Budget hotel

Ctrip, I have been using it

Budget hotels are also called limited service hotels. Their biggest feature is that they are cheap and their service model is "b&b" (accommodation + 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.

Budget hotels have huge market potential, with outstanding advantages such as low investment, high returns, and short cycles. "Motel", "Home Inn", and "Jinjiang Inn" are the leading brands in the domestic economy. The three main forces of large-scale 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 mainland, the market share is gradually expanding. Nowadays, hotel chains with strong network platform support are also becoming increasingly mature, such as 7 Days Chain, City Convenience Chain, Hanting Chain, etc.

But behind its booming aura, there are still many pessimistic factors. The restructuring of state-owned hotels, the guidance of standardized policies and regulations, the improvement of service software, the upgrading of management models...many issues 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.

In recent years, some domestic experts and scholars have conducted more and more research on this concept. The following is my summary of this concept by some foreign experts and scholars.

Quest (1983) believes that budget hotels are a new type of hotel with small scale, limited facilities and affordable prices; Lee (1984) points out that it is the fastest growing type of hotel in the hotel industry. Hotel type, providing clean and simple rooms; Bale (1984) pointed out that budget hotels in the United States only operate guest rooms, about 150 rooms, and the room prices are generally 25%-50% lower than that of mid-range hotels; Gilbert and Arnold (1989) The definition is a hotel that provides limited services and provides a standard and standardized accommodation environment: the quality is equivalent to three- and four-star hotels, but the price is 25-30% cheaper; in the early 1990s, Snior and Morphew (1990) believed that budget hotels are A type of accommodation targeted at travelers on short trips with lower budgets; Justus (1991) describes the Microtel hotel industry in the United States as a budget accommodation industry that provides basic facilities, keeps prices low, has no food and beverage services, and has no Banquet facilities, gyms and other entertainment facilities; Davidson (1993) pointed out that the budget accommodation industry has the advantages of all hotel chain industries, through specific design and management, to have highly competitive room rates to achieve low construction costs and low operating costs.

Key points in the design and planning of budget hotels 1. Location and environment

●Budget hotels are not cheap hotels. Less investment and low operating costs are one of the characteristics of budget hotels, but they are not the essence or the absolute purpose. The essence of an economy hotel is small burden and quick return. These two factors give the general scale and business positioning of an economy hotel a relatively certain range.

●Economic hotels are characterized by spending less and making money quickly, but they often can only survive in cities or regions with developed economies, fast population mobility, high density, convenient transportation, and mature municipal facilities. It is difficult for economic hotels in economically backward areas to be born in the true sense.

●Economy hotels mainly operate guest rooms, with few or no supporting facilities such as catering, recreation, and conferences. Therefore, there should be facilities within a 300m radius around the hotel that meet the comprehensive needs of guests and are within walking distance. Restaurants, bars, shops, post offices, entertainment, convenience stores and other facilities, as well as transportation stations should also be nearby.

●When selecting a location for a budget hotel, special attention should be paid to the existing local municipal conditions and communication conditions.

2. Investment and Evaluation

●There must be a reasonable balance between investment amount and investment objectives. When selecting a site, it is necessary to evaluate the customer source structure and its reliability and durability.

●The determination of the investment amount is based on an accurate understanding of the construction cost and operating cost, as well as an objective calculation of the feasibility and cycle of investment return.

●The more rooms there are, the lower the unit cost.

●Pragmatic choice of equipment.

3. Scale and function

Budget hotels can be large or small, but a setting with 16-20 rooms on each floor and no more than 10 floors in total is ideal. . The appropriate total building area should be limited to 6000-10000m2. Of course, it can be smaller.

●A budget hotel can also be built in a large commercial building group, so that other functional areas of this group of buildings (such as restaurants, bars, theaters, shops, etc.) can naturally provide supporting facilities and services for the hotel .

●A certain area on the first floor of the hotel can also be used for investment and rental, such as arranging fast food restaurants, laundries, travel agencies, etc., which not only supplements the functions, but also facilitates guests.

●"B&B" (Bedand Breakfast), guest rooms are the most important function of a budget hotel, accounting for 70-80% of the total hotel building area; followed by a front hall (lobby), a restaurant ( (or cafeteria), sometimes there may be a bakery, a small merchandise kiosk, a small bar, etc. Budget hotels do not want guests to stay in the hotel public area for a long time, and the lobby is exquisite and practical. The hotel's operations, scheduling, monitoring, and financial functions are all located in the front desk area.

●Safety, hygiene and convenience are the basic standards.

●Support and guarantee of social service supporting system.

●Employee management model and application.

4. Style and form

●Budget hotels are also divided into "style" and "popular". The style type is more cultural, pursues a certain artistic effect and theme connotation, emphasizes a humanized environment, and is conducive to sales. The popular type is relatively simple and cheap, has extremely strict location requirements, and is difficult to operate.

