Why are five-star hotels eager to "set up stalls"?

The answer is simple: Since the beginning of this year, the business of domestic star-rated hotels has become more difficult faster than expected.

Since the start of the year, the official reception business of hotels has been hit hard. With the implementation of the "alcohol ban", many places have tightened the standards for banquets. It is worth noting that since May, not only has official consumption in medium-sized and county-level cities declined significantly, but even first-tier cities like Hangzhou have been greatly impacted by the weakening demand for business travel and conferences from foreign enterprises.

More than 60% of enterprises have chosen to cut travel budgets; McKinsey's latest data also shows that China's corporate travel budgets have dropped by an average of 15%-20% over the past three years, and industries such as technology and finance have even cut more than 30%. Official receptions have decreased, foreign enterprises have scaled back, and large companies are saving money—everyone is starting to be more budget-conscious. If five-star hotels don’t "bend down", they can only leave their lobbies empty waiting for guests. Setting up stalls and using QR code scanners are the hotels' response to reality. For star-rated hotels, "stall setting" is not about sentiment, but about securing their livelihood first.

In the past, domestic high-end hotels relied on two main revenue sources besides room sales: business conferences and high-end banquets. However, both are now becoming unstable. To survive in the long term, the logic of hotel catering needs a complete overhaul, and setting up stalls is just the most direct emergency measure. The benefits are obvious: first, attract customers with low-price items, then gradually drive traffic back to the hotel. In the past, it was "customers seeking out the hotel"; now, it's "the hotel surrounding customers", operating through three channels simultaneously: dine-in, outdoor stalls, and online instant group buying/discounts.

As early as the pandemic, the prototype of "retailization of hotel catering" emerged. Now, with JD.com, Meituan, and Taobao Takeaway fiercely competing, moving part of the business online may become the next growth point for star-rated hotels.

Five-star hotels used to rely on their high-end image for profits, but now they need to attract attention through a contrast in image, which can instead create new user stickiness.

In the future, the business logic of high-end hotels may be completely rewritten—no longer focusing solely on high-end banquets or official consumption, but walking on "both high-end and mass" legs.

In the final analysis, five-star hotels setting up stalls is a forced experiment, but as long as they can survive, no business effort is in vain.