The history of the Chinese economy hotel development and future trend prediction
Shen Han
Introduction In recent years, quietly rising in China's major cities, a new hotel Format: budget hotel. To provide clean rooms , delicious and nutritious breakfast, convenient location downtown, the brand well-known hotel chain hh that has become a very popular accommodation in the streets of coastal cities prospered. But government agencies to the development of this emerging industry But lack of preparation, academic concept of budget hotels are also still in its infancy.
research lag and the absence of industry management hotel industry has led to economic chaos and some concepts of operation errors. In this paper, foreign economic the development of hotels on the characteristics of the Chinese economy hotels to summarize, try to hotels made a preliminary determination of the concept, analyzed the economic hotels in China's development of market demand, and proposed future development of this industry trend. It is expected to hotels Approach to researchers and managers.
First, the historical development of economy hotels
hotels (Budget Hotel) is compared with the traditional full-service hotel (Full Service Hotel) The existence of a hotel Format. economy hotels in the world has experienced four historical phases: the early emergence and development; boom period; brand adjustment period; re-development period.
First of all, to the late 20th century, 30 50 budget hotels is the late emergence and development of the early 30's .20 century, with the rise of American mass consumption, as well as the development of road networks, motels began to appear, providing cheap travel for the civilian residential services. For example, early Florida in 1939 on the spontaneous formation of several motels joint organization of the industry (Quality Courts), and in the second courtyard was renamed the Joint Quality Hotel (Quality Courts United), motel owners for the single service industry. the Second World War U.S. economic prosperity motivated the mass tourism, led to a large number of middle and low demand for accommodation facilities; the development of inter-city expressway network will promote the popularity of .1952 motel holiday was established in the absorption of the past motel motel on the basis of development experience to improve their service quality, and standardization of the first attempt to replicate the products and services, in a short period of 10 years along the rapid development of highway network in the United States.
Second, from the early 60s the late 80s, hotels into the boom. hotels are rapidly increasing, and the product form the hierarchy of rich, began moving in multiple directions. chain stores began to replace the traditional decentralized business model, and open up a quick single hotel expansion of the development of ways, some more mature developed economy hotel began merger integration single hotel. At the same time, hotels began international development, from the United States spread to Canada, Central America, South America, and Europe. This expansion while stimulating the rise of local hotels, particularly budget hotels in Europe started its rapid development. to 80 late hotels have become a mature hotel Format developed countries in Europe and America.
again, from the late 80's to 90 end of the decade, the budget hotel industry, the brand began to adjust. over a long period of rapid development, the budget hotel market matures into a period of rapid growth and large-scale expansion of power gradually weakened. large hotel groups and investment policies to promote diversification strategy Hotels more inclined to buy through the capital operation and integration of existing brands within the industry, rather than from the innovative brand. market competition is weak out of a number of management, financial operations of the brand is not smooth, some are large and have strong brand Fortunately, the capital strength and management capabilities become even more powerful. the competition forced the company to service quality management and brand building. brand building, quality management, market segmentation, product diversification, internal management have been unprecedented attention.
Finally, the 21st century, hotels into another round of rapid growth. This was reflected in the budget hotel market development in developing countries and local brands. In China, Southeast Asia hotels expanding very rapidly. the world's leading economy hotel brands have entered, such as Accor Ibis (Ibis), Formula 1 (Formula 1), the speed of Cendant Group 8 (Super 8), every day Inn (Days Inn) , Intercontinental Group, Holiday Inn (Holiday Inn Express), etc., have aimed at the Asian market. Meanwhile, some hotels in Asia's economy began to develop brands, such as China, Jinjiang Inn, Home Inns and such.
