During CHAT Shanghai 2015, Mr. Murphy Zhu, Head of Development of InterContinental Hotels Group, pointed out the close-mindedness of the current China hotel market. What are the innovative income sources? How can we achieve those?
Hotel is usually a component of commercial or tourism real estate developments, so it should interact and integrate with other available busines or industries to form a “win-win” partnership. For example, a hotel can partner with its surrounding business to design products or services (even some non-traditional-hotel options) for sale based on both parties’ respective strengths. Mr. Martin Yang, Vice President from Zhejiang Seclusion Group, even raised the idea that hotel is the best “O2O platform” as it offers a space for the customer to stay in for a rather long period of time. In this sense, a hotel is indeed the best venue for product display and experience. According to Mr. Yang, the displays and amenities at Seclusion hotels are all available for sale online or offline with home delivery service. So far, this has contributed 15 percent of the total revenue for these hotels. At this moment, arts and culture are the most compatible and valuable elements that successfully combined with hotels, but the industry should not stop here without actively seeking for opportunities to work with other new industries.
On the other hand, “giving up” is also critical when trying to create new income for the hotels. When some hotel functions neither work well nor make profits, we should reconsider if it is necessary to keep them. If there were no better way to improve the “loss” condition, “giving up” and converting the areas to other profitable functions would also be a strategy to create new income.
There are no absolute directions or limitations on the path of innovation. But Mr. Zhu proposed 7 dimensions to guide the thinking and exploring process, which are: location, space, time, products, services, brand and team. Each of the above dimensions can be extended to look for potential innovative incomes, such as using the popular public space for exhibition and promotion, and introducing the use of health care products and services during the guests’ sleeping time. We have to stay clear of hotel’s old way of thinking and keep an innovative mindset on our path. We are the ones to create future!
Horwath HTL has created a new brand identity – CHAT, tailored for China’s hotel and tourism industry! CHAT, the abbreviation for China Hotels And Tourism, encourages industry people to gather, create dialogue and network through the platform, as well as exchange and share experience and knowledge. CHAT Beijing is an enhancement of the “China Hotel Development and Financing Conference”, which has been held for eleven years in Beijing. We further focus the conference specifically on hotel and tourism development and investment issues. There are 650 delegates attended 2015 CHAT Beijing with the largest segment being domestic hotel and tourism developers and owners. CHAT Shanghai is an upgrade of our annual “China Hotel Market Review and Outlook Seminar”, which has been held over the past six years. CHAT Shanghai focus on hotel asset management and operations. 510 delegates attended CHAT Shanghai in September 2015. CHAT Beijing and CHAT Shanghai held in Spring and Autumn respectively cover the full hotel and tourism business cycle from development and investment to asset management and operations. CHAT will enable you to achieve successful business development through its various powerful platforms!
About Horwath HTL
Horwath HTL is the management consulting of Crowe Horwath International that specializes in hotel, leisure and tourism industries. Established in Asia in 1987, Horwath HTL has consulted about 4,000 hotel and tourism related projects throughout the region (including over 1,200 projects in China) for clients ranging from individually held businesses to the world’s most prominent operators, developers, lenders, investors and industrial corporations. Horwath HTL now operates offices in several key cities throughout the Asia Pacific region, including Auckland, Beijing, Hong Kong, Jakarta, Kuala Lumpur, Mumbai, Shanghai, Singapore, Sydney and Tokyo. Our offices work closely together to ensure that our clients receive a multi-skilled international perspective for their projects. Horwath HTL is also supported by the Horwath database, the largest and most complete hotel and tourism related database in the world. No other firm is better positioned to meet today’s and tomorrow’s industry challenges than Horwath HTL – Experts in the hotel, tourism and leisure industries.