Hotel SWOT Analysis Questionnaire

SWOT analysis of Chongqing budget hotels

Abstract: In today's economic globalization, the frequency of people going out is accelerating. Economic hotels have gradually entered into modern people's lives due to market demand. Economic hotels have changed the idea that hotels are a paradise for ordinary people. With its own advantages, budget hotels are impacting modern hotels and traditional accommodation industries. In Chongqing, the shortcomings of the traditional accommodation industry and the fit between modern full-service hotels and demand have not only brought great opportunities for the growth of budget hotels. Moreover, the impact of budget hotels on them has caused and will continue to undergo great changes. As the only municipality directly under the Central Government in the west, Chongqing is a shining pearl in the west and has rich tourism resources. However, the increasing number of economic hotels facing this situation is also urgent. This article uses SWOT analysis to analyze and discuss the opportunities and challenges faced by Chongqing's budget hotels.

Keywords: Economical hotels

Current situation

swot

Environmental factors opportunities and risks

Strategic analysis

1: Overview of budget hotels

1. The rise of budget hotels

Budget hotels are a category of emerging hotels. Budget hotels are also called The biggest feature of limited service hotels is that they have cheap room rates and their service model is "B&B" (accommodation and breakfast). It first appeared in the United States in the 1950s and is now a fairly mature form of hotel in European and American countries. The core of a budget hotel is economy and caters to the actual needs of consumers. The development focus of economy hotels is in large and medium-sized cities, not only because large and medium-sized cities are the intersection of business and tourism, with huge and stable traffic, so that there is a market for economic hotels to develop, but also, in large and medium-sized cities, economic hotels Hotels can also use urban functions to reduce budget hotel operating expenses.

2. The current situation of budget hotels

Convenient and cheap budget hotels are the best choice for people to go out today, providing a more convenient choice for people to go out. In today's era of economic globalization, people go out more frequently, which also promotes the development of budget hotels.

In recent years, budget hotels have become the focus of the hotel industry at home and abroad. They have huge market potential and have outstanding advantages such as low investment, high returns, and short cycles. "Motel", "Home Inn" and "Jinjiang Inn", as the three main forces of domestic economy hotels, are expanding at an alarming rate. At the same time, "Super 8" from the United States and "Ibis" from France's IELTS Group have also entered the country. From the coast to the interior, market share is gradually expanding.

But behind the aura of rapid development, there are still many unoptimistic factors. There are many economic issues that cannot be ignored. But there is no doubt that budget hotels will move from immaturity to maturity and will occupy a special and important position in the Chinese hotel market.

Second, SWOT analysis method to analyze Chongqing budget hotels

When people study the development prospects of things, they often use SWOT analysis (Strength, Weakness, Opportunity, Threat) involuntarily The SWOT analysis method is an internal analysis method of a company, which is to analyze the company's own established internal conditions to find out the company's strengths, weaknesses and core competitiveness. Among them, S represents strength, W represents weakness, O represents opportunity, and T represents threat. Among them, S and W are internal factors, and O and T are external factors. According to the complete concept of enterprise competitive strategy, strategy should be what an enterprise "can do" and "may do".

Compared with other analysis methods, SWOT analysis has significant structural and systematic characteristics from the beginning. The main theoretical basis of the SWOT analysis method also emphasizes the analysis of the company's external environment and internal resources starting from structural analysis.

In addition, as early as the 1960s before the birth of SWOT, some people had already proposed the changing factors of internal strengths, weaknesses, external opportunities, and threats involved in SWOT analysis, but they were only analyzed in isolation. The important contribution of the SWOT method is to use systematic thinking to match these seemingly independent factors with each other for comprehensive analysis, making the formulation of corporate strategic plans more scientific and comprehensive.

1. Advantages of the development of economical hotels

In recent years, due to the influence of economic globalization and national policies and economic factors, economical hotels have developed very rapidly in my country and even Chongqing. World famous brands such as Intercontinental and Jinjiang Inn. Some domestic free brands such as Ibis are also successfully operating in tourist destinations and various provinces and cities, and the high returns they bring have promoted the development of economic hotels in Chongqing.

The cost of budget hotels is lower than that of other star hotels, and their development is relatively easy. Because the price is low, the threat of sudden external adverse factors can be well avoided. Chongqing's economy is slightly behind compared to developed cities. Low-cost hotels can better attract customers, increase occupancy rates, save costs and create a more favorable environment.

2. Disadvantages of developing budget hotels in Chongqing

According to the current development situation in Chongqing, we can see that some budget hotels appear together and competition in the industry is not standardized. The hotel also lacks a clear positioning, and some investors are blindly following the trend. Lack of some localized hotel brands. It is inconsistent with the actual situation in Chongqing. Although many budget hotels are cheap, their software and hardware equipment cannot meet the most basic needs of customers. Lack of orderly management.

