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International hotel management company business model innovation and localizatio
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China's hotel industry is in a stage of rapid development, hotel chains in the development prospects of the Chinese market will undoubtedly become a hot topic nowadays the industry. In recent years, innovative hotel group caught my localization Their strong concern and worthy of our further study and discussion. As mentioned some names, such as holidays, Intercontinental, Accor, Marriott, Jinjiang, Home, Cendent, Hilton, BestWestern, Minotel, LogisdeFrance, Ibis, Fomule1, Moevenpick, NH, EurostarHotusa, SolMelia ... Let us be brought to different people in different regions, believe that their Reaction will be different, but how many people can be sure they are all hotel brand, the chain hotel brand? Management of international hotel chains in the U.S. market share as high as 70% or more, in the European market accounts for only about 25% (TravelResearch, 2003). In the international hotel industry, some of the city's hotel industry, competition within the Compete internationally renowned hotel brands are all among the competition, while other cities, but the hotel industry leaders are guided by the creators of local brands. China's hotel industry is in a stage of rapid development, hotel chains in the development prospects of the Chinese market will undoubtedly become a hot topic nowadays the industry. In recent years, the localization of innovation caused Hotel Group Our strong concern and worth further study and discussion. l Introduction of international hotel management mode: a) a major international hotel management mode of presentation i) discretionary management of the hotel management company (managementcontract) • Since the late 80s from an international hotel brand to enter the Chinese market so far, discretionary hotel management company world-renowned brand management of high-end Chinese market, foreign hotel is the most commonly used business Way. As is well known in the Intercontinental, Sheraton, Hilton, and more. * The main features of the hotel business model are: - Hotel management side does not participate in investment, in principle, the initiative has a hotel management business decision-making power; - Hotel owners only through investment management side of professional management skills and brand awareness quickly and successfully based on the hotel market, the investment risk is relatively reduced, the relative return on investment be safeguarded; - Cooperation based on contract terms, the management and the owner's ability to achieve the ultimate goal of consistent operation of a specific hotel projects in each of the final results can not accurately predict the running (both partners are difficult to accurately pre- Test); - For hotel management side, the model can help the hotel brand's market expansion, the brand can take the initiative to control the quality and results of operations, there is no need for capital investment, management fees and other income have security and a predictable; - The Hotel Group's contract terms are different. ii) hotel management company to manage and participate in the project known as direct investment or business (ownership) • In a small number of Chinese hotel market, international brands and local hotels real estate developers or investors in hotel projects in joint investment cooperation. Shangri-la, Starwood and other brands in the Chinese market have different size wine Shop investment. * The main features of the hotel business model are: - Hotel Management hotel management business side not only has the active decision-making power, and participation in all or part of the investment; - Hotel investment and management of all parties early in the cooperation easier to achieve business goals and profitability targets, relatively solid basis for cooperation, interest connected; - Since the model requires a large capital investment, the international hotel group, its growth rate will be relatively limited. From a different point of view, the advantages and disadvantages are also different. Some of the hotel management company will have strategic To invest in major markets in the flagship stores, in the management and operation period of the initiative on the business model are better than any other advantages. For the owners, once to participate in the investment management side, the hotel brand's re-election Re-selection and real estate investment will have certain limitations. iii) Franchise (franchising) • In overseas markets, the franchise model in the hotel industry has been very widely used in the Chinese market has only just begun. The most obvious example is our brand of InterContinental's Holiday Inn, Holiday is the world's largest Franchise hotel brands. However, the Holiday Inn in China, we are implementing the management company business model. It is obvious that with the development of China's hotel market has great relevance. Franchise mode does not allow the hotel Groups directly involved in daily operations and management of the hotel, but to help the various independent hotels through international hotel brand's market penetration and wide spread and reduce the independent hotel marketing and reservation system in the development of Investment in time and money, and help rapidly establish a professional independent hotel within the hotel operating systems, provide professional training. * The main features of the hotel business model are: - International Hotel Group hotel owners to pay franchise fees in exchange for the right to use the brand, the hotel owners to enjoy the group a series of brand promotion services, such as: Marketing, room reservation system, hotel membership system Procurement systems, etc.; - Hotel owners, at the signing get hotel group in the hotel during the service and operation of a range of support to ensure the hotel to the brand's service quality standards and requirements. Contracted hotels are also requirements of the hotel group Strictly comply with the relevant service standards and processes; - Owners of the hotel franchise independent hotel management contract, sent to the hotel management company specializing in hotel management. - Hotel The hotel brand is difficult to assessing the direct economic effects. iv) join operations (voluntaryassociation) * Mode of operation is generally used to join some of the smaller independent hotels economy. Particularly in the U.S. and European markets in general. Typical of the brand: the United States BestWestern,, Europe Minotel, LogisdeFrance, EurostarHotusa and so on. As a luxury hotel brand LeadingHotels the United States has successfully joined the business model to enter the Chinese market very early, the absorption of a number of independent wine Shop to join its network of participating hotels tend to be more attention to their own well-known in the international market to build, rather than after joining the actual economic effects. These hotels are: the White Swan Hotel in Guangzhou, Beijing's Grand rice Shop, Palace Hotel, Garden Hotel in Shanghai and so on. The hotels in the Chinese market has just started to develop in recent years, a number of international brands has not yet had time to expand in the Chinese market. * The main features of the hotel business model are: - Hotels independent hotels to pay a fixed fee to join the group of network systems, such as: global reservation network system, e-procurement system, the regional marketing and hotel directory, etc.;