the spa hotel utilized a 'product window' format, combined with compelling copy and imagery tactics, to align its selling points with consumer needs, resulting in enhanced advertising and marketing efforts on Baidu. Strategically placed images showcased the hotel's spa facilities, amenities, and dining offerings, enticing users to click through for further exploration. Clicking through led potential customers to the hotel's marketing page, streamlining the online conversion process.



The data clearly indicates that the hotel brand's promotional efforts have experienced a sustained upward trend as a result of its comprehensive marketing initiatives on Baidu.



The hotel industry in China has reached new heights as prices and bookings skyrocketed during the May Day holiday amidst the post-pandemic era. With enormous potential in tourism and hospitality, learn how Baidu Advertising can optimize your hotel marketing through creative ad imagery, copy, and sales windows for maximum exposure and bookings. The success stories of several hotel brands on Baidu's popular search engine platform prove that targeted advertising can increase visibility and sales.


Contact us today at enquiry@so360.hk to start your Baidu advertising journey and take advantage of this thriving industry.


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