Cheap hotels reached the mid-market: where to go next?REVIEW: Like 10 years ago, with the economy hotel market transformation hostel, so now they launched the chain in the end product, with the 34-star or five-star hotel undercut the. Compared to budget hotels 200-300 yuan, mid-priced hotels have higher profit margins, which makes such home who have more resources to provide personalized design and service. Mid hotel's main consumer groups is high Yuming as business people age 30 to 45 years between. They were the first economy hotel members have a clear perception of the chain business, previous experience is not good stay, next time choose another brand. They are also the pursuit of new Internet age and personality of the dominant group, \u0026 ldquo; cookie-cutter room \u0026 rdquo; is probably the first thing they want to get rid of. Reading and photography are the subject with a wide range of people, if we can have a living space travel, building real social relationships, consumers should be willing to pay more than fifty or sixty dollars for this part of the value. Moreover, the future of these stores may be turned into the line store experience: see you in a hotel, use the items, from bedding to decorate, you want to buy, the hotel can be ordered through the vendor or re-order production, and send it to your home. A new era seems imminent. High Yuming about 20 days a month are away on business, to live up to the budget hotel, wake up every day do not know in which city. After the sale was promoted to minister, his accommodation standards to 400 yuan / day, but little choice: Hotel Promotions are also sold at this price, you can most of them outdated facilities, air conditioning during good times and bad, and, most likely you Do not know how to find them \u0026 mdash; \u0026 mdash; most of them are single rooms. Such as home, Chinese live (Hanting Hotel's parent company), JJ and platinum Tao (seven days of the parent company), which you are familiar budget hotel company saw an opportunity from high Yuming Confusion. Despite Jinjiang, China live have said that from 2006 they will have to develop mid-market ideas, but as home in 2008 first put into action. \u0026 Ldquo; then we thought, what is the budget hotel it is a guest house Deluxe Edition?. What is mid-priced hotels? In the five-star hotel should be economic version of it. \u0026 Rdquo; Home Group CEO Sun Jian said, according to this idea that they cut from five-star hotels in the pool product model, SPA, large conference and dining facilities, while retaining the pursuit of the room five-star, so the rooms become comfortable core competitiveness. In addition, through the chain-scale operations, they can control the room at 300-500 yuan \u0026 mdash; \u0026 mdash; a new brand, called \u0026 ldquo; and Rhythm \u0026 rdquo ;. The first election in the House and Yi Home Group headquarters building next door to a property. Sun Jian given direction to the design team is \u0026 ldquo; \u0026 rdquo ;. reflect the personality The first and Yi Sun Jian to meet individual requirements. Aisle lights dim, even during the day like dawn or in the evening, on the carpet to draw the stars, walk on as spacewalk, the two sides are two rows of flashing fluorescent blue door handles, embedded in the upper house number reveals a white luminescence. The entire hotel is full of space concepts. Up to nine room, family room, female rooms, business rooms \u0026 hellip; \u0026 hellip; at that time, none of the hotels rooms do classification. But also people can not tell, and Yi is a business-type or leisure. Sun Jian like this product, he often came to the store to observe guests coming and going, and then back to the office next door. \u0026 Ldquo; the guests liked. \u0026 Rdquo; Sun Jian said. But soon, the global financial crisis spread to the mainland, the uncertain economic situation, the second and Yi shop plans suspended. However, Yi and personal transformation, but an economic-type hotel brands in the upgrade process consensus. \u0026 Ldquo; the time when the market is going up, accommodation crowd also pursue non-material aspects of things, whether it is the hotel design, service or taste. \u0026 Rdquo; to avoid falling into the low end of homogenization, Jinjiang International Group had the business by its mid-priced hotels Jin Jiang International Hotels Group to open up, which manages the group's high-star hotel. Group guess it could \u0026 ldquo; know better \u0026 rdquo; in the end consumers: these people should be more mature, discerning, quality requirements, these features closer to the end consumer, not as long as the safety, health, transport facilities to meet the low-end consumer By. But Jin Jiang International Hotel Management Group took over, expanding in the mid-market is not smooth, open only two stores on the aborted project. After transferred Jinjiang team run (over the mid-brand \u0026 ldquo; Jin capital \u0026 rdquo; later, \u0026 ldquo; Jinjiang Limited \u0026 rdquo; renamed \u0026 ldquo; Jinjiang Capital Hotel Management Limited \u0026 rdquo;), with classified over yet Group 10 has multiple three-star hotel property. Although these facilities are obsolete old hotel, but has its own culture and history. To reflect the personality, \u0026 