Tujia mode: "sharing economy" to create a new experience of tourism accommodation

Way home CEO Luo Jun to work every day at 7:30 in the morning, 2:00 off work, and four employees live in dorm across the company. Every day, he focuses on one indicator: is "user satisfaction" higher than the average hotel? As for sales and profits, not care!

【Company Decoding】

Who is the user?

Luo Jun NetEase science and technology to see the reporter, took out from the office cabinets collected a large stack of hotel room card to show to reporters.

As the former co-president of China Real Estate Information Group, a listed company, in the past twenty years of his career, Luo Jun has lived in countless hotels and collected more than a thousand hotel room cards. However, Travel experience in the process of accommodation is not satisfactory, and even a lot of painful accommodation experience. For example, the space in the room is relatively small, usually only 35 square meters, if an old man out for a leisure vacation, live in a few for business people and prepare five-star hotel standard room, often do not feel the kind of home Comfortable, but not cost-effective, giving children hot milk, porridge, laundry, etc. These are also very inconvenient.

At the same time, long-term journey Luo Jun suddenly found that there is a "share free availability" model is quietly rising overseas. In 2011, this business model in Europe and the United States market sales of about 850 billion US dollars, overseas HomeAway can make people travel comfortably at home, but also because of the use of idle housing, so in addition to a more private, housing space Larger than the daily rental prices will be cheaper than the same type of hotel room.

Even more exciting for Luo Jun is that China happens to be the country with the largest number of vacant houses, the largest tourist population and the fastest growth rate. Both of these characteristics indicate that the Chinese market has great potential.

So, Luo Jun decided to introduce foreign models of this free room to share the introduction of domestic, coupled with a unique butler-style service, let idle prime housing to play its value, but also allow the Chinese middle class in the tourism process can enjoy home General experience.

"Tujia network" in December 2011 came into being. "Tujia" - "home in the journey", the name makes Luo Jun very proud. Allow the middle class to enjoy the comfort of traveling home, Luo Jun believes that this is the user's pain point.

Just two years, Tujia network sought after by the capital. On May 16, 2012, the Company was jointly funded by four global agencies; on February 16, 2013, round B financing was completed with a total of two rounds of financing of 400 million yuan. June 18, 2014 C $ 100 million round of financing. "Are the old investors in the additional investment, new investors simply can not get in." Luo Jun told Netease technology reporter said before the C round of investment finalized, there have been investors in order to increase the holdings of 100,000 US dollars more then one A little bit of shares on the phone to discuss with him more than 1 hour.

At the beginning: Sanya knocked on the door of a business

As a man who knocked on the clock at the NASDAQ in the United States, Luo's resume is very bright. Had founded Sina Lok, and later joined hands with China to set up China Real Estate Information Group, and the company successfully brought Nasdaq listed. In August 2011, on the second day after he resigned as co-president of China Real Estate Information Group, Luo Junfei went to Sanya and began lobbying the landlord to hand over the house to him and help the landlord to rent and rent a revenue of 5: 5.

In September and October of 2011, Luo Jun was wearing a t-shirt, shorts and slippers, carrying a shoulder bag and a big sun above her head. Luo Jun admitted that the most difficult is the psychological gap. In the past each trip can take the first class, and even private aircraft. But at that time in Sanya, Luo Jun had the kind of aura in the workplace has all been zero --- no one knows Luo Jun, there are people who know will also doubt: is not the original units fired? This person will not be a liar?

All beginnings are hard. The first contract Luo negotiated was an old gentleman in Hainan's Sanya Bay. "I went to talk to him about his dream and told him what I wanted to do and how much reward he could give him." According to Luo Jun, initially all property owners in Hainan required a guaranteed minimum income of 3,000 yuan a month, Revenue 5: 5 into, regardless of how much money to give the owners half, but the other will always be questioned: I believe you can earn so much money. Luo Jun's approach to only three words: to convince him!

Luo Jun's eloquence and ability to persuade reporters in the interview to appreciate - he passionately describes the future of the road. At the same time, Baidu, "Luo Jun," the relevant information also helped him, a good personal brand owners believe he may not be "liar."

