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# Mini Budget Lodgings
China's Capsule Hotel Targets Single Business Travelers

By Renee Ramsarran | Published 2011-01-21 | World
Source: Trend Hunter, https://www.trendhunter.com/trends/capsule-hotel1
References: [slumz.boxden](http://slumz.boxden.com/f605/jan-17-shanghai-s-first-capsule-hotel-opens-88-rmb-13usd-day-good-deal-1479833/) & [chinadaily.cn](http://www.chinadaily.com.cn/china/2011-01/10/content_11815530.htm)

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](https://www.trendhunter.com/trends/airport-dimensions) with just enough room for a good nights rest, and nothing else. These [low-budget accommodations](https://www.trendhunter.com/trends/valuedriven-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 Insights (Trend Hunter)

- Score: 5.9/10
- Popularity: 91% | Activity: 78% | Freshness: 8%
- Audience gender: 50% men, 50% women
- Primary generations: Millennial, Gen X
- Top markets: Europe, Asia

## Categories

[Trend Hunter](https://www.trendhunter.com/trends) > [World](https://www.trendhunter.com/world) > [Hip Hotels](https://www.trendhunter.com/hiphotels)

## Key Themes

### Key Themes Behind This Trend

- **Capsule Hotels:** The rise of capsule hotels in Asia presents an opportunity for hospitality businesses to offer affordable lodging to budget-conscious travelers.
- **Single-occupancy Accommodations:** As more single business travelers hit the road, there is a growing market for single-occupancy accommodations like capsule hotels.
- **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.

### Where This Applies

- **Hospitality:** The hospitality industry can benefit from catering to budget-conscious travelers by offering more affordable accommodations like capsule hotels.
- **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.
- **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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