Traditional Culture Encyclopedia - Hotel franchise - Is Huazhu 219 Gold Card necessary?

Is Huazhu 219 Gold Card necessary?

No need, most hotel group members join for free. However, the silver card of Huazhu Club sells for 49 yuan, and the gold card sells for 219 yuan.

This money cannot be used to exchange for accommodation, but can only be used to purchase membership status. Huazhu believes that those who are willing to spend money to buy membership will recognize the value of Huazhu. The proportion of direct sales of Huazhu’s hotels exceeds 85%. This greatly reduces the customer acquisition cost of Huazhu's hotels. Many other hotels rely heavily on OTA websites.

More importantly, valid members of Huazhu can contribute 6 nights of stay a year. Individual guests can only contribute 2 nights. OTA guests only contribute 1.1 nights.

Behind the "Huazhu Super Brain"

Huazhu has developed a set of "Huazhu Super Brain" to help store managers make price adjustment decisions. According to the relationship between supply and demand, when will the price increase and when will the price decrease? In 2019, the entire Huazhu Group automatically adjusted prices 1,860 times a day. The automatic price adjustment ratio reaches a maximum of 58.

If there are 650,000 rooms, 365 days a year, that’s almost 230 million room nights. If each room can be sold for 30 yuan more per night, then that is 690 million yuan, a net profit.