High-end Hotel Industry Analysis Based On Industrial Organization Theory

Since the reform and opening, high-end hotel has made considerable progressand transformation. Tianjin is a business city with rich tourism resources, whosehigh-end hotel number is increasing. This industry has witness the growth of agradually mature market and a very clear direction of industry development. TheBeijing2008Olympic Games create a peakof the industry. But today, along with theweakness of Olympic effect and intense competition, it is very significant to realizethe real status to make this industry sustainable development. This paper makes thetheory of industrial organization theory as the fundamental theory. Basing on thecomprehensive analysis on the market structure， market behavior and marketperformances of high-end hotel in Tianjin，summarize a SWOT analysis under the cityplanning and economic growth, and make proposal for it.The first part mainly introduces the background of tourism and economicsituation in Tianjin. The next part overviews the development the stage of high-endhotel in China and introduce the industrial organization theory. In the third, fourth andfifth part, the concrete analysis of high-end hotel industry has been finished, based onthe research paradigm of the industrial organization theory. According to the marketstructure, we can find the market concentration, low product differentiation and highbarrier to entry. In the respect of market conduct, it is mainly considered the pricebehavior, product differentiation behavior and m&a behavior. Then after the analysisof market performances, it is to be found that, in this industry, the of industry scaleefficiency and labor production is low, the general allocative efficiency of resources ispoor. In total, the high-end hotel industry in Tianjin is not satisfied in competitivenessand maturity of market. In the last part, this paper concluded the high-end hotelindustry in Tianjin based on the method of SWOT, and proposes to promote itshealthy development.