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| Self-service Hotel Reservation System |
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A. General information
about project cooperation
B. Introduction
to project system
C. Introduction to
project executive organization
D. Introduction
to project related information
A. General information about project cooperation
First: Project Cooperative Organization
(Party A)_______________________________；
(Party B) The Direct VIP of the United Chamber of Commerce
Second: Project Executive Organization
and Related Organizations
(Party A) Executive Organization ________________________________；
(Party B) Shenzhen Union Industry Development Co., Ltd.
"Direct VIP" Magazine Office; "International
Hotel" Magazine OfficeThe Direct VIP of the United
Chamber of Commerce
Third: Cooperation Form and Method
1. Cooperation Form: Party A and Party B reach the agreement
of sharing network sources and using hotel self-service
reservation system; networks interconnection; advertisements
interaction; both be the organizer of VIP website and VIP
magazines.
2. Cooperation Method: Party A will pay Party B the cost
for network sources.
Fourth: Responsibilities of Cooperation
1. Party B's Responsibilities:
（1） Found the first self-service "Direct VIP"
hotel rooms reservation commercial network in China;
（2） Achieve 2000 higher star membership hotels in China
at the end of 2004; Achieve 3000 in March 2005; achieve
8000 higher star membership hotels in world at the end of
2008. In charge of the quality control of hotel service
management during the above period.
（3） Guarantee Party A the lower price of using network hotels
sources than other common network price (guarantee lower
price than common network price at the beginning period,
6% lower as bottom line since the beginning of 2005); and
help Party A to develop the project of locating POS in hotels.
（4） If the same client of Party A has complained over three
times, and confirmed by Party B, then Party B should accept
the rational compensation plan.
2. Party A's Responsibilities:
（1） Supply hotels the customers;
（2） Pay Party B correspond fee for network sources usage
yearly;
（3） If Party A's clients break the agreement after reservation
and checking in, and cause the financial lose of hotel,
Party A should take responsibility for it, or provides **card
number and asks the **card holder to make the compensation.
（4） Propose the compensation agreement project for service
complaint.
3. The Mutual Responsibilities of
Party A and Party B:
After Party A and Party B signing the cooperation agreement,
in some specific period and during the whole process of
the agreement carry out, any part can't cooperate with other
similar organizations in the same way; which can guarantee
the exclusive status and independency. If any Party Breaks
the agreement, it should compensate the financial lose to
the other part (refer to the agreement).
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| B. Introduction to project system |
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1. Project
Organizer: Direct VIP website/ Shenzhen Union Industry Development
Co., Ltd.
2. Start Time: Beginning of 2003
3. Releasing (card)/Cooperation Time: beginning of 2004.
4. Business Operation Mode
1) Cooperation of the network sources usage. Big commercial
partners in bank, airline and telecom fields purchase the
network sources of Direct VIP and pay the usage cost for its
members, Shenzhen Union Industry Development Co., Ltd can
benefit from it.
2) White-collars and Golden-collars buy VIP card. They buy
"Direct VIP Card" released by Shenzhen Union Industry
Development Co., Ltd can become the VIP card member (temporarily
set the membership cost as RMB280/two year).
3) Release signed jointly card. Choose one or two from bank,
airline and telecom partners to release VIP card together.(charge
for correspond card cost)By applying to any above means and
during the period of validity of VIP card, members can enjoy
more discounts in nearly 3000 hotels in China (including Hong
Kong, Taiwan and Macao) than other network reservations, and
can apply multi ways to finish the reservation procedures.
Such as showing VIP card on the hotel general desk, dialing
Union free hotline 800 to reserve and reserve on the Internet
.Hotel doesn't need to count the balance with the retailer
because of no commission back; furthermore, hotel has the
chance to obtain free advertising service in the authoritative
magazine in hotel industry. The space of hotel profit makes
it can provide higher discount to VIP card members than any
other network reservations. (Development: achieve the goal
of 8000 network hotels in world in 2008; a step by step and
self-development journey from the professional and signal
room price discount to signed jointly card deposit card, and
to credit card)
5. Client Group
Commercial Travelers around medium and higher star hotels
and Yatai traditional media readers together compose the "Direct
VIP Car" consumer group.
6.
The Features of Direct "card" in VIP System Project;
①The sale mode of "no agency, no commission" and
super low price for hotel rooms .
