Challenges and Trends of Taiwan Lodging Industry
Date Issued
2015
Date
2015
Author(s)
Wei, Chiou-Fuh
Abstract
Cross Cross-strait relation has been improved and become stable after the change of political power in Taiwan in 2008. With the booming of Chinese economy, Asia has also gradually recovered from the financial crisis. In 2014, there were more than 114 million outbound Chinese travelers and they sent more than US $140 billion, which helped to boost the rapid growth of global tourism market. In recent years, Taiwan has been promoting its tourism industry by attracting international tourists, especially Mainlanders, Japanese, Korean, Singaporean, Southeast Asian and people from Hong Kong and Macau. International visitors have made significant contribution to and helped to accelerate the development of Taiwan’s lodging industry. . It is estimated there will be more than ten millions of visitors coming and visiting Taiwan in 2015. The growth of tourist population tracts various interest parties to invest in the tourism industry. Due to the growing popularity of mobile applications, consumers’ hotel booking behavior has changed. The traditional booking behavior has been replaced by online travel agent. A new business model has been developed under the concept of ""Tourist O2O Sharing Economy"", which means people can rent out their spare rooms in their houses through online sales platform. Since then, travelers have another choice in addition to hotel and bed-and-breakfast (B&B). The choice of ""tourist O2O sharing economy"" is undoubtedly to disperse the traditional hotel’s source of clients and brings impact to the legal lodging industry. Online review mechanism, social networks and bloggers’ opinions are all influential factors to the tourists’ choices of accommodation. In addition, due to the rapid growth of lodging industry, the demand for senior and experienced managers is at a very high level. . Having a sustainable employee training program and human resource strategy are challenges for the lodging industry in the long run. . What are the challenges for Taiwan’s lodging industry？ Firstly, although the number of international tourists has been continuingly growing, the 2013 tourist statistic shows that 83.76% foreign tourists visited Taipei, 34.17% visited Kaohsiung, 10.06% visited Taichung, and only 10.06% visited Tainan. The figures indicate that, except for Taipei City, many cities and countries rely more on the growth of the domestic tourist market. It is obvious to see that there are imbalances between accommodation demands and supplies. Secondly, based on the statistic in 2014, while the number of international tourists was growing, the number of business visitors decreased from 95 million in 2006 to 77 million in 2014. This has also brought negative impact to the occupancy rates of business hotel. Taiwan’s lodging industry is facing the repositioning challenge. In addition, with the development of internet technology, Taiwan’s lodging industry should leverage digital marketing and integrate it with O2O business model for obtaining new business opportunities. This studies suggest Taiwan’s lodging industry to integrate the cultures, technologies and any other resources between the East and the West in order to face the future competition. This study’s main focus is to analyze Taiwan’s lodging industry. While facing the existing competition from the international hotel groups and more than 9000 local businesses in the market and the new comers with more fancy and innovative designs as well as low price war strategy, this study is to suggest what Taiwan’s lodging industry should have prepared in order to face the rapid growing competition. This study is based on the practical experience of hotel operation and management to provide suggestions that might be helpful to respond to the development trend of Taiwan’s lodging industry. This study examines the market supply, business competition strategy and risks in order to give a comprehensive evaluation of the lodging industry. This study also summarizes the changes of the lodging industry and assesses the trends and challenges in the future, which provide some reference for evaluating potential opportunities and challenges to companies that are planning to invest in the lodging industry in Taiwan.
Subjects
Hotel
Accommodation
Lodging Industry
Competition
Strategy
Trend
Challenges
Type
thesis
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