The year that just passed in 2016，Business for the hotel industry，M&A、Financing、Transformation takes turns，At the end of the year and the beginning of the year，December 27 Qingdao Shangmei 188bet online live casino Group Co., Ltd. (formerly Shangkeyou Hotel Group，hereinafter referred to as "Shangmei 188bet online live casino") released the "Shangmei A Plan" and announced the acquisition of 1.RMB 400 million in Series B financing。

Shangmei 188bet online live casino was established in 2009，As of now，Has more than 2088 chain stores in 791 cities across the country，Become the successor to Jinjiang Plateau、Boutique Home Inn、The fourth largest hotel chain giant after Huazhu。

Currently, Shangmei owns Shangkeyou、Shangkeyou Selection、Junyi、花美时、Lanou、Holiday Land、Youyue 7 hotel brands，Plus LIPPO commune launched in 2016、Everest Discovery Park，Shangmei 188bet online live casino’s business was mainly based on budget hotels，Gradually expand to mid- to high-end hotels、White-collar apartment、Explore parks and many other industries。

The era of big accommodation is coming，The rise of sharing economy accommodation，Traditional hoteliers take the initiative to enter the non-standard field，Cross-border retail、Catering、Culture、Art and more，This is not only the result of market profitability，It is also a self-subversion of the 188bet online live casino industry’s own positioning。

This transformation of the hotel industry、Business expansion strategy does not only appear in the layout of Shangmei 188bet online live casino，Jinjiang Botao、Boutique Home Inn、Huazhu Capital is making plans in the tourism consumption field，Whether it’s hotel personalization、Specialization or entering non-standard accommodation、Good for leisure and vacation，Every company is looking for new mass market weights after consumption upgrade，Known as a “disruptor” in the hotel industry from its inception、The beautiful 188bet online live casino of "Dark Horse"，How will you participate in this market competition after consumption upgrades in the future？The answer may be glimpsed from the frequent actions in Shangmei’s 188bet online live casino in the past two years。

Become the fourth best hotel，Create a 188bet online live casino service circle，Shangmei embarks on the road to business diversification

August 13，Shangkeyou Group at the company’s mid-year meeting in 2016，Officially launched the new group name as Shangmei 188bet online live casino Group，The group is no longer just a hotel，But to create a 188bet online live casino service circle。In fact, before the name change, Shangmei 188bet online live casino had already started to try and layout around "188bet online live casino services" from the subtle aspects，And gradually expand the breadth and depth of the layout。

1. "Lifestyle" and diversified 188bet online live casino services.

Mid-range hotels have become the main battlefield for hotel companies in the past two years，It is reported，Mid-range hotel signings accounted for more than 58% in 2015 and the first half of 2016。Shangmei 188bet online live casino’s brand is available in mid-range hotels including Shangkeyou Selection、Junyi，Add new brand Huamei、Lan Ou et al，More than about 400 mid-range brands in total，It can be said that in this mid-to-high-end competition，Shangmei’s 188bet online live casino moves faster and more smoothly。

Shangmei 188bet online live casino focuses on the most basic experience of customers，No restrictions on hotel services，Frequent cross-border innovation in content，Closer to consumers’ lives in concept。For example, "Meimei Sleep" launched by Thankyou chain；ThankyouSelect tries “buying a home and staying in a hotel for free”；Hua Meishi makes a "hotel + photography" crossover, etc.，All demonstrate the innovation and diversity of Shangmei 188bet online live casino。Ma Yingyao, chairman of Shangmei 188bet online live casino, once mentioned，A mid-range hotel brand designed by Shangmei Lifestyle，Do not use price range and decoration grade as the defining criteria，But diversify from mid-range consumers、Starting from personalized demand points，Set different supply points。This concept not only redefines mid- to high-end hotels，Also because Shangmei 188bet online live casino is closer to users from the beginning of design，Added more weight to win users。

2. “188bet online live casino + Tourism” business layout

Shangmei 188bet online live casino proposes "accommodation + tourism" as the core service，Establish a series of chain brands to provide users with more fashion、The concept of a more cost-effective consumer experience，Gradually broadened the brand and business scope from 2014，Start to diversify business、Service 188bet online live casino-oriented transfer，This layout was launched in LIPPO Commune in 2016、More obvious after exploring the Everest Park。

Ma Yingyao once talked about，Shangmei 188bet online live casino’s cross-border operation has gone through three stages: the first stage is using hotels as the traffic entrance，Use online payment to create scenario-based marketing；The second stage is to develop new business formats such as chain communes across borders；The third stage is to build cross-border IP (intellectual property) chain。

