Hangzhou, May 21, 2015 /PRNewswire/ -- Leveraging profound industry experience and hotel resources, Zhejiang Golden Fan Network Technology Co., Ltd. (hereinafter referred to as “Golden Fan Company”) has been dedicated to integrating mobile internet information technology with traditional hotel operations, developing intelligent hotel booking platforms, and providing integrated internet solutions for the hotel industry, thereby helping hotels reduce operational costs and improve efficiency. Fu Quanyong, General Manager of Golden Fan Company and an enthusiastic advocate for embracing the internet, stated that rapidly establishing a presence in the mobile internet to build a hotel ecosystem are two key pillars in the transformation journey of China’s mid-to-high-end hotels.
As a traditional industry, especially for mid-to-high-end hotels, the hotel business is facing unprecedented development challenges. Since 2013, the overall pace of China’s economic growth has slowed down, and the “new normal” following the Central Government’s Eight Regulations and Six Bans has significantly impacted the mid-to-high-end hotel sector in China. In particular, the sharp contraction in the government and business travel market and high-end catering sectors have led to widespread losses among mid-to-high-end hotels in China over the past two years, with some high-end hotels in certain regions even facing bankruptcy and closure. In contrast, with the rapid development of mobile internet and the deep application of big data technology in the industry, online travel agencies (OTAs) at the forefront of the sector have thrived, achieving commission revenues of 3 billion yuan in 2014, further squeezing hotel profits and narrowing their survival space.
Against this backdrop, what path should China’s mid-to-high-end hotels take for transformation?
Fu Quanyong: “The core lies in service.”
Although mobile internet and big data technology have profoundly influenced user behavior and transformed internal hotel operational processes, the essence of a hotel remains unchanged: service. As one of the most critical links in the travel ecosystem, accommodation impacts users’ final choices and overall experience, and hotels are the key providers of this essential element.
Currently,domestic high-end hotel groups such as New Century Hotel Group boast hardware facilities and interior design standards that are no less impressive than those of international star-rated hotels, with some even rivaling luxury five-star international properties. But here,Fu Quanyong still emphasizes the importance of soft service.As a core competitive strength, how to provide effective service to guests during their stay is a key focus for hotel professionals. So what constitutes effective service?
Fu Quanyong further explains: “Effective service means being there when guests need you and resolving their concerns. For example, a young couple with a 3-year-old child checks into a resort hotel, and the child suddenly starts crying. The mother tries repeatedly but fails to calm the child, and the lobby is filled with sharp crying sounds. The mother is visibly embarrassed and desperately hopes someone will help. At this moment, a hotel staff member promptly appears and, using an attractive small gift and excellent communication skills, defuses the situation. One can imagine how grateful the couple feels, and they will likely choose the same hotel for their next trip. Through word of mouth, they will also influence the travel choices of their social circle.This is the true charm of hotel service.”
The “Three-Step” Approach to Building Membership for Mid-to-High-End Hotels
Fu Quanyong also proposed a “three-step” approach for building membership among mid-to-high-end hotels.The so-called “three steps” refer to before, during, and after the stay, during which hotels should closely align membership development with these stages and actively carry out corresponding initiatives.
For the pre-stay phasehotels should establish extensive channel development and brand exposure to make more users aware of the hotel. Equally important is the establishment of a direct sales system, including the official website, mobile app, and offline call center.
At the same time,hotels should place greater emphasis on guiding users to independently complete certain services to reduce labor costs, such as online payments and room selection. For the during-stay phase, hotels need to leverage the combination of internal systems and online platforms to interact with members on the basis of providing effective service, enhancing member engagement and loyalty. By tracking user behavior, hotels can gain insights into preferences and habits, and use big data technology to predict consumption trends, thereby offering personalized services.
In the post-stay phase,through the use of technology, hotels can promptly push satisfaction surveys to users via WeChat, encouraging them to evaluate the hotel’s service. The entire process may also include fun activities like lucky draws. By collecting and analyzing user feedback and suggestions, hotels can make timely improvements and strategically introduce distinctive services.
In addition, Fu Quanyong also emphasized the importance of effectively utilizing internal hotel foot traffic: “A 300-room hotel, including banquet, dining, and lobby foot traffic, sees no less than 300,000 visitors annually. How to utilize this flow of people is a fascinating question. Generally, we believe there are several approaches: the first is leveraging the hotel’s Wi-Fi network, using well-designed PORTAL pages and simple authentication methods to identify and attract new users; the second is using in-room TVs and digital screens in public areas to continuously reinforce awareness of the hotel’s offerings; and the third is through optimizing business processes and effectively disseminating printed materials.”
“The Ultimate Booking Tool” – Everyone Becomes a Booking Agent
Regarding the ultimate booking tool launched by Golden Fan Company at the end of 2014, Fu Quanyong noted that a key function of this tool is to turn every hotel employee into a booking agent.“The hotel industry is a labor-intensive sector. A comprehensive service hotel with 300 rooms typically employs over 300 staff. For 100 such hotels, that figure exceeds 30,000 employees. These employees interact with users daily, understanding their needs and intentions better than anyone. If these employees have access to a booking tool, they can address user needs in real-time and in the most efficient manner possible.“Fu Quanyong said.
OfficiallyBased on such a demand point, Fu Quanyong led his teamat the end of 2014to launch a mobile app-based hotel booking platform. Through this platform, every hotel staff member became a booking agent..The platform provided capabilities that traditional booking methods did not offer:What used to take 20 minutes to complete an order now only takes 20 seconds; previously opaque pricing information is now presented as the best real-time room rates; formerly scarce and untimely information is now accessible in full via mobile phones in real time; and where there was once no incentive to book, there are now rebates to be earned. Fu Quanyongexplained that among the hotel clients currently using Jinshan Company’s services, the highest monthly rebate earned by an employee has exceeded 10,000 yuan.
Mobile internet represents an effective integration of innovation and business demand. It is through such innovationthat Jinshan Companyin a short period of timewas able tobuild a strong user baseand gain massive order traffic.