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Mid-range hotel Author of this article: Xi Yixin 2021-09-05 11:15:20
How do mid-range hotels navigate the “golden second half” successfully?
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Recent time,From naked man breaking in to blaming the front desk,Continuous negative news about hotels,Coincidentally,These negative hotels,They are all mid-range hotels。A mid-range hotel on the cusp of the storm,Is it following a similar path to the "post-golden decade" of budget hotels?

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Not even halfway through August, three hotels have been exposed to negative news.

Evening of August 5th,Netizens revealed that while staying at an All Seasons Hotel in Shanghai,A naked man broke in early in the morning。Last,The hotel just arranged for staff to send him back to his room,Didn’t do too much inspection and focus。This netizen saw it through hotel surveillance,Starting from 2:21 am that day,The man was naked and tried to open the door of each room from the 7th floor of the hotel,The whole process lasted nearly 50 minutes,Until I opened my own door。

All Seasons Hotels issued an apology statement for this incident,Saying that guests were not protected,It is the hotel’s unshirkable responsibility,Breaked the trust of the guests,It also violates the brand’s promise to customers,The hotel will conduct the most profound reflection on this。At the same time,Hotel brands attach great importance to,Launched an internal investigation immediately,And promises to store all All Seasons Hotels nationwide,Conduct a comprehensive self-examination of hotel safety。

The controversy of the whole season is not over yet,Atour was once again on the hot search list for being the hotel where the incident occurred in the "Ali Incident"。To this,Yadoo issued two statements,Point out that hotel operations comply with hotel industry accommodation management regulations,No illegal operation。However,These two announcements try to distance themselves from any impersonality,On the contrary, Yaduo fell into the whirlpool of public opinion more quickly。Although the relevant "Situation Notice" issued by the police on August 14 supports the hotel's statement,But there are still many controversial points。

Next,August 11,A former employee of a liquor company in Guizhou revealed that he was sexually assaulted after drinking,The suspect obtained the room card from the hotel front desk and entered the victim's room。Chongqing Yi’an Hotel involved,It is a four-star independent hotel opened in 2007。

Three consecutive mid-range hotel disputes,Intensively challenging the public’s perception of “mid-range”,The crisis behind the rapid development of mid-range hotels,Also gradually emerging。

The "economic dilemma" of the mid-range is emerging

The rise of mid-range hotels in China,188bet sports betting app download The "golden decade" of budget hotels ends,Almost seamless connection - the rush of budget hotels comes to an end,Let mid-range hotels take over and continue running。This also leads to the development path of many mid-range hotels,With a strong shadow of economic model,Even the same people are doing it。However,The successful path for budget hotels is to focus on mid-range hotels,But it may not be copied,On the contrary, it will be "acclimatized"。Data display from Asia Travel and Accommodation Big Data Research Institute,The operating data of mid-range hotels in 2020 is expected to have a year-on-year decline of more than 5%-10% in return on investment。Various problems currently occurring,It can be regarded as the epitome of the "economic dilemma" of mid-range hotels。

One is that the quality does not match the price。The reason why mid-range hotels can rise,Becoming a new market hot spot after budget hotels,Mainly due to increased consumer demand for quality,Mainly low prices、A budget hotel that pays more attention to ordinary accommodation functions,The corresponding demand can no longer be met,And enter a round of "knockout"。

But due to the overheating of the track,A large number of "fake mid-range" hotels whose quality and price do not match have appeared。Quality and design have not improved,The price has climbed from economical to mid-range,Influenced the reputation of the entire mid-range hotel market。

The second is that expansion is contrary to management。Mid-range hotels have experienced a period of extremely crazy expansion,According to the latest data from iiMedia.com,The number of mid-range hotels in China is 4350。Also,In the years 2015-2019,The number of mid-range hotels in China shows a fluctuating trend as a whole,The most rapid growth in 2016,And in 2019,It started to fall back slightly。

However,The group’s expansion of mid-range hotels is far from over。Ru Huazhu at the 2020 Huazhu World Conference,Disclosed his ambition: in the field of mid-to-high-end hotels,Planning until the end of 2023,Maintain the growth rate of at least 100 new stores every year。Jinjiang successfully completed the non-public offering at the beginning of this year,It is expected to provide sufficient financial support for the company's current upgrade of many budget hotels in core commercial locations in first- and second-tier cities to mid- to high-end hotels。

Also,New mid-range hotel brands are constantly emerging,Also confirms the desire for expansion。In "Jinjiang、First Travel、Elong launches new products one after another,How many new brands do hotels need?》中,According to incomplete statistics from the Asia Travel and Accommodation Big Data Research Institute,The number of new brands released by domestic hotel groups in the past three years is,2 in 2019,12 in 2020,10 since 2021。Amongst this,Mid-range hotels are the mainstream。

While mid-range hotel brands continue to conquer cities and territories,But it is a lack of management,Three negative cases of mid-range hotels mentioned above,In the final analysis, it is all the same。This 188bet app is the same problem that occurred at the end of 188bet sports betting app download The "golden decade" of budget hotels,Quite similar。Franchisees continue to appear out of control、Chaos management,Let budget hotels fall into a kind of "expansion seeking death、 The dilemma of not expanding and waiting to die"。

