Shanghai, May 14, 2015 /PRNewswire/ -- On May 13, the "2015 China Hotel Marketing Summit," hosted by TravelDaily, grandly opened in Shanghai. Over 600 senior executives from global hotel chains, economy hotels, boutique hotels, and independent hotels gathered to discuss the development direction of China's hotel market, centered around the theme of "cross-screen, cross-industry, and cross-boundary."
In recent years, with the decline in the proportion of business travelers and the weak macroeconomic environment both domestically and internationally, domestic high-end hotels have faced pressure. Meanwhile, after benefiting from demographic dividends and rapid expansion, economy hotels have also hit a bottleneck of market saturation. In contrast, surveys show that the mid-range segment has become the mainstream in the global hotel industry. In China, the mid-range hotel market is booming.
Group photo of panel guests
In an era where most hotel products are highly homogenized, how can emerging mid-range hotels create their own unique features? How can they build brand perception among consumers? At the panel discussion held on the afternoon of the 13th, leaders of mid-range hotels, including Gan Shenghong, Executive President of Junting Hotels, Wang Haijun, CEO of Atour, Wang Changchun, CEO of Molin Fashion Hotel Chain, Cheng Xinhua, Chairman and CEO of Plateno Hotel Group, and Zhang Jianchun, General Manager of ZhiShang Hotel Division of Sumxin Hotel Group, shared their insights under the moderation of Xia Zifan, Chief Consultant of Les Roches Hotel Management School, discussing hot topics in the development of the mid-range hotel market.
Regarding the positioning of mid-range hotels, Wang Haijun believes there are three versions of mid-range: an upgraded version of luxury hotels, a condensed version of budget hotels, and an independently innovative version. Each follows a different approach. He thinks the mid-range market is huge and just getting started — only those who last till the end will prove to be the true strong players. Meanwhile, CEO Cheng Xinhua offers a more data-driven definition: construction costs of ten to fifteen thousand yuan, an average price of three hundred yuan in second-tier cities — that’s the standard for mid-range. Gan Shenghong offered his own view: customers are changing, and products must change along with them. The so-called "mid-range" is a label self-applied by those who can't find their own positioning. We should re-explore our business formats and positioning. Zhang Jianchun stated that currently there is no industry standard for mid-range, and the market is still in its early stages. The mid-range market evolves with the times, and during operations, culture and meaning are infused into the products.
When discussing the relationship between three- and four-star hotels and mid-range, Wang Haijun said Atour is unlike any previous brand — "it's like running in a suit without breaking into a sweat," which is quite challenging. Mid-range hotels should effectively integrate with three- and four-star hotels to innovate the platform. Cheng Xinhua believes integration is a great opportunity but also very difficult. Wang Changchun pointed out that three- and four-star hotels are still asleep and haven’t bowed to the market. But if their operational models are adjusted in time, they could effectively suppress the current advantages of mid-range hotels. Gan Shenghong also said that if businesses don’t try to please customers or embrace the market, they have no reason to survive. He mentioned he has been recently researching how existing three- and four-star hotels can be transformed into new business models, noting that such hotels need to find new commercial model trends and ideas. For example, Junting’s Shanghai Zhongxing branch was formerly an old three-star hotel, and its transformation into a Junting hotel has been very successful.
Finally, when talking about future competitive development, the leaders all shared their views. Wang Haijun said Atour aims to find people who like it and serve those who like it. Cheng Xinhua said every company has a different temperament and DNA — Plateno Group pursues "craftsmanship" as well as "cost-performance.".Gan Shenghong talked about what Junting has stuck to over the past decade: product functionality and the value created beyond functionality. Junting’s customer positioning has always been clear. Society is changing, but the core remains unchanged. Zhang Jianchun, meanwhile, showed concern for younger customers.
Gan Shenghong, Executive President of Junting Hotels, shares his personal views
As a domestic industry leader, Junting has been thinking and exploring new business models for mid-range hotels to adapt to the changes of the times and new consumer demands. Gan Shenghong stated at the panel that China’s star-rated hotels have entered a new era of business models. He believes the arrival of mobile internet, commercial complexes, and a new era of consumers marks a new turning point for traditional star-rated hotels.
Taking Hefei Intime Junting Hotel as an example: as the second Intime Center project by Intime Group after Beijing, the Hefei Intime Center project covers a total area of 190,000 square meters. With Intime Department Store as the anchor tenant, it gathers international luxury brands, high-end office buildings, international cinemas, and other comprehensive commercial formats. While maximizing commercial value, it innovatively introduced the mid-range boutique brand "Junting." Based on three core products — cultural curation, product selection, and service excellence — it leads urban hotel life with high-quality guest rooms, curated dining, and the Junting community space, creating a strong market and word-of-mouth effect.
The lobby of Shanghai Zhongxing Junting Hotel has become a social space
Currently, operators of mid-range hotels in China include global hotel groups, former economy hotel brands, and those specifically dedicated to this niche market, each striving to establish its own unique characteristics and positioning. Junting Hotels’ five distinctive features have long been praised in the industry. Gan Shenghong said, "Creating a private, relaxing, tranquil, and comfortable business travel environment in the city center," "Emphasizing the use of design elements to highlight a leisurely and fashionable atmosphere," "Enhancing the quality and individuality of core products, reaching five-star luxury standards in key offerings," "Providing friendly and convenient humanized services," "Offering high cost-performance for customers and strong profitability for owners." As a seasoned hotel management expert who deeply understands operations and seamlessly meets customer needs, Junting’s success is no accident.