Overview on Jin Jiang in China
Established in 1996, Jinjiang Inn Hotel is a well-known brand of the Chinese economy hotel chain. With the registered capital of 172,970,000 yuan, the company, in total, signed 899 budget hotels till 30th Nov. 2012. The network is widely distributed in more than 200 large and medium-sized cities in 31 provinces across the country, equipped with nearly 110,000 rooms. Now people can easily gain access to Jinjiang Inn Hotel via Internet and book a room through ctrip, Elong, and Qunar.
Fiancials of the Hotel Chain
The annual rate of return has reached 10% and even higher, early in the 2004, its annual profit was already 24%. With more than 5000 regular members, the hotel is mainly competing with express hotels as Home Inns and HANTING Inns & Hotels. In the value chain, the most profitable part is gust rooms, the revenue accounted for nearly 90% of the total revenue; the overall GOP rate is about 60%, while the GOP rate of gust rooms can gain around 75%. Thus, the revenue of Jinjiang mainly comes from room business.
Why Jinjiang Inn Hotel Is So Successful? A market report
To start with, Jinjiang Inn Hotel first introduced high-end products of a low-budget hotel. The budget hotel market can be subdivided into high, medium, and low market. Currently, the budget hotel is mainly concentrated in the mid-market. Jinjiang Inn Hotel seized this vacancy, and launched low-end and high-end products. The price of low-end brand room is between 100-150 yuan per night. The target consumers are mainly price-sensitive people, such as business people and family tourists. The price of high-end brands is 250-350 yuan.Besides, products of Jinjiang Inn Hotel have already updated to the fifth generation—i-generation, and products are more humane and suitable for business travelers. This generation embraces a green concept–Jinjiang Chef, which devotes to introduce Jinjiang’s high grade dining culture into ordinary diet, and reduce costs through the chain while providing customers with a wonderful meal just in the hotel.
Business Plan for Hotel Chain JinJiang
At present, more than 80% consumers of Jinjiang Inn Hotel are business FITs, members of Jinjiang contribute to 35% consumption, and the number keeps growing. The goal facing the Jinjiang is to develop 2,000 hotels with totally 200,000 rooms. For Jinjiang Inn Hotel, it is vital to shape the brand in response to its business strategy. The company should have a better sense of targeted consumers, transfer the brand’s value more clearly and efficiently to its customers, use a more coordinated words and vision language to consolidate the brand’s image.
Edited by Jasmine Wang from Daxue China Consultants.
Picture source: Baidu Image
