Chapter 622 Jinjiang Star
Lin Yuzhen did not doubt Lu Yiming's financial resources, she was just puzzled by Lu Yiming's behavior: "Are you really going to buy it? When I was putting my luggage away just now, I saw that many room doors were open and no one was staying. The vacancy rate of this hotel is very high. This is a hotel at the entrance of the scenic spot. If it is a hotel farther away, wouldn't there be even fewer people staying there?"
Lu Yiming was a little surprised and said with a smile: "I didn't expect you to be so observant."
Lin Yuzhen raised her chin proudly when she heard this: "Of course, I'm very smart."
Lu Yiming smiled and said, "At present, the hotel industry in Xia Country is indeed facing scattered and fierce competition, so there is a situation of oversupply, which is mainly manifested in the industry's occupancy rate of less than 60%, a large number of guest rooms are left idle, star-rated hotels are struggling, and hotels below five stars are all losing money."
Compared with Lin Yuzhen's simple observation and cognition, Lu Yiming had obviously sent people to conduct a serious research on the entire market a long time ago, so the data obtained was more detailed.
This made Lin Yuzhen even more puzzled: "I remember you said before that if you want to make money in business, you have to find the blue ocean instead of fighting in the red ocean. The domestic hotel industry market is saturated now. It looks like a red ocean, right?"
The theoretical strategies of the Red Ocean and the Blue Ocean had not been proposed by anyone at this time. Lin Yuzhen had only heard Lu Yiming mention it inadvertently before, so she kept it in mind, and then it came in handy at this time.
Lu Yiming smiled and explained to her: "The red ocean and the blue ocean are relative. After all, the essence of business and the market is the flow of money and people. Since it is flowing, it will change in a myriad of ways."
Lin Yuzhen asked in confusion: "What do you mean?"
Lu Yiming said: "The reason why the hotel room market in Xiaguo is saturated is not because the needs of customers have been met. On the contrary, the existing market cannot provide customers with the products and services they need. There are also some force majeure, such as the unhealthy and disorderly competition just mentioned. Therefore, the development of the entire industry has fallen into stagnation. "
Then Lu Yiming gave Lin Yuzhen a detailed analysis: "Have you noticed? High-end hotels are often clean and luxurious, but not economical, while economical hotels, even many three-star hotels, are neither safe nor hygienic. This is the fundamental reason for the low hotel occupancy rate. Good hotels are unaffordable, and bad hotels are not available."
Lu Yiming said: "When Ji Qi, the founder of Home Inn, founded Ctrip, he analyzed the data of online hotel booking. So he saw through the surface phenomenon of oversupply of quantity and the essence of insufficient supply of quality - customers' demand for accommodation is still strong, and the premise is to provide products that can satisfy them."
It is based on this judgment that Home Inn positions itself in the low- to mid-range market, which is relatively price sensitive but requires hygiene and safety, roughly equivalent to the specifications of two- and three-star hotels.
Obviously, Home Inn chose to enter the low-end and mid-end market.
After all, the source of a hotel's income comes from the flow of people.
Lu Yiming said to Lin Yuzhen: "The essence of any business behavior is to study the needs of the market, because only when you understand where the demand is, can you make a profit by meeting this demand."
Lin Yuzhen was convinced: "I see, it seems that your investment in Home Inn must have been a decision made after careful consideration."
Then she added: "Is it really okay for you to tell me this kind of business secret?"
Lu Yiming smiled and said, "This is not a commercial secret. In fact, the National Tourism Administration has already done statistics, and the data is also public. In our Xia country, leisure tourism and business activities account for the vast majority of urban residents' travel purposes, about 75%."
"The booming development of small and medium-sized enterprises has provided the necessary industry soil for the growth of express hotels in Xiaguo. Most business people who need to travel prefer economical prices due to insufficient corporate budgets, but they also require convenient and hygienic accommodation and thoughtful services. In fact, in addition to Home Inn, express hotels have long been targeted by others."
