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OTA and non-standard accommodation are under attack,How to break through the hotel industry in 2016?

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Wang Yanchao2016-02-09

The wave of entrepreneurship and innovation in 2015 violently impacted the traditional hotel and accommodation industry,On the one hand, China’s tourism market is booming、The rapid growth of online travel market data,On the one hand, the losses of traditional hotels continue to expand,Star hotels continue to close。Under the current pressure from OTAs and non-standard accommodation,How the hotel industry will stand out in 2016?How to focus on tourist service experience?Travel TV and Zhihui Travel jointly launched the Spring Festival special program "New Forces in Tourism" to continue to discuss hot trends in the tourism industry with everyone

This wave of entrepreneurial innovation in 2015 also violently impacted the traditional hotel accommodation industry,With the help of capital,OTA is making great progress,Non-standard accommodation booking platforms are springing up,For the majority of consumers,You can have the opportunity to enjoy a rich supply of accommodation products,Booking becomes more convenient and faster。However,As the main force in the accommodation industry, the hotel industry seems worried in the face of the rapidly changing market。

The tourism market is heating up,Why the traditional hotel industry is losing money?Surrounded by OTAs and sharing economy short-term rentals,How to transform traditional hotels,In order to gain a firm foothold in the ever-expanding market?

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According to iResearch monitoring data,The transaction size of China’s online travel market reached 3077 in 2014.900 million yuan,An increase of 38 compared with 2013.9%;As of Q3 2015, the size of the online travel market has exceeded 120 billion yuan,18% month-on-month increase,45 year-on-year increase.9%。Accommodation only,The size of the online hotel market alone in 2014 has reached 632.500 million yuan,Proportion 20.6%,A year-on-year increase of 28% compared to 2013。

On the one hand, China’s tourism market is booming、The rapid growth of online travel market data,On the one hand, the losses of traditional hotels continue to expand,Star hotels continue to close。According to a set of data from the National 188bet Online Sports Betting and Casino Tourism Administration,National star hotel operating income in 20142,151.4.5 billion yuan,Loss 59.2.1 billion yuan,Loss range expanded compared to last year。According to Beijing Times report,The total number of star-rated hotels closed nationwide in the first three quarters of 2015 reached nearly 3,000。

Not only the domestic hotel industry is facing difficulties,The development of the hotel industry in the international market is also worrying。According to data from international travel search engine company Dohop,19% of customers after successfully booking a hotel,Cancelled before check-in;There are 12.7% of hotel bookings are made immediately before check-in,i.e. “last minute decision”。Analyze the reasons,Because more and more customers are staying for a long time (more than four days),Will give up hotels and choose a shared economic living model similar to Airbnb。

There was a profit squeeze from OTA before,There will be alternative competition for non-standard accommodation later

2015 is the year of OTA melee,Price war、The advertising war continues,At the same time, the online travel landscape has changed a lot in a year,OTA channel integration accelerated,May in the first half of the year,Ctrip acquires eLong,Where will the holding go in the second half of October,Makes Ctrip’s online air ticket and hotel distribution share exceed 50% in one fell swoop,Accounting for half of the country,After integrating Elong and Qunar, Ctrip’s channel control over the domestic hotel accommodation industry has become an absolute advantage。Meanwhile,With the development of Internet + tourism,People are gradually developing the habit of using the Internet to book travel and accommodation products,With strong traffic and customer acquisition capabilities,Online travel platforms represented by OTAs have gained the favor of more and more consumers,The hotel industry’s dependence on OTAs continues to increase。

In the case of online channel monopoly,The profits of the hotel industry are facing the possibility of being severely compressed,Ctrip and other online channels have always had high-pressure policies towards the hotel industry, which has undoubtedly forced the hotel industry to become self-reliant。

Consumers pursue diversified travel experiences in 188bet app 2015,Personalized demand is expanding rapidly,As representatives of personalized non-standard accommodation, the supply of inns and B&Bs is also continuing to grow at an accelerating rate。This can be reflected from the online inn and bed and breakfast booking market data,According to Analysys Think Tank monitoring data,China’s online inn and homestay booking market grew rapidly from the second quarter of 2013 to the second quarter of 2014,In the second quarter of 2014, the revenue of the online inn and homestay booking market reached 1.300 million yuan,Transaction volume 131.300 million yuan,Monthly increase of 333.3%,Much higher than the overall online hotel booking market 35.8% year-on-year growth over the same period。

Domestic short-term rental companies frequently obtained financing in 2015,Vacation apartment booking platform Tujia received US$300 million in Series D investment in August;Xiaozhu Rental, an online short-term rental booking platform, completed Series C financing of US$60 million in July;Overseas short-term rental booking platform completed RMB 500 million in Series C financing in September;B&B booking platforms have also begun to appear,In addition to the B&B booking section launched by large OTAs on their official websites,There are also many vertical booking platforms such as Vacationer、Zizaike、Youduoduo、Qin’s Inn、Big Fish B&B, etc.。With the power of capital,Non-standard accommodation platform is developing rapidly,Emerging accommodation products are having a substitute impact on hotels,Thus making the profit margins of the hotel industry even lower。

International giant Airbnb entered the Chinese market last year,Seeking a breakthrough,I believe Airbnb will have a new layout in 2016。

It can be seen from this,Profitability and improvement of operating performance in the domestic traditional hotel industry,Both are facing unprecedented challenges。

