2021 China hotel brand strategy management report From Pengrun
The following is the 2021 China hotel brand strategy management report From Pengrun recommended by recordtrend.com. And this article belongs to the classification: Travel booking.
This report is still carried out under the theoretical framework of the step model of Pengrun brand strategy, and has made a lot of innovations. For the first time, it disclosed the Chinese family life cycle vacation model, the local hotel panoramic layout model and the hotel group classification definition model.
Step model guides the analysis from five aspects: the geographical spatial layout, the time dimension of brand development, the emotional elements to be transmitted by the brand, the consumption scenarios to be constructed by the brand and the target customers.
In the first part of macro layout development, Dr. Han shared the changes in macro economy, consumers and hotel layout. The report released the latest 2021 number of mid tier and above hotel brands and hotel management groups in China. 138 international brands will be included in 2020, and 29 will be added in 2021. Meanwhile, the number of original brands will be reduced by 8, and a total of 159 international brands will be included at present; A total of 285 domestic brands in Central China and above will be included in 2020, and the number will be reduced to 277 in 2021.
Source: Pengrun Research Institute
In the geographical distribution, East China is an important place for hotel investment, and domestic brands are developing rapidly. In 2021, 48% of the newly added hotels in China are located in East China, followed by Southwest and South China, which has gradually become a hot spot of investment.
Source: Pengrun Research Institute
The number of international brand properties is relatively uniform, taking the lead in southwest market, and then expanding inland; Domestic brands are mainly concentrated in East China. Compared with international brands, domestic brands are limited by regional popularity, so they still need to plan a longer-term strategy; The number of new international properties is almost twice that of domestic brands. In the high-end hotel market, international brands still dominate. The brand awareness and strategic awareness of domestic hotel management companies still need to be strengthened, and will flourish in the future with the help of cultural advantages.
Source: Pengrun Research Institute
The brand strategy report of 2021 analyzes the data from the perspective of new urban agglomerations. In recent years, the gradual implementation of the national regional development strategy has driven the development of the whole macro-economy through the core city circle and regional integration. This report mainly covers the Yangtze River Delta, Pearl River Delta and Beijing Tianjin Hebei economic circle. After 2018, the new properties of super middle and above grades have increased significantly outside the economic circle, while the new properties of high-end selection and above grades are mainly developed in the three economic circles.
Source: Pengrun Research Institute
The strategy of “market sinking” is not suitable for high-end brands. Blindly following will lead to serious strategic misjudgment. When considering the layout of high-end selected and above brands, we should follow the national strategy and layout in the economic circle.
The new urbanization with central city leading the development of urban agglomeration will deeply affect the future geographical layout of hotels. With 25% of the land, the 19 urban agglomerations in China gather 75% of the population and create 88% of GDP, of which the urban population accounts for 78%. In recent three years, the population increment of the five major urban agglomerations has led the country, and the new population has gathered more in developed cities. At the same time, the consumers of high-end hotels are mainly concentrated in high-level urban agglomeration.
Data sources: National Bureau of statistics, local bureau of statistics, China’s urban development potential ranking in 2019, compiled by Pengrun Research Institute
In terms of the number of new brand hotels, it may have reached its peak in 2019, and the number of new properties will decrease significantly in 2021. The decrease of increment will make the market competition more intense, while the increase of stock will continue to bring the pressure of house price and occupancy rate to each market.
Source: Pengrun Research Institute
In terms of brand concentration, top 10 Hotel Group has nearly 80% market share; The competition between super middle end and super high end is fierce; There is still room to improve the concentration of high-end selection and high-end grades. The properties of local hotel groups are mainly concentrated in the super middle end and high-end selection. Compared with the previous year, their proportion in the super middle end market has increased and gradually become the dominant position. International hotel brands are still in an absolute monopoly position in the super high-end and above hotel market.
Source: Pengrun Research Institute
Among the domestic group’s property volume, Jinjiang Group is concentrated in the super middle end and above properties, with top 1 leading the country, accounting for one third of the domestic market; The top five hotel groups have 80% of the international properties in China.
Source: Pengrun Research Institute
In addition, through the study of China’s population, macroeconomic development and changes, and hotel consumers, Pengrun puts forward the Chinese family life cycle vacation model. Consumers in different age groups will have different hotel consumption needs. Secondly, the adjustment of macro-economic structure, which attaches equal importance to internal and external circulation, will have an important impact on the hotel business market.