II hotels in the definition and characteristics of
academic hotels do not form a universally accepted definition, the foreign division of the economy hotels mainly in price as the standard, for example, Powers (1995) that the hotels is not available full service (full service), and house prices in the period 1991-1993 remained at $ 33 below the hotel. According to the characteristics of budget hotels, and China's actual situation, I believe that the definition of economy hotel can be summed up as: ; to the general public and small business travelers who serve primarily to room as the sole or core products, low prices (generally below RMB 300 yuan), service standards, comfortable environment, hardware, superior, cost-effective modern hotel Format. facilities. The basic features of five points:
First, the limited nature of the product. hotels mm core values closely hotel accommodations to room products for the soul, cut off the other non-essential services, thereby significantly reducing the costs. In general, the budget hotel room and breakfast only (Bed & Breakfast), some limited service hotel also offers a simple dining, fitness and conference facilities.
Second, the quality of products and services. and the general The difference is that the social hostels, budget hotels is emphasized comfort room facilities and services standardization. clean, comfortable and convenient features not available in community hostels.
again, hotels affordable. relative the hundreds of thousand dollars in luxury hotels prices, hotels generally cost RMB 300 yuan, some dozens of youth hostels and motels charged only to one hundred dollars or so.
fourth goal of economic hotel market is generally business people, working-class, ordinary tourists and student groups, etc. at their own expense. And high-end hotels tend to advanced business travelers, high income groups, at public expense as the main target market visitors.
Finally, the external economic hotel performance, the budget hotel chain approach generally adopted, through the chain to achieve economies of scale, enhance brand value. This mode of operation is different from other hotels hotel star hotels and a distinctive feature of society.
Third, the development of Chinese economy hotel hotels in China's economic situation
initial development began in 1996, a subsidiary of Shanghai Jin Jiang Jinjiang Group is China's first budget hotel brand. into the 21st century, a variety of economy brands mushroomed first emerged, showing the following characteristics:
First, China's economy hotel industry was growing rapidly, there have been some of the nation rather extensive own brand. with national influence has Jinjiang Group, created in 1996 Jinjiang, the capital of international hotel groups and tourism services company Ctrip joint venture established in 2002, the Home Inns hotel chain. In addition, there are some areas of the economy hotel brands such as Motel 168 Shanghai area, Baolong home, South region 7 days, Beijing Xin Yan Du and other areas. These brands have seen vigorous development trend, in just a few years the rapid expansion of the brand is active in some areas the direction toward the national brand.
map A: The Chinese economy hotel major national brand name of the hotel
regional influence
As the end of November 2005 the number of hotels
future expansion of the scale
Jinjiang
the country, the main east coast , Southwest China, Central China
100 companies (including 50 construction)
Guide 39
which commissioned the management of 17
34 stores within two years, 20 billion investment the development of the northern market
2006, it plans to reach 200 in 2008, plans 50 new projects in Beijing
2010, it plans to reach 400-500
Home Inns
home country, the main east coast, southwest region, the Central Plains
72 companies (nearly 9,000 rooms)
Guide 59 which join the 13
two years, plans to invest
2008, the program development to 200 the scale of 24,000 hotel rooms
plans in China more than 30 cities in economically developed distribution
Motel 168
Shanghai, Suzhou and Wuhan
17 家
the next few years will be annual rate of expansion of the new 5-8 home
in Beijing Xin Yan Du
16 家, 2005 total 30 stores in 2008 to more than 100
Star of Yunlong Beijing area
16 家
plan within five years to continue the development of chain stores in Beijing, Shenzhen
ASE
16 家
Xinyu Star
Zhejiang, Shanghai
11 家
by the development of regional brands to national brands in South China
7 天
7 家
3 years, plans opening 100
in Shanghai Baolong Home
6 家 < br> Name Ya Hall
Shandong, Beijing
5 家
further development planned for 2005 3
Source: The official website of the hotel
Secondly, the Chinese economy hotel market demand, several large cities and a few regional hot spots. Beijing, Shanghai, Guangzhou, Chengdu and other large cities, hotels demand is very prominent, more mature market conditions. The Yangtze River Delta, Pearl River Delta, Beijing-Tianjin area in these three areas higher overall level of economic development also determines the level of demand for economy hotels. Therefore, the economic hotels in China's development is to present the entire areas of the situation quickly developed economically developed areas.
again, hotels attracted various sources of capital influx. because of the economic investment in hotels is relatively low, while the investment return rate was significantly higher than the hotel; the same time, China's current investment environment is good, ample capital supply, many efforts have been idle funds finding suitable investment projects, which combine high-quality properties and hotel project is especially attractive to the influx of capital; In addition, the appreciation of the Chinese real estate space has led to investors in the economy hotel real estate appreciation is expected, therefore, come from are very positive about the various sectors of the capital to invest in such projects.
