stay China The hotel industry of lasting The "old hotel" of war, of course, does not mean "old" here, but a group of hotels that have experienced a long history and witnessed the continuous development of the industry. They are constantly adapting to new changes and growing tenaciously in the hotel market.
Today, the tourism industry is still struggling after the epidemic, and how can these "old hotels" overcome the difficulties in the face of constant pressure? This time, Paco Hotel Group, which has 15 years of development experience in the middle end hotel market, was interviewed by the Maidian. Their president, Wang Songzhi, expressed some views based on his own development and understanding of the hotel market.
Since 2007, Paco Hotel Group has been on the road of "Fanghua" for 15 years
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15 Years of Tough Growth of Bogao
In front of challenges, opportunities also follow. Looking back, in 2007, the whole hotel market was still in the bonus stage of economic hotels, when the room price was about 150 yuan; With the business group as the core customer source, Paco Hotel Group opened its first hotel, Guangzhou Longkou West Hotel, on April 12 of the same year, which is different from the economy hotel. Its room price is about 300 yuan, which is just the price range of a large number of mid end hotel stalls in the later period. In the following year, Paco Hotel Group prepared to build another new store and purchased three hotels. During this period, although there were only 5 stores in Paco Hotel Group, there were two new mid end hotels in these 5 stores, and their performance remained high for a long time after opening.
The author believes that this was quite instructive in the hotel market at that time. On the one hand, the market at that time did not try to be a mid tier hotel, and on the other hand, the card slot of Paco Hotel Group at the initial stage was really good.
After receiving a wave of dividends, Packard Hotels Group was not satisfied with this and began to pay attention to major The management of sex. Therefore, in 2012, Packard Hotels Group officially established its own wine management company, entered the middle end hotel track, and constantly emphasized the importance of products, then released 1.0 product, and after opening, the branch Revpar quickly stood at 400+.
Then, with the growth of the middle class, the incremental space of the middle end hotel continues to increase. According to the survey results of Haohua Consulting, from 2017 to 2018, the growth rate of mid tier hotels reached 50%, ahead of other Grade hotel. At this time, brand consumption has gradually become a mainstream consumption trend. Paco Hotel Group has readjusted its strategy from productization to branding. In 2017, it launched the mid tier business hotel brand - Feng, Ya and Song. In 2020, it launched a lifestyle hotel brand - "Knight Story". This brand also laid a foundation for filling the gap of business customer flow during the epidemic later.
In addition, in terms of expansion, Bogao Hotel Group, guided by asset light operation, has gradually realized the combination of direct operation, joint venture and franchise, further enriched the middle end hotel product line, and accelerated the expansion of chain projects.
Behind these constant changes is the result of the continuous adaptation and creativity of Paco Hotel Group to the changes in the market environment.
Now, at the time of the anniversary of the "Fifteen Aroma" of Paco Hotel, Wang Songzhi summed up such a key word - resilient growth when reviewing the 15 years of development of the Group. He said, "An enterprise needs enough organizational resilience to find solutions and grow in a turbulent and changing environment. Resilience is not only an ability to withstand crises, but also has the characteristics of adapting to dynamic changes and evolving constantly."
Multi brand matrix+pragmatic business model
The advantages of Paco in the middle end hotel market are highlighted
Of course, in order to support this resilient growth space, the author believes that it is not enough to just have an enterprise awareness. What is more important is that hotels should really do brand and management with a "pragmatic" attitude to attract consumers and venture capitalists.
In this regard, Paco Hotel Group has constantly strengthened its own business management and brand development ability, and demonstrated it with a creative and guiding attitude, which is worth learning from some mid tier hotels.
1. Multi brand matrix to refine different consumer needs
China Behind the rapid development of the hotel industry, there is a prominent scene, that is, the colorful hotel brands. The number of brands has quadrupled in 15 years, which also makes China Become a brand with more brands in the Asia Pacific region country 。 The rapid development of brands is inseparable from the multi brand strategy of hotel groups. The underlying reason for the multi brand strategy is the rise of mass consumption. The personalized and layered accommodation consumption demands have been stimulated, and the corresponding hotel products and brands are urgently needed to highlight the consumer's personality.