The original signing of the first gentleman who, until now is still a sign of the Tujia network owners, profitable. To his old gentleman, his greatest achievement is not the return of real estate, but what he once believed was described by Luo Jun and it has really been made.

Expansion: Three houses mode

On the wall of the office of Luo Jun, all the pictures of the houses on the way home are representative of the houses, and those beautiful pictures are desirable. The world map next to the photo is crowded with small flags. By July 2014, Tujia signed more than 400,000 sets of prime listings, covering more than 138 cities and nearly 200 destinations. In addition, nearly one million suites are under negotiation.

There are three main sources of home listings: real estate developers, landlords, and local governments. For example, Tujia and developers, big owners, signed an exclusive pre-contract. Developers to buy one-off butler service to the way home, the house is sold with a butler service, developers get Tujia network support, the house sold better, so developers are willing to cooperate.

A year later, that is, developers to submit when the way home to enter the district, and property companies began to face the owners, to the owners a letter of commitment to housekeeping services. If the owners need to manage the operation, but also another sign the implementation of the contract, then the way home will enter the owner's room, check the room is still missing what, you can replace the lack of owners fill the missing facilities, and even some furnishings.

Cooperation with the government is not the same. As Tujia network tax is handed over to the local tourist government, the waiter also hired more from the local employment, but also can promote tourism local real estate sales, increase the amount of rooms, in these benefits, some awareness of the local government on the Willing to sign an overall contract with Toujia. For example, in Shandong, Fujian, the local government signed a contract with Tujia for the entire province, and some local governments signed contracts with the entire scenic area, for example, Zhangjiajie. At present, 37 local governments have signed contracts with passers-by.

Luo Jun said that Tujia and its owners are basically signed on the basis of a revenue of 5: 5, and some local employers adopt a minimum guarantee. However, the cooperation with real estate developers and the government does not involve income sharing. This is because each other The benefits are obvious. For example, the demand of real estate developers is to sell their houses better; and the government's appeal is to prosper the local economy. "Closing peaks and valleys" will increase room availability, promote real estate sales and increase employment.

The beginning is mainly to find a way Tujia one by one, and later, some developers or local governments will find their own come, but Luo Jun will not come without refusing to accept all. Luo Jun said that in order to minimize the possibility of housing some uncontrollable problems may occur, you need to refuse a lot of housing, product quality is not good, the location is too partial, supporting the service is not good, service awareness is not strong, These are rejected by Tujia house project.

Challenges: user experience and product quality

Fast access to quality housing is the key to the growth of the way home, but if Luo Jun simply to the kind of "share free availability" model to China, I am afraid that way difficult to develop so fast way.

Li and friends go to the weekend villas in Hebei Road, a night stay. Few people cook, play cards, take a look at the World Cup, feeling very cool. "Family feeling, very relaxed, especially in the morning to eat breakfast with everyone, very good." Xiao Li and friends to give this holiday hit 4.8 (out of 5) high score, but Xiao Li a little regret is When cooking, kitchen gas fire is not easy to use. Later, a call, before the gas stove is home settled before the villa has been fine decoration.

After seeing the TUTORIAL mode, many investors said that the biggest challenge Tuogu is facing is how to provide travelers with a vacation experience that does not lose or even exceed the quality of professional hotel services through efficient operation and management. The future performance of Tujia depends on its ability to manage business and product quality. Because Tujia unique rental model, the control of product quality, compared to other hotel operators, the more difficult.

This is also the reason why CEO Jun Luo currently only concerned about the "user satisfaction" the only indicator. "I do not care about current sales and profits, and other business executives will naturally see these metrics. I only focus on customer satisfaction, and current average customer satisfaction is 4.58 (out of 5) Higher than the national average hotel satisfaction. " Luo Jun told Netease technology reporter.

Luo Jun hopes through a series of strict management processes and housekeeping services to ensure the "product" quality.

In general, Tujia's home-source preparation department will not immediately provide tourists with a new home, but will have to go through nearly a quarter of preparations, including renovations and renovations of houses, , Through water and electricity, gas pipeline inspection and so on. Even so, when people stay or when they encounter some minor troubles, such as gas stove is not good ignition, residential water, power outages.