ldquo; we want it (JJ capital) some stories, not stories but also to create some stories. \u0026 Rdquo; Li to Kay said, with the hotel property itself, the surrounding community or city to make an association, in order to establish emotional communication with the end consumer. JJ capital hopes emotional connection to higher brand premium, or even rise into the 500-700 yuan market. Lots of special, like the one near the Peace Hotel property, Jinjiang capital will price range set at 1400-1500 yuan. However, this type of property is only the country, Dalian, Qingdao and other cities only have the individual. Most other cities are Metro, if all relying on historic buildings, Jinjiang capital can only do small scale. Of the individual pursuit, in turn, brought trouble. Shelve the mid-market a few years, Sun Jian also rethink and Yi personalized Question:? Too fashion actually easy to date, and \u0026 ldquo; put a product designed to be so complex, how quickly copy \u0026 rdquo; in the pursuit of scale chain business, the faster the shop, the more by the scale of procurement to reduce costs. This is a logical expansion of the low-end economy hotel market is no different. The hotel industry structure point of view, the US hotel industry showing football-shaped pattern, the middle is the end of the hotel, the two ends are cheap and high-end hotels. China's huge population gathered in the four-tier cities, Sun Jian is estimated that China's hotel industry future structure at least it should be a pyramid: Economy is the base, is the pinnacle of high-end, midrange accounting for more than 25%. Taking into account the scale of development and rapid replication, and Sun Jian Yi choose to give up the first design direction. 2010 economic rebound, such as returning home in mid-market, Sun Jian Yi corrected and theme hotel biased, return to the classic business style in the second generation product to walnut color, gray, beige and green sauce, and other color, while allowing owners to join in without affecting the software installed on coordination, purchase their creativity decoration. Only in a different city, according to city property characteristics and conditions of adding a small proportion of localized design. JJ capital also find another way out. In June 2013 it acquired a 21 \u0026 ldquo; fashion tour \u0026 rdquo; hotel, renovated for the Jinjiang capital \u0026 ldquo; \u0026 rdquo ;. standard series Which can only rely on the historical development of the hotel building is made \u0026 ldquo; \u0026 rdquo ;. Classic Even so, \u0026 ldquo; standard range of products through at least one ornament, a picture, get in touch with the city. \u0026 Rdquo; Kai Li said. Home and JJ are \u0026 ldquo; personalization and standardization \u0026 rdquo; repeatedly draw the line, looking for a compromise, Hua live but do not feel completely standardized in the mid-market will become a problem. \u0026 Ldquo; like Apple, to make sense of quality and simplicity, you will be able to catch most of the consumers. \u0026 Rdquo; Chen Yijun said the hotel's sense of belonging may be more reflected in mattress comfort, air-conditioning noise size, even the color of the walls of the room, rather than a painting on the wall. All seasons from the Han court who continued this values. Only the development of a hotel design, and continuous improvement, to make it into most of the end consumers like, again replicated nationwide. Iterated to the third generation, All Seasons hotel is close to the ideal image for the end 沈怡军 Hotel: light and spacious lobby with sofas, coffee, shelves, self-access, self-service laundry, small meeting rooms functional areas. Compared to the second-generation shop, three generations shop more stable, for example, in light green, wood color and other primary colors, the sofa in the lobby of the purchase of second-generation shop Air Jordan Others is light beige rocking chair, room bed backrest made only 70 cm design. In the three generations of the store, into the brown sofa, easy random shaking; at the same time add dramatic lighting to adjust the atmosphere; rooms bed backrest design scope has expanded to two-thirds of the wall, reducing the cramped feeling \u0026 hellip; \u0026 hellip; \u0026 ldquo; Guests work is very busy, and we hope to reach us to have a very peaceful feeling. \u0026 Rdquo; Chen Yijun said. In fact, China is on the basis of Hanting live on \u0026 ldquo; quick change \u0026 rdquo; to enter the mid-market. \u0026 Ldquo; Chinese court to open its first store in 2005 when in fact wanted to do in the end product. \u0026 Rdquo; but at the time of the end of consumption is not mature, they have to reduce property renovation and staffing standards, made a change such as home, Jinjiang Inn and 7 days in the same camp, economical product. However, the development team has been in watching for the end of the property: single-family lobby style, location. These rents high, do Cheap Hotels unfortunately, Hua live win labeled \u0026 ldquo; Han Ting Hotel \u0026 rdquo; brand, distinguished from \u0026 ldquo; After Hanting Express \u0026 rdquo ;, turn \u0026 ldquo; Han Ting Hotel \u0026 rdquo; renamed \u0026 ldquo; Hanting \u0026 rdquo ;. To 2012 and then to \u0026 Air Jordan 14 Retro ldquo; All Seasons \u0026 rdquo ;, and Chinese living in the end brand identity when appearance, it already has 23 stores \u0026 mdash; \u0026 mdash; the same period, and Yi only two, Jinjiang and platinum Tao of end brands are still brewing. Into the mid-market, which allows the whole season has been criticized in the industry as \u0026 ldquo; Cheap hotel upgrade \u0026 rdquo ;, not \u0026 ldquo; real end product \u0026 rdquo ;. \u0026 Ldquo; What is the definition of which is based on a real mid-priced hotels, which is not what \u0026 rdquo;? 