Under this logic, Paco Hotel Group has also gradually formed its own brand matrix in the past 15 years, including wind, elegance, song and knight stories. It can be found that although the core customer group of Paco Hotel Group is business people, the newly launched Knight Story brand is positioned as a personalized and humanistic brand, Wang Songzhi explained that, "Business customers also want more interaction and personalized products and services. The release of Knight Story is not due to the change of the positioning of Paco Hotel Group, but an attempt to subdivide the track horizontally in the market, so as to bring different consumption experiences to hotel customers."
Today, the brand of Paco Hotel Group has made certain distinctions in terms of positioning, price and design. The brand of Bergo Wind tends to young business travel customers. It is simple and fashionable, and the price is also set at 200-400 yuan, which is very consistent with today's young customers' pursuit of high cost performance; Packard · Ya brand tends to be a general travel business customer group, with relatively complete supporting facilities, and the pricing is also very in line with the needs of the public, between 300-600 yuan; Bogo Song brand is more inclined to high and middle end business travelers, providing them with more high-quality accommodation and office environment, and the price also rises, between 400-800 yuan; However, the new Knight Story launched by Paco Hotel Group focuses on Generation Z and China The newly affluent population is positioned between 500-800 yuan.
In the past 15 years, Paco has been insisting on finding a good position, constantly strengthening the unique business customer market attribute of the brand, and constantly exploring more sub track brands to provide customers with better products and services. Wang Songzhi also mentioned in the interview that "we expect each brand to develop independently, to help and give a free ride, which is our expectation for the brand." The author believes that this is also the reason why the brands under the Bergo Hotel Group should make careful differentiation.
2. Diversification of products, services and marketing, and diversion of Empowering Group
Accelerating the speed of card making is an inevitable outcome of the pursuit of scale era of "horse racing enclosure". According to the data, during the 15 years, China Of the 333 additional brands invested in the market, 70% came from domestic brands, and 80% came from low-end brands. The driving force of rapid brand creation in the middle and low end market is the geometric increase of hotel supply in this level of market, and the low threshold of brand creation technology for middle and low end brands. On the other hand, the rapid brand creation may also mean that the brand survival cycle is shorter under the brand battle situation. I believe that many brands lacking core will gradually disappear in the long river of history.
Therefore, the author believes that this rapid brand making phenomenon in the mid market is not necessarily a good thing, especially for some hotels without brand core. In this regard, Packard Hotels Group has its own solutions. It focuses on customers and constantly optimizes products, services and marketing methods to attract corresponding customer groups.
On the product side, in addition to updating and iterating the product itself according to the changes in market demand, Paco also strives for some new breakthroughs. For example, Packard will cooperate with IP Strawberry Music Festival, Teddy, Little Yellow Duck and other authorized companies to build theme rooms and parent-child rooms; It will also make endorsement and mutual drainage with coffee, tea and other brands across the border.
On the server side, the internal control of the group's service is very good. Not only is room hygiene strictly controlled, but the "Xiaobai Online" at the front desk and in the guest rooms allows guests to contact hotel staff. On this basis, the Group also continues to introduce new service projects, such as the script of the current fire wolf Human killing, doll machine, and its self-developed IP cartoon image "Ma Xiaobei" increase interaction with guests.
Bogo IP cartoon image "Ma Xiaobei"
On the marketing side, Paco Hotel Group has made great efforts to develop the membership system, and with the help of the traditional WeChat marketing advantages, it has driven the private domain traffic of the membership system to a higher level of economic value. Now, in the whole mid end regional brand, Paco has done well. According to Wang Songzhi, "the proportion of WeChat small program orders of Bogo last year and the year before last can reach 48%, which is equivalent to nearly 50% of the traffic coming from here, which is very high, and many large groups can not reach the WeChat marketing ability."
Behind this, Wang Songzhi told Maidian, "This is because our core customer group is business people, whose consumption feature is high frequency and rigid demand. As long as this store has a good location, good products, no fault in service, and even can provide some small surprises, the customer repurchase rate will be high." Today, Packard has about 600000 paid members, Among them, the annual average number of stays of paid members in the development year can reach 3.94, and the average number of single stays of members can reach 2.53 nights.
