Monday, May 14, 2012

China is facing the dilemma of Econo Hotel mode, malignant consumer events

Once won the fiery Econo Hotel recently burst repeated" scandal". Recently, the industry leader Home Inn Qingdao Zhongshan Road stores resigned staff clean in place, used to clean toilet towel to wipe the glass.
Along with the opening property cost and various costs rise, Econo Hotel previously taken a mode of scale expansion at the issue of frequency: Stores Hardware lag, management confusion, malignant consumptive events, adverse effect to brand image.
Hotel consultant, chief knowledge officer Zhao Huanyan said," Terry" reflects the experienced a high speed development after the Econo Hotel is facing dilemma model.
" Scandal " frequency.
" Towels door" was revealed, such as the house officially declared, the franchise store for a full investigation, if the question is true, will resolutely dealt with.
In this statement, the incident was described as" together with individual events". If known, has on its various brands of all hotel reiterate and emphasize the operational standards, the future will further increase the inspection and unannounced visits to strength, deepen the management and implementation of standard, ensure the quality of products and services to hotel chain.
It happens that there is a similar case. Also in Qingdao, GreenTree Inn has also been exposure using Wipe toilet towel for wiping glass. And then it is GreenTree Inn Hotel, accident has been from the official website and the central reservation system line, belongs to the illegal business hotel. GreenTree Inn has in March commissioned by the lawyers handling related issues.
This is only happened in the Econo Hotel on the latest scandal broke"".
Vertical travel search sites where network from 2010 began pushing a " sleep tester " new projects, namely the recruitment of specialized personnel in different city different hotel, through brief residency experience to judge the hotel offers products and services. A where network Hotel sleep tester said, in her experience of nearly 50Econo Hotel, sound effects are not good,90% have a small card troubles (i.e. from the outside into the may include a pornographic propaganda card ), in addition to poor sanitation, poor service attitude. " In Shanghai Changning I lived through after the transformation of a Vintage Hotel hotel brand, one inside, the sewer smell filled the room, bed spring feel ready to jump out, creaking." She recalls.
Home Inn Marketing Manager Ye Bingxi told the newspaper in Qingdao Home Inns, related matters, such as the family has to relevant personnel in the process, but he did not disclose the specific research progress. He also said, if the home will strengthen the training of staffs, enhance on-site management staff supervision frequency, strengthen the third party chief strength.
Another brand hotel chain for this attitude. A hotel official said," franchise management problems the more or less will have problems."
Be in a dilemma.
Capital market seems to have been warning. The end of year 3, such as home, hotel,7 days consecutive days fall in stock. The Han stock first break, in March 29th to $11.57, below the issue price of 12.25 U.S. dollars. If the home and 7 days of a month also fell by 3.13% and0.24%.
Worthy of the attention of another set of data is: on the one hand, more than 3companies in 2011 to expand shop, shop amount increase; but on the other hand, and 3 companies in 2010net profit of 693000000 yuan sum is compared," with more stores" three giants in 2011 net profit total fell to 595300000 yuan, compared to the reduction of about 1/7.
" Econo Hotel currently manages difficulty, cost very great pressure." Zhao Huanyan said last year, Econo Hotel property costs rose 20%, labor costs also rose to about 8%, the external water, electricity costs are rising faster.
This means, want to rely on their own development Econo Hotel expansion become more and more difficult, once slowed expansion speed and facing rival risk to investors, each quarter earnings will become ugly.
These factors led directly to the development of low cost generally put up a pageantry Econo Hotel joining in a store. And the company needs to pay cost to open stores, stores rely entirely on join investment, and stores the losses are not included in the financial statements of listed companies, single-store annual for the company to provide300000 yuan income.
In the past 3to 5years, part of Econo Hotel franchise proportion soared: climbed from 30% to 40%, until now more than 70%.
At present, such as stores and franchises scale keeps balance basically, Jinjiang Inns stores ratio of 70%. The proportion of the gap when the number of GreenTree Inn, has opened more than 530 hotels, straight camp shop only more than 40, the rest are joining in a store.
Store proportion will rise. Home Inns CEO Sun Jian said, as the home of the next 3 years to join the proportion to 60% ~ 65%. But all the new franchise store, is fully replicated the success of Econo Hotel standardization management mode need to play the last big question mark.
" Store management is very difficult, such as procurement, business standard, service quality, need to rely on the headquarters sent to stare, especially personnel, to avoid the" towels door "incident, only through the headquarters to a check and punish unqualified person, many producers are hard to keep, the franchisee resent headquarters control is too much." Jinjiang Inns Marketing Center General Manager Li Yukai revealed, Jinjiang Inns control is relatively strict, but in doing so lost many joined cooperation.
This in a way that allows these has hundreds of stores or even thousands of stores the size of the Econo Hotel industry faced with" be in a nice hobble":" retreat", project and joined the chamber of Commerce to its competitors; to" enter", reduce cost and high revenue needs a large number of development of stores, management has become increasingly prominent.
Zhao Huanyan told the newspaper, economic chain brand management in fact always exist various problems, but earlier in the channel and positioned on the success, often bringing these issues to cover it," and joined the franchise for the problem is magnified."
He thinks, Chinese economy chain hotel development entered the inflection point, before relying on scale expansion model of development has been the lack of sustainability.
" In other words, the Econo Hotel on their own expansion has not walk. Have to must try to improve internal management, strengthening the ability of the added value of the product stage." He thinks, the industry several leading camera development in the high-end market, to get involved in the terminal hotel brand is in response to this trend and measures taken.
Department of agriculture held a meeting request should pay attention to soil organic matter increase subsidies project

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