Study On Developing Problems Of Economic Hotel In China

Chinese tourist industry started with inbound tour, whose main customers were foreign and business visitors. As one of the pillar industries of tourism, hotel industry started from development of luxury hotels, which made the development of middle and high level hotels the mainstream of the industry. With increasing of the openness and the development of domestic travel, the customers at home and abroad grow rapidly including large amount of salaried class and common business travelers, which makes imbalance of hotelsupply situation. After a new hotel form------ economic hotel appears, the hotel supply structure in Chinahas been changed, which is welcomed by consumers for its operation model, marketing positioning and product price. So, how to increase development of economic hotel in our country, to promote its healthily, rapidly and stably development will be an important research topic.This paper attempts to build a theory foundation of economic hotel development based on enterprise operation, industry economic principal. It also provides a frame of reference on the basis of the analysis of features and stages of economic hotel development abroad. It states the advantages and obstacles by using Porter competition model. It then proceeds to demonstrate that the increasing competition is the result of lower entry and exit barrier. Therefore, it is essential to combine leading and differentiation strategies by integrating resources, reducing cost and innovating products.This paper emphasizes on the analysis of market demand and supply of economic hotels. With the methods of data statistics, questionnaire survey and SPSS, it also identifies the customer features, consumer behavior from macro and micro facets respectively. It lays a good foundation for market positioning, product design and quality management.This paper introduces the franchising method that should be taken in the market of China's economic hotel to expand further scale and reduce the cost. Three franchising medels of foreign countries have been mentioned in this paper, it also make SWOT analysis for economic hotels in China in order to show that enhancing strategies must be conducted.As far as the cost-effective is concerned, it raises the idea of strategic management of cost. By analysis of the value chains and the cost agent, it raises the idea that the key of cost-control is outsourcing the unnecessities of the core business and establishing flat organization structure, and the idea of reducing investing and operating cost of economic hotel. This paper supply quota reference for selecting outsourcers and reducing outsourcing cost.Finally, according to the general status of economic development in China, this paper also renders reference for governments and enterprises on decision-makings to ensure sustainable development of economic hotels in China.