In addition to WeChat marketing, the Group is also trying to develop channel models such as live broadcast and short video marketing to attract more customers.
3. Pragmatic business model to protect the revenue of venture capitalists
If we say that the multi brand matrix layout is one layer of the bottom line for Paco Hotel Group to achieve resilient growth, then the pragmatic business model of the Group itself is another layer. Since the establishment of the group, a major advantage of the group is that venture capitalists are particularly sticky. Many venture capitalists have followed the group since its establishment and have grown up together with the group.
First, the franchise mode has advantages. Packard Hotel Group is very considerate of venture capitalists in terms of business philosophy. Whether it is direct marketing or franchise, it treats venture capitalists' stores as if they had left. After the venture capitalists entrusted the branch to Packard for management, they did some coordination work, other Bogo is fully responsible for business affairs, and manages them as a direct store, without even earning any middleman price difference. Wang Songzhi explained, "To take a simple example, if we agreed with the supplier to purchase a mattress of 1000 yuan, the purchase price of the venture capitalist in the purchase system must also be 1000 yuan. During the purchase and sale process, we will not charge any additional fees, which is a matter of principle."
In addition to these, the author found that Bogo has a prominent feature - the partnership model. The concept of "franchise" has been downplayed within Paco Hotel Group, while venture capitalists collectively referred to as direct, joint venture and franchise stores are partners. Although the partners have fully entrusted Bergo with their affairs, they can also participate in the decision-making of some businesses, especially the use of funds. For example, each expenditure of the branch must be approved by the venture capitalist before implementation; The finance is also open and transparent. The Group will establish an independent shareholder group at the beginning of each project, and the expenses of each store will be stated above. The reason behind this is that Packard Hotel Group has always adhered to the concept of symbiosis and win-win cooperation with partners.
Second, the operation management mode is refined. Paco Hotel Group has always adhered to a business policy of "opening and doing well", and strived to implement the corporate mission of "warming all people on the road". According to the market iteration, long-term steady growth of sales and continuous improvement of service reputation; The outstanding performance is the business data in the past 10 years except for the epidemic situation - the group's annual occupancy rate is more than 90%, and RevPAR350+.
The same is true for venture capitalists. They not only insist on charging more competitive franchise management fees than their peers, do not apportion various distribution fees, and do not earn the "middleman price difference" of the supply chain, but also actively help venture capitalists to solve various problems and achieve venture capitalists' revenue. For example, under the epidemic situation, they are eager to meet the needs of venture capitalists and do their best to increase revenue and reduce expenditure, ensure The cash flow of each branch can operate normally.
The market potential of mid tier hotels is huge
How to take the "Fanghua" road of the old hotel?
Knowing the market, consumers and venture capitalists, as a "small and beautiful" enterprise, Bogao Hotel Group has deeply rooted in the Guangdong market, but its way of resilient growth has certain reference significance for the entire industry.
Focus on the mid end hotel market, according to the report issued by Haohua in the first half of 2021《 China According to the signing report of mid-range and above brand hotels in mainland China, the middle end hotels continue to maintain the growth trend, with the signing volume increasing by 7% compared with the same period in 2020. In addition to the large demand of the consumer end, the relatively stable harvest of the venture capital end, and the continuous efforts and enhanced penetration of the brand end, under the combined effect of multiple factors, the contract signing volume of the mid end hotel has continued to increase, and it is stable in the mainstream of the domestic hotel venture capital market. In this trend, the value of venture capital in the mid tier hotel market is very considerable.
Then, take Bogao Hotel Group as an example, how can these "old hotels" get a place in the middle end of the track on the road of resilient growth?
Honesty is an important element. Operate with integrity and be honest. The uncertainty of today's external environment; Industrial development is increasingly constrained, such as consumption power, epidemic prevention policies, etc; Industry development accelerated intensification; The revenue of hotel venture capital investment has been greatly reduced, and the confidence of venture capital investors has been continuously diluted. Under the situation of large fluctuations in the internal and external environment, the entire mid end hotel market, even the entire hotel market, needs to establish confidence and firm belief. Sincerity is undoubtedly a better medicine.
