Domestic popular hotel bookings soar over 500%, why budget hotels are no longer 'economic'?

1. Imbalance between supply and demand: With the development of the economy and people's pursuit of tourism, the demand for hotels has increased dramatically, while the supply of budget hotels is relatively insufficient, resulting in an imbalance between supply and demand. When supply exceeds demand, hotels usually raise their prices.

2. Resource optimization: In order to meet the market demand, some hotels originally positioned as budget hotels began to upgrade their hardware facilities and service levels to increase the comfort and experience of the hotel, but this will also bring about an increase in costs. In order to compensate for the increase in costs, hotels have to raise prices.

3. Brand premium: Some budget hotels have successfully shaped their brand premium by improving their decoration, upgrading their service quality and creating a unique brand image. These hotels are usually able to attract more high-end customers who are willing to pay higher prices for the value and experience that the brand represents.

4. External factors: In addition to supply and demand and improved resources, external factors can also have an impact on the price of budget hotels. For example, hotel prices usually rise in good geographical locations, in places with strong demand around tourist attractions, and during specific seasons or holidays.

In summary, the reason for the surge in domestic popular hotel bookings leading to the increase in budget hotel prices is the imbalance between supply and demand, resource optimization, brand premiums, and the impact of external factors. We, as consumers, can plan ahead when booking hotels and choose to book in off-season or non-popular times to get more affordable prices. In addition, it is also possible to focus on some emerging hotel booking platforms or choose other types of accommodation such as B&Bs and youth hostels to find more affordable accommodation options.