Study On The Outsourcing Decisions Of Budget Hotels In China

With the development of mass tourism and business tourism in China, budget hotel which is famous for its economy, standardization management and good brand image, will have a promising future. At present budget hotel is experiencing a rapid growth in China and the hotel chain groups are accelerating their speed of opening new hotels in order to improve market shares, form scale economy advantages and seize the"number one"position of the industry. In this process of rapid growth, resources such as capital and maintaining high quality service are two major problems for the budget hotels which may cause the break of resources chain and loss of customers if not handled well so to risk the survival of budget hotels. How could budget hotels provide high quality service to customers with limited resources? Outsourcing is an effective way to solve this problem..This study focuses on the building of outsourcing three-dimensional decision model using the three factors of Function Importance, Comparative Advantage and Outsourcing Market Maturity. Compare with present outsourcing decision models, this three-dimensional decision model takes internal and external factors into consideration and is more practical and comprehensive. At the last part of this study, we apply the outsourcing three-dimensional decision model to the budget hotel industry of China and provide specific advices for the outsourcing decisions. This study is in consistence with the current market expand strategy of budget hotels in China and aims to help the rapid and healthy development of budget hotel industry.