When Lin Yuzhen heard that someone had gotten this business earlier than Lu Yiming, she immediately became curious and asked, "Who is it?"
Lu Yiming said: "Jinjiang Star Hotel."
He stood up and said, "Okay, I'm going to buy this hotel."
He came to the front desk and found the boss he had just met.
The boss was shocked when he saw Lu Yiming coming over and thought that Lu Yiming was going to cause trouble for him. He had personally seen Lu Yiming's bodyguards pin Huang Wenyang to the ground and he had also seen the patrol team bowing and nodding to Lu Yiming. He knew that he could not afford to offend the young man in front of him.
Lu Yiming leaned half of his body on the front desk cabinet, tapping his fingers lightly on the tabletop, and asked, "Boss, are you selling this hotel?"
The boss was still trying to figure out whether Lu Yiming was going to ask him to compensate for his mental damages or check out and leave, but when he heard Lu Yiming's words, he was stunned for a moment: "What did you say?"
Lu Yiming said: "I want to ask you if you want to sell this hotel. I want to buy it."
Originally, Lu Yiming thought that the boss would talk to him about a lot of things, but he didn't expect that after listening to him, the boss agreed without saying anything and said, "Sell it!"
This caught Lu Yiming off guard. He asked in surprise, "Eh, so straightforward? Why did you refuse to sell it when my men came to ask you before?"
The boss remembered that someone had talked to him about buying a hotel before, so he said, "Ah, so those people are your men?"
Then, he said to Lu Yiming helplessly: "Boss, it's not that I don't want to sell it. You can see that my hotel has no business at the gate of the scenic spot. I lose money every day I open it. I have wanted to sell it for a long time. But Huang Wenyang won't let me sell it."
"Is there such a thing?"
Lu Yiming didn't understand the inner connection for a moment: "Didn't you say that his family also runs a big hotel? He came here to make trouble to steal your customers. Logically speaking, if you sell your hotel, the customers will go there on their own initiative, so he doesn't need to cause trouble."
"It's not that simple. Look at my place. It hasn't been renovated in years. We are locals here and we are afraid of them, so we dare not oppose anything they say. Their power here is complicated and no one can defeat them. If the boss changes, he won't be able to control it."
Through the boss's description, Lu Yiming gradually understood what was going on. He smiled and said, "Congratulations, you met me. I have negotiated the price of my men with you, right? Just sell them to me at that price, and that Huang won't dare to do anything to me."
The boss had seen Lu Yiming's methods, so he naturally believed that what Lu Yiming said was true. He was a little overjoyed, and said with a look of relief: "If this deal can really be made, then you can finally help me out of my misery!"
Lu Yiming said: "Okay, then I'll ask the person from before to connect with you."
“Thank you, boss!”
After what happened tonight, Lu Yiming realized that the reason why the hotel deal was not concluded was not because of the price. The regional power was still a bit rampant these days, and many business matters were interfered by external factors. Now that Lu Yiming had demonstrated his strong means, everything would naturally fall into place.
China Overseas, Jinjiang Inn Headquarters.
At the regular meeting on Monday, Xu Zurong looked at a group of company executives with sharp eyes and asked, "Have you noticed the recent rise of Home Inn?"
When Xu Zurong suddenly mentioned Home Inn, all the executives were surprised.
"Isn't Home Inn currently fighting with Ctrip to the death? What does it have to do with Jinjiang Inn?"
"Yes, we will just sit on the mountain and watch the tigers fight. Then we can take advantage of the conflict between the snipe and the clam."
"We don't know who will win or lose yet, so we are not in a hurry."
As a well-known state-owned enterprise, Jinjiang Star has many of the problems of state-owned enterprises.
Xu Zurong was speechless about the performance of these people, but he had to remind them: "Don't underestimate any opponent. Ji Qi came from Ctrip. Ctrip has been working on online travel-related projects before. He is not completely ignorant of the hotel industry."
