During a 9-day holiday period, 605 million trips were recorded, driving China's hotel industry into its first peak season of the Year of the Horse. The sector displayed several notable trends during the Spring Festival holiday. Traditional chain hotel brands maintained consistently high occupancy rates, highlighting their brand strength and operational efficiency. The trend of "staying in hotels while visiting hometowns" and family group travel boosted demand in lower-tier markets. Consumers increasingly sought immersive experiences, favoring destinations and hotels that offered rich traditional activities and unique tourism resources.
Industry experts noted that as user preferences evolve, hotels are transforming from simply providing accommodation to becoming destinations and lifestyle hubs. Guests now prioritize service quality and experience, pushing the industry to continuously adapt its offerings to meet dynamic consumer demands.
How high was the demand for hotels during the Spring Festival? On the eve of the Lantern Festival, Zhang Li (pseudonym) returned to Zhengzhou with her two children and in-laws after visiting Guangdong. Her husband had already returned to work earlier. "Our total expenses approached ¥50,000, with accommodation accounting for about two-thirds. Still, our family looks forward to repeating this experience next year," Zhang said.
During the extended 2026 Spring Festival holiday, Zhang's family was among the millions who traveled. Official data shows 605 million domestic trips were made during the 9-day period, a 20% year-on-year increase, with total tourism spending reaching ¥792 billion, up 17%.
The hotel industry benefited significantly. Data from the China Hotel Association indicated that the average occupancy rate for surveyed accommodation providers rose by 10.4%, while average room rates increased by 2.3%. Major hotel groups reported particularly strong performance. Jinjiang Hotels (China) saw a 14% increase in overall occupancy, reaching a three-year high, with over 5,000 properties achieving full occupancy during peak travel days. Yilong Hotel Technology reported a 45% rise in guest numbers and a 12% increase in platform-wide occupancy, with over 60% of its hotels fully booked during the peak period. Shangmei Shuzhi recorded an 11.52% growth in room nights sold and a 17.88% increase in room revenue.
Wei Changren, founder of Jinglv Consulting, explained that chain hotels, with their extensive membership bases and stronger marketing capabilities, outperformed independent hotels. Their standardized operations and consistent service levels also made them a preferred choice for consumers.
Cities with strong traditional cultural activities saw significant occupancy surges. Data from Wanda Hotels & Resorts showed high demand in Fujian, with Quanzhou properties reaching 98.5% occupancy. Locations offering cultural experiences, such as Datong, saw occupancy rates soar by 193%, with many hotels fully booked for multiple days. Destinations like Wudang Mountain, Xiaogan, and Chengde reported occupancy increases exceeding 50%.
A Spring Festival travel report highlighted top destinations known for traditional celebrations, including Shantou, Fuzhou, Beijing, and Shanghai. The Chaoshan region, in particular, saw hotel bookings surge by 186% in Shantou, 162% in Jieyang, and 135% in Chaozhou. Rising demand drove up room rates, with some hotels charging up to ¥8,000 per night, compared to usual rates of a few hundred yuan.
Zhang Li, who stayed in Chaoshan for four days, noted that hotels were consistently fully booked, with rates significantly higher than usual. "Even with a discount for consecutive nights, our two standard rooms and one king room cost over ¥800 per night," she said. Local authorities in Shantou, Chaozhou, and Jieyang issued price warnings and held meetings with hotel operators to encourage reasonable pricing.
Beyond accommodation, a Caitong Securities report revealed that 41.75% of surveyed consumers planned to return to their hometowns for the holiday, while 34.61% stayed locally. Nearly half of the travel decisions were led by younger family members, with trends like "Gen Z taking parents on island vacations" gaining popularity. This shift caused noticeable fluctuations in hotel bookings across different city tiers.
Meituan data showed that hotel room nights in third to fifth-tier cities grew by nearly 20%, with family suites being particularly popular. Zhoukou, a major hometown-return destination, saw a 77% increase in hotel orders. Notably, many young travelers opted to "stay at home during the day and sleep in hotels at night," reflecting a shift where hotels serve not just as accommodation but as integral parts of users' lifestyles.
Dong Jie, a manager at a chain hotel in Xinxiang, Henan, observed that many young people from surrounding areas chose to stay in hotels with their families during the holiday. These guests, often booking multiple nights, were less price-sensitive.
Guo Derong, chief analyst at Meadin Research Institute, emphasized that these changes require hotels to adopt more flexible operating models. Adjustments may include varied room configurations, extended services like New Year's Eve dinner bookings, or transportation packages. Jinjiang Hotels (China), for instance, introduced tailored packages for returning families, with family guests accounting for over 50% of bookings.
In contrast to "returning home to stay in hotels," "reverse migration" travel—where families gather in destination cities—also gained traction. Shenzhen ranked among the top five destinations for this trend, with travel orders to Guangdong rising by 44% and hotel bookings up 76%. County-level hotels, such as those operated by Wanda Hotels & Resorts, benefited from this trend, with many nearing full occupancy.
As the line between family visits and short trips blurs, hotels in counties with local charm and standardized services are becoming key beneficiaries of holiday travel demand. Shangmei Shuzhi noted that young travelers are increasingly blending hometown visits with tourism, driving economic vitality in smaller cities and signaling a shift toward experiential, lifestyle-oriented travel.
"Hotels are no longer just places to sleep; they are integrated spaces for experience and consumption. The future of hotels will hinge on the quality of the experience, driven by both hardware and service upgrades. Hotel groups must continuously refine their brands to meet细分 consumer needs, while individual properties must enhance services and operational models to sustain appeal," Guo added.
How can hotels deepen their service and experience offerings? Analysts suggest that as guests seek more immersive experiences, hotels must incorporate additional content and interactive elements. During the Spring Festival, destinations with traditional activities or rich tourism resources achieved high occupancy rates.
Lingnan Hotels, for example, integrated intangible cultural heritage activities and folk experiences, resulting in full occupancy for several days at properties like Guangzhou Hotel and China Hotel. Club Med resorts in China offered traditional activities such as lion dances, achieving 90% occupancy during the holiday peak.
Wei Changren noted that as the hotel industry matures, competition will increasingly focus on service and experience. Enhancements could include curated in-room music, art installations, laundry services, or personalized gifts. The integration of AI and smart technology will also play a critical role in improving efficiency and personalization, becoming a key direction for industry upgrades.
Guo Derong concurred, highlighting that technology can boost operational efficiency—for instance, through robotics—while better management of peak and off-peak periods, such as rehiring retired staff, can optimize resources. "AI will not replace hotels; it will transform hotel professionals. In the long run, AI will be the most significant driver of service and experience enhancement in the industry," he concluded.
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