2016 Hotel Accommodation Industry Trend Analysis

“Non-standard accommodation” will usher in an outbreak period

Dohop’s data display,In 2015, more and more tourists choose to use the sharing economy type of short-term rental accommodation,And the longer you stay,The higher the likelihood that the customer will choose short-term rental。This mainly comes from the short-term rental 188bet app industry with lower costs、Better integrated with Internet technology,At the same time in terms of customer localization experience and segmented services,Dig deeper than traditional hotels。

Market research company MillwardBrown released a report in 2014,Survey shows that nearly half of business travelers want to explore the local area。"Discover" ranks higher than "Escape" and "Indulgence"。More and more people want to get rid of "friendly、A “safe haven” hotel that is isolated from the outside world,To have a localized experience,For example, tasting local specialties and food,For example, participating in local community activities,Integrate into the local cultural atmosphere。Data display,Whether it is the traditional hotel industry or the short-term rental industry with the latecomer sharing economy model,We are all working hard to enhance customer localization experience and provide segmented services。

The basic product form of domestic tourism has long been “scenery + wine”,“Jing” provides the link of off-siteization,“Wine” provides a link in local life。But in recent years, the Inn and B&B、Short-term rental apartment、The rise of long-term rental apartments,Breaking the single pattern of traditional hotels unifying the "wine" field。In an environment where the number of tourists is increasing,Traditional hotels are no longer able to meet the different needs of consumers,The development of “non-standard accommodation” fills this gap。

November 2015,The State Council issued the "Guiding Opinions on Accelerating the Development of the Lifestyle Service Industry and Promoting the Upgrading of the Consumption Structure",Made it clear that we will actively develop inns and B&Bs、Short-term rental apartment、Long-term rental apartment。Issuance of opinions,Let the non-standard accommodation that has been hovering on the edge of the law be corrected。

The hotel industry is united to keep warm, investment and mergers and acquisitions may increase

Facing OTA、The attack of new forces such as non-standard accommodation,The hotel industry at home and abroad is also beginning to look for a way to break through。October 2015,Jinjiang Hotels announced the acquisition of Plateno Group for 8.2 billion yuan。In early January 2016, Jinjiang acquired Vienna Group 188bet Online Sports Betting and Casino for 1.8 billion。Internationally at the same time,Marriott acquires Starwood for more than 10 billion US dollars,In June 2015, AccorHotels, Europe’s largest hotel group, announced the creation of an independent hotel distribution platform,Start openly confronting OTA,Attract independent hotels that are not affiliated with other brands to join AccorHotels’ distribution platform,The intention is clear,Increase inventory on the platform,Thus attracting more traffic。Notable on August 8, 2015,According to "British Property Weekly" news,China Travel Service Co., Ltd., a wholly-owned subsidiary of Hong Kong China Travel Service Group, bids more than 400 million pounds to acquire Kew Green Hotels, a large British hotel group,Become the sole shareholder of KewGreenHotels,Acquired ownership of 44 hotels and management of 11 others in the UK,Successfully entered the British hotel market。This is the largest acquisition project by a Chinese company in the British hotel industry to date。

Obviously this is an attempt by large hotel industry groups or alliances to form a group to fight against OTAs。

Optimize the online booking experience to attract users and give full play to service advantages

This is a relatively mild approach,The hotel itself gives full play to its service advantages,Also actively use digital means。For example, showing potential guests the advantages of booking directly (customer service before check-in、Additional services, etc.);Providing digital services,Optimize the online booking experience process to attract users (check-in before check-in、Mobile applications, etc.);Improve the credibility of the hotel (make the service more transparent,Improve online reputation), etc.。

Win with segmented services

As Millennials become the mainstream consumer group,They pursue personalization、Diversified product experience,Compared to "comfort",They care more about whether this place is "interesting"。Therefore, hotels should carry out targeted digital marketing for this type of customers,Create marketing focus around local characteristics,Provide special services。For example,In an ad about breakfast,Focus on local ingredients, their characteristics and corresponding production methods。The hotel also holds its own localized activities for marketing,188bet Online Sports Betting and Casino For example, inviting local residents to bring their dogs to the hotel for a night of "dog and cocktail fun"。

More and more hotels are beginning to deeply explore customers’ psychological needs for localized life experience and segmented services,Let customers become a part of the local tourism community,Fully integrate into local life。

Pay attention to the human and social factors of the accommodation industry

Why non-standard accommodation products such as B&Bs and inns have become so popular?Standard rooms that are different from traditional hotels,Special house types in the short-term rental industry such as courtyard houses、Tree Hole、Woodhouse、Cave dwellings and villas with sea views, etc.,This kind of localized experience is very attractive to the user group who likes to experience "fun" and "different"。These unique accommodation experiences inspire customers to stay again,Thus bringing about secondary consumption、Improved customer stickiness。Not only a localized experience,The landlord can also provide services according to customer needs,Provide more personalized services than hotels。

What’s different from traditional hotels,The short-term rental industry promotes light social interaction between tenants and landlords,Establish a friendship with the host while staying at the hotel,Feel the local cultural sentiments more deeply,Have personalized tour routes,These are indeed customer service segments that traditional hotels cannot complete。“One room,“A residence、“A residence,A kind of feeling" slogan,Is the main direction of the short-term rental industry,This is also the warmth trait currently missing in the hotel industry。

*Author of this article: Wang Yanchao,Zhihui travel expert author,Personal WeChat account wandayan110,Welcome to follow and communicate,Please indicate [name+unit+position] when adding。Thank you for your support!

The source of this article is Zhihui, and the copyright belongs to the original author.

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