Paco has a great say in this regard. Many venture capitalists have long-term cooperation with Packard Hotels Group, and even some venture capitalists have cooperated with Packard Hotels Group in 6 or 7 stores, and have maintained a friendly and trusted cooperative relationship up to now.
Wang Songzhi also said in the interview, "As long as we are a company, it is more important to stick to our duties. We should pay attention to integrity for both consumers and venture capitalists. We should be pragmatic in brand building and operation management, put consumer demand and venture capitalists' revenue first, produce cost-effective products for consumers, and establish a benign cooperation mechanism for venture capitalists. In this way, no matter what twists and turns we have experienced, we can discuss with each other and work together to cross the cycle. "
Becomes the second element. The consumption upgrade drives the change of hotel structure, and the development momentum of mid end hotels is strong. Since 2015, major hotel groups have accelerated the layout of the mid market to seize the market position, adopt Mergers and acquisitions, strategic cooperation, and vertical brand segmentation accelerate the enclosure. China The city is experiencing a new round of upgrading peak of business travel accommodation quality. According to the research of new tier cities, "the hotel structure of head cities is closing up as a whole". In the middle end hotel, the intensified competition has also led to the blurring of the boundary of the middle end hotel and the more efficient operation. The middle end hotel has evolved into a creative factory of fashionable fast selling products and new lifestyles.
Therefore, if the middle end hotel wants to grow tenaciously, it must be creative. Wang Songzhi also mentioned in the interview, "For a company, who has the ability to adapt to dynamic changes and crises, and constantly evolves, can survive in the market competition. The content of creativity can be product creativity, service creativity, channel creativity, including brand optimization. In a word, the hotel must accumulate strength to adapt to the new market state before it can grow. "
Stability is the third element. Under the complex and changeable market background, the venture capital in the mid end hotel market has always been relatively rational. Venture capitalists' judgment on a brand mainly has two dimensions: one is the control over the trend of venture capital market, and the other is the practice of business models. The former means whether the brand has a foothold in the venture capital market, while the latter determines how far the brand can go.
The same is true for Paco Hotel Group, which has always adhered to the differentiation strategy of "widely accumulating grain and slowly becoming king" in the 15 year "Fanghua" road. It is not only necessary to refine the operation and stabilize the layout, but also to make every venture capitalist revenue. Especially during the epidemic, this steady development strategy is more suitable for the current hotel market, after all, survival is the key. Of course, continuing to work hard to produce more excellent products and services is a better way of development for Paco Hotel Group.
Wang Songzhi also said when talking about the layout of Paco Hotel Group, "The epidemic does have some impact on our direct sales and franchise stores, so we now put survival first and take projects steadily. First, we should deeply cultivate the regional market, do a good job in our products and services, and then steadily expand to the outside world. Our goal is to arrange 100 stores by 2027, the 20th anniversary of the company. "
Nowadays, it is advisable to take a broad view of the scenery. The author believes that, under the pressure of overlapping new and old times and epidemic situation, the middle end hotel industry has gone through the era of scale of horse racing enclosure, and will surely move towards the era of intensive brand operation. This growth stage also means that the middle end hotel will adjust and upgrade its structure from quantity to quality. Therefore, the development philosophy of "integrity, creativity and stability" upheld by Packard Hotels Group will eventually enable these "old hotels" to successfully overcome the downturn in the growth cycle and usher in the glory of performance.
epilogue
review China It is undeniable that the "old hotel" like Paco Hotel Group is China The mid tier hotel has opened a new era, which is enduring and blooming. The 15 year development of the mid tier hotel is also in the China In the long history of the hotel industry.
Today's mid tier hotels have already passed the exploratory period of large-scale development and entered a mature period. Looking into the future, the threat of epidemic is still there, the pressure of economic growth may be greater, and the restart of the global market is also difficult. However, the tenacity constantly polished by these "old hotels" will rebound strongly, and will form a more vigorous development model, which will change, evolve and grow again in the broader mid tier hotel market.