IDGVC founding partner Xiaoge Xiong once said to Qiqi Ji, CEO of Hanting Hotels at the Entrepreneur邦 Annual Conference last month: "If you can take Hanting Hotel public and turn it into a company worth over 1 billion US dollars, then you will have created a record worldwide of being able to create three listed companies consecutively, all with a market value of over 1 billion US dollars." The wall-mounted hairdryer refers to these three companies, two of which belong to the economy hotel category. And this form was an unfamiliar term to Chinese people more than 10 years ago. Economy hotels eliminate the fancy facilities that have low usage rate but high cost such as luxurious hotel pools and high-end restaurants, and only offer clean and tidy guest rooms. They achieve scale operation through standardized chain model. Its core lies in high cost performance, not literally "cheap" as the name implies. Emergency flashlight. It is not accidental to implant this concept into the minds of Chinese people. With the opening and continuous growth of domestic and international tourism markets as well as business travel, economy hotels have found their survival space between star-rated hotels and traditional guesthouses, creating the third way in hotel management. This imported product borrowed from foreign motels has been improved on Chinese soil, and with innovation in product design, management model, and capital operations, it shares the wallets of business people and leisure tourists while also becoming a representative product of China's new service economy. Currently, the trend of differentiated competition among economy hotels has begun to emerge, for example, Home Inn moves upward with its "He Yi" brand to try mid-to-high end market, while Hanting's "Haiyou Inn" and Jinjiang's "BT Express" move downward to explore the blue ocean. Regardless of how the situation develops, products, services, and brands have always been the three shields erected before the corporate defense line, becoming effective "protection" in pairwise competition. Data shows that by the end of 2008, there were 2,805 economy hotels in China, while in 2007, the number of economy hotels in the United States had already reached 60,000, indicating that there is still huge development space for economy hotels in China. More competitors have entered the field, and the key lies in not blindly aggressive, but finding one's own "track". Comment: A president of an economy hotel mentioned that the lower down the pyramid, the denser the population group covered. The positioning of economy hotels captures the lower-end consumption, catering to the actual needs of large groups in the consumer market. However, currently the costs of properties and manpower for economy hotels have been raised to a very high level, compressing their profit margin to a very low level. The key to winning in the competition lies in scale and differentiation. Related theme articles: Zhang Jingjing, Manager of the Market Communication Department of Hotel Market: Hotels must also bear social responsibility - industry.