Research On Innovation Of Business Model For Chinese(National Brands) Economical-type Hotel Chains

In the past two decades,the industry of economical-type hotel brought up several well-known hotel brands. However, with the continuous decline of the overall industry profits, the consumer market gaining its maturity,and the rapid development of new technology and notion, Chinese(National brands) economical-type hotel chains start entering into the transition stage. At the same time, as Chinese economy has reached "new normal" phase, companies, as an vital player in the market economy, need to search new profit growth opportunities and form core competence by innovation and reform, and business model innovation just is a long-term competitive advantage in gaining access to the fundamental guarantee.First of all, this paper define the definition of economical-type hotel and business model, and then determine the scope of this research. Secondly, after full study on the related theory of business model, this paper build a general process of business model innovation(BMI) from three aspects of advance, going on, afterwards, and make a theoretical explanation for it.Unlike the past research on BMI path with single factor analysis, this article provides three basic paths. Thirdly, according to the established flow of BMI, this paper analyzes economical-type hotel chains’external business environment from several aspects, and combined the macroscopic and micro analysis of BMI on economical-type hotel chains, sums up five problems faced by economical-type hotel chain. Finally, the article extracts two thinking about BMI through pointed analysis on Huazhu Hotels Group Ltd. After finished a series of analysis, the paper make following suggestions:(1) Extend far into 3rd and 4rd tier provincial cities; (2) Active use Large Data; (3) Cooperate with competitors; (4) Change the old strategies on marketing; (5) Expand new business; (6) Build OTA by themselves.