Joke Collection Website - Bulletin headlines - You can become a B&B partner by spending tens of thousands. Is B&B crowdfunding reliable?
You can become a B&B partner by spending tens of thousands. Is B&B crowdfunding reliable?
B&Bs are more personalized than star-rated hotels and have better service than express hotels. The key is to experience local customs. B&Bs have continued to be popular in recent years. Building a B&B is not cheap, and B&B projects are currently less likely to obtain financing from banks, so crowdfunding for B&Bs has become very popular in recent years.
In November 2017, the B&B brand "Manzi B&B Kyoto" crowdfunding project launched by Xue Manzi personally was sold out in just 1 second as soon as it was launched on the crowdfunding platform, and it was over-raised in 8 minutes . Industry insiders pointed out that B&B crowdfunding is one of the "crowdfunding" concepts derived from the current crowdfunding craze, and behind it is an inevitable factor for the rapid development of the "crowdfunding tourism" industry.
“By investing tens of thousands of yuan, you can become a B&B shareholder. Not only can you enjoy a few nights of free stay every year, but you may also receive profit dividends.” This is why many people are optimistic about B&B crowdfunding projects. However, B&B crowdfunding also faces a series of development bottlenecks and problems such as a saturated number of B&Bs, convergence of types, inadequate services, and incomplete supporting facilities. There are hidden bubbles under the prosperity.
The B&B crowdfunding boom
After the Spring Festival, investor Lao Luo once again rushed to Nanping, Fujian to inspect the B&B project. "After the opening of the high-speed rail, it is very convenient here, and more and more high-speed rail trains have stopped along Wuyi Mountain since last year." He told reporters that he will prepare a B&B near Wuyi Mountain in the near future. This B&B project will adopt the popular crowdfunding method.
In a B&B project in Zengcuo