Cheap hotels and capital games say goodbye to healthy and effective development

Source: Internet
Author: User
Keywords Capital Games

&http://www.aliyun.com/zixun/aggregation/37954.html ">nbsp; In the wave of globalization, the capital game has dominated the development of many industries, and the industry has become the "story" of capital to gain more benefits, and many industries which have developed according to the logic of capital play are facing more and more profound business crisis. China's economy hotel industry is such a typical example.

China's economy Hotel 1996 years just started, but such as home in the United States successful listing presses the industry's booming, in just more than 10 years, the number of budget hotel stores has more than 8,000, especially in recent years almost all the annual increase of 1000 stores in the rapid growth rate. In such a competitive market, all the budget hotels are scrambling to expand their size, because they believe that only the size of the expansion can be cut to a cake. But it's not the truth, it's just a story of the capital game. Capital has led to an investment idea that is not based on the profit of a store but is desperately expanding the number of stores in order to get high returns on capital markets.

Rapidly expanding the size of the hotel's stores in the short term is a difficult task for any budget hotel. This is not only the pressure of huge sums of money, but also the ability to negotiate quickly to find the right venue. Therefore, most of the economic hotels in China have to join the way to expand. For example, such as home to the number of stores has been more than the direct shop, Jinjiang Inn to join nearly 70%, and Greentree Inn, has opened more than 530 hotels, the direct shop has only more than 40.

Although the scale of expansion, but the economic benefits of economic hotels is not ideal, in the face of rolling customers, major budget hotels have been losing money year after year. If according to the price of foreign economic hotels, referring to the actual price level, then the price of China's budget hotels should be around 120 yuan, but the price of our economy hotels are basically more than 200 yuan. But even so, the benefits of budget hotels are still very unsatisfactory.

Budget hotels think that if their expansion slows, the market will be taken away by rivals. Go backwards, bite teeth also insist on expansion is the last resort measures. But that's just the logic of the capital game. This concept led to the Chinese hotel industry occupancy rate of 60% as a profit balance of the extensive management of the spread. and the profit and loss balance of foreign budget hotels requires occupancy rate reached 80%. Extensive management not only wastes a lot of enterprise resources, but also wastes a lot of social resources.

As we all know, China's demographic dividend is gradually fading, the change of extensive management is imperative. Everyone is aware of this, but under the guidance of the capital game, the pursuit of scale, extensive management has become a kind of inertia, difficult to brake. This summer, the domestic three big budget hotel Enterprises finally in the last piece of pure Land of Xinjiang junction, indicating that the impact of capital Games is still strong.

Capital fundraisers use a rapid increase in the number of stores to depict future huge gains, and they will make a profit when investors believe the blueprint, and it does not really matter whether the number of stores is ultimately beneficial. So if you blindly fantasize about the power of capital, it is possible to destroy the industry in the process of "discovering" the market. After the return of the capital, the price of the listed company of the economy hotel is exhausted, while the National brand budget hotel is facing more and more profound business crisis. Therefore, if China's economy hotel industry to continue to move forward, we need to say goodbye to the capital game.

In fact, scale is not the ultimate weapon of market competition, management and service are the lifeline of budget hotels. No quality service, in the fierce market competition will be eliminated sooner or later, and the quality of service depends on the hotel management level. Of course, we do not deny the scale advantage, the capital game in the scale to tell the story is also reasonable, but the scale does not mean the expansion of the number of stores. The use of the Olive Tree Alliance such a successful model to expand the marketing of hotels around the economy is not a useful way. That is to say, all the economic hotels are not necessarily in the capital level, but can be in the information platform to exchange, enhance the brand effect, improve the visibility in the country, so as to get better marketing results. However, this alliance of Olive Tree is based on all over the budget hotels can provide quality services, so that these hotels can confidently recommend each other, in order to form a long-term cooperative relationship.

Only with the capital game say good-bye, our country's economy hotel can put the mind to management and service, can get healthy and effective development.

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