A Research on Development Strategy of China's Budget Hotels

Over the past decade, budget hotels sprouted in China and have been developing rapidly, with great progress made in terms of scale and economic benefits. However, the budget hotels are encountering new problems and contradictions because of the changing economic environment and the deficiencies within the industry, hindering their sound and sustainable development. In this paper, the author adopts the method of PEST to analyze the macro environment of developing budget hotels, trying to find out the barriers as well as key elements for the development of budget hotels, and meanwhile the author puts forward feasible suggestions based on Porter's theory of competitive strategy. These suggestions will be helpful for the structural adjustment and sustainable development of China's hotel industry.