Finally, the economy hotel market of foreign brands and national brands and intensifying competition. Many mature foreign economy hotel brand optimistic about the potential of a big push into China's market, they mature management experience, strong financial strength and talent pool, world-renowned brand, developed marketing network, strict quality control are not match advantage of local developed, only a few years experience in the formation of a strong national brand in China pressure. China's economy must quickly learn these hotel brands in all aspects of foreign experience to the rapid growth of competition in the market in order to obtain a certain position and strengths.
Fourth, the Chinese economy hotel market demand analysis < br> The development of economy hotels in the mass consumption of stimulation to develop. China's economy hotel industry is facing a very rapid development opportunities, this is the development of China, the inevitable result of mass consumption. The reason for the development of economy hotels the market power derived from the three:
1. China's need for cheap mass tourism development and hotel accommodation facilities.
the development of Chinese society as the economy has begun to gradually enter the well-off society, beginning in 2000, GDP annual growth level of 1 trillion yuan, some economically developed coastal cities in per capita GDP exceeded 3,000 U.S. dollars, the total number of domestic tourism in China more than 60% of the total population, have largely reached a mass tourism standards. China's economic development for the domestic tourism market has laid a broad foundation for the mass tourism era had begun.
mass tourism associated with the corresponding improvement of tourism facilities and tourism industry restructuring. reform of the early hotel industry focus on high-star hotel, which is to develop inbound tourism and the State consistent. However, with domestic consumption power increases, the domestic market blowout growth of mass tourism, tourists need to meet domestic demand and economic strength tourist facilities. and affordable, quality, service quality, and brand of the small number of middle and low hotel. Therefore, by up to 10 million passengers a year over the promotion of domestic mass tourism, China's economy hotel market potential is enormous.
2. China's booming economy has stimulated the development of business tourism, also created a huge demand for economy hotels.
recent years, with world economic development and accelerate the process of globalization, countries and within countries have become increasingly frequent business contacts, business tourism has developed rapidly in the world. According to statistics, in 2000 the global business tourism income has more than 400 billion U.S. dollars, and each year more than 8% annually .2003 activities in China International, Hong Kong, Macao, and the number of domestic tourists reached 116 million business. According to the World Tourism Organization estimates that China's business travel current annual expenditure of 103 billion U.S. dollars in China in the context of rapid economic development is also experiencing rapid development, it is estimated that In the next few years may be alarming rate of 20% growth (Wen Haojie, 2003).
the past, high-star hotel is the main choice for business guests, but as private sector development, as well as some travel companies limited funding, people, when conducting business pay more attention to cost-effective choice. Some luxury facilities and equipment, elegant decoration, excellent service, but only rooms and conference facilities, reductions in other non-essential facilities so that it can greatly reduce the price of a new hotel format, beginning by business travelers of all ages.
3. With the development of inbound tourism, international tourists demand for economy hotels have gradually increased.
from the demands of international tourists, more and more international tourists travel to China ,15-24 year olds and non-self-help tourists Offered youth hostels and hotels in the main target market. According to the National Tourism Administration of the survey, aged 15-24 in 2004 foreign more than 120 million visitors, and the rapid growth of self-help tourists. With internationally renowned brands such as Accor Ibis, Cendant Super 8, Days Inn and other hotels to enter China, and China's economy hotel development, international visitors on the economy the demand for hotels will be increasing.