Although similar areas such as no water, municipal blackouts, or some appliances do not work well and so on these problems are often way beyond control, but still affect people's accommodation experience. Luo Jun personally grasp the "customer satisfaction", more than 90% of the availability of 4.5 goals, are not easy to achieve.

In addition to the preparation of these basic housing infrastructures, Tujia provides that there must be no lip print in the cup in the room, no hairline on the sheets, the condiment package in the kitchen, the washing powder on the washing machine Unpacking, and the room must not have a cockroach, mouse. To do this is not easy, you need to improve the process, but also need to have a review link, if guests find a cup of lipstick or hairline on the sheets, the attendant, reviewers have the risk of being fired.

Not only that, in order to improve the "user satisfaction" required by Luo Jun, waiter cleaning the order of the stars with the hotel is not the same, not open the door, one by one cleaning from inside to outside, but after entering the room first closed, and then open Window good against the screen, and then began to clean the room, this order is to ensure that mosquitoes do not enter the room area.

On the way home, all the waiters are full-time employees, and these waiters can "reuse." For example, summer is the low season for tourism in the south. You can use the "South-to-North Water Diversion" approach to send the waiters in Hainan to the north. In winter, the north is a tourist season and the waiters in Qingdao can be sent to the south.

Waiter can accept this "migration of migratory birds" style of work it? Luo Jun is not worried about this, because the waiter has five insurance and a gold, accommodation, accommodation, meals, have two breaks, if not in their twenties do not drag a house with young servants, most are willing to do this job , While traveling while working, north-south transfer of time but also is more than three months, many waiters bored.

In addition to the north-south transfer, the way home attendants can also be mobilized in the region. For example, in a tourist area, hot spring hot spring room, not hot spring room attendant can be transferred to the hot spring room work. If the new way to sign a destination, but also transferred from other regions manager assistant promoted to manager.

However, this "reuse" approach is clearly impossible to solve all problems, but Luo Jun view, it can be to some extent, balance the costs and benefits, improve employee motivation.

The future: how high is the competition barrier?

The housekeeping service provided in the guest room is not only an important part of adding points to the passers-by, but also may make the passers-by become more and more "heavy". However, Luo Jun believes that although the company will become heavier at some stage, in the long run, when the SOP (Standard Operating Procedure) matures, there will be a lot of joint ventures and franchises other than self-owned ones. More high-quality housing, to become the largest travel hotel group, compared to those who have their own traditional real estate hotel group, Way home or a "light asset" company.

Self-signed source of listings, from top to bottom are Tujia own operation; the joint venture housing, the use of home systems, processes, quality control management; there is another way is to hang online in the way home, not the way home brand, This part also only non-hotel forms of listings. Each chain will take this road, but this way on the road is relatively more difficult, because each property is different, which requires a rigorous process to ensure quality.

This model, the process is easy to copy competitors, and the Chinese market is large, can accommodate a lot of similar companies, but Luo Jun that does not matter, because the simple imitation will not be successful.

Luo Jun said that one of the core barriers on the way home is that each employee understands and innovates in the matter of "realizing the value of idle houses", and second, it occupies resources and it is very hard for any company to obtain it in a short period of time So many sets of vacant housing, and these are preconceived leader.

"The barriers to getting there are based on two aspects, one is the product itself and the other is fast. We adjust the architecture every quarterly to set a new goal. Each quarter is planned and executed in a year," said Luo Jun. The way home sales morning, is 7:30 in the morning, before the end of 9. While others still rubbing their eyes, holding the pancake fruit to go to work on the road when the way the staff has been with the customer together.

At present, way home is still in the "investment period." Foreign figures show that Tujia's annual income can reach 300 million yuan, but have not made any money. Luo Jun believes that "when it is not yet time to make money, to scale!"

Most of the financing for the first two rounds of Tu'ei homeland has been spent on expanding the scale while the bulk of the C $ 100 million financing will also be used to expand the scale, including developing more destination co-operation and investing heavily in research and development to improve online and offline User experience, market development and more.

In this continued expansion of the investment period, Luo Jun is not in a hurry to lead the way to consider whether the listing of the issue. "Only online resources Airbnb valuation has been 10 billion US dollars, the way home not only online, but also offline, the future there is a lot of imagination." Luo said.