Source: Pengrun Research Institute
In the second part, in the past and present life of China’s local hotel groups, the panoramic layout model of local hotels and the classification definition model of hotel groups are released. In the panoramic layout model of local hotels, it is divided into the upstream of resource supply end, the midstream of hotel product end and the downstream of marketing channel end. In the definition model of hotel group classification, hotel groups are classified into hotel group, tourism group, real estate group, aviation group and investment development group. The hotel sector of state-owned enterprises is a non key investment area, while private enterprises are mostly pure hotel management groups. At the same time, OTA enterprises are gradually incubating hotel groups, such as Licheng Hotel Group incubated by Ctrip group.
Source: Pengrun Research Institute
This paper analyzes the development stage of Chinese local hotel groups and the operation status of local hotel groups. The scale differentiation of each hotel group is obvious, and the private hotel groups have an advantage in the total number of listing. Top 5 hotel groups lead the main market of medium and high-end, with more than 50% of the group’s brands listed. At the same time, it is concluded that “path dependence” is still the dilemma of local hotel groups.
Source: Pengrun Research Institute
The local hotel groups are divided into three types
Government reception
Industrial supporting type
Grass roots growth type
Government reception hotel is a “national brand” hotel with the background of state-owned hotel group and state-owned tourism group.
Its path dependence is the government growth hotel brand which is born out of government reception. The dilemma lies in the fact that they have political figures, have heavy operation burden and can not be completely marketized; Lack of brand thinking, did not transform the advantages of government into brand competitiveness; At the same time, it also faces the problem of aging customers.
Source: Pengrun Research Institute
Industry supporting hotel is a hotel represented by state-owned and private real estate groups and aviation groups.
Its path dependence is the main business dependence, the pain of sideline only we understand. The dilemma is that the inertia of real estate group is large, and it is very difficult to change from development oriented to operation oriented; The assessment mode and indicators of the main business lead to the hotel sector unable to expand according to the market logic of the hotel industry; Without the position of sideline, it is difficult for the main business to invest again in the later development stage.
Grassroots growth hotel is a private hotel group that grows from bottom to top and starts by meeting the needs of civilians.
Its path dependence is cost control dependence, and the road of capitalization and high-end is long. The dilemma lies in the grass-roots background, hard to enjoy the cool under the tree, everything depends on themselves; The homogenization of the market is serious, and eventually become a cost competition; External capital injection is insufficient, facing financing and listing problems.
In the third part, in the way of breaking the situation of China’s local hotel group, clear positioning, brand equity management as the first step, establish a clear brand strategic thinking, build a stable brand connotation, realize the separation of product management and brand management, empower products with brand, establish “brand bank”, build brand awareness and influence.
The second step is to explore the market space of local hotel brands. The high-end business market has a window period and opportunities to catch up. Foreign guests may be in a low position for the time being, and the competitive advantage of international brands in the business market will be weakened; In the post epidemic era, tourism recovered and consumer demand was released; At the same time, it is suggested that local brands should make an early layout of the holiday market 5-10 years later.
Data sources: Shanghai Municipal People’s government, Shenzhen Municipal People’s government, Pengrun Research Institute
According to the demand change, breaking the path dependence is the third step, which is to tailor the new strategic path for three different types of local hotel groups.
For the government reception hotel enterprises, the government reception system and market-oriented system should promote each other, and seize the opportunity of mixed reform during the “14th five year plan” period.
For the industry supporting hotel enterprises, we should flatten the cognition, loosen the environment, strive for a free and semi free development environment for the development of the hotel sector, and coordinate resources, so that the hotel sector can cooperate with the commercial, office and other sectors, and form a joint force when expanding the market.
For the grassroots growth hotel enterprises, we should recognize the market logic, the necessary initial asset investment or acquisition is needed, at the same time, we should pay attention to the “first store” and play a leverage effect.
The sustainable way of brand building is the fourth step, through brand incubation, brand development and brand realization to complete the brand development path. The acquisition of local brands is still an important way to scale.
Data source: Pengrun Research Institute read more: Pengrun: brand strategy management report of China’s hotel industry in 2020? Ten trends affecting the development of the hotel industry in 2017 emarketer: Digital travelers find hotel rooms through meta search websites TravelClick: North American hotel industry will show a growth trend in 2012 MTA: full service mid-range brand development of China’s hotel industry in June 2015 MTA: excellent brand development report of China’s hotel industry in August 2015 MTA: mid-range brand development report of China’s hotel industry in August 2015 June China’s hotel industry domestic high-end brand development sojern: 2017 hotel industry marketing guide
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