five, the Chinese economy hotel problems
First, market segmentation is not complete, product level is not clear. economy hotels in China has just started, especially the national brand hotel, there is no clear target market, or target market segments and complete the work not detailed enough, resulting in overlapping or too broad a market, product design is not level, the lack of demand for different market segments targeted products and services .. According to foreign development experiences, hotels are three types of classes: limited service hotel (Limited Service Hotel), Economy Hotel (Economy Hotel / Budget Hotel) and cheap hotels (Super Budget Hotel). limited service hotel in the economy hotel in the fall high-grade, mid-range of economic hotels and cheap hotels are the lowest grade. The three-level hotel prices vary greatly, the gap between its hardware is also very large, limited service hotel rooms as much as four-star hotel facilities, hardware, and Some cheap hotels are thinking of cutting costs as simple as possible under the guidance of equipment, room facilities were primitive. But in China, the current market has not yet appeared on the very clear delineation of the product level.
Second, the lack of management experience, human resources inadequate. In the course of several years of accumulation, the domestic economy hotel management has accumulated some experience, but some mature brands with foreign decades of management experience compared to the inadequacies are still evident. in cost control, quality of service and training system, logistics and distribution, corporate culture, etc., need to continue to improve. Meanwhile, China's past the hotel personnel is in accordance with the norms of high-star hotel services and features of the training that can not adapt to hotels for a more post, round post skill requirements. For senior managers, very few are proficient in hotel management chain management and master's talent. Therefore, hotels are facing all levels of personnel in short supply situation.
Again, the lack of marketing tools and sales scheduled network failure. with foreign brands, China's domestic economy hotel brand apparent lack of awareness and means of marketing. In particular, some regional brands, awareness is very low, not enough to build a successful brand image, particularly important that is, apart from Jinjiang Inn, Home Inns, Xinyu star hotel chains such as building a few booking network of independent sales and call center, many hotels are mainly depends on the other reservation centers and professional travel agency to sell rooms. even if there is Hotel booking network technology and the efficiency of its intended is not very high, the design is not perfect. Therefore, in order to survive in market competition and development, the domestic economy hotel must speed up the accumulation of marketing.
Fourth, foreign economic Local hotels obstacles. many foreign brands are ripe to enter the Chinese market to attract, but the localization to improve and adapt to take some time. China's market and customers and there is a big difference between foreign, trade patterns and supporting industries Lian differences are worth noting. In addition, the process of cooperation with domestic enterprises, some hotel brands to take a hasty entry policy, resulting in the alienation of the brand in China and quality control. For example, take the Super 8 franchise the brand output Quick way to cut into the Chinese market, in Beijing's Wangfujing and Tuanjiehu out the price difference between the two stores more than 2 times the price of Wangfujing branch has reached a high level of the hotel. This price drop will lead to big brands do not sustainability, thereby undermining the brand in the minds of consumers expectations and image. In addition, the localization of obstacles but also in terms of management philosophy and methods. Based on the management concept of foreign cultures to come to China will face some obstacles, so the potential to improve must be carried out.
Finally, the influx of non-rational capital industry impact. economy hotels to attract high investment rate of return on a lot of capital, but many non-rational capital influx has led to many problems. Some of the original star hotel has been dubbed the capital a face-lift after the acquisition the name of economy hotels; some economic-type hotel management, operation and other aspects there is a big problem; some of the real concern is capital property, would like to take cheap hotel shell into the hh of these phenomena will be greatly disturbed the industry is not very stable on the original order, and led to the general public to understand the concept of economic chaos hotels, and price competition for the future to bring hidden dangers.
V. Forecast
domestic economy and tourism as rapid development, the public demand for economy hotels in more and more intense. can be accepted by the mass consumer level of budget hotels in China have broad market prospects. economy hotels in China the future will show the following three major trends:
1. chain management in the form will be the economic development of the main mode of
hotel chain is the world's major trends in hotel development, a British investment institutions worldwide hotel industry investigation and statistics, found that the late 20th century, the world's total number of hotel rooms 1 / 6 is 34 Hotels chain, and hotels in Europe and America and other developed countries are more than half of the total number of chain operation.
economy Hotels in China is an emerging format, most investors do not have the experience, take a very long process of accumulation of experience. Therefore, the development of hotels are usually started from a number of independent hotels. in the accumulation of a certain amount of management experience and brand equity later, gradually extended chain.
economy hotel chain to form the inevitable result of two contradictory developments: first, the space limitations of hotel sales and consumer dispersion; second hotel on the economies of scale pursuit of individual hotels contradiction between the weak force.