沈怡军 not mind, \u0026 ldquo; we just different starting point, the market is the final judge. \u0026 Rdquo; In contrast, seven days of the parent platinum Tao deliberately avoided this problem, the group directly to the \u0026 ldquo; in the end product should be made of what \u0026 rdquo; the development cycle outsourcing. Platinum Hotel Group chairman Tao Zheng Nanyan commissioned McKinsey conducted a survey, the survey showed, \u0026 ldquo; 2011 onwards, Chinese consumers spent money on non-essential consumption accounts for the proportion of total personal income rose for the first time \u0026 rdquo ;, which means that, \u0026 ldquo ; consumers are willing to spend money on things they like, rather than calculated from the functional requirements or cost-effective. \u0026 Rdquo; consumer choice hotel standards also is changing, before, consumers are mainly based on room rates, location and traffic conditions to choose, and now, brand image, room design, service efficiency and consumer value evaluation factors will play effect. Zheng Nanyan Analyzing \u0026 ldquo; China hotel Consumption turning point has occurred \u0026 rdquo ;. But he believes that seven days of the original team, and even those economy hotel counterparts, are not good at new markets \u0026 ldquo; to find a way \u0026 rdquo ;. Nearly 10 years, \u0026 ldquo; 7 天 think every day how to help consumers save money, do not know how to get consumers to spend comfortably, \u0026 rdquo; Zheng Nanyan said, \u0026 ldquo; strong ability to find a way that start-up companies, particularly in the industry the ability to capture the inflection point of the strongest segments of consumer demand, the ability to quickly run difference, which is seven days good. \u0026 Rdquo; 7 天 therefore chose the most unique way to get into the mid-market: delisting (June 2013 delisting), then the transition from an economy hotel companies in the hotel business platform, and changed its name to \u0026 ldquo; platinum Tao Hotels \u0026 rdquo ;. After one year, there are four mid-level brand was founded on this platform, Li Feng, Zhe brown, Z-max and the Greek coast. Among them, Li Feng, featuring natural aroma; Zhe brown coffee culture combined with the hotel; Z-max influx of people want to be like the hotel, the lobby is designed as a social clear it; if you want to get the Greek coast female consumers . The founder of the brand most no hotel industry background, it seems this is not a problem in Zheng Nanyan, \u0026 ldquo; as long as they define the brand talk to a group to establish the real value of identity. \u0026 Rdquo; to the Greek shore brand, for example, from the name to the function, and its founder Lu Siyun have done targeted survey, for example, girls trip will take a lot of clothes, do not want to wrinkled clothes, so did the Greek coast complete openness wardrobe. Sometimes girls will forgot cleansing oil, Greek bank to consider providing makeup remover in the cost manageable. \u0026 Ldquo; we also ask the same waiter like girlfriends give more care to female consumers, such as the special period given to the bowl of brown sugar water. Or tired of work back to the hotel, you can have a small dessert. \u0026 Rdquo; Lusi Yun said that she as a woman, out staying in a hotel, there are many unsatisfactory experience. Women Surrounded by peers as \u0026 ldquo; \u0026 rdquo ;. too subdivision Zheng Nanyan disagree, he told the 'Business Weekly': \u0026 ldquo; pure business needs a chain hotel market and purely tourist hotel market demand, in fact, smaller than 50%. Classification by men and women is already the largest proportions of classification. \u0026 Rdquo; in the end of the four existing brands are so \u0026 ldquo; on request backwards positioning, work out after determining the cost price \u0026 rdquo; deduced. Entrepreneurs delineated by the target consumer groups, platinum Tao if it's brand identity logic, will stake. Depending on whether holding the actual condition of the item, but the brand owned by the founder of the initiative. Platinum Tao provides financial, personnel and supply chain required to support brand development. This means that platinum Tao into a fund, hotel management training, procurement and supply chain and booking systems platform company, originally 7 Days Inn brand into these midrange brands and parallel team, they were based on their business needs the functional departments \u0026 ldquo platform; Air Jordan Others single \u0026 rdquo ;. In this mode, it is formed between the platinum Tao brand competition, which is platinum Tao want to see. \u0026 Ldquo; you must come in to run fast, or behind the brand has come. \u0026 Rdquo; Zheng Nanyan said peers are stocked with a team within the Group