Research On The Innovation Of Hotel Business Model

As the low level price competition due to an excess of similar business models continues in our domestic hotel industry, it has become more and more evident that innovation is inevitable for the market players to enhance their enterprise competitiveness. However, there are very few innovation theories and methodologies in hotel industry today, until the emergence of Business Model Theory, which sparks a brand new way of thinking for innovation. Through the analysis of hotel operating environment and enterprise value system, this paper examines the elements of the hotel business model based on Weng Yunyi's Business Model Theory, and discusses the incentives, timing and means of hotel business model innovation from the system perspective.The first chapter of this paper describes the research background, methodology and concepts, technical structure and research significance of this study. The second chapter reviews the domestic and foreign business model theories, and introduces the concept of the business model——the organic composition of various elements to create and achieve value. The third chapter proposes the elements of hotel business model based on the analysis of operating environment and enterprise value system. This chapter also performs an analysis of the typical hotel business model, which serves as a prerequisite basis for business model innovation. The fourth chapter takes a closer look at the innovation of the business model, including incentives, timing, and means, as well as issues in actual operation. The fifth chapter presents a case study of Home Inn to further illustrate hotel business model innovation. This chapter identifies and examines the major elements of Home Inn business model, and analyzes the main innovation paths.This paper highlights the interface remodeling of the hotel operating environment, and the examination of the relation between customer interface and hotel internal environment. It also breaks down the hotel enterprise value system, and divides it into value-creating sub-system and value-achieving sub-system. The paper also identifies the core elements based on an analysis of hotel business model elements. Lastly, this paper discusses the ways and means for innovation through both core elements and marginal elements. However, this thesis lacks further inquiry of the association between the elements of business model innovation, as well as the ways to innovate the elements structures.