Hangzhou Marathon had a marked business impact

Pod Inn, a Hangzhou-based budget hotel chain, saw reservations surge at one facility in the city ahead of a marathon race in early November.

The hotel, near the starting point of the race at the Yellow Dragon Sports Center, was more than 90 percent full before the event, compared with 50 percent to 60 percent most other days.

Budget hotels' business is still solid even as the hospitality sector slows overall. One reason is the rising popularity of marathons.

"It's very common for marathoners to book a hotel room near the starting point right after they sign up for the race three or four months in advance," said Melissa Zhang, vice-president of Zhuyou Hotel Management Co Ltd, which operates under the Pod Inn brand.

Zhang noted that Pod Inn had only accepted bookings 45 days in advance until recently. But after many marathoners asked for even earlier bookings, the chain changed its policy.

"The Hangzhou Marathon had a marked impact on the business of hotels near the starting point. For hotels elsewhere, the bookings were relatively stable," she said.

"Hotel location matters for marathon runners. They want a room near the starting point. Brand and quality are secondary considerations."

Noticing how marathons could help boost profits, Pod Inn jumped on the bandwagon by drawing up a list of all marathons to be held this year nationwide and adjusting its room rates accordingly.

According to Wisdom Holdings Group, the sponsor of last year's Hangzhou Marathon, the gross profit from organizing a marathon can be as much as 8 million yuan ($1.29 million). These events also generate "millions of yuan" in consumer expenditures, it said.

Last year, 51 marathon races were held around the nation by the Chinese Athletic Association, with more than 900,000 runners in all.

"A marathon can boost a city's image and increase its long-term marketing value. It also benefits its tourism sector and the branding of the city, as the race helps the city showcase its culture and spirit," said Song Hongfei, general manager of Wisdom Events at Wisdom Holdings Group.

Lanzhou, capital of Gansu province, saw a sharp increase in tourists following its marathon race last year.

"The Lanzhou Marathon boosted the local tourism sector, as well as the tourism sector in Gansu and western China as a whole," Song said.

More young people have joined these events in recent years.

"Young people care a lot about athletic wear, and a marathon is a stylish sport," he said.

Xtep International Holdings Ltd, a Chinese sportswear retailer that has sponsored many marathons, has seen a surge in sales of its running-related products.

"Running gear and accessories are our core products, and we plan to increase investment in the category, particularly in running shoes, to meet rising demand," said Guo Yizhe, brand director of Xtep.

The sports apparel and footwear seller transformed its retail model from fashion sportswear to professional sportswear and sought to lure customers by sports marketing.

It solicits in-depth feedback from runners on its products to support its research and development of new products to generate new growth.

Energy drink brand Pocari Sweat has seen sales of its drinks rise to the top of the ranking in the sports and fitness category.

Energy drinks contain salt, electrolytes and other elements that the human body needs.

"We chose to sponsor some influential marathons, and the drink became popular among runners. An electrolyte drink helps runners remain hydrated and regulates the water distribution in their bodies," said Liang Yixing, sales director at Otsuka (China) Investment Co Ltd, which operates under Pocari Sweat.

Original title by Ecns.cn: Businesses race to keep up with long-range runners