With the upgrade of consumption，Travel has become a lifestyle activity that is localized，Including more and more content。For the future，Ma Yingyao pointed out，In addition to expanding the “188bet online live casino circle” through chain franchises，We will also seek cooperation with other companies outside the accommodation field。

Innovate the 188bet online live casino franchise model and leverage offline scattered resources

For investing in Shangmei 188bet online live casino，Huang Longhai, vice president of Hongtai Fund, one of the investors, pointed out，China’s population structure is complex，在三、The needs of fourth-tier cities are not met，Shangmei 188bet online live casino can fill this need；Secondly，Currently, hotel chains in China account for less than 10%，Compared to Europe and the United States, there is still a lot of room for development，There is a lot of room for imagination in integrating the existing market of independent hotels；Also，At present, most independent hotels are weak in competitiveness，It is difficult to obtain traffic even on OTA platforms，Shangmei 188bet online live casino can enhance the competitiveness of these hotels。

Matching requirement structure，With three、The demand gap in fourth-tier 188bet online live casino is the starting point，Closing supply loopholes

The hotel industry is undergoing transformation under the urging of consumption upgrade、Introducing specialization、Personalize products to meet changing needs，But these actions are more concentrated in one、Second-tier cities，From the overall supply and demand structure of Chinese hotels，三、The needs of fourth-tier and even more remote cities tend to be ignored，This phenomenon does not only exist in the hotel industry，This is reflected in many aspects of the tourism industry: First, insufficient product supply，Second, product quality is lacking，Many independent hotel environments、Service、Management has loopholes，The product is too extensive。With the development of the Internet、The advancement of China’s urbanization and the development of the overall economy have prompted three、Growth in consumer demand in fourth-tier cities，Shangmei 188bet online live casino has been around since its establishment，See the prospects of this market，With three、The fourth-tier cities are the starting point，In their own words, it is a strategy of rural areas surrounding cities。

Shangkeyou brand under Shangmei 188bet online live casino Group,Cooperating with independent 188bet online live casino in the form of chain franchises in third- and fourth-tier cities，By branding、Standardization quickly improves the overall quality of the hotel，Bringing consumers the experience of chain 188bet online live casino，Just by "taking a good bath、Sleep well、Shanghaowang、Clean、Hygiene、Comfort and safety” is a seemingly simple but straightforward concept，In addition, the market is relatively blank，Through seven years of hard work，Thankyou has become the largest chain brand of economical 188bet online live casino in third- and fourth-tier cities。

For the future in three、Layout of fourth-tier cities，Ma Yingyao mentioned，Future Three、The fourth-tier cities are still dominated by Thankyou chain，AA Room will be mainly located in one、Second-tier cities。If timing + demand + brand promote Shangmei 188bet online live casino in San、Victory in fourth-tier cities，In the future, the Internet-style chain franchise model will bring more favorable competitive weight to Shangmei 188bet online live casino。

Upgrade the 188bet online live casino franchise method，AA Room brings scale platform and design

The current stock of independent 188bet online live casino in China is around 400,000，Most of them have design deficiencies、Lack of management awareness、Outdated products and services、Insufficient cost management、Problems such as lack of brand marketing，After demand upgrade，These 188bet online live casino are facing an increasingly severe situation。AndWhat Shangmei 188bet online live casino has to do is，With a more capital-light model，Use the Internet to build a platform to solve branding problems for independent hotels。To this，Ma Yingyao said: For the hotel industry，AA Room is a brand new species，It has more membership systems than OTA、More formulation of specific operating standards，Fewer store manager dispatches than chain hotels、Missing standardized hardware, etc.。If Meituan integrates catering as a platform、Hotel，OTA integrates travel products as a platform，These integrations are from offline to online，Solved the problem of information asymmetry，But for the company’s own products and services、Brand、Management is difficult to reach。The AA Room launched by Shangmei 188bet online live casino is integrating independent hotels scattered in every corner through an Internet-based chain franchise，This kind of integration is much more complicated than the platform type，But the cost is lower than the traditional chain franchise、More efficient。Compared with traditional franchise methods，The characteristics of AA Room mainly include the following aspects:

• Reduced 188bet online live casino costs：Store design，In the Internet hotel chain system of Shangmei 188bet online live casino，Based on "linen、Mattress、Customer consumables、Network、Unification of hot water” and other hardware and cloud PMS software，Not every franchise store will be renovated，Provide standard solutions for upgrading and transforming basic standard products for independent hotels，Reduce owners’ upgrade costs and investment risks。And through unified user management，Reduce traffic acquisition costs and user maintenance costs for franchise stores。

