The Research On Promoting China's Hotel Grouplisation By Business Model

Since the reform and opening-up, Chinese hotel industry has been developing at an alarming rate from scratch. In the more than 20 years, the number of hotels increased of 100-fold and is expected to add other various types of accommodation facilities by about 200,000. About the quality of development, the Chinese hotel industry never stopped learning from hotels abroad, either in hardware or software. So, either in the scale and facilities in the industry quality, or in the business concept and on the management level, Chinese hotel industry has made remarkable progress. However, compared to the rapid development of monomer hotels, the development of Chinese hotel groups is not so optimistic. After China's accession into the WTO, relied on their sophisticated business model, foreign hotels (hotel groups) quickly entered into Chinese hotel market which Chinese monomer hotels obviously could not resist. Therefore, the development of Chinese hotel groups is a matter of urgency.At present, China is already a large country of tourism, but is far from strong. One of the most important points, which is also our weakest aspect is the lack of large and powerful hotel groups. The business models focusing on product development are being challenged by new market laws, so innovation and new paths are in urgent need. Belonging to service industry, hotel industry has a totally different path of development from the manufacturing industry, which means it can not rely on the core technology innovation for development. Studies found that the use of business models has become important means of development by leaps and bounds for Chinese hotel industry. Investigating in promoting Chinese hotel groups by leaps and bounds by means of business models, which rises from the concentration in product to business models, is just this article's point of innovation.Only two ways can lead Chinese hotels to success: characteristics and grouping. This paper focuses on grouping research. Firstly it reviews the formal literature research of hotel group, business model and business model of hotel groups, sets up relevant definition and builds up the frame of business model of hotel group in order to lay a theoretical foundation for the entire article. After qualitative analysis of Chinese hotel industry and the relationship between business model and the development of Chinese hotel industry and quantitative analysis of market structure of Chinese hotel industry, this article draws to the conclusion of the low performance, decentralized structure and the irreplaceable promoting role between business model and Chinese hotel industry which explains the reason to choose business model to promote the development of Chinese hotel industry, the importance and supporting role.Then in accordance with the foregoing theoretical foundation as well as practical importance and under the inspiration of several cases, this paper attempts to raise proposals of the five normally used business models- owned hotel, management contracts, franchising, leasing management and strategic alliance- in the development of Chinese hotel grouping in order to guide the practical application. After that, the paper summarizes obstacles during the using and innovation of business models, such as local protectionism, administrative relationship constrains, unclear property rights, capital market imperfections, unclear business strategy, lack of a genuine sense of hotel entrepreneurs, lagging booking network as well as low brand influence. At last, this paper specifically sets up the government, market, innovation and industrial upgrading mechanisms so as to ensure the correctly choosing, using and innovating of business models and rapid development of Chinese hotel industry.