Shanghai Luxury Hotels Half Off Online: Trend or Glut?

on January 18 2011 | in Lifestyle Travel | by | with 2 Comments


Is there a glut of luxury hotel rooms in Shanghai or is Shanghai getting in on the popular online “opaque” hotel booking trend?

Probably both. Regardless, consumers get the deals on the city’s most desirable rooms.

Some luxury hotel rooms are now marked down by 50%. Rooms can go for as little as RMB 500 a night that would typically cost in the RMB 1,000-plus range at the city’s high-end venues.

CNNGo reports that Shanghai hotels are finally catching up with their international counterparts and offering hugely discounted rooms on opaque hotel booking services. The catch is that customers won’t know which hotel they’ll get until they paid.

Industry heavyweights Priceline and Hotwire are getting some competition from Shanghai-based Ctrip.

Ctrip has launched a new campaign called “Secret Discounted Rooms” which will run until Feb. 28 that offers hotel deals in Beijing, Shanghai, Hangzhou and Sanya.

Most of the participating Shanghai hotels on Ctrip are four- or five-star venues with prices ranging from RMB 200 to RMB 900 with the 50% discount.

Some think that overcapacity after the Shanghai 2010 Expo is behind the use of this online channel to sell more high-end hotel rooms.

Diyi Caijing Daily reports “the occupancy rates for some high-end hotels are down by 30 percent since the Expo closed in the fall of 2010.”

photo credit: westin beijing

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2 Responses to Shanghai Luxury Hotels Half Off Online: Trend or Glut?

  1. Calvin says:

    Don’t think I commented on this blog yet, I just wanted to say I do appreciate your hard work and check on this site daily (if I can). This particular post is interesting and I do think that this discounted luxury hotel trend is going to be here to stay. As China continues forward, hotel industry will need to price more competitively to stay relevant, the super wealthy cannot single-handedly keep the brand new infrastructure afloat.

    • Red Luxury says:

      @Calvin thanks for your comment — you are correct that hotels need to find ways to stay on top and fill their rooms.

      Hope you’ll share more comments here at Red Luxury!

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