  This kind of store design system is quite different from traditional franchise stores，First, respect the original system of independent 188bet online live casino，Traditional 188bet online live casino are more uniformly transformed according to stricter standards，For franchise stores，The costs in all aspects are higher；The second is personalization，This "soft standard" design system can make stores more personalized and differentiated，Bring more fresh experiences to customers。

• Establish an equal and sharing mechanism: Independent 188bet online live casino can enjoy the six major supports provided by the group，Free central booking platform、A network of tens of millions of members covering the whole country、Professional management consulting、Service Quality Monitoring、24 hours customer service support，And the industry-leading cloud hotel management system。Especially in terms of membership system，Because of the equal sharing mechanism，188bet online live casino on each platform can develop members through their own stores，It is completely free for members to book their own 188bet online live casino，But you can also get commission for booking other 188bet online live casino on the platform，This provides additional revenue channels for some stores。

  188bet online live casino method opens up the boundaries between chain stores，All stores are not developed individually，But in the same system，Mutual aid cycle，Form a virtuous cycle。At the same time, 188bet online live casino Internet method brings an improvement in overall operational efficiency。

• Dual-line traffic import: The traffic battle has been a bloody battle in the past few years，With a series of mergers and acquisitions by OTA、Integration、Cooperation，188bet online live casino war is gradually cooling down。AndFor independent 188bet online live casino，In addition to direct sales in stores，Can only rely on OTA to obtain traffic，But the strength of OTAs has reduced the profit margins of 188bet online live casino，The channel costs of independent 188bet online live casino have become a constraint on profitability。Hotels all hope to have the ability to obtain traffic，Shangmei 188bet online live casino is no exception，AA Travel APP，This is the best proof。Ma Yingyao also said，OTA brings new customers to hotels，The membership system brings regular customers。

  Shangmei 188bet online live casino adopts the form of OTA + its own membership to import traffic to franchise stores，Relying on OTA’s traffic diversion in the early stage to bring new customers，Shangmei 188bet online live casino gives full play to its own membership system，Convert ordinary users into members，Import into your own AA travel platform，And through the provision of standardized products and high-quality services，Gradually strengthen the stickiness with customers，Form a stable traffic introduction effect。

• Bring users the dual value of experience and discounts: By providing a unified brand identity for independent 188bet online live casino、Membership system and some hotel facilities, etc.，Provide travelers with a comfortable experience；On price，Each independent hotel will be assigned an AA label，The label means price concessions to consumers。

Shangmei 188bet online live casino’s AA Room has created a virtuous cycle mechanism for itself，Attracting many independent hotels through the reduction of franchise costs，At the same time，Equality、Sharing mechanism brings operational efficiency improvements to individual hotels，By branding、Annotation brings improvements in services and attracts consumers，With the increase of franchise hotels，The membership mechanism is playing an increasingly important role，In turn, it promotes the joining of independent hotels。

Enterprise competition escalates under the huge tourism consumption，What challenges will Shangmei 188bet online live casino face in the future？

Shangmei 188bet online live casino’s “188bet online live casino service circle” strategy is in line with the current demand market，Whether it is the hotel industry、Both the non-standard accommodation industry and the online tourism industry are deploying offline resources，188bet online live casino services in the era of mass tourism consumption are more like an offline battle for scattered resources，Who has more diversity、Better quality resources may provide users with more、More differentiated services。

The future of Shangmei 188bet online live casino will be obtained from upstream resources、Strive for downstream users、We are facing considerable challenges in terms of internal integration and process optimization。

The battle for resources intensifies，What pressures does Shangmei 188bet online live casino face？

To realize the "188bet online live casino service circle" of a beautiful 188bet online live casino，It is necessary to continuously expand and refine the existing business layout，And this will inevitably have more and more intersections with other companies，The scope of competition for offline resources will gradually expand。

In hotel business，Shangmei 188bet online live casino has set its sights on the huge market of independent hotels，But it’s not just Shangmei 188bet online live casino that values ​​this piece of cake，Huazhu and other giants are also intensively deploying independent hotels，Branding independent hotels in the form of brand franchise、Upgraded。

In the accommodation industry，B&B、Online short-term rental、The rise of unmanned hotels and other types，Continuously dividing the share of the most basic element of "accommodation" in tourism。From the Holiday Land、Look at Hua Meishi brand，Shangmei 188bet online live casino has also begun to add non-standard accommodation。