②Members show the "Direct VIP Card" with his name
and serial number marked on when checking in, and then can
get the discount;
③Members can get free magazine "Direct VIP" .We
will cooperate with airlines and gradually bring medium and
high consuming ability group into the sale net of the cooperative
partners. Therefore, airline card (such as companion card)
members also be the bank card holders; on the other side,
bank card holders can be the airline card members. Sources
interaction is best cooperation and choice for multi-win and
multi-benefit.
7. Comparison of
the Commercial Operation Mode between VIP and Traditional
Network Reservation (take VIP card purchasing as example)Traditional
hotel commercial mode is retailers' mode, such as popular
hotel reservation network, which guide the guests to check
in the hotel and get commission. This kind of agency service
hampers the development of giant business. "Direct VIP
Card" reverses the situation that guests and hotels were
not able to contact directly, and refunds the commission to
guests meanwhile. Therefore, the room price that members get
is lower than reservation networks offer.
（1）Traditional Hotel Room Retailers
①Card holders send the reservation information to retailers;
②Retailers confirm with hotels;
③Card holders check in.④Hotels give commission to retailers.
（2）Union Company Direct VIP Card Commercial Mode
①Purchase "Direct VIP Card" from Union company and
become the VIP card member.
②Union company has signed with agreement with massive hotels.
Card members directly show the "Direct VIP Card"
in the general desk when checking in, after the identity confirmation
by the hotel, members can have reservation discount.
③Hotels don't need to give any commission to Union company,
on the contrary, if hotel feed back the members' reservation
information and consume sum to Union company, Union company
will give hotel points encouragement according to the above
information. When the hotel reaches the certain points, Union
company will give hotel free advertisement on the magazines.
④Apply for Hotel Self-service Management. Union company will
regularly classify and filter the hotels on its list. It classify
hotels into three grade, Grade A hotel (has obvious advantage
in room price provide to Direct VIP card members), Grade B
hotel and Grade C hotel. Grade A hotels will have more favorable
advertisement and information service, meanwhile, remove the
hotels that being frequently complained from the list.
8. Project Advantage
1） Features Advantage: self-service consumption (VIP); self-service
management (hotel); hotel guest source service without commission
(Direct VIP website); independent and classified partners
from multi channels that can guarantee the profits (cooperative
partners);
2） Data Advantage. The network hotels are 500 more than the
present biggest network reservation center in China;
3） Convenience Advantage. Directly contact the hotel with
card. Every network agency needs to confirm the reservation
several times; VIP card holder can directly show the card
(as an ID card) to the hotel reception desk and acquire the
lowest price and relative service;
4） Price Advantage. The reservation price of any hotels in
VIP website is 6%-20% lower than 1360 hotel reservation websites
in China.
5） Union has the advantage of combining traditional media
with electronic media
①"International Hotel", a recognized magazine for
advanced managers and property owners that already has six-year
history. It is a brand making up by Union;
②"Direct VIP", a first hotel guests reading after
the airline readings; it is also the VIP member's reading;
at present no other network companies have such a magazine
contains popular and art taste at the same time;
③International hotel forum and network, which is the best
stage and authoritative forum for Chinese hotel managers to
discuss the hotel industry development. It can be said that
no network company can gather such a large number of hotel
general managers and property owners to attend the forum meetings.
We have the advantage that media serve as a complement to
all these magazines over other China mainland reservation
websites. Especially the 9-year old "Finance and Technology"
and 6-year old "International Hotel" , which have
been the leading magazine in the field due to its good reputation
and outstanding service.
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| C. Introduction to project executive organization |
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1. Shenzhen
Union Industry Development Co., Ltd was founded in
April 1997 and the registered capital is RMB3, 000, 000. It
dedicated to cultural product and service in finance and hotel
industries, which has four national released magazines that
is authorized by Yatai International: "Finance and Technology",
"White-Collar Finance", "International Hotel"
and "Direct VIP";
2. Main Clients of UnionHangzhou Traveling
Committee （Contract of city touring industry promotion,
the contract value is RMB five million）, Grand Hyatt Shanghai,
Shangri-La Hotel, Century Golden Resources Hotel, Huandao
Tide Hotel, The Pavilion Hotel, Panglin Hotel, Crowne Plaza;
IBM, HP, JVC, G&D, NCR, Fujitsu, Panasonic, DIEBOLD, Legend,
Start, GEIT, Zi Jin, HCC; China Mobile, KONKA, CHANGHONG,
TCL, FENGSHEN Motor, HUAXIA Bank, Industrial and Commercial
Bank of China; Mission Hills Golf Club, Little Swan, SIDEFU,
NTXIXI, AIRLAND , Lucky Table Ware, DAYE Hotel Furniture and
etc.