But the others obviously didn't take Xu Zurong's words to heart. One of them even laughed and said, "Don't worry too much, Old Xu. Our Jinjiang Inn is not only the pioneer of Xiaguo Express Hotel, we are also the leading enterprise in the entire industry. Even if there are rising stars who want to challenge our dominance, it is wishful thinking!"
"That's right. Even if Rujia wins in the end, so what? Do you think they'd be bold enough to challenge us?"
As the number one economy hotel in Xia Country, Jinjiang Inn obviously has enough to be proud of.
What's more, the backer behind it is Jinjiang International, one of the largest comprehensive tourism enterprise groups in Xia Country, with hotels, catering services, and tourist passenger transport as its core industries, and six business divisions including hotels, tourism, passenger logistics, real estate, industry, and finance.
The registered capital alone is as high as 2 billion, and the total assets exceed 17 billion. It is known as "China Overseas' most influential service trademark"!
Compared with this, what is Home Inn?
In the eyes of Jinjiang Inn's management, it's probably not even a small shrimp.
But Xu Zurong did not dare to underestimate Home Inn. Instead, he reminded everyone: "Don't forget, this is a company invested by the richest man Lu."
Speaking of Mr. Lu, the expressions on everyone's faces began to ease.
After all, a person's reputation is like the shadow of a tree. Lu Yiming walked through a sea of blood and corpses along the way.
"We have to prepare for a rainy day."
Peach Blossom Spring.
Because he helped his boss solve the problem, Lu Yiming successfully acquired the hotel. The next morning, Ji Qi brought people over to sign the contract.
At noon that day, everyone had lunch together.
Ji Qi praised Lu Yiming's efficiency: "You are indeed worthy of being Mr. Lu. I called him before and talked him out of my mouth, but the boss just wouldn't give in. Now, Mr. Lu, you come over and take over the hotel in just a few words."
Lu Yiming smiled and said, "It's really not my fault this time. The boss has another reason for not selling the hotel."
He immediately told Ji Qi what happened last night.
After listening to this, Ji Qi suddenly realized and said, "So that's how it is."
Lu Yiming said: "Now that the hotel is acquired, we can hurry up to renovate it."
Ji Qi immediately promised, "No problem, we'll start right away. Several Home Inns in Zhonghai and Beijing have been fully renovated and are ready for business. The construction period is generally about one and a half months, so it's quick."
Although Home Inn is not the first economy hotel in Xiaguo, it is the first economy hotel brand built using a chain replication business model.
Ji Qi has a unique vision and first-class execution ability. He has successfully established a unified brand, quality and service model in Xiaguo's hotel industry.
Unlike the hotel management model based on the traditional commercial real estate concept, Home Inn adopts a light-asset strategy - leasing and operation, which is why it has been able to successfully introduce venture capital and listing financing, achieving the miracle of doubling its annual revenue and operating profit year after year.
Therefore, in the original history, it took Home Inn only four years and two months to go from scratch to owning 100 chain hotels with more than 11,000 guest rooms and becoming the industry leader.
With Lu Yiming's investment and support, Home Inn will only develop faster and faster.
Not only in Beijing and China Overseas, Ji Qi has already planned to expand into the first- and second-tier cities across the country, opening a large number of Home Inns to seize the market and build his reputation.
Lu Yiming also plans to buy some hotels with appreciation potential as fixed assets to cooperate with the development of Home Inn. When the hotels are renovated, they will be handed over to Ji Qi's team for management. He doesn't have to do anything and just sit back and collect money, which is really great.
After talking about the company's development, Lu Yiming asked Ji Qi another question: "If our Home Inn competes with Jinjiang Inn, what strategy will you adopt?"
When Lu Yiming suddenly mentioned Jinjiang Star, the smile on Ji Qi's face froze for a moment.