Entertainment in leisure vacation、On "You" resources，Home Inns, which also started as a hotel chain, merged into BTG Hotels Group，Announced Home Inns Town Plan in November 2016，The entire town is centered on accommodation，Aiming at surrounding tours、Self-driving travel and other groups，It seems to have a different positioning from Everest Park，But for short distances、For tourists from surrounding areas，This is just a change in 188bet online live casino content while enjoying leisure time，The competition between each other has never stopped。What’s more important，Whether it’s a park or a town，The land use rights are the same，Competition for basic resources cannot be ignored。

Shangmei 188bet online live casino’s future 188bet online live casino service circle is more likely to be a radial business structure with hotels as the core，ThenShangmei 188bet online live casino needs to continuously integrate more tourism elements、Elements of 188bet online live casino，The shapes of these elements are more complex and diverse。From this perspective，AA Room plan is more like a pioneer and explorer of Shangmei 188bet online live casino service circle，As to whether the current AA Room strategy can be extended to other businesses in the future，Ma Yingyao mentioned，Because there are differences between various businesses，Whether it can be applied to other fields in the future still needs to be explored。

Online competition between Meituan-Dianping and Baidu Nuomi

Order is king，Meituan Dianping、Baidu Nuomi has huge traffic and user scale advantages，Independent hotels will pursue maximizing orders in the future，More inclined to settle on platforms with large traffic，More than one platform has settled at the same time；The proportion of user-side mobile bookings is getting higher and higher，At the same time, the cost of acquiring customers is getting higher and higher，How Shangmei 188bet online live casino can attract more users to book using its APP？

Economy 188bet online live casino operating profits decline

From the perspective of operating performance，In the past year，Under huge supply pressure，The operating performance of budget 188bet online live casino has shown a downward trend，Especially the accommodation rate。，Last year，Already low average house prices also declined。

Except for the decline in income，The two largest cost categories of budget 188bet online live casino，That is, rental costs and labor costs are rising frequently，This obviously compresses the hotel’s profit margin。In the past two years, conflicts between franchisees and brand companies have occurred frequently，The root cause behind this is the issue of how to reasonably distribute the significantly reduced profits。

Obviously，The traditional business model of budget 188bet online live casino is no longer sustainable，The lack of growth is an unavoidable fact。The advent of the era of small profits has also caused various economic 188bet online live casino giants to move to the mid-range market and short-term rental apartment market。Therefore，It is expected that the upgrading and renovation of economical 188bet online live casino properties will enter a period of high incidence in the short to medium term。

Service supervision and 188bet online live casino value、Improvement and maintenance of internal resource sharing and distribution

Huazhu’s franchise chain unifies management standards by dispatching store managers to franchise stores、Maintain brand value，But this model is not suitable for realizing the beautiful 188bet online live casino of Wanjiadian，The store manager himself has problems that are difficult to supervise and control，In terms of cost，It doesn’t seem so reasonable。For a beautiful 188bet online live casino，Join via the Internet，Then on the basis of scale，The most important issue is how to achieve effective management at a reasonable cost，Maintain brand value。

With the gradual expansion of the number of franchise stores，It is inevitable to produce the same area、Internal competition among hotels in the same category，Whether resource sharing can truly be achieved，How to achieve balance in future marketing promotion，This is also a problem that Shangmei needs to face in 188bet online live casino。

Postscript

In Ma Yingyao’s plan，Under the traditional franchise model，About 600 per year、About 700 188bet online live casino signed contracts，And AA Room is for independent 188bet online live casino，Lower cost，No huge investment required，So the signing speed will be more than 2 times，Calculated this way，The goal of “10,000 stores in five years” is not very high。

ButTo truly make the AA Room plan work effectively，Shangmei 188bet online live casino in Software、Hardware、Manpower、We must provide strong guarantees in all aspects including knowledge，According to introduction，1 obtained from 188bet online live casino financing.400 million yuan will be mainly used for AA Room，As for the improvement of specific internal core resources，Ma Yingyao said that he will focus on software development and marketing in the future。

As competition intensifies in the hotel industry，Many companies have also turned their attention to the huge stock market of independent 188bet online live casino，In service supervision、Brand Value、Traffic import、There are still many challenges in the future regarding internal resource sharing and allocation，Shangmei Lifestyle must solve each problem one by one while "accommodating" independent 188bet online live casino。

*The author of 188bet online live casino article Wang Hui (personal WeChat: wanghui-zhi)，Coached Analyst，Welcome to follow、Communication！