The development trend of China's budget hotels_Insight鈥擟hina Economic Net
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The development trend of China's budget hotels
Last Updated(Beijing Time):2006-08-28 09:40

As for the internal environment, budget hotels will face challenges from human resources, standardized services, and management system. Most hotel managers cultivated in China are "tailor-made" for big hotels. There are even few textbooks for professional management of small and medium-sized hotels. Budget hotels have robust demand for qualified human resources, and yet the supply is relatively limited. Thus, they have to cultivate human resources for budget hotels anew.

Standardized service poses a huge challenge for many budget hotels. Only when service is standardized, can the quality of service be unified. In addition, it is a challenge for management system. For example, the difficulty of requirement on managing a hotel with 1,000 beds and 300 employees differs from that on managing 10 hotels with 1,000 beds and 300 employees. Apparently, the latter requires a good management system. The method of managing several to a dozen hotels is different from managing a dozen to tens hotels. 

So far, foreign budget hotel brands have not swarmed into China yet, but they certainly will, and will definitely impact on China's budget hotel market. In the future, the domestic budget hotel market may undergo reshuffling, and interests may be reallocated.

In the future, budget hotels will present the following three trends in China:

The first trend is branding. To budget hotels, scale is the foundation of management, and brand is above tangible assets. Only when there are a large number of enterprise colonies under several noted brands, may we say that budget hotels have evolved into a relatively mature business form.

Secondly, trend of chain operation will become increasingly notable. Hotels in many provinces and municipalities across China are basically regional instead of nationwide deployment. To achieve group operation, budget hotels must turn into chain stores. In the future chain operation, chain layout, chain customer source system, and standardization are three most important factors supporting chain operation.

Thirdly, the requirements of standardization on budget hotels become increasingly high. To chain enterprises, overall quality control and quality management is a formidable challenge. How to make all chain hotels run under the same standard is a big science. Without good standardization, it is very difficult to guarantee the quality of hotels, and the enterprise's brand and reputation will be severely affected, which determine how far the enterprise can go.

     The writer is the CEO of Home Inn Hotel Management, China. 
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