●Budget hotels are also divided into "urban style", "resort style" and "continental style": different rules, different positioning and different effects.

●Cyclicity of style: Most of the enduring hotel styles are not "fashionable", while more popular hotels must constantly inject a lot of cultural blood with design to maintain the life of the style. Economic indicators (example table) of budget hotels Example: A budget hotel with 120 rooms:

1. Building area: 6,000m2; 2. Building structure: reinforced concrete frame shear structure; 3 . Investment budget: 18 million yuan; 4. Hotel employees: 20 people; 5. Sales revenue: average 6 million yuan/year; 6. Operating costs: about 1.8 million yuan. Note: The more guest rooms, the smaller the shared area. The lower the unit cost, the lower the operating costs. However, budget hotels generally should not have more than 200 rooms.

[Edit this paragraph] The development of budget hotels in China

The development history of budget hotels

The concept of budget hotels originated in the 1980s The United States has only appeared in China in recent years. One of the characteristics of a budget hotel is the simplification of functions. It concentrates its service functions on accommodation and strives to improve this core service, while greatly compressing, simplifying, or even eliminating the catering, shopping, and entertainment functions, resulting in a huge operating cost. reduce.

Budget Hotel (Budget Hotel) is a hotel format that exists relative to the traditional Full Service Hotel (Full Service Hotel). The development of budget hotels in the world has gone through four historical stages: budding and early development; vigorous development period; brand adjustment period; and redevelopment period.

The period from the late 1930s to the late 1950s was the budding and early development stage of budget hotels. The main feature of this stage is the emergence and development of motels. In the 1930s, with the rise of mass consumption and the development of the road network in the United States, motels began to appear to provide cheap accommodation services for civilians to travel. For example, as early as 1939, several motels in Florida, USA, spontaneously formed Quality Courts, an industry joint organization, and changed its name to Quality Courts United the following year to provide independent motel owners with services. Industry services. After World War II, the economic prosperity of the United States drove the development of mass tourism and triggered a large demand for mid- to low-end accommodation facilities; the completion of the intercity highway network promoted the popularity of motels.

The Holiday Inn Motel, established in 1952, improved service quality based on the experience of past motel development, and for the first time tried to adopt a standardized approach to replicate products and services along the U.S. highway network in just ten years. develop rapidly.

From the early 1960s to the late 1980s, budget hotels entered a period of vigorous development. The number of hotels is growing rapidly, and the product forms are rich in layers, and they are beginning to develop in a diversified direction. Chain operations began to replace the traditional decentralized operation model, and independent hotels opened up a rapid expansion path. Some relatively mature economic hotels began to merge and integrate independent hotels. At the same time, budget hotels began to develop internationally, spreading from the United States to Canada, Central America, South America and Europe. This expansion also stimulated the rise of local budget hotels, especially those in Europe that began to develop rapidly. By the end of the 1980s, budget hotels had become a mature hotel industry in developed countries in Europe and the United States.

From the late 1980s to the late 1990s, the budget hotel industry began to undergo brand adjustment. After a long period of rapid development, budget hotels have entered a mature market stage, and the driving force for rapid growth and large-scale expansion has gradually weakened. The diversified strategies and investment policies of large hotel groups have prompted hotel groups to be more inclined to purchase and integrate brands in the original industry through capital operations rather than invent new brands. Market competition has eliminated some brands with weak management and poor capital operations, while some large and strong brands have become stronger due to their capital strength and management strength. Increasing competition forces companies to turn to service quality management and brand building. Brand building, quality management, market segmentation, product diversification and other internal management of enterprises have received unprecedented attention.

In 2005, the number of inbound tourists in China reached 120.29 million, the foreign exchange revenue from tourism reached 29.296 billion US dollars, the number of domestic tourism trips reached 1.212 billion, the domestic tourism revenue reached 528.6 billion yuan, and the total revenue from international and domestic tourism was 765.6 billion yuan, the number of citizens going abroad reached 31.03 million, and all statistical indicators hit record highs.

In 2006, China's tourism industry continued to maintain a good momentum of development, with various economic indicators reaching record highs. The three major markets of inbound tourism, domestic tourism, and outbound tourism have achieved considerable development. The number of tourists reached 1.55 billion, and the total tourism revenue was 893.55 billion yuan, a year-on-year increase of 13.9% and 16.3% respectively. In 2006, China received 125 million inbound tourists and 49.91 million overnight overnight tourists, an increase of 3.9% and 6.6% respectively over the previous year; international tourism revenue reached US$33.95 billion, an increase of 15.9% over the previous year. In 2006, the number of domestic tourists in China reached 1.39 billion, a year-on-year increase of 15%; domestic tourism revenue reached 622.97 billion yuan, a year-on-year increase of 17.9%. In 2006, the total number of Chinese outbound tourists reached 34.524 million, a year-on-year increase of 11.3%.

