China’s hotels are welcoming record numbers of travellers, yet room rates are sinking – a paradox many operators blame on Trip.com Group Ltd.
For Gary Huang, running a five-room homestay in the scenic Huzhou hills near Shanghai was supposed to secure his family’s financial future. Instead, he and other hoteliers in China’s southeastern Zhejiang province say nightly rates have fallen to levels last seen more than a decade ago, as Trip.com’s frequent discount campaigns force them to cut prices simply to remain visible on China’s dominant booking platform.
“The promotion campaigns now are almost a daily routine,” said Huang, who asked to use his self-given English name out of concern of speaking out against Trip.com. “We have to constantly cut prices at least 15% to attract travellers. We have no choice but to go along with the price cuts.”
Trip.com has been central to China’s post-pandemic travel rebound, connecting millions of travellers with small operators like Huang.
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