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Mini Budget Lodgings

China's Capsule Hotel Targets Single Business Travelers

— January 21, 2011 — World
With budget-conscious travelers in mind, China’s first capsule hotel opened in Shanghai. The concept, which originated in Japan, features 68 tiny capsules for sleeping, each equipped with a clock, a light, a television and wireless internet.

The Xi Tai Capsule Hotel has stacked pod-like spaces with just enough room for a good nights rest, and nothing else.  These low-budget accommodations are rented out by the hour, sorted into snoring zones and are available only for men.

Located near the Shanghai Railway Station, the capsule hotel is expected to be a desired lodging given China’s booming tourism industry.
Trend Themes
1. Capsule Hotels - The rise of capsule hotels in Asia presents an opportunity for hospitality businesses to offer affordable lodging to budget-conscious travelers.
2. Single-occupancy Accommodations - As more single business travelers hit the road, there is a growing market for single-occupancy accommodations like capsule hotels.
3. By-the-hour Rentals - The popularity of capsule hotels' hourly rates for short stays encourages more businesses to capitalize on the trend by offering similar services for budget-conscious travelers.
Industry Implications
1. Hospitality - The hospitality industry can benefit from catering to budget-conscious travelers by offering more affordable accommodations like capsule hotels.
2. Tourism - The booming tourism industry in China opens up opportunities for hospitality businesses to offer more affordable lodging options like capsule hotels for budget-conscious travelers.
3. Business Travel - Capsule hotels can provide a cost-effective solution for single business travelers looking for affordable and convenient accommodations near their destination.
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