In Xia country's fast-service hotel industry, Jinjiang Inn was established earlier than Rujia, and has a stronger backing than Rujia. It is obvious that the two sides are not opponents on the same level at all.
What's more, Home Inn is still fighting Ctrip to the death. If Jinjiang Inn is added to the mix, Ji Qi feels a little scalp-tingling just thinking about .
But since Lu Yiming asked, Ji Qi had to answer. He thought about it and said, "I think we can use the power of the Internet."
Lu Yiming seemed quite satisfied with Ji Qi's answer. He smiled and said, "This is exactly the path I envisioned. In the current domestic fast-service hotel industry, whether it is small hotels that fight alone or large companies like Jinjiang Inn, their demand for the Internet is not high. This is exactly the opportunity for Home Inn. If Home Inn wants to catch up and occupy the top of the industry, it must build a customer source network connecting all over the country."
Ji Qi agrees with Lu Yiming's view: "I also think Home Inn should build its own channels and promote the market. This is the key to success. But doing so will inevitably face pressures of cost and risk."
Lu Yiming said confidently: "You don't have to worry about the cost. From now on, Home Inn will build its own customer source system, especially the central reservation system CRS, which must provide the two functions of telephone and online reservation. Once the user successfully makes a reservation, CRS will automatically send information back to the hotel. Of course, just delivering customers is nothing more than one plus one equals two. If Home Inn wants to establish an unshakable dominant position in the industry, the key is to coordinate and allocate customer sources and find a way to achieve the effect of one plus one being greater than two."
Ji Qi asked: "One plus one is greater than two? How can this be achieved?"
Lu Yiming asked back: "What is the biggest change between the new era and the old era? Do you know?"
Ji Qi thought for a moment and said, "It's the emergence of the Internet."
Lu Yiming said: "That's right. The Internet brings not only technological innovation, but also a revolution in concepts. Many traditional industries can be reborn through Internet thinking. As for Home Inns, I think it is necessary to network and systematize not only the room management, but also the staff management and customer management. We should use the advantages of computers and the Internet to formulate an executable standard and then promote this standard."
Ji Qi was shocked by Lu Yiming's ambition. He was only thinking about how to develop and expand the Home Inn brand, but Lu Yiming was already considering how to set new standards for Xia Country's fast-service hotel industry!
Lu Yiming said: "I think Home Inn needs a hotel management system software tailored for itself, which can unify the modules such as front desk and guest room, and integrate all the branches and headquarters on one platform, so that the headquarters can effectively allocate resources and coordinate the management of branches based on real-time information."
Lu Yiming's idea made Ji Qi's blood boil. There is a saying in the business world that third-rate companies make products, second-rate companies provide services, and first-rate companies set standards. If a company can set standards for the industry, then as long as it does not commit suicide, its position will be unshakable.
After a conversation, Ji Qi understood Lu Yiming's ambitions better. And he was also an ambitious person. The two sides could be said to have hit it off.
"Okay, let's not talk about the other things. Just work hard. Good days are still to come."
After finishing the meal, everyone returned to the hotel.
The location scouting was over, and the next step was to film the show. Lu Yiming would not ask how to film a wonderful show or what guests to invite, because he believed in Chen Xiaoqing's ability.
However, when they just walked to the hotel entrance, they found that there were a lot of people at the entrance and it looked very noisy.
"What happened?"
"Why are there so many people?"
Logically speaking, it's dark now, and there shouldn't be so many tourists coming at this time.
As he got closer, Lu Yiming realized that Huang Wenyang was also among the crowd.
He remembered his previous argument with Huang Wenyang and suddenly understood what was going on.
There is no doubt that Huang Wenyang and his men knew about the hotel transaction. They were not satisfied with the deal and now they brought people here to cause trouble.
"This kid is never done. It seems that if this problem is not solved, this business will be difficult to do."
Lu Yiming muttered to himself, then quickened his pace and walked towards the hotel with Zhao Tiezhu.
