Background:
Mr. Ji Qi, the founder of Hanting Hotel, used the blue ocean strategy to establish the hotel in 2005 and pioneered the budget hotel industry in China. In product design, Hanting eliminated unnecessary facilities in traditional star-rated hotels such as luxurious lobbies, large conference rooms, entertainment and restaurants, and chose to focus solely on the guest rooms. They reduced the room size while enhancing the "cleanliness, comfort, and good Wifi connection" experience. Then they lowered the price to as low as 200 yuan per night. This created a new blue ocean and allowed Hanting to quickly rise in the Chinese hotel market. After Hanting, many other budget hotel brands emerged like mushrooms after the rain. By the end of 2015, the number of Hanting hotels had reached over 2,000, and the total number of economy hotels nationwide was close to 20,000, making the economy hotel industry a red ocean. Hanting was facing problems such as a slump in the industry, four consecutive years of RevPAR decline, product aging, decreasing occupancy rates, and fierce price competition.
Strategic Direction:
Before beginning any project, Hua & Hua makes it a priority to study the business's genes. Hanting used the blue ocean strategy to pioneer the economy hotel industry, so its biggest gene of success is its blue ocean strategy. As a national hotel, Hanting serves the broadest ordinary consumers. The company's blue ocean strategy aims to fulfill the basic needs of consumers to the maximum extent possible. Based on the result of a series of consumer surveys, and the extensive investment and capability in the hotel cleanliness, we firmly believe that Hanting's "second blue ocean" is to continue to strengthen the hotel cleanliness, achieve the ultimate level of cleanliness through overwhelming investment, make it cleaner than a five-star hotel, and create a new blue ocean.
Super Slogan (Image 1):
A good strategy needs a clear and convincing slogan. A good slogan not only conveys clear information but also promotes products in a practical way. Hua & Hua's super slogan for Hanting's second blue ocean strategy is "Like It Clean, Stay Hanting." The word "like" breaks through everyone's psychological defences. Moreover, the spreading cost of this super slogan is extremely low, and it can quickly spread via word of mouth.
Signboard Design (Figure 2-5)
"Like It Clean, Stay Hanting" is an action project that requires us to do what we say. When a company shout these words, it compels itself to establish a "clean" action plan and achieve "cleanliness" through action. After we have this slogan, all we need to do is to erect these five words "Like It Clean, Stay Hanting" on as many Hanting Hotel rooftops as possible, so that all audiences, regardless of day or night, can see these five big words. Hanting has already erected these five words on the rooftops of more than 300 Hanting hotels in 25 cities across China, and this number is still increasing. When Hanting erects these words like a signboard on the hotel rooftop, it is directly setting up a monument and creating a brand equity that are valuable for 100 years.
Four Major Clean Action Plans (Figure 6-7)
1. Clean Pledge Action: The birth of the industry's first "Chief Cleaning Officer" (Figure 6)
In November 2016, Hanting held a "Like It Clean" pledging conference, where the senior management of Huazhu Group (Parent company of Hanting), Hanting hotel general managers and store managers from various cities across the country, as well as frontline cleaners, took the pledge together. Frontline employees who were unable to attend from various regions also pledged their commitment to the Hanting Cleanliness cause through video conferencing.
This event produced the industry's first Chief Clean Officer (CCO). Under the leadership of Huazhu CEO Zhang Min, Hanting staff made a solemn commitment: "Cleanliness starts from our hearts and actions, and cleanliness is embodied at Hanting. Like It Clean, Stay Hanting!" This expresses Hanting staff's determination to pursue cleanliness to the end.
2. Cleaners’ Action: Cleaners are the key to implementing the blue ocean strategy (Figure 7)
In the past, cleaners were the least valued group of people. They had low incomes, long working hours, were extremely tired, did not receive the respect they deserved, and could not see any prospects for career development. Once a cleaning incident occurred, they were pushed to the forefront and had to bear the pressure of public opinion.
To implement the cleanliness strategy, cleaners have the chance to go from being "rear guards to frontline soldiers" and become the protagonists. Hanting proposed six creative ideas to completely transform the career and status of cleaners.
(1) The industry's first "Hotel Hygienist" title - upgrading the status of cleaners;
(2) The industry's first cleaner spokesperson - enhancing the honor and pride of cleaners;
(3) The industry's first increase in cleaner remuneration - clean fewer rooms, earn more money;
(4) The industry's first invitation to the "God of Cleaning" guidance - cultivate the spirit of cleaning craftsmen;
(5) The industry's first cleaner promotion system - expanding the career space for cleaners;
(6) The industry's first cleaner reward mechanism - increasing the sense of achievement for cleaners.
3. "Clean" Rating Action: Making Franchisees Advocates for Clean Strategy (Figure 8)
A franchised Hanting Hotel in Shanghai with only 86 rooms increased its RevPAR by 14 yuan and room revenue by 430,000 yuan per year just by implementing a clean project without investing in room renovation. This is partly due to the improved customer satisfaction from cleanliness, resulting in more repeat customers, and partly due to Hanting's introduction of the "Clean" rating system, which helped the hotel attract more customers. The proportion of pre-bookings increased from 40% to 50%.
Hua & Hua designed a "Clean" logo. For stores that meet the cleanliness standard, Hanting will display the "Clean" logo on its official website and app. The more "Clean" logos a store obtains, the higher its "cleanliness index", the higher the ranking, and the more consumers can see it first. Hanting is telling consumers that they now have a new standard for choosing hotels: look for the "Clean" logo.
Hotels that receive clean certification from Hanting will be awarded a set of "Clean" certification systems. From the entrance, image walls, front desk, to elevators and rooms, the "clean" atmosphere can be felt from the moment you approach Hanting.
These measures have greatly encouraged franchisees to actively participate in clean action. For stores that fail to meet the standards, Hanting is resolute in phasing them out and will not let the personal behavior of franchisees affect its clean strategy.
4. "Washing Dragon" Action: Investing in Upstream Laundry Industry and Promoting Quality Upgrade of the Entire Industry (Figure 9)
The clean strategy not only requires investment in people but also in hardware for upstream laundry processes.
The cleanliness of bed sheets and towels relys on the laundry suppliers. Hua & Hua suggest that Hanting increase its investment in upstream laundry suppliers and encourage more suppliers to adopt fully automatic "Washing Dragon" equipment to ensure the cleanliness of bed sheets and towels from the source. Hanting requires franchise stores to use high-standard Washing Dragon suppliers as well and offers preferential subsidy policies to encourage more stores to adopt Washing Dragon equipment.