Luo Jun firmly believe that in China this fertile tourist market, there will be more and more people do not live in the hotel, but choose this vacant villas, apartments, because it can bring you different fun. "You may not be able to own the villa, but you can enjoy different mansions." Luo Jun said that is the value of sharing the economy.

【Entrepreneurial team】

Luo Jun is a very eloquent, courteous and passionate person. Once founded Lockheed Martin, and served as a NASDAQ listed company China Real Estate Information Group co-president, so the background of the senior tourism industry so that a large number of investors firmly believe that Luo Jun. As a man who had knocked on the clock at the NASDAQ in the United States, Luo did not worry about making money and listing on the way home.

Another co-founder outside the CEO, Luo Jun, is Melissa Yang, CTO at Tujia.com. She is a loyal consort with Luo Junzhi, both of whom share a common pro-career stance. They all agree that there is a real potential for sharing vacant listings.

In terms of skills, these two co-founders are also complementary. For example, Melissa Yang in the US resort industry has deep experience, good at doing system platform, and Luo Jun on real estate, domestic tourism, business management has a wealth of experience.

After three rounds of financing, Luo Jun and the management team still have control over the Tujia network.

【Comments from investors】

National Section Ka and investment company investment manager Yu Xiang:

The size of China's tourism market is about three trillion yuan. It is a very large runway. There are many opportunities for entrepreneurship and investment. There are two important general directions for the future. One is mobility. It is obvious that it is unnecessary to say more. The second is O2O, which involves light mode and heavy mode: OTA is typical of light mode, light mode of product standardization, data structure demanding, such as air tickets, hotel and scenic spot tickets, these segments OTA is easy to penetrate the area, especially air hotel, OTA penetration rate of more than 50%, light mode has the advantage of rapid expansion and easy formation of scale, the disadvantage is that entrepreneurship is less likely to be the breakdown of the industry giants. Although heavy mode of human and capital investment is high, but not easy to be replaced.

Tujia network segment into the market from the apartment, the use of social inventory, through self-service and joined the expansion of the combination, using a heavy model, self-owned apartments need to invest a lot of money, manpower, management costs, but in service Quality, you can effectively control and management. In business practices, to provide quality products and services is the long-term business survival.

What is provided by the Internet is an information service that can be solved by the Internet, information dissemination, information matching, can not replace the experience of physical products, simply, we live in a hotel, not the Internet, we eat Is the pancake, not the Internet, for entrepreneurs, do not over-reckon the Internet bubble of thinking, you need to fully pay attention to the quality of the product itself and experience, the model is important, the product is the key to success or failure, take a long walk, look at the product.

【Company Rating】

Company size: four stars

Industry heat: five stars

Industry Outlook: Five Stars

[Reporter notes]

Luo Jun said he heard the smell of Shangri-La Hotel, think of Excel, Word, PPT, seems to have entered the business environment for the office, so he wanted to let people go out on vacation experience "not the same."

In order to achieve this "not the same", Luo Jun go to work every day at 7:30 am, has been working till 2 am, at night with several colleagues living in the "hostel" opposite the company.

Working more than a dozen hours a day, Luo Jun said he was busy helping people "hit Tyrant points field" - the original tens of millions of good houses, the owners do not buy to live, empty there, people go out Leisure and no comfortable house to live, and now he is in a sharing economy model, so that these businesses take the initiative to put the house to the way home, so that passengers to enjoy different accommodation experience.

Can find this pattern, and quickly capture the blanks of the Chinese market, Luo Jun said, "We are good luck." At present, Tujia signed the listings cover more than 138 cities, and this figure is increasing almost every day. Maybe the next time you go on holiday, you will want to try the villas on your way home. Do you want to give some improvements to your housekeeper?

Loose his head halo, reinvent the wheel starting Luo apparently fortunate. Inspired by the foreign economy and coupled with the potential of the soil in the country, Luo Jun and his Toujia network took the most promising site in China's online travel market in just over two years. Tujia's business model is how to do it? Luo Jun sentence not leave the "customer satisfaction" will encounter obstacles?