Internet + Inspire chain hotel competition awareness Ota encounters confrontation crisis

On the one side is the growth of OTA enterprise revenue, while the economic chain hotel performance decline, a reduction of the contrast is the current domestic OTA and hotel chain between the awkward portrayal. In 2014, there was a general surge in OTAs ' hotel revenues, with Chengying rising 45% per cent, and where revenue increased by 79% per cent, compared with home revenue growth of only 5.2% and China's revenue growth to 19.1%. In this situation, the confrontation between hotel chains and OTAs has begun to intensify.

　　

OTA wars continue to buy competition to upgrade hotels suffer from the cost of eating the price is suppressed

Eric data shows that in 2013, the online travel hotel booking market transaction size of 48.54 billion yuan, an increase of 22.1%, 2014 scale of 63.25 billion yuan, an increase of 30.3%. Online hotel bookings have continued to grow at a high rate over the past two years, as the online travel market has grown strongly, and as a result of the OTAs ' ongoing hotel booking price war, this has led to a rapid growth in the revenue of the OTA business hotel business.

　　

In addition, with the end of the group buying industry competition, the market is concentrated, the United States to become the biggest winner, which let the group occupy the majority of the hotel group purchase market share, its 2014 booking volume of 45 million nights, turnover of up to 5.5 billion yuan. The United States Group "silent" into the hotel group purchase market greatly stimulated the various OTA enterprises, which stimulated another round of market price war.

　　

At the same time, in 2014, where to strengthen the operation of the hotel reservation market, so that the platform identity gradually transformed into the existence of class OTA. Where the change of identity has also made the battle for hotel bookings between OTAs more intense, with the great impact of Q4, which is dominated by hotel bookings, which has fallen by 6% per cent from a year earlier, while the average income for each of its nights has dropped by 9.7%. Ctrip's Day is also difficult, Q4 financial results show that its growth in hotel bookings increased by 53%, but was offset by the decline in revenue per night, and even a 11% decline in revenue.

　　

The battle between OTAs has made the days of hotel chains more and more difficult. First, the huge subsidies of otas disrupted the pricing strategy of hotel chains, and second, price wars also led to the loss of the OTAs ' own network channels; Thirdly, with the increase of property cost and labor cost, the price of economy hotel has been raised, and the price of economy hotel has no advantage. Users can have more cost-effective hotel options, and the third, the OTA to the downstream hotels to pass the cost of price war, hotel interests are squeezed.

　　

Sputter implicating, an economy hotel that has accounted for nearly half of the Total hotel reservation market, but due to the impact of the OTA price war, as well as economic environment factors, economy hotel performance generally began to decline. China's residential revenue capacity has fallen by 29.3% from 2013 to 2014, up 19.1% from a year earlier, while the occupancy rate for home 2014 is down 2.5%. The rivalry between the OTAs has not had a deadly impact on the economy, but many in the industry say profits have been worse than before. Now, the Express hotel chain has begun to prepare to fight back.

　　

OTAs compete with others to squeeze hotel chain to promote alliance, platform, Diversification, refinement

By the impact of the OTA, at the end of last year, such as home finally broke out and where to turn, the two sides also staged a fierce war of words. In fact, such as home and where the dispute is only the economic chain hotel and OTA relationship between the changes in miniature. Today, OTA and economic chain between the relationship has evolved from a partnership to a competitive relationship, more and more economic chain hotel planning their own way out, the industry began to appear in the Alliance, platform, diversification, refinement tendency.

　　

　　alliances. last year, the Platinum Tao, such as home, China live and other chain giants to lead the construction of the Alliance, the Platinum Hotel Group Officer network upgrade to self-cooperation platform-Platinum club, and with the domestic dozens of hotels and international hotel chain brand Tune signed a strategic alliance with the member of the family, such as home launched the "Home Alliance platform", The intention is to gather a large number of idle small and medium chain hotels in the mainland to do resource integration, while China Live also launched the "Million Shop Alliance", and with the French Accor Hotel group to reach a cooperative relationship, cross-shareholding, Accor will be the high-end brands, such as Ibis to China.

　　

　　platform-based. The essential purpose of the alliance is actually platform-based, economic chain often has a large-scale membership group, in order to activate these members only by their own annual hundreds of franchise stores expansion speed still can not meet the market demand, in the market environment is lower when the bottom of the platform to build a good time. Mr Ji is confident in the million-store alliance, "When you have 10,000 hotels, it's easy to talk to any industry because there are 100 million guests behind you, and any attraction will be willing to work with you." "In addition, the focus of the three-tier hotel is still excellent customers try to integrate the surrounding life services consumption, launched a" better cost "platform. The platform of the Express hotel chain is the most intuitive countermeasure to the OTA enterprise, and once it runs, the market voice of OTA will be discounted.

　　

　　diversification. In addition to the squeeze of OTAs, competition, economic slowdown and the rise in the cost of human property and other factors are forcing fast chain hotels to enhance their own business capabilities, diversification strategy into self-help important measures. In addition to occasion Internet + strong Wind active development on-line platform, Platinum Tao, such as home, Hua Live, etc. are also actively promoting the multi-brand strategy, with the intention to cover the low and mid-high hotel market. Shangkeyou in the three-tier city of diversified force more obvious, with "service + product + platform" model, relying on the Czech chain hotels as the basis, began to hatch fast food, supermarkets, spas, KTV, cakes, coffee and other small investment in life services consumption projects, through integrated operations to improve overall revenue, if the future of the best cost-effective platform to operate, Will not only be confined to the basis of the hotel, but a more diversified local life service class.

　　

　　refinement. in order to alleviate the rapid chain hotel homogeneity of the impact of competition, the parties began to pay attention to the refinement of the construction, where the orange crystal depends on the characteristics of the room in the internet to obtain a lot of praise, with distinctive hotel style has become a new direction of positive attempts by all parties. Platinum Tao introduced the coffee culture and hotel combination of "Zhe brown", positioning the tide of "Zmax tide", for female consumers, "Greek bank" and other brands; still excellent try wool out of the pig body of the Internet operating logic, through the introduction of products in the hotel decoration in the form of product implantation to the brand side to charge, Even if you spend a certain amount of money in the inn is free of charge. Previously, Sun Jian has been on the chain of hotel characteristics of the market needs to have been misjudged, has recently begun to exert "such as home selection" to enhance the hotel market refined service capabilities.

　　

Chain Hotel Alliance, platform, diversification, refinement is to enhance their own market competitiveness, and the Internet + era of competitive goals have been clearly locked into the OTAs. Zheng Nanyan, co-chairman of the 7-day founder and platinum, made it clear that the hotel group's future rivals were not other hotels but OTAs. The cost of OTAs grabbing the market through a price war is a serious loss, and the sense of competition among hotel chains is likely to further drag the already-lost OTAs into the doldrums. Outside of the internal friction, but also encounter the chain of hotel confrontation crisis, the days of OTAs may be more and more sad.

　　

Wen/Wang Liyang

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Internet + Inspire chain hotel competition awareness Ota encounters confrontation crisis