Research On The Business Model Of Value Innovation-based Economy Hotel

Nowadays, economic hotels have attracted more and more investmentsfrom the tourism industry, facing the increasing market demand, andincreasing mature market environment, domestic and foreign brands oneafter another enter China’s economic hotels market. At the same time,the rapid market expansion is leading to the increasing fierce competitionof economy hotels market, product homogeneity is really severe, economyhotels has become “noneconomic”. At the beginning of economic hotel’sdevelopment, unique and innovative business model ever leaded our hotelsinto the economic hotels, opened a blue field with great profit, as themarket competition becoming more and more fierce, if economic hotels wantto gain development deeply, the innovation of economic hotel’s businessmodel will be a problem pressing need to be solved.The paper analyze the current situation of economic hotel’s businessmodel, summarize related theoretical study, and compare the economichotel with traditional hotel. based on these researches, we put forwardthe study on business model for economy hotel based on the value innovation.Through analyzing the current state of development and competitivesituation of economy hotel with qualitative analysis method, based on thisstudy and combined with value innovation, we define the business modelof economy hotel, and find out that the cost and value centric design ofbusiness model can bring the advancement together of company and customervalue. Reconstructing Markey boundary may find new profit engine foreconomy hotel. In this paper, we construct the business model based onvalue innovation for economy hotel through reducing the input of fixedcosts, optimizing human resource structure, enforcing chain store, establishing market position, developing network marketing, buildingbrand idea and so on. The paper take Home Inn for example, simplyintroduce the development history and statement of HMIN, put forward theproblems existed in the business model of HMIN, and according to the study,propose recommendations for business model innovation of HMIN.