The third is the difference between advanced concepts and actual humanities。Compared to budget hotels,Mid-range hotels are beginning to pay more attention to guest rooms、Cultivation of humanistic genes beyond sleep。Therefore,Mid-range hotels are beginning to occupy more niche markets,More willing to tell good brand stories。Ru Yaduo’s humanistic philosophy,And the creation of public areas,A cross-border attempt,The emergence of it is amazing;And now this year,The original extension of the diversified national trend experience brand launched by Jinjiang、Natural Happiness Hotel Collection、360-degree healthy sports lifestyle brand Binyue, etc.,They are all differentiated brands launched based on the current unique market needs。

However,The creation of these concepts,Some brands are more like touching stories told to investors,But it has not become a consistent gene of the brand。Ruyaduo’s statement on the “Ali Incident”,A regular guest pointed it out,"No matter what the outcome,Aduo’s indifferent words in the announcement,Still with the "humanities" it advertises、Warmth、Interesting "The brand concept shows a huge contrast"。

Fourthly, it is difficult to realize the listing on the market。2005 to 2015 is the "golden decade" for the development of China's economic hotel chains,The listing of leading brands has even set off a wave of listings in the United States。Home Inns went public in 2006,On the market in 7 days in 2009,Hanting was listed in 2010,Accurately embarked on the first five years of the golden decade, the hottest development years。Budget hotels that will be re-listed in the future,is in the cold market,Investors are no longer willing to listen to the old stories about budget hotels。

If 2015 is regarded as the beginning of the golden age of mid-range hotels,Then the growth of mid-range hotels will begin to decline in 2019,Undoubtedly an important turning point,Exactly 5 years。To this year,The mid-range and high-end are more sought after than the mid-range,It can be seen that mid-range hotels have gradually lost their appeal。

Unfortunately,Different from the smooth listing of budget hotels,Although many mid-range hotel groups are trying to go public,But there is still no successful listing。The difficulty of capitalization and realization,Make the sentimental story of a mid-range hotel quite raw。

How budget hotels are revived

It’s worth noting,Although budget hotels have left the "golden decade" for a long time,But it did not recover after a fall,Opposite,Continuously improving on the road to quality and scale。The journey of revitalization of budget hotels,Worth the attention of mid-range hotels。

Laying out new markets

According to data from the Asia Travel and Accommodation Big Data Research Institute,2019-1st half of 2021,188bet app The demand growth rate for budget hotels is 37.3%,The market demand in most provinces has increased by more than 35% year-on-year,Room order volume increased by as much as 48%。Under the downward pressure of the global economy,Still has strong vitality,This vitality mainly comes from product upgrades in first- and second-tier cities and the rise of lower-tier markets。

Sinking market,Become the target of most budget hotel brands。At the 2020 Huazhu World Conference,Ji Qi repeatedly mentioned the goal of “thousands of cities and thousands of stores”,Summary the sinking strategy into two dimensions: sinking three、Fourth line,Sinking into "Xiao Di Ping";7Days Inn takes first- and second-tier cities as benchmark,Focus on the sinking market in third- to sixth-tier cities;BTG Homeinns pointed out in its 2020 financial report,Will continue to accelerate the pace of store opening,Acceleration three、四、Fifth-line sinking market layout。

Finding new markets is not difficult,Truly become a pioneer,Laying out new markets,It is the key to revitalization。

The media pointed out as early as 2012,Budget hotels are about to usher in the "meager profit era"。At that time,Leading budget hotel brand 7 Days、Home Inn、Hanting has achieved "100 stores in the same city" in many first-tier cities,Meanwhile,Beijing, Shanghai, Guangzhou, Shenzhen, Hangzhou and other key cities,Also owns a large number of budget hotels。The first-tier market becoming saturated,Let budget hotels have to go down the path of sinking。However,The sinking market a few years ago,Not as vibrant as now,Such as "The room rates of three-star and above hotels in third- and fourth-tier cities are also very low,The development of budget hotels is difficult” argument,"Sink",This is undoubtedly a move that requires courage。

Upgrade old brand

Last two years,Classic budget hotel brand,They are all working hard to upgrade,Seven days like Jinjiang,The Hanting of Huazhu,And Home Inn of BTG Home Inn,2.0、3.0 emerging in endlessly。

Upgrade old brand,Doesn’t mean breaking away from the past,It’s about inheritance and innovation。Chen Ying, design director of Jinjiang Global Innovation Center, pointed out in an interview with Space Detective,I don’t want consumers to live in a complete stranger for 7 days,But a 7 days with memories,Meanwhile,We also hope it is a surprise,Be able to see different innovations。

Like 7 Days Hotel 3.0 will upgrade the quality and aesthetic needs of the product,With the continuous optimization of color proportions and material combinations,reach balance,Space looks younger、Fashion、Freedom。

Upgrade of the old brand,There is no doubt that the "mid-range" of budget hotels has become the general trend。Budget hotel with superior quality,Even the experience is no less than that of ordinary mid-range hotels。According to industry insiders,Hanting 3.5 version single room cost,Even more than a group of light and mid-range hotels,The revitalizing power of classic brands 188bet Online Sports Betting and Casino cannot be underestimated。

