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Economy hotel: summer winter

Date: 2014-08-02

"Economy hotel machine-made, no characteristic." Often a business trip to jiangsu and Mr. Hung's intermediate is now the preferred China hotel full seasons, rather than a few years ago also relish shortcut hotel.
Mr. Hung choice reflects the difficulties the economy hotel is. On which on the one hand, the rapid expansion of populist, prices are rising labor costs and rent profit margins; On the other hand, consumer demand in improving, are no longer satisfied with simple, and hope to have more differences of experience.
Where to network the hotel channel data show, the Internet side chain of economy hotel reservation or are lower than the national average hotel reservation gains. Summer market, for example, people travel choice inn new class hotel are significantly increased, in which students graduated from swimming, white-collar holidays as the main force.
Pursue personalized needs, pay attention to diversity hotel features become consumers with new trend of travel.
It is 3 yuan a day room profit?
Who had to expand rapidly in the past 10 years and was familiar to the "cold winter" economy hotel in one fell swoop.
Recently, huamei hotel consultants, chief executive of Zhao Huanyan throw out a set of data exposed the economy hotel profitability "weak". Economy hotel giants home inns in 2013 net profit of 196.2 million yuan, 2172 hotels average was 90300 yuan, 247.48 yuan per hotel, with 80 rooms meter per room 3.09 dollars per day on average.
A room for profit only 3.09 yuan per day? A number that surprising, but it is the default.
"Budget hotel will become more low-income people consumption, now is not the formats, consumers have been high. Because they have no choice." Fu yi hotel group project development center, deputy general manager of yellow pine told China business newspaper reporters.
In Zhao Huanyan view, economy hotel inflection point appears earlier than people think. "Began in 2011, they think that is the reason, after the world expo at first but later data all the way down."
As the central "eight" for the impact of the high-end hotels, many people predicted that budget hotel or for business opportunities. But the reality is that data also bleak. Because of their target customers, young consumers, the pursuit of personalized needs, pay attention to the diversification of hotel features become consumers with new trend of travel. And home inns, compared to the homogeneity economy hotel, 7 days inn of individuation is more human and diversity of experience, more the taste that accords with young consumers.
Rising costs over the golden age
Over the past 10 years is the golden age of economy hotel expanding rapidly in China, such as jinjiang was born, home inns and 7 days, hanting, and many other chains. As a dark horse in the hospitality industry, with its unified, simple and convenient, price cheap, fit into the mass tourism demand and rage.
Simplified function, low operating costs is the rise of economy hotel housekeeping skills, but as the property rental, labor costs rise, in recent years has lost the original cost advantage of budget hotel chains have touch the ceiling.
According to data provided by a third party institutions, now rents than doubled in a decade ago, the employee's average monthly salary has been increased from 800 yuan to 2400 yuan. Economy hotel in 2004, when the can find many good, affordable property, a contract is 10 years. But ten years later, the rent already, and many hotels are face the wave lease expired, rising rents.
China hotel group CEO Mr Ji has revealed a data, when the new budget hotel, near century park of Shanghai rental price is 0.8 yuan per square meter, now have risen to more than 5 yuan, turned over several times.
Turn up the rental, decorate and human cost make the hotel's profit space. Especially for budget hotels, as market competition intensifies, more difficult to further maintain the price competitive advantage. A sharp rise in the cost, but prices have no much price space. Because the core of the economy hotel consumers are price sensitive, so a lot of the hotel to take the price war tactics. Under the supply, price competition is intense, house prices only go down.
It is imperative to transform
Facing the economy hotel, home inns CEO sun chien said publicly, "the transformation of economy hotel, not just in products, services, development model transformation, also including the transformation of overall management."
Home inns is China's first economy hotel overseas listed shares. Now, even the helmsman line of home inns, sun chien has had to face to face with the change of the industry: China's hotel industry chain in 2013 turned into the slow lane, "their" history, practitioners are in an era of competition "internal strength".
For the plight of economy hotel, given Zhao Huanyan solution has two: one is to adjust the layout, Beijing, Shanghai, jiangsu, zhejiang, guangdong and shandong regional economic hotel has more than just a local three-star hotel rooms, but in other parts of the economy hotel, still have large development space is still in a relatively low level; 2 it is to abolish the homogeneity, supply exceeds demand, the homogeneity is price competition, if is diversified, diversification, personalization, characterization, differentiation, can find the target market.