How a Boutique Hotel in China increased its ADR & Occupancy

We believe that our clients’ success stories act as a valuable resource for other hotels. Hoteliers can adapt these best practices, regardless of the type of property or location, in order to optimize their own hotel marketing strategy.

On her recent trip to China, Amiee Ying, Account Manager for Asia Pacific, sat down with Lu Feng, General Manager of The East Hotel, Hangzhou and discussed how this boutique hotel in China has significantly increased its occupancy rate and ADR by achieving a remarkable level of customer satisfaction.

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By offering customers the best possible experience, this luxurious hotel has become renowned in the region for delivering outstanding service and exceeding guest expectations since its establishment in 2013.

The East Hotel, Hangzhou provides guests with a distinctive experience, inspired by the combination of cultures – western modernization and eastern tradition.

For example, a guest’s stay at The East Hotel Hangzhou starts with a warm soothing cup of Longjin tea made with the famous Hupao spring water, as soon as they step inside and go through check-in.

Lu Feng, General Manager of The East Hotel, Hangzhou said, “The East Hotel aims to create a luxurious and elegant experience for its guests in accordance with its traditional Eastern service concept. We pay attention to every guest’s security and privacy.”

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Implementing our Online Reputation Management Solution has helped them leverage a positive online reputation whilst in turn, increasing their revenue.

What is striking is that while national and provincial RevPAR and occupancy rates decreased in 2014, the figures for The East Hotel, Hangzhou increased. The hotel also won the TripAdvisor Traveller’s Choice Award for 2015.

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This table shows that the performance statistics (Average Occupancy %, Average Rate and RevPAR) decreased on average from 2013 to 2014 for hotels in China as well as for 5-star hotels in the Zhejiang Province. A stark contrast can be seen looking at the performance of The East Hotel, Hangzhou which achieved significant improvements across all figures over the same period.

So what’s the story of this success?

Meeting Market Demand

The East Hotel, Hangzhou understands the importance of creating hotel products that meet market demand. The hotel guarantees it will provide everything a customer wishes for when coming to Hangzhou. When a guest searches online for “West Lake Hangzhou”, the first hotel listed in the results is The East Hotel thanks to its prime location near the West Lake in Hangzhou as well as keyword and SEO optimization.

The East Plus Membership Club

The East hotel believes not only in attracting new guests, but also making sure they become loyal customers and whenever possible, brand advocates. To reward its loyal customers, The East Hotel has designed and implemented an effective membership club – The East Plus.

Driving Direct Sales

As part of an effective direct selling strategy, The East Hotel invests in a high performing website. To encourage conversions, visitors can book directly online and the website is regularly up-dated with the latest offers and promotions. There are two different versions of the website to cater for different customer requirements – one for guests accessing it from within the country and one for those guests visiting the website from abroad.

Want to read more? Details about these strategies plus others are included in the full case study which you can download here.