3. Union Team StructureCompany
has 103 employees in total, 52 employees work in headquarters
and 51 employees work in offices. 75% employees hold the college
diploma or above.[Introduction to the Legal Representative]
HUANG Ting, female, Hangzhou citizen, graduated from Literature
Department of South China Normal University, self-educated
MBA, China contemporary famous female poet, member of Hangzhou
Writer Association, member of China Writer Association Zhejiang
Branch; the sole poesy prize winner of Literature of Special
Zones. She founded YATAI International Publishing Co., Ltd
in 1996 (owns international magazine like "Finance and
Technology", "International Hotel", "Direct
VIP", and "White-Collar Finance"); founded
Shenzhen Union Industry Development Co., Ltd in 1997, founded
Shenzhen Union Advertising Co., Ltd in 1998; founded International
Hotel Forum (IHFO) in 2001 and took the post of Council Chairman;
founded Yatai International Resource (Group) Co., Ltd in 2002.The
legal representative has original and unique thoughts on modern
enterprise operation and management, especially the enterprise
development strategy and business management mode. She has
abundant experiences in medias and mass culture consumption
and prevalence. She is full of creative ideas and strong exploitation
ability; she is realistic, keen. creative and progressive
to her career, which gains her the approval from experts,
scholars and professional managers in finance and hotel fields,
and the full support from the medias during her business development..
4. Union Company Structure:
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| D. Introduction to project related information |
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1. Owns conference industry development
project. "Finance and Technology Intercommunion
Association" that is the intercommunion platform serving
for the finance and technology people; "International
Hotel Forum" that is the intercommunion platform serving
for hotel managers, which has been successfully held for 5
times and has great affection in China hotel industry (this
organization has already been the member of PATA, therefore
airline resources in Asia Pacific area can be fully used,
and it going to be the representative for PATA in China).
2. Direct VIP system project.
The project started from 2003 and basically finished in the
beginning of 2004 and has been released out. Card holder can
enjoy the biggest benefits from the card after pays the membership
cost and becomes the VIP member; show the card in the general
desk of membership hotels, then can enjoy the discount service
that is more favorable than other network reservations. Union
is the first one to promote "no agency, no commission"
mode in hotel industry, which give 60% of the commission to
members and 40% to terminal serving part (hotel), and subvert
the traditional commission back business mode between hotels
and retailers. Even more, Union company reaches a mutual benefit
relationship with hotels according to magazine advertisements,
and fully utilizes its advantages in hotel industry to supply
VIP card members super low room price.
3.
Advantages in Items Competition
（1）Magazine: There are four publishing magazine authorized
by the company--"International Hotel", "Finance
and Technology", "Direct VIP" and "White-Collar
Finance". Besides "White-Collar Finance", others
are monthly. The magazines circulate in 30 provinces of China
and other Asia countries, monthly read by 2, 000, 000 person-times
and monthly circulation is around 200, 000. After 6 years
development, now "International Hotel" monthly circulation
is around 30, 000, and the readers are mainly the hotel managers.
Base on the affection of the magazine (according to initial
investigation, 70% hotel higher rank managers in above 3-star
hotels know this magazine), Union company successfully undertook
two forums and other meetings held by International Hotel
Forum, and undoubtedly became the leading media in the field.
（2）Network: five famous hotel network medias, WWW.DIRECTVIP.COM
Chinese/English edition, WWW.IHFO.COM Chinese/English edition,
WWW.IHHR.COM Chinese/English edition, WWW.AF.NTE.CN.
4.
Development Goals of Union: takes promotion and release
"Direct VIP" as new increasing profits and major
income source; meanwhile, develop the magazine release and
sale, and advertising market. Company will develop into giant
media company in 2007 that has income of RMB50, 000, 000 and
profit of 10, 000, 000. Base on media operation and culture
publication and carrying on group manage strategy, Union company
will be the culture and resource listed company in Hong Kong. |
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