Chapter 1169 – mbers
Feng Yu crossed his legs and finished a can of Qi Li Energy Drink before Zhong Qingxian returned. He had forgotten that his daughter is staying with his wife.
“Manager Feng, I will get my n to start restructuring our guesthouses. After that, we will use our available funds to acquire the guesthouses from our subsidiaries. Can you help inform Bing City Machinery Manufacturing Group?”
“Eh... eh... eh... I haven’t finished.” Feng Yu stopped Zhong Qingxian from leaving. “How many guesthouses do we have?”
“Bing City, Shenyang, Beijing, Tianjin, Xianyang, Shanghai, Jinlin, Sichuan, Xian, Shenzhen, Guangzhou, Hefei, Ningbo... a total of 24 guesthouses. This is quite a lot, right?”
Feng Yu shook his head. “The scale of this hotel chain should be bigger. Firstly, every Province city and the bigger cities must have our branches. Cities like Beijing and Shanghai should have more than one branch. We must also advertise for Yue Lai Inn. This way, it will be faster for us to set the standards.”
“Can we cope with setting up so many branches at once? We still need to look for suitable locations to set up new hotels. Are you saying that we acquire existing hotels?”
“Acquire and renovate. This will be faster, and these hotels have existing custors. Rember, we must pick the best locations. This way, the occupancy rate will be higher.” Feng Yu reminded.
“This is easy. We will just pick the hotels near our Tai Hua Hypermarkets. There are many small hotels around our Hypermarkets, and it’s not too troubleso. But our investnt will be much higher.”
“Don’t worry about this. We can surely get high returns from this investnt. Our pricing must be lower. How much are our guesthouses charging for a standard room?”
“Around 60 to 100 RMB. The rates in different cities vary as the standard of living are different.”
Is this cheap? Feng Yu rembers he had stayed in an hourly rated hotel with his wife in his previous life, and it cost around 80 RMB.
The small motels in so cities only charge 20 to 25 RMB for a room now. The rooms do have hot water and a TV. But the TV is not clear, and the hot water is only for specific timing. The rooms are also very small, and so don’t even have windows.
The rates for bigger guesthouses range from 50 RMB to a few hundred RMB, as it is based on the rooms’ facilities.
So bigger five-stars hotels charges from a few hundred RMB to a few thousand RMB per night. These five-stars hotels are targeting the high-end segnt and are very expensive.
“How much do you think we should charge for our rooms based on all the facilities I ntioned earlier? Do you think we can raise the prices slightly?”
“Raise prices? Didn’t you say this budget hotel must be cheap?” Zhong Qingxian is confused.
“But our services and rooms are better. Our rooms might even be better than so hotels with star ratings. If other hotels want to have the sa standards as our rooms, their managent and other costs will be higher than ours. This way, our profits will be higher than them provided their rates are the sa as ours.”
“Alright. Conduct market research and see how much do those normal hotels, guesthouses charge. Also, compare the prices of those three-stars hotels. Oh, conduct a survey for those salespeople to see how much they are willing to pay for a hotel room. As for our prices, I think it should be fine if we raise the prices by 50%.”
“What? We are going to raise the prices by so much?”
“Is it a lot? 60 RMB will be increased to 90 RMB, but our services will be different. We want to be different from those cheap motels. We can’t be charging the sa rates as those motels after so many investnts, right? Although we will not lose to them when it cos to a price war, it will lower our standards.”
“They might not want to stay with us if we charge high rates. So existing custors might choose other hotels.”
“Old Zhong, I had used Tai Hua Supermarket as an example earlier. Why are you so slow? Tai Hua Supermarkets have a tactic to attract and maintain their custors. mbership cards!” Feng Yu reminded.
“You are saying this hotel chain can also implent mbership cards?”
“Why not?” Feng Yu asked Zhong Qingxian. “The benefits of the mbers is they can get discounted room rates based on their mbership level, make advanced bookings, and get priority for the rooms.”
“Discounted room rates?”
“Of course. It’s fine to charge higher prices during peak season. But during the off-peak season, we must have so promotions, especially for our mbers. We must let them feel it’s worth being a mber of our hotel chain, and they will think of our hotels in the future when they are looking for a place to stay. Also, they will bring their friends to stay with us. Although not everyone will want to beco a mber, retaining existing custors will be beneficial to our sales.”
“How much discount should we give?” Zhong Qingxian asked.
“The discount will be based on the different mbership levels. We can give 5%, 8%, 12%, 15% and even 20% discounts off their room rates. This way, we will only be increasing our room rates by 20 to 30%. With our better rooms, I believe more people will choose to stay with us. Regardless of the mbership levels, we will provide breakfast vouchers, and it will be limited to two people per room.”
“Oh... the breakfast nu should not only consist of at buns, congee, etc. We must give our guests more variety. It will be like those buffets, and the guest can pick what they want. This will make them feel the breakfast is worthwhile, and ordinary guests can buy breakfast vouchers if they want. But the vouchers will cost at least 10 RMB!”
“Breakfast will cost 10 RMB? Is it too expensive?”
“Get them to beco a mber. mbers will enjoy breakfast for free and still get discounted room rates.” Feng Yu replied.
Zhong Qingxian laughed. “You can still think of promoting our mberships through breakfast. Then, how much should we charge for the mbership?”
“It should be around our losses from three-room rates. After that, we can introduce so incentive sches for the mbers. For example, a free upgrade of mbership level after the mber had stayed with us for a certain number of nights. Cigarettes and drinks will have discounts, etc. You all can go figure out the rest.” Feng Yu is lazy to think anymore.
Feng Yu only know these and nothing more.
Zhong Qingxian is deeply impressed. Manager Feng is good at any business. I had only made a suggestion, and he can state so many great ideas on improving the business. He is such a genius.
Reviews
All reviews (0)