Case: Mr. A has been very distressed recently, he has invested in several hotels, and he has joined a certain brand, and the business effect is not bad, so he intends to deepen his cultivation in the hotel circle. A few years ago, at the suggestion of a friend, I registered a hotel brand, and originally wanted to turn over and be a "master", so that I could have the final say in operation and management, and I could also get a few projects from other investors to manageAs a result, a lot of investment has been made, and I haven't seen a "splash" yet, and I haven't even touched the doorway, and making money is even more ...... far away
When I inquired with an expert, I was even more shocked - brand business, isn't there someone who comes to the door to ask to join if it does well?It is also necessary to design a business model in advanceWhat is the business model?
After eating the melon, Zhenghuan will take you to **, the business model of the hotel brand.
What is branded
Business model
1. What is the business model stalk?
The business model, in the final analysis, is how to make money sustainably and how to maintain sustainable profits. From this logic, we can see several levels of the business model:
One is the profit model, how to make money?Pay attention to 3 indicators, revenue, cost and expense, profit;
The second is sustainability, which involves a number of factors, usually including having unique selling points (such as value proposition, positioning, key businesses) to maintain market popularity, using core resources to raise the threshold of competition, building an ecological chain with strong sticky customer relationships and close partnerships, and maintaining market share through channels, etc.
Finally, a closed loop is formed, real corporate value is generated, and the sustainability of the profit model is guaranteed, so as to break the curse of "life cycle".
2. The business model of the brand.
The business model of the brand refers to the establishment of a brand image, relying on brand equity (intangible assets), better expansion and operation, and obtaining a brand premium, so as to grab profits, achieve enterprise growth and value growth, and ultimately achieve sustainable development. Compared with the business model of ordinary products, the business model of the brand has the same characteristics and its own characteristics. The similarity lies in the essence of how to consistently make profits from the market;The difference is that the focus of profit points is different, the way of realization is different, and the core capabilities and resources relied on are naturally different. To be a hotel brand
Do you want to talk about business models?
If you don't want to make a mistake like Mr. A, you must talk about the business model, not only to talk about it, but also to do a thorough and meticulous study in advance to really think about the business model. The ring will take you to see why
1. Brand creation is a business.
First of all, let's make it clear that creating and operating a hotel brand is a business, and the essence of business is to make money. It's not just about sentiment or charity, it's about how to make a profit, which is why the business model is crucial. The business model helps us to identify issues such as how to make money and ensure that the brand can survive and thrive in a competitive market. 2. The leap from a single store to a brand to create a hotel brand means that hotel companies have changed from an asset-intensive model to a consumer brand model, which has prompted them to change from the original owner-operator model to a more asset-light model, resulting in the differentiation of the hotel model into different organizations such as assets, operations, marketing and brands. At the same time, upgrading the operation of a single hotel to the management of the entire brand is not only an increase in scale, but also a qualitative leap. Branding means the need for uniform service standards, quality assurance and brand image, which need to be supported and guided by a well-thought-out business model. 3. Brand creation is a long-term investment, and creating a hotel brand is a long-term investment, accompanied by various risks. Whether it's market changes, shifting consumer needs, or challenges from competitors, brands can have an impact. An effective business model can help brands "resist" these risks, respond to market changes by flexibly adjusting their strategies, and ensure long-term profitability and sustainable brand development. In conclusion, Zhenghuan believes that having a professional and thoughtful business model is the foundation and core of a hotel brand, which is necessary and the key to ensuring its long-term success and sustainable development. Brands need a clear and effective business model if they want to find their niche in the complex and volatile market environment, achieve risk management and achieve profitability goals. Hotel brand business model
ofThe path of evolution
In the early days, the entire hotel industry was mainly focused on product management, and although some hotel brands emerged, these brands were also born from single-store operations, so the focus of enterprises was still on their own hotel operations, focusing on how to better provide basic accommodation and other ancillary services. Hotel brands during this period were usually small in scale, mainly directly operated stores, and focused on the hotel's geographical location, architectural features and basic accommodation quality.
With the development of the hotel industry, some hotel brands have begun to export management and send a management team, which is the management output stage.
At this stage, many brands began to grow and expand, and they expanded their brand management scale by establishing systematic brand standards and signing entrusted management contracts with many investors.
At the same time, by exporting its management knowledge and professionals, it improves the operational efficiency and quality of its hotels. During this period, the focus of the hospitality industry shifted from simply providing products to improving service quality and operational efficiency. The asset-light expansion method makes it possible to expand the scale of the hotel brand.
In the late 20th century, the focus of the hotel industry shifted further to the output of brands. This period saw the rise of multiple models such as franchising, third-party operations, and co-branding.
Franchising, a hotel brand exports its brand name and operating model to other hotel operators through a licensing agreement. Third-party operation is when the brand or owner entrusts the operation and management of the hotel to a professional third-party management company. Co-branding, which involves cooperation between different brands to expand market influence and enhance brand competitiveness.
