Report by : Gan Yung Chyan
/ KUCINTA SETIA
Distributed to Everyone
On 9 October 2018, ITB China and ITB Asia exhibitor Ctrip officially announced the establishment of Licheng Hotel Group. According to reports, Licheng Hotel Group has formed a “alliance” by high-star hotels in first- and second-tier cities across the country, and leveraged the big data analysis and services of Ctrip Group to strengthen the accommodation market.
This year, there will be about 50 high-star hotels joining the “Licheng Hotel Group”, which are located in first-tier cities such as Shanghai, Beijing and Guangzhou. According to industry insiders, the purpose of Ctrip setting up its own hotel group is to leverage on the strengths of individual hotels, so that brand hotels with weak brands have brand support. At the same time, through the background data, these hotels are more accurately positioned to help them compete in the accommodation industry.
According to Li Cheng, COO Sun Gang, Licheng Hotel will subdivide the hotel into three major brands according to different service positions, namely “Licheng Huating Hotel”, which locates ultra-high-end hotel brands, and “Lize”, which is positioned as a high-end full-service hotel brand. "Hotel" and positioning of high-end specialty hotel brand "Li Cheng Rui Xuan Hotel". According to the current plan of Licheng Hotel, the number of franchise hotels will exceed 50 at the end of this year, reaching 250 next year and reaching more than 500 in the following year.
It is worth noting that Licheng can bring replicable systematic management, systematic marketing experience and modular tools to high-star single hotels and hotel groups to help Licheng's partners quickly expand in market size and competition.
In recent years, the competition in the hotel industry market has become increasingly fierce, and hotel branding has become more and more obvious. On the one hand, budget hotels are constantly upgrading, diverting the flow of customers in the mid-end market. On the other hand, the brand grouping of high-end hotels is gradually increasing. Insiders pointed out that compared to single-hotels, hotel group management can not only form a brand effect, but also form group management, intensive procurement, and save hotel expenses.
A hotel group management said that in the current domestic high-end hotel market, domestic brand groups account for a relatively low proportion, mainstream high-end hotel brands are foreign brands, and due to the existence of a large number of domestic single hotels, for domestic high-end hotels, hotels Branding still has a lot of room for growth.
Insiders pointed out that Ctrip's move to establish a hotel brand is to enter the hotel industry through the background data and strengthen its control of hotel resources. Besides Ctrip, other OTAs such as Alibaba and Shiji are interested to enter the hotel industry too. There will be more competition in the hotel reservation market.
/ KUCINTA SETIA
Distributed to Everyone
On 9 October 2018, ITB China and ITB Asia exhibitor Ctrip officially announced the establishment of Licheng Hotel Group. According to reports, Licheng Hotel Group has formed a “alliance” by high-star hotels in first- and second-tier cities across the country, and leveraged the big data analysis and services of Ctrip Group to strengthen the accommodation market.
This year, there will be about 50 high-star hotels joining the “Licheng Hotel Group”, which are located in first-tier cities such as Shanghai, Beijing and Guangzhou. According to industry insiders, the purpose of Ctrip setting up its own hotel group is to leverage on the strengths of individual hotels, so that brand hotels with weak brands have brand support. At the same time, through the background data, these hotels are more accurately positioned to help them compete in the accommodation industry.
According to Li Cheng, COO Sun Gang, Licheng Hotel will subdivide the hotel into three major brands according to different service positions, namely “Licheng Huating Hotel”, which locates ultra-high-end hotel brands, and “Lize”, which is positioned as a high-end full-service hotel brand. "Hotel" and positioning of high-end specialty hotel brand "Li Cheng Rui Xuan Hotel". According to the current plan of Licheng Hotel, the number of franchise hotels will exceed 50 at the end of this year, reaching 250 next year and reaching more than 500 in the following year.
It is worth noting that Licheng can bring replicable systematic management, systematic marketing experience and modular tools to high-star single hotels and hotel groups to help Licheng's partners quickly expand in market size and competition.
In recent years, the competition in the hotel industry market has become increasingly fierce, and hotel branding has become more and more obvious. On the one hand, budget hotels are constantly upgrading, diverting the flow of customers in the mid-end market. On the other hand, the brand grouping of high-end hotels is gradually increasing. Insiders pointed out that compared to single-hotels, hotel group management can not only form a brand effect, but also form group management, intensive procurement, and save hotel expenses.
A hotel group management said that in the current domestic high-end hotel market, domestic brand groups account for a relatively low proportion, mainstream high-end hotel brands are foreign brands, and due to the existence of a large number of domestic single hotels, for domestic high-end hotels, hotels Branding still has a lot of room for growth.
Insiders pointed out that Ctrip's move to establish a hotel brand is to enter the hotel industry through the background data and strengthen its control of hotel resources. Besides Ctrip, other OTAs such as Alibaba and Shiji are interested to enter the hotel industry too. There will be more competition in the hotel reservation market.