to develop new markets, they do not have the entrepreneurial team of madness, such internal team will grab all the resources of the company, while low efficiency, which he wants to avoid. On the mid-market, platinum Tao does not set limits on the number of brands, each brand able to open a few stores, but also their ability to see, and then decide whether you want the resource group is inclined to the brand. Competition more than that. For 陆斯云 are concerned, they are not only to get the platinum tip pen Tao's identity to get working capital, but also have the ability in the absence of a direct sales stores to attract owners to join. Because after delisting, platinum Tao is no longer open outlets of. Peer opinion, contrary to the law of the hospitality industry, \u0026 ldquo; you always want to open a shop to look at yourself can not be profitable, they will join it \u0026 rdquo;? Kai Li said. But Zheng Nanyan believes that 10 years ago, the brand first approach may not hold, but several budget hotel with 10 years of education of the Chinese hotel market, but also to establish their own brands, which can be an endorsement of the newly created sub-brands. So far, 60 contracted hotels Lai Feng, Zhe Brown also has more than 20, at 4 economy hotel group in the largest number. However, profitability was at risk. JJ capital opening run for nearly a year, the financial model has not been clear. Plus the product of immature iterations needed before, and Rhythm and All Seasons have done about 20 stores, it will function with the hotel's style and determined, as a mature product open to join. Zheng Nanyan had no operations in the end, which end is the founder of the brand is basically new to the hotel industry. Before founding the Greek shore 陆斯云 brand, at a date of the company he worked for seven years. Each segment is defined out of existence is not real, is also unknown. \u0026 Ldquo; all probability have success. \u0026 Rdquo; Zheng Nanyan responded by winning race mechanisms brand, market success is to be verified. Die halfway, it is the cost of a successful subsidiary. \u0026 Ldquo; in fact they are still only in the fight hardware, profit model is too simple. \u0026 Rdquo; Wang Haijun, president of Asian flowers such as home and worked in the Han court and other hotels have worked, in 2012 after leaving the Chinese court in the end created a brand \u0026 ldquo; \u0026 rdquo ;. Asian duo The brand with photography, reading theme, hotel decoration works are from photographers, book based on a one-way street bookstore offers books radio books. Headquarters set up an independent department to the store planning cultural classroom activities, there is no profit targets, but above assessment themed events in store updates. Wang Haijun want to establish real communication with members, rather than the paintings hanging on the wall, placed in the lobby of the shelves as decoration, membership is possible at any time because the price went to a competitor. \u0026 Ldquo; China's service sector to the era of value greater than the hardware facilities of the service, \u0026 rdquo; he said. Lusi Yun also have this idea: \u0026 ldquo; in fact, I do not want to only Greek bank located in a hotel, but wanted a hotel as a carrier female experience center, the future can tell all kinds of women's brand of cross-border cooperation. \u0026 Rdquo; at present, Asian duo opened a total of four stores in Xi'an, Chengdu and Nanjing three cities. Entrepreneurs do new exploration, but the traditional economy hotel company is not for Nike Air Force 1 this panic. \u0026 Ldquo; If you would like to pursue Asian duo scale, we have to go through the road. \u0026 Rdquo; Sun Jian said. Hotel investment of about 20 million yuan, but the system is far from investing in technology that number. Sun Jian said, as Nike Air Yeezy family is concerned, IT systems has invested a total of 300 million yuan. \u0026 Ldquo; build several hotels too easy, but trust in my ability, no way to build mid-priced hotels behind the support system. \u0026 Rdquo; Sun Jian said. \u0026 Ldquo; When the hotel to do a certain amount of time, after large scale, the cost will be reduced, which is the chain model. In fact, our larger concept is not a hotel, is a chain. \u0026 Rdquo; economy hotel formats margins will continue to decline after 2010, and now only about 15 percent, only half heyday. The mid-range hotel pricing makes its gross profit margin increased to 60%. Suffering from pressure earnings growth, such as home were full of fighting spirit to this new market. By the end of 2013 to early 2014, 4 Cheap hotels did the same thing: a change in name. 7 days renamed platinum Tao, Han court was renamed Hua live, renamed Jinjiang Hotel Jinjiang Capital Management Ltd., Home Inns hotel chain was renamed as hotel group. Cheap transition from a single multi-brand hotel management company, all price band of hotel management group, and in the end as the current strategic focus. Same for the chain model, mid-priced hotels and economy hotel has the same financial statements and operational processes. Therefore, the development, procurement, finance, personnel, members of the system up to the group and other functional departments platform level, mid-level brand and brand