(Reported by this publication) Reporter Liu Heping reports: On the afternoon of October 20, 2016, a seminar on integrating hotel resources and developing brand markets, organized by the Sichuan Provincial Association of Female General Managers in Tourism and Hospitality, was held at the Galaxy Dynasty Hotel in Chengdu. 

  Tourism and hospitality experts and executives from both China and abroad engaged in lively exchanges and discussions on topics such as the current economic slowdown, declining operating profits in the tourism and hospitality industry, ways to overcome these challenges, and how to cultivate new sources of economic growth. The event had all the makings of a “Mount Hua Sword Summit.”

  Qi Yandong, General Manager of Beijing Youyouzhu Hotel Management Co., Ltd. (hereinafter referred to as “Beijing Youyouzhu”), attended the conference as a keynote speaker. In light of the current economic situation, “Beijing Youyouzhu,” after extensive research and careful consideration, decided to partner with the Sichuan Provincial Association of Female Hotel General Managers to establish a presence in the Southwest region and tap into new markets.

  At the meeting, General Manager Qi Yandong explained that following a recent fact-finding tour of more than 10 hotels in Sichuan, the company had made a strategic decision to expand into the Southwest market and had developed a comprehensive “business plan.” In his remarks, he told everyone that the “Youyou Pinke” brand was created by a group of designers born in the 1980s. Founded in 2007, the company has previously provided design services for hotels such as “Marriott” and “Hilton.” We have 13 years of experience in the design industry and have a particular passion for the hotel sector. In 2014, amid national economic restructuring, when star-rated and business hotels were facing challenges, what should we do? We leveraged our strengths to develop “Youyou Pinke.” This is our third visit to Chengdu. We’ve surveyed 17 or 18 hotels in the Chengdu market, analyzed and assessed the operational environment and pain points of independent hotels, and identified 11 promising properties. However, they all share a common problem: a lack of differentiation, outdated facilities, and rising costs—such as rent and labor—leading to aging hotel offerings. This has had a significant impact on independent budget and business hotels. Changes in travelers“ preferences have also led to a decline in their revenue. After years of research, we’ve developed our own unique concept: ”Youyou Pinke.“ We’ve put together a ”business plan“ to share with everyone. Our development model can be summed up in eight words: ”Development through Altruism, Mutual Benefit, and Win-Win.“ ” “Youyou” stands for lodging; “Pin” represents cultural and creative products; and “Ke” refers to the value-added services we provide—including long-term guest engagement and repeat business. Based on this philosophy and to advance the hotel industry, we named our company “Beijing Youyouzhu Hotel Management Co., Ltd.” Over the past three years, we have achieved breakthrough progress within the industry. Currently, our average occupancy rate across four hotels has reached over 851 TP3T. We’ve distilled this into a model we call the “Themed Internet-Based Operations Model.” Each hotel has its own IP, and this model comprehensively covers the entire hotel operations ecosystem. We weren’t originally experts in the hotel industry, but after three years of research—spending two to three days a day visiting hotels—and attending numerous hotel management conferences, we began to ask ourselves: How should hotels adapt in the face of the internet’s impact? What can hotels do in the internet age? What new possibilities lie ahead for hotels? We are not merely in the service industry; we are an integral part of the tourism sector. Therefore, we use hotels as a gateway to create an online presence. By amplifying hotel information online, we generate greater value. This is our vision, but everything must be considered from the perspective of customer value—focusing on resolving travelers“ hassles and creating enjoyable travel experiences. It’s not that hotels can’t do this—it’s that they choose not to. The release of the ”13th Five-Year Plan“ this year presents a golden opportunity; we launched this brand back in 2014. The tourism industry has become the ”engine“ driving medium-to-high-speed economic growth; it is set to become a new driving force for economic development; to ensure coordinated economic and social development, the tourism industry must serve as a ”stabilizer“; Tourism is a vital safeguard for improving people’s living standards; it is a key pathway to enhancing national quality and social civility; and it must play a crucial role in advancing ecological and environmental improvements. For three years, I spent almost all my time flying around, working as a designer for mid-to-high-end brands. Whenever I arrived in a new place with no friends, I’d check into a hotel, and my first question would always be, ”Where should I go to eat?“ No one would tell me, so I had to figure it out on my own. This pain point had a profound impact on me. Market research revealed that consumer satisfaction with budget hotels did not exceed 45%, with the only positive aspect being their low prices. I discovered one key insight: the middle class possesses strong purchasing power. Among the middle class, less than 5% choose branded hotels for travel; online reviews account for 17%, and recommendations from others account for 8%. Regardless of economic fluctuations, 23% choose where to stay based on price. The development of budget hotels and related products is accelerating rapidly. For example, ”Home Inn“ is constantly launching new brands and opening new locations right next to existing ones, leading to a rapid increase in homogenized competition. The mainstream consumer base used to consist of people born in the 1970s and 1980s, but now it’s those born in the 1990s and later. Travel patterns have diversified—whereas people used to join group tours, now they simply pick up their phones and go. Where are the guests? On the internet and their smartphones. Consequently, a group of designers created the “Youyou Guest Light Luxury” hotel brand. Centered around the hotel and focused on urban cultural tourism, it targets the middle class to create consumer experiences, develop cultural and creative experiences and social services in the hotel’s vicinity, resolve travel hassles, and make travel enjoyable. We’re building an urban cultural tourism ecosystem service platform. Our “light luxury” is about creating a relaxed and free way to travel—a lifestyle that embodies self-expression. Our hotels feature their own PM and app, connecting guests to experiences such as dining, creativity, shopping, lodging, activities, attractions, cultural and creative offerings, socializing, and transportation—all of which you can enjoy during your stay with us. Our focus is on enhancing the guest experience. Over the past three years, we have established six “Youyou Guest Light Luxury” hotels, four of which have broken away from traditional business models.

  At the meeting, Li Guiqin, President of the Sichuan Association of Female General Managers of Tourism and Hospitality, spoke on behalf of the association, offering a high-level overview of fundamental approaches and strategies regarding issues such as “How to Leverage Integrated Strengths to Accelerate Transformation and Innovation” and “Letting Innovation Guide the Sustainable Development of Sichuan’s Tourism and Hospitality Industry.” Liu Bin, General Manager of the Market Development Department at Chengdu Celebrity Hotel Group; Zhu Xiaorong, Vice President of the Italian International Association for Cultural and Economic Development; experts in the tourism and hospitality sector; and Lü Jianjun, General Manager of Sichuan Haiyu Tourism Investment Co., Ltd., respectively engaged in lively exchanges and discussions on topics such as large-scale hotel alliances, international cooperation in the tourism and hospitality sector, and the trend toward “homestay”-style accommodations in the industry.

  The delegates agreed that, although the current economic climate is placing significant pressure on the hotel industry, in the era of the “Internet Plus” knowledge economy—and driven by the powerful momentum of mass entrepreneurship and innovation—it is now imperative for the traditional hotel industry to update its business philosophy. It is now imperative to incorporate an Internet-based mindset, use innovation as a driving force, break free from current difficulties, seek new sources of economic growth, and steer the traditional tourism and hospitality industry onto a completely new path of development.