
Unlike the United States and Europe, Asia-Pacific is only just opening up to standardized budget hotels, with notable exception to Australia and New Zealand which are like a small Europe in other respects and where budget hotels became customary some time ago. Neither as mature, nor equipped, the rest of the region is full of promise for international hotel groups, as well as for opportunistic local players.
For the moment, Asia-Pacific offers a mixed panorama between Japan – the number two economic power worldwide -, which was reticent to the concept for a long time but is now better disposed towards American-style motels, and China, which has seen 1-2* properties open at supersonic speed, not to mention India which is totally underequipped, but is striving to catch up.Might Vietnam stay outside this movement? Skyrocketing real estate and building costs quelled the ambitions of suitors for some time. But this momentum is slowing and costs would appear to be returning to Earth, allowing Ibis to confirm a project in Ho Chi Minh City, the ever dynamic ex-Saigon.At the same time, emerging countries, such as Indonesia, are already exploiting the potential of available clientele while others, such as Vietnam, may expect to see budget concepts develop in the mid term. Several factors should favor the development of inexpensive hotels. Aside from Japan and Australia, a large portion of the population has limited revenues, but is gaining a taste for travel. In a highly populated region, domestic and intra-regional tourism is developing. The development of low-cost airlines could bring new clientele to markets that are already strong - China, India, Thailand and reinforce markets that are growing such as Vietnam. In addition to domestic clientele– which is strategic for the success of budget properties – this very touristic region receives a high volume of international tourists accustomed to the international brands that offer the reassurance of certain international standards, unlike local independent hotels that are not very homogeneous.At present, we can only observe the timidity of the sector’s leaders. Global groups concentrated on the penetration of these markets from above, but they have not yet exploited the economy bonanza. Almost alone on this segment, the Accor group began spreading its...
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