These models have improved the acceleration of brand scale expansion, and also brought new issues to the maintenance and development of the brand.
In recent years, with the advancement of technology and the change of consumer needs, hotel brands have begun to expand from traditional accommodation services to a wider range of travel and lifestyle experiences.
By providing a variety of services and experiences, such as high-end residential, leisure and entertainment, sleep and home furnishings, and even digital services, the brand has built a more comprehensive industry chain and ecosystem.
This not only increases the number of touchpoints for brands and customers, but also enables brands to better leverage their brand value and provide customers with a more comprehensive and in-depth service experience.
Overall, the evolution of the business model of hotel brands reflects the industry's response and adaptation to changes in market demand. From the initial product orientation, to the improvement of service and management, to brand output and cross-industry expansion, in this process, the hotel brand has gradually become a comprehensive service and experience provider, and its business model has become more complex and diversified.
Hotel brandsHow to do it
ThinkBusiness model
Take the Marriott brand, for example).
The first two questions are actually the content of the previous topic - hotel brand positioning, which should usually have positioning first, and then have a business model.
After thinking through the first 2 questions, let's leave the third question, what are the values?What can I do for my target customers and what core concepts will guide future development?
For example, Marriott Hotels Group's core values are people-oriented, excellence-oriented, innovation, honesty and accountability. Guided by these values, Marriott grew step by step until it topped the list of entire hotel brands.
The core of these problems lies in 2, first, what is the selling point of the brand?This selling point needs to have a certain uniqueness and a threshold;Second, revenue** needs to be continuously optimized.
From the perspective of the Marriott hotel brand, its core selling points are mainly as follows:
High standards of service quality: Marriott is known for its consistently high standards of service quality and customer experience. Whether you're a business or leisure traveler, Marriott's quality of service is one of its unique selling points.
Innovation and technology adoption: Marriott's investment in technology and innovation, such as digital housekeeping, mobile booking, and personalized guest experiences, further strengthens its leadership position in the industry.
Marriott's diverse brand portfolio is also a core selling point if you look at the entire Marriott Group, which has a broad portfolio of brands that cover different market segments, from luxury to budget, to meet the needs of different customer segments. This diversification strategy provides it with a unique competitive advantage in the market.
These issues are complex, and the complexity lies mainly in the comprehensive trade-offs and trade-offs based on multiple factors such as the situation at the time and the stage of brand development. The basic logic is as follows:
Grasp the main and secondary, try to grasp the core channels and key resources by yourself, and the non-core resources and channels are inclusive and win-win cooperation
It is necessary to do a good job in balancing short-term benefits with long-term interests, so that short-term benefits can survive and long-term interests can be sustained.
For example, during the war between OTA and hotel groups that year, Marriott Hotel Group resolutely resisted some unequal treaties of OTA (mainly involving the dispute over the right to the lowest price, the negotiation of commission ratio, etc.) with its highly competitive official sales channels, and continued to make efforts in the optimization of the membership system and the construction of direct sales channels, and strived to grasp the lifeline of hotel marketing.
To sum up, Zhenghuan believes that when creating a hotel brand, the issue of business model must be carefully considered. Finding the right business model, making your brand profitable, and ensuring its sustainability is key to the development of every hotel brand.
Through an in-depth analysis of the evolution of the business model in the past, we can see that the hotel brand is no longer just a provider of accommodation services, but a comprehensive brand that provides a full range of experiences and services.
In the future, the business model of hotel brands will continue to evolve as consumer preferences and market demands continue to change. Brands will need to focus more on innovation, technology integration, personalized service, and sustainability strategies to adapt to a rapidly changing market environment.
By exploring new service areas, strengthening consumer connections and increasing the brand's market presence, hotel brands can create a richer and more diverse experience for their customers, while achieving more robust and sustainable growth.
Tip: Business Model Canvas
The Business Model Canvas is a strategic management and entrepreneurship tool for developing new or describing existing business models. Presented by Alexander Osterwalder in his book The New Generation of Business Models.
The tool illustrates a company's value proposition, infrastructure, customer base, and financial health through nine basic building blocks. The nine segments are: Value Proposition, Customer Relationships, Customer Segmentation, Channels, Key Activities, Key Resources, Key Partners, Cost Structure, and Revenue Streams.
The practical value of the Business Model Canvas is that it provides a simple, intuitive way to capture, discuss, and innovate business models. It helps entrepreneurs and managers gain a clear understanding of their business models and explore new strategic options and innovation opportunities. In this way, companies can better adapt to market changes, identify new growth opportunities, and improve the effectiveness and efficiency of their business models.
In this paper, Zhenghuan tries to draw on the theory of the business model canvas and combine the practical cases of the industry to make the above analysis of the business model of the hotel brand. Next, we will work together on other interesting topics created by the brand, so stay tuned.