In 2007, China's total tourism revenue reached 1.09 trillion yuan, exceeding one trillion yuan for the first time. In 2007, the number of inbound tourists reached 132 million, an increase of 5.5%, of which the number of overnight tourists reached 54.72 million, an increase of 9.6%; the foreign exchange revenue from tourism reached US$41.9 billion, an increase of 23.5%; China continues to remain the fourth largest inbound tourist in the world Tourism host country status. The number of domestic tourists reached 1.61 billion, an increase of 15.5%; domestic tourism revenue reached 777.1 billion yuan, an increase of 24.7%.

Among the top ten economic hotels in China in 2006, Jinjiang Inn, Shanghai Home Inn, Subaru, GreenTree Inn, 7 Days Inn, etc. were on the list. By the end of 2006, China's economy hotel chain brands had reached 100, with more than 1,000 stores opened. Compared with the previous year, the market has grown rapidly, with the number of brands and market supply doubling. At the same time, national brands still occupy a strong dominant position. In 2006, the emergence of some emerging brands and emerging markets also made China's budget hotels more complete in terms of business segmentation and geographical layout. The three major budget brands include Jinjiang Inn, Home Inns, and Motel, and they all face fierce competition from foreign brands such as Super 8 and Holiday Inn Express.

The outbreak of the financial crisis in 2008 spread all the way from the financial world to the industrial world. As the industry with the most intensive relationship with financial entities, the hotel industry is inevitably affected. The impact of the global economic crisis has spread to the Asia-Pacific region, and hoteliers have begun to feel operating pressure in the second half of 2008. The financial crisis that has lasted for several months and the rising transportation costs caused by inflation and rising oil prices have made people, whether traveling for consumption or business, tighten their spending. The reduction in consumer tourism and business travelers has made the hotel industry in this industry chain feel the coldness of winter. However, the Ministry of Commerce of China will vigorously develop the hotel and catering industry in three aspects. First, vigorously develop popular catering. Secondly, we should focus on and solve the problem of safe consumption in the hotel industry and strictly control the purchase of food raw materials. Third, actively promote energy conservation and environmental protection and promote the in-depth development of energy conservation and emission reduction in the industry. The Ministry of Commerce attaches great importance to China's hotel and catering industry, and will vigorously develop the hotel and catering industry in terms of expanding domestic demand and stimulating consumption.

As the 2010 Shanghai World Expo approaches, the expansion rate of some Chinese budget hotel brands has reached a growth rate of 200%-300%, and new brands are constantly emerging. This shows that while budget hotels have development opportunities in China, they also face huge challenges. Faced with the rush to land by multinational investors, this is a competition on the same starting line. The reputation of internationally renowned brands and years of accumulated management experience are what domestic economic hotel chains lack; but when it comes to establishing domestic sales networks, Chinese operators have localization advantages.

[Edit this paragraph] History of the Development of Budget Hotels in Foreign Countries

First of all, [1] first of all, the period from the late 1930s to the late 1950s was the embryonic and early stage of development of budget hotels.

In the 1930s, with the rise of mass consumption in the United States and the development of the road network, motels began to appear to provide cheap accommodation services for civilians to travel.

Secondly, from the early 1960s to the late 1980s, budget hotels entered a period of vigorous development.

The number of hotels is growing rapidly, and the product forms are rich in layers, and they are beginning to develop in the direction of diversified operations. Chain operations began to replace the traditional decentralized operation model, and independent hotels opened up a rapid expansion path. Some relatively mature economic hotels began to merge and integrate independent hotels. At the same time, budget hotels began to develop internationally, spreading from the United States to Canada, Central America, South America and Europe. This expansion also stimulated the rise of local budget hotels, especially those in Europe that began to develop rapidly.

By the late 1980s, budget hotels had become a mature hotel industry in developed countries in Europe and the United States.

Thirdly, from the late 1980s to the late 1990s, the budget hotel industry began to undergo brand adjustment.

After a long period of rapid development, budget hotels have entered the mature stage of the market, and the driving force for rapid growth and large-scale expansion has gradually weakened. Market competition has eliminated some brands with weak management and poor financial operations. Some large and strong brands have become stronger thanks to their capital strength and management strength. Increasing competition forces companies to turn to service quality management and brand building. Brand building, quality management, market segmentation, product diversification and other internal management of enterprises have received unprecedented attention.

Finally, in the 21st century, budget hotels have entered another period of rapid development.

This is mainly reflected in the market expansion of budget hotels in developing countries and the development of local brands. In regions such as China and Southeast Asia, budget hotels are expanding very rapidly. World-famous budget hotel brands such as Ibis, Super 8, and Holiday Inn Express are all targeting the Asian market.