Even in the face of such a huge consumer population and market, the situation of single hotels is much more difficult than that of chain hotels. On the one hand, the lack of professional operation and management personnel, less access to customers and high cost, low overall quality, lack of brand operation, lack of centralized procurement advantages, leading to the difficulty of profit-making of the whole hotel; on the other hand, the relatively stringent conditions for joining, high fees and other barriers also hinder the single hotel through the tradition of joining. Chain Hotel group, the path to further development. At the same time, the overall impression of low-quality individual hotels and the worries about safety and hygiene also affect the development of individual hotels.
With the rise of China's middle class, people's demand for the quality of tourism consumption is getting higher and higher. Consumer upgrading leads to increased demand, and the success of economic chain brands is ahead. Many businessmen believe that chain is the only way to save the huge market of single hotels. First, OYO Hotel from India landed in China, sweeping over 10,000 franchise stores in more than a year. Then, Ctrip, Metro, Huazhu and other giants launched light chain brands. A new investment tide in single hotels has arrived.
Before June 1 this year, OYO, using the power of capital, landed a hitchhiking model with a very low threshold: "light franchise". The biggest difference with the traditional franchise model is that it is not to find people who want to open a shop, but to find people who have already opened a hotel to transform the franchise. OYO does not charge franchise fee, room renovation fee, brand use fee, etc. Only signed contracts, after joining the Commission part of the flow, and the commission rate is not fixed, but also with the geographical, property, market changes.
In addition to placing a striking OYO logo, it also provides a streamlined soft-fitting renovation program. From pillows to cloth, OYO selected some "standardized" products to renovate single hotels. Leave a very striking red "OYO" in the third and fourth-tier cities, save a lot of advertising fees. At the same time, operational commissioners are stationed in different cities to provide operational guidance and services for individual hotels. For many small hotel owners, it feels like pie in the sky. Joining OYO is like free ride. Therefore, more and more individual hotel owners choose OYO. OYO operates more than 10,000 hotels and more than 500,000 rooms in China as of May 30 this year, driven by capital and nearly 10,000 teams.
Behind the beautiful data, the development of OYO also exposes some problems brought by high-speed development: lack of control over hotels, lack of private flow, and lack of brand power... OYO is more like a consultant in the minds of individual hotel owners. OYO's suggestions can be heard or not. Especially in major decisions such as pricing and renovation of facilities, owners who do not like to take risks are more inclined to remain unchanged and the improvement is naturally limited. In order to develop both speed and quality, on June 1 this year, OYO launched a new model, OYO Hotel 2.0, announcing that it will provide bottom-line revenue for owners, while participating in hotel operation more deeply.
"Through the 2.0 model, OYO controls the three core elements of hotel revenue, pricing and operation, aiming at strengthening the relationship between brand and owner." According to Zhu Lei, chief revenue officer of OYO Hotel, the 2.0 model is the result of the 1.0 model after the completion of the "historical mission". If the 1.0 mode of pursuing expansion speed solves the problem that single hotels lack scale and brand effect in front of giants, then the 2.0 mode of deep operation answers the question of how to transform this scale and brand effect into real value.
OYO has been doing two things in China, the first is to let consumers spend less and live better, change the situation that consumers were forced to compromise between Hotel location, price and quality in the past; the second is to improve hotel customer evaluation, improve the efficiency and income of hotel owners. The reform of single hotel is a market worth trillion yuan, which is also a hard nut to crack. It has many painful points such as fragmentation, homogeneity, extensive management, limited channels and brands. Changing the pain point of the industry is by no means overnight. OYO Hotel is ready for a lasting war.
At present, driven by the factors of global tourism, supply-side reform and the upgrading of residents'consumption, the domestic tourism market continues to grow at a high speed, the leisure market grows substantially, industrial investment and innovation become more active, and the economic and social effects become more and more obvious. At the same time, the appeal of mass tourism has also crossed the stage of pursuing beautiful scenery and moving towards a better life. The emergence of OYO Hotel gives the public an alternative and revitalizes the long-silent Hotel industry. Huazhu and Tongcheng Yilong have followed suit and set off a new wave of industry development. Under the background of "Internet +", we will see more "OYO" appear in various industries.