Change the control price with the guarantee, share the risks and share the benefits.

Advance inventory single hotel integration, following the OYO hotel

Image from Qianyu

In March of this year, OYO Hotel acquired the accommodation brand “Kanyu Islands”, which was run in OYO. After the 2.0 model, Qianyu also quickly followed its own 2.0 model.

In the

2.0 model, the relationship between Qianyu and the franchisees has changed from the original “payment of franchise fee and simple levy from revenue” to the provision of product upgrade plan and financial support for Qianyu. The two parties share the risk. And share revenue.

The core is reflected in the fact that Qianyu provides hotel owners with “product upgrades” and “revenue guarantees” and is deeply involved in the daily operations of the hotel. The essence of this move is to change the price of the guarantee, and through the cooperation mode of the guarantee, get the decision-making power of the hotel, with the help of big data science price adjustment, brand The fine-grained operation of traffic import and intermediary channels enhances RevPAR, which enables the cooperative owners to achieve comprehensive benefits. Disassembled, there are three points worth noting:

First, the company will give the owner the guaranteed amount in the month according to the historical income of the hotel. The bottom-line revenue is distributed according to a certain percentage; this piece may bring higher returns than the original extensive cooperation, and both parties benefit together.

Secondly, through the guarantee, Qianyu has the decision-making power of the hotel, precisely regulates the sale price of the room; realizes the balance between cost, price and occupancy rate to increase the comprehensive revenue.

Third, cooperative hotels are forced to use the PMS system of Qianyu; thus, Qianyu can fully obtain the core business data of members, guest rooms and revenues of the franchisees.

There has been many reports on Qianyu, which was established in 2017 and is one of the first companies in China to try to integrate existing stock hotels.

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