Promote meta-gene

In the past,Budget hotels are the place for business travelers to have a good night’s sleep,But a budget hotel after revitalization,Start tracing the brand genes,We also need to do culture,Make IP。Such as Hanting "affordable and good quality"、7 days of "comfort every day",Return to the original intention of "sleep well every day",Can be regarded as the retrospect and development of the "meta-gene"。

Especially in the developing sinking market,Accommodation "optimization"、"Quality"、"IP",will become the mainstream of consumption upgrade in small towns。According to the "Research Report on Youth Consumption in Small Towns",Estimated to 2030,Resident consumption in third- and fourth-tier cities will reach 45 trillion yuan。More and more consumers in lower-tier markets have a sense of high-end design、Has social attributes、Hotel with theme culture,More willing to pay。

Today,Ruhuazhu、Dongcheng、BTG Home Inn and other hotel groups,Still regards budget hotels as the “basic”,Inseparable from the "revitalization" vitality of budget hotels。Mid-range hotel in trouble,We also need to find our own second growth curve。

3-Point Collapse Prevention Guide for Mid-Range Hotels

Mid-range hotels in "economic dilemma",In addition to learning from the revitalization of budget hotels,You must also have the ability to organize yourself。The following 3 points are “important”,Can be used as a reference guide for "collapse prevention" in mid-range hotels。

Genetic Attention

Start talking about genes in the budget hotel industry、Talk about culture now,Mid-range hotels should pay more attention to this。However,Genes are not written for investors、Crippling cultural stories,It is a set of codes of conduct that brands can apply,Guiding the brand’s space design、Service concept and publicity method。

This point,Mid-range hotels should perhaps learn from the revitalized budget hotels。Returning to the original intention of the brand,7 days of focusing on high-quality sleep,It revolves around "sleep",Conducted a series of creations,Like a customized version of the sleeping mattress、High quality anti-mite naked sleeping grade bedding、Goose down pillow/memory foam pillow combination、Exclusive customized 7-day sleeping box, etc.,Fix the label of “quality sleep”。Hanting focuses on “nationality”,Standing to “affordable good quality” for 16 years,Even used the song "The Hanting Hotel on Jiangpu Street only has rainy season" as a promotional point,Leading out countless human fireworks behind Hanting。

Today’s mid-range hotel,Still busy "grabbing labels",But behind the “label”, “words and deeds are consistent”,It is the key to the hotel’s cultural genes that truly make it out of the circle。

Public Relations Attention

Controversy in mid-range hotels in the past month,It also exposed the hotel brand’s lack of public relations。Compared to admitting mistakes,The first hotel 188bet app download public relations job,It’s to calm things down,Disclaim responsibility。As in all season events,The parties pointed out,Before the incident happened,The manager of Ji Hotel just apologized to Huahua with a fruit plate,And promised to reduce the room fee with the event organizer who booked her room。Until the incident gets bigger and bigger,The brand has just issued an apology statement。Yado in the "Ali Incident",He was busy proving that he was right and issued two statements in a row,Anti-questioned。 

A space detective once pointed out in an article,The hotel treats public opinion,We must have an attitude、Two cores、Three basics、Four don’ts、12345 Strategy of "Five Taboos"。Choose a good brand PR,It is equal to choosing a good hotel general manager,Pay attention to hotel public relations,It is to take care of the long-term reputation of the hotel。

Pay attention to pace

With the emergence of more and more "pseudo mid-range",The mid-range market is extremely lively but mixed with good and bad。To avoid falling into the budget hotel dilemma,A question that mid-range hotels must think about is,Does expansion necessarily mean success??

The business travel genes of budget hotels,Decided that it must follow the path of commercialization,Where is commercialization developing,Budget hotels are available wherever you go。This may not be the case for mid-range hotels,In its genes,There is humanities、Business traveler、Have a lifestyle、There is also artistic charm,Not necessarily suitable for every market and all customer groups。The result of blindly scaling up mid-range hotels,It is the guest experience and reputation that has been damaged,Loss of customers。

Mid-range hotels attach great importance to the pace of expansion,It’s not that we won’t take the route of scale,But based on one’s own genes,While expanding,Check back from time to time to see if the quality has kept up。

Many mid-range hotels have begun to master the method of balancing scale and quality,Same as a budget hotel,Started brand iteration,Ruyi Shang Hotel 2.5th edition,Vienna Hotel 5.Version 0, etc.,Let quality keep up with the times,Also keep up with consumers。

History never repeats,Repetition is the rule。Now,We are witnessing the second half of the "golden age" of mid-range hotels。We cannot predict how many "golden years" there will be,But what can be estimated is,Mid-range hotels will eventually undergo a quiet reshuffle,There will eventually be brands similar to budget hotels,Find the way to recovery。

*Source of this article:WeChat public"Space Detective" (MESPACE007),Author: Xi Yixin, original title:Mid-range hotels, beware of the collapse of the "economy model"!》.

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