3. Opportunities for budget hotels

China's tourism industry has become a new growth point of the economy and a pillar industry of the national economy. According to the World Tourism Organization’s forecast, China will become the world’s largest tourist country in 2020. At present, the development of mass tourism in China and the increasingly frequent exchanges of business and official affairs in other places have laid a broad market foundation for the development of economic hotels. China's budget hotels receive both domestic guests and inbound guests. According to relevant national statistics, the number of overnight tourists entering the country in 2006 was 49.91 million, an increase of 6.6% over the previous year; international tourism (foreign exchange) income was US$33.949 billion, an increase of 15.9% over the previous year. The number of domestic tourists was 1.394 billion, an increase of 15.0% over the previous year; the total domestic tourism revenue was 623 billion yuan, an increase of 17.9% over the previous year. With the increase in domestic and foreign tourists, the demand for budget hotels has also increased. Compared with high-star hotels, budget hotels have lower management costs. Its management fees are far lower than those of high-star hotels. As the only municipality directly under the Central Government in the western region, Chongqing is the economic center of the southwest region. With the deepening of the development of the western region during the "Eleventh Five-Year Plan" period, Chongqing's economy is in a stage of rapid development, and Chongqing will become the center of the service industry, exhibition industry, and information industry in the western region.

The 2008 Beijing Olympics will also bring a huge market to Chongqing's budget hotels. Chongqing is a famous historical and cultural city in my country with rich tourism resources. Dazu Rock Carvings and the Three Gorges of the Yangtze River, as Chongqing's tourism highlights, will attract domestic and foreign tourists. Among these tourists coming to Chongqing, individual tourists will account for a large proportion. It is estimated that the majority of individual tourists are young people. Their requirements for accommodation facilities are often "clean, safe and affordable." This will inevitably lead to increased demand for budget hotels.

4. Threats faced by Chongqing’s budget hotels

The entry of foreign budget hotels has created huge competitive pressure on the Chongqing market.

Enterprise goals are not market-oriented. The goal of some budget hotels in their operations is not to maximize economic benefits, and their management mechanisms are not sound, which is very detrimental to the development of budget hotels. Because the facilities of some budget hotels cannot meet the most basic needs of customers, passenger flow flows to star hotels. This leads to inferior competition within the industry.

As far as Chongqing is concerned, there is a lack of localized budget hotel brands and no distinctive brand hotels. Chongqing and Chengdu are both relatively developed large cities in the western region and guide the development of the western region.

But this is also a double-edged sword for Chongqing’s hotel industry. According to relevant surveys, many tourists visiting Chongqing choose to stay in Chengdu. Compared with Chengdu, Chongqing's hotel industry lacks certain standards and facilities are less developed.

Another difficulty now is that the property costs of budget hotels have been rising in recent years, especially with inflation this year. Increases in water, electricity, coal, oil, food, land prices, hotel interior decoration, and maintenance staff wages have all increased hotel operating costs. Competition for budget hotels has reduced price advantage.

3. Some strategies for the development of budget hotels in Chongqing

According to the above analysis, it can be seen that there are both advantages and disadvantages, opportunities outweigh threats, and measures should be actively taken to make full use of existing resources. , exploit strengths and avoid weaknesses to adapt to market competition.

First of all, budget hotels should increase hotel cost control. Adhere to a low-cost, high-efficiency strategy. The hotel's management mechanism should be improved and more talents should be introduced. Both managers and basic employees should undergo strict training and have good industry quality and service skills. The characteristics of a budget hotel are "economy, comfort, health, and speed." On the basis of these, the construction of characteristics should be strengthened. One should focus on different levels of richness to be able to attract more consumers. Develop towards economical theme hotels and open up new channels in the industry.

International budget hotels mainly use online marketing strategies. With the development of the Internet in our country, the focus of marketing can also be turned to the Internet, which not only saves costs, but also allows customers to find products through online experience. own needs. Increase the occupancy rate and enhance customer recognition of the hotel.

Service is the main product of hotel management. As people's needs are personalized, hotels can provide different characteristic services for different customer groups during operation, strengthen service innovation, implement personalized innovation, and meet customer needs. psychological needs.

References: "Economy Hotels: Development·Issue·Strategy"

Feng Dongming

2006.5.23

"2007 China New Trends in the Development of the Hotel Industry"

He Jianmin

"SWOT Analysis and Strategy Research on the Development of Economic Hotels in Quanzhou"

Zhao Yimin

"2007 China's Economy Hotel Development Green Paper"