Research On Business Performance Of Three-star Hotels In China

With the deepening of the reform and opening-up and the rapid development of tourism, the hospitality has become a large-scale industry and its market competition reached an unprecedented levels. At present, the three-star hotels with the most fixed assets and largest rooms and beds has been classified as the hotels that have the worst business performances in Chinese star-rated hotels. The whole business performances of star-rated hotels can be promoted by the qualities of the Operations Management and the levels of business performances of the three-star hotels. In the light of this, how to improve the core component of Chinese star-rated hotels—three-star hotels has been regarded as the hot issue in hospitality industry and academia. For that reason, the. object of this study is three-star hotels in China. This study uses documents research, comparing the major problems these hotels are faced with and their competitive advantages. Using 16 financial index of the three-star hotels and the method of factor analysis and cluster analysis from the year of 2004 to the year of 2008 among 31 provinces including municipalities and autonomous regions in China, this paper has quantitatively evaluated their business performances and analysed the spatio-temporal differences of their business performances. Moreover, based on the panel data and utilizing the method of the multiple linear regression, this study has constructed the model of the impact factors of the three-star hotels'business performance so that the research results are achieved as follow.(1) Three-star hotels in China are shown to have visible changes in terms of the annual performance index. In about two thirds of all the provinces (municipalities/autonomous regions), three-star hotels fluctuate greatly in their performance index and rank. Among them, hotels in Shanghai, Zhejiang, Yunnan, Anhui, Xinjiang and Shandong tend to soar in their ranks. On the contrary, in places such as Beijing, Inner Mongolia, Heilongjiang, Hunan, Qinghai and Sichuan, ranks of hotels show a downward trend.(2) Geographical differences are also obvious concerning performance index and rank of three-star hotels. Hotels in eastern coastal provinces (such as Liaoning, Hebei, Beijing, Tianjin, Shandong, Suzhou, Shanghai, Zhejiang, Fujian, Guangdong and Hainan) give better performance and rank higher than those in central provinces (like Heilongjiang, Jilin, Shanxi, Henan, Anhui, Hubei, Hunan as well as Jiangxi), followed by western provinces (including Guangxi, Guizhou, Yunnan, Chongqing, Sichuan, Tibet, Shanxi, Gansu, Ningxia, Qinghai, Xinjiang and Inner Mongolia).(3) The driver of the economic growth of three-star hotels includes the following three parts-per capita consumption expenditure of urban and rural residents, the amount of guest rooms and tenants of three-star hotels. However, the number of travel agencies, three-star hotels and the employees are the constraints of the three-star hotels' economic growth.In view of those research findings given above, the writer suggests making energetic efforts to develop economy, accelerating the consumer spending both in urban and rural areas and enlarging the contributions made by the urban and rural residents to operating income of three-star hotels, creating advantages for three-star hotels in improving operating performance by associatively mobilizing all sides and widely organizing customers sources, making the number of hotels increasing efficiently and enlarging the single scale of three-star hotels, enhancing its reception capacity and market adaptability to win more market opportunities, reducing the number of the employees, improving the quality of human resources, enhancing the creativity of the staffs in order to boost the whole operating performance of the three-star hotels and maintain a sound development of our country's star-rated hotels.