| The vigorous development of mass tourism consumption has brought the huge space for the growth of the budget hotel. In recent years, domestic budget hotel brand emerge endlessly, famous international hotel groups have also involved in the domestic market, which caused the budget hotel investment boom. Although budget hotels optimize the product structure of the lodging industry because of its unique positioning,but the continued expansion of budget hotel lead to the increasing competition in the industry as well, same product positioning and marketing method, lagging notion of marketing strategy and lacking of brand culture become the problems of the most domestic hotels. Besides, Combined with the maturity of Internet technology and electronic information technology, the traditional marketing idea and means should be updated. Therefore, the promotion of budget hotel products and services,implementation of new marketing strategies are necessary to increase market share and customer stickiness.Based on the premise of defining the budget hotel, related research on the development of budget hotel, the marketing strategy and network marketing are summarized in the paper. The author analyze the driving factors, restricting factors and the competitive environment of the budget hotel, revealing strengths, weaknesses,opportunities and threats in budget hotel by SWOT analysis method, and then make the budget hotel marketing strategy framework from the market segmentation, target market selection, market positioning. As for the instance analysis of Xi’an QNH inn, the status of management, marketing environment and marketing strategy are elaborated in detail.The success of the new marketing strategy of QNH holiday inn shows that, under the background of current age of the Internet, the traditional marketing way has slightly backward, it’s necessary to get the introduction of green marketing and Internet word of mouth marketing involved in. The new marketing strategy of QNH holiday inn has the actual reference for similar hotels to adapt to the new marketing environment and improve its marketing strategy. |