parallel economy, the common group of supply chain to \u0026 ldquo; Nike Shoes \u0026 rdquo ;. cost Resource-intensive budget hotel is the best at the practitioner into the mid-market for their most challenging is the vision and taste. \u0026 Ldquo; an enterprise has a corporate culture, at the time of transition, culture is more important than professional. \u0026 Rdquo; Sun Jian said. The hotel is still the traditional industry, a brand needs more than 10 years of business cycles, the management team to withstand long-term run-in with the suffering. To make as home smoothly through the transition period, he was both cheap hotel executives based on the introduction of high-star hotel in the background of people, who in product design, procurement standards, sense of service has a high level, while the former know how to control costs and chain operations. How in the same group working with other brands, but also the need to establish new rules of the game. The shared development team, China set up a live Caucus to decide which brand to use the new property. Responsible members of the decision-making committee, including the Han court, All Seasons and other brands, coupled with Group level decision makers. Although demand for mid-priced hotels type of property and economy has a big difference, but this team still have to sit down every Monday morning meeting, estimating the brand to transform this property which maximizes profit and then decide the new property assigned to Who. Cheap hotel market matures, the basic occupation of the existing property. Property of urgency to make China live feel \u0026 ldquo; must improve while doing adjustment can not be said to think clearly and then do, so you might want to know too late. \u0026 Rdquo; now, all seasons are a few mid-level brand in the fastest growing, is expected to open by the end of the 100 stores. Yi is expected to end and there are 40, Jinjiang capital is this number, more than one brand of platinum Tao's actually Nike Air Presto opened just a bit. In addition, China also live from hand to get the Ctrip Mid hotel brands \u0026 ldquo; \u0026 rdquo ;, Starway to absorb the existing three or four-star hotel as China live franchisee. The property is very large. According to 2008 figures, Ctrip launched the brand mentioned, the country three or four-star hotel has 20 000, are single operators, Ctrip want to \u0026 ldquo; Starway \u0026 rdquo; establishing a unified online reservation system for the brand, Order a profit by charging a commission. It was eventually incorporated into the hotel's number is not much. In 2013, after China won the Starway brand live, with a different way of doing business with Ctrip: the cooperative mode to franchising, namely China live in joining the hotel Starway brand reinvented uniform standards, and sent a team stationed in management By initial fee charged to profit and turnover commission orders. Owner pays the renovation, procurement, staff salaries and other expenses, room revenue belongs to the owner. Chen Yijun that this would enhance the 34-star hotel to join Starway enthusiasm. As with all seasons parallel midrange brands, Chen Yijun expect greater future potential Starway. Now, the brand has more than 30 hotels. Abundant cash flow of capital in Jinjiang took 17 billion acquisition of fashion after the trip, also intends to introduce investors through the sale of assets or future, leaving only the way of capital operation and management of the naming rights, etc., set back more funds to continue to win sell more properties. In order to make the product more stable, and Yi also control the pace of its shop. Now the entire mid-market add up to only a couple of hundred hotels, compared with the market economy, competition has not really come. It will continue to be the most difficult to compete for consumers. \u0026 Ldquo; standardization is based on the future of the most successful hotel brand, the brand must be the service excellent. \u0026 Rdquo; Kai Li said. Each company based on its own knowledge in this new field of attempt. And Yi designed special services, brought customers into the store after the welcome tea, guests readily brought upon departure ceremony \u0026 mdash; \u0026 mdash; some small snacks. In contrast, China tends to use live interactive resolve all electronic, it's self-service Check in systems, self-service laundry, a public computer in the lobby, have been landing. JJ hope to find the right staff, love to chat with the guests, but also discreet, unobtrusive service feels, \u0026 ldquo; people like training out, looking. \u0026 Rdquo; Kai Li said. The pressure will be greater home, after all, the whole season has been living for the Chinese contribution to profits in. 2013, All Seasons hotel RevPAR (revenue per room per day on average) more than 300 yuan, the highest peak of economy hotel RevPAR is 184 yuan, also owned by the Chinese live and create brand Chinese court in 2010. Sun Jian plans to launch later this year of a \u0026 ldquo; hotels upgrade tentatively named \u0026 rdquo ;, \u0026 ldquo; \u0026 rdquo ;, US in direct competition with the whole season. Just as God breathed home from Motel merger in the market but also in efforts to end the performance. (Text / Wu lengthy Zhang Xin)