First of all, hotel sales and consumer space limitations of dispersion leads to the contradiction between the pursuit of a space hotel to be the maximum possible spread.
Hotels is a space in a specific environment to provide accommodation facilities to the customers and services sectors, the core is the relying on an indispensable tool. We can say that hardware is the basis for the hotel business. The hotel facilities are always fixed in a particular geographical environment, so the hotel business has a strong spatial, making a single hotel on the tourist attraction strongly influenced by the distance. And the dispersion of tourists is mainly reflected in the activities of the guests in the city area within the present multi-center, a wide range of features. With the acceleration of urbanization, urban industrial structure and the gradual formation of urban areas in the More and more travel, business, business functions, all cities have experienced rapid expansion, the traditional center of a small area is not the only city in the downtown area and guests at the heart of regional, more and more New , Development Zone, new shopping centers, financial centers, attractions and other resort areas have sprung up out of the corresponding population of the regional passenger traffic together, and, among these areas of business, transportation and other aspects of communication for the movement of personnel, exacerbated staff activities in the city dispersion.
So the hotel guest room space limitations and dispersion constitutes a huge contradiction. a more comprehensive and effective method: chain operations. through the chain can expand the brand hotels in a city's spatial distribution, so as to effectively address its space limitations.
Secondly, the Hotel on the pursuit of economies of scale and the weak forces between the individual hotel's what makes the hotel should be possible to expand the operation scale .
pursuit of profit maximization is the ultimate goal of the enterprise, for which companies will take various measures to reduce costs and improve efficiency. to expand the production scale is an effective way to reduce costs, according to the cost of production theory, in a period of time , corporate marginal yield increase will bring down the marginal costs. But this effect is limited, institutional economics point of view, more than a certain size will lead to a decline in business efficiency, increase in other long-term costs, by then marginal cost but will rise with increased production. in a certain system conditions, the size of the business can not expand indefinitely, beyond a certain limit, the enterprise is too bloated, system failure, will lead to a decline in efficiency, revenue decline, the emergence of an not the state of the economy. Thus, to improve efficiency and expand business scale, the pursuit of profit maximization is a certain limit. firm size expansion is a boundary, reaching the saturation point after the scale of the enterprise can not continue to use this means to reduce costs. enterprises in the fierce market competition in order to win, must find other ways to reduce costs and improve profits.
chain chain can greatly improve the effectiveness of each hotel within the group, and the whole chain can improve the overall image. chain link with both capital and non capital, the former through the lease, merger, purchase, share swap and other manner; the latter are management contracts, brand share as a link. through the hotel chain, scattered single added to the chain of hotels, have a very significant economies of scale, can greatly reduce the transaction costs. Meanwhile, the chain can be integrated through internal resources and help reduce management costs. chain advantage is also reflected in the brand to expand the business scope expansion and , through the integration of Group resources to expand operations, gain competitive advantage.
2. business differentiation and brand building is the development of budget hotels to survive competition
current Chinese economy hotel market segmentation is still in relatively early stage Many hotels positioning rather ambiguous, and some only in general terms to travel and small business guests at their own expense as its own target market, there is little further division. However, the hotel is well developed in the economy of the United States, the different hotels targeted market is very clear and unique. have a special preparation for the self-driving motel guests, have a special hotel for older visitors, there are specially designed for young backpackers providing accommodation facilities, have a special reception and female travelers the hotel, there are apartments for families traveling economy hotel.
