BEIJING, April 6 (Xinhua) -- For Zhuang Baichuan, a seasoned traveler from Ningbo in east China, a recent layover in Lanzhou offered more than just a taste of the northwestern city's famed beef noodles. It also provided a glimpse of the profound upgrades in China's service sector and their global implications.
His journey started at a local noodle shop, where the 18-yuan (about 2.6 U.S. dollars) meal came as a surprise -- not just for its quality, but for the upscale ambiance that belied its modest price. To Zhuang, this reflected the fast spread of standardized, cost-effective business models across China's vast unified market.
The real eye-opener awaited at his airport-adjacent hotel, a branch of Atour. For approximately 285 yuan per night, he enjoyed services he had only associated with much higher price tags in his travels to 51 countries: a dedicated and comfortable shuttle, subtle scent marketing, and meticulous attention to detail -- from high-speed hairdryers to real-time laundry updates on the TV.
"Aside from brand prestige, Chinese hotels at almost all price levels are far ahead," said Zhuang, who was born in 1979. He sees this as part of China's broader shift from manufacturing physical goods to "creating lifestyles."
Zhuang's on-the-ground observations match macro-level data. According to a report released by the China Hospitality Association last year, China's chain hotel market maintained its growth trend in 2024, with the number of chain hotel rooms increasing by 316,100 rooms year on year, representing a growth rate of 4.68 percent. By the end of 2024, China had 348,700 hotels with 17.64 million guest rooms -- both exceeding pre-pandemic peaks recorded during 2018-2019.
This transformation extends beyond affluent coastal regions, visibly reshaping landscapes in western China. Lanzhou New Area is a case in point, where the hotel industry is shifting from low-end offerings to branding, standardization, and chain operations. Mid-to-high-end hotels here often maintain occupancy rates above 50 percent, a key threshold for profitability.
"Thanks to the new area's industrial development, the customer base has shifted from mainly tourists to one dominated by business negotiations, conferences, and industrial inspections," said Yang Huaizhi, head of the commerce development section at the Lanzhou New Area commerce and market regulation bureau.
At the Atour Hotel in the area, manager Ma Xiaohua emphasizes "identifying customer needs." Services range from complimentary tea for every guest to customized offerings such as late-night congee or care packages for female travelers. The hotel's procurement also reflects domestic upgrades, opting for Chinese brands like SHUA, a leading scientific fitness service provider in China, for gym equipment and BYD for shuttle vehicles, citing their significant quality improvements and reliable after-sales service.
Today's guests seek more than just "a bed and a meal," noted the Rosewood Hotel Group in a written interview. They look for culturally rooted, emotionally resonant lifestyle experiences.
This focus on responsive, value-driven service is forging a new paradigm. International observers are taking notice.
"China already has a vibrant services industry," said Denis Depoux, global managing director of Roland Berger, at the recent Boao Forum for Asia Annual Conference 2026. "The upgrade is about creating new scenarios for consuming services, both for domestic consumers and international travelers in China."
Mohammad A. Abunayyan, founder and chairman of ACWA Power, who also attended the forum, highlighted safety and quality -- "China has the best services, the best quality, and what is more important and relevant globally today is security."
Data supports this growing appeal. A December 2025 report from leading online travel platform Ctrip showed that bookings for China's inbound tourism in the first three quarters of the year surged 100 percent year on year, with orders from visa-free countries jumping an average of 153 percent, demonstrating the rising popularity of "China Travel."
Online, international travelers are increasingly praising the value of Chinese hotels. On forums like Reddit's China Travel, users note that Chinese-branded hotels in the 3-4 star range have become "significantly better" in design and service, often outperforming lower-tier international brands without the "brand premium."
Government policies are actively supporting this upgrade. In October 2025, nine departments including the Ministry of Commerce issued guidelines to promote high-quality development of the accommodation industry, emphasizing quality, smart-tech integration, and green development.
Local governments are rolling out supportive measures. Lanzhou New Area has streamlined business services, merged complaint hotlines, and issued consumption vouchers. "Enterprises can directly claim subsidies after voucher use, which benefits both tourists and businesses," added Yang.
Fierce competition in China's domestic market acts as a catalyst for innovation. As Zhuang observed, successful models replicate rapidly across the country, "quickly raising standards everywhere."
This transformation is set for a broader stage. As China facilitates international travel and its service brands expand globally, the domestic expectation of affordable, high-quality service may begin to influence markets beyond its borders.
According to the Global Soft Power Index 2026, perceptions of China's tourism have also strengthened, reflecting the growing appeal of Chinese cities, heritage, and leisure opportunities, aided by visa facilitation programs and people-to-people exchanges. ■