Thus, the domestic economy hotel after a certain number is reached, the market will definitely increase competition, general market position and no difference in the product can no longer effectively to attract customers , in particular, the homogenization of the product will be a budget hotel a fatal flaw in market competition. Market segmentation and product differentiation is the hotel operators must face. In addition, modern society, the brand has become a culture vector carrying the pregnancy or the products of different companies and richness of the unique advantages. The hotel industry as an intangible services and tangible products in close connection with industry, the brand is particularly important to its meaning, this is the hotel industry, high degree of homogeneity of products, one of the breakthroughs in personal appearance, but also on the prior experience of the hotel can not be a strong guarantee. each economy hotel brand in the coming years must be completed within the time and content of brand positioning definition of target markets and customer segments build loyalty, product design improvements and services improve, the only way in the future in the increasingly fierce market competition to secure a stable source.
I believe that, in accordance with customer groups, age, gender, trip purpose, occupation, income and other indicators, you can source the current budget hotel market is further broken down for many target markets, such as the elderly visitor market, youth market, the doctor who market student market, the business visitor market, white-collar resort market, etc. According to the detailed characteristics of the target market of consumers with different design, economy hotel products and services to fill gaps in the market, to form a stable target consumer groups.
Therefore, in the form of a collection of monomers through the chain of power, to complete the chain Group differentiation and brand building business in markets such work is the hotels main direction of future operations.
3. Management specialization and technological progress to promote the development of budget hotels budget hotels
main features such as front desk management, customer management, can effectively improve efficiency, reduce management costs, hotels and institutions on such technologies have great needs. but the current management systems are for high-star hotels, economy hotel management system is still in an exploratory stage. the face of the growing economic situation of the hotel management system and strong demand, some mature hotel software and management system based on the characteristics of hotels and make appropriate improvements and upgrade, which will promote economic development and hotel management system improvement.
Specifically, the budget hotel management system for improved performance in several key areas:
first reservation system. as the fierce competition , intended to build a very smooth distribution system is very important initiative. Hotels in this area is still a blank, there are many hotels and book sales to imitate the general star hotel, through travel agencies, reservation centers, travel booking sites, such as Ctrip, E dragons to sell rooms. these sales channels to grab the economic profit of a considerable part of the hotel is not conducive to the control of operating costs. Moreover, inadequate control of distribution channels will cause a lot of future business risks of instability. Therefore, the establishment of a reservation system's own independent sales of both lower costs, but also stability in distribution channels, many hotels will develop to a certain size will be started after the scheduled construction and improvement of the system.
followed by the personnel management system. economy hotel management personnel is currently in the industry scarce, the traditional hotel management institutions are training people to adapt to the operating system star hotel, few hotels can meet the shortage is to limit the hotels biggest obstacle. Some more mature development of hotels, such as and improvement of these hotels is to establish an important way to cultivate talents. Therefore, personnel training system is the future of hotels must focus on an important aspect. Another point, compensation and evaluation system should also be further improved. previous personnel management system characteristics for the star hotels are evolved, the management of the economy hotels under the framework of incentives and how to properly check and management personnel are placed in front of the operator of a new issue that as the economy hotels Rapid development has become more apparent, it is worth thinking managers.
control operating costs once again. Cost control is the economic core of the hotel business. economy depends entirely on the low price hotel operators on cost control efforts and angle. any hotels to achieve development in the industry, victory in the competition, cost control is the foundation. Some hotels do not completely get rid of operators star hotel business ideas, high cost; there are some operators are too strict cost control, seriously affecting the comfort of the hotel product. these two extremes are to be avoided. Therefore, to explore and improve cost control will be the future management of the theme hotels. Many well-known international economic hotel brand management experience will be absorbed and promotion in China.
conclusion
by strong market demand to stimulate the economy hotels in China has experienced and will continue growing rapidly. As the hotel industry the latest hot spots, the industry has attracted investors, managers, researchers and other aspects of concern. As China's economy hotel is still in the early stage of development, so many ways there is no uniform understanding, which leads to the concept of the industry the appearance of confusion and misunderstanding. Therefore, the definition of hotels and characteristics of the induction is very necessary. by forecasts of future development, economy hotels for business and industry executives put forward some ideas to better the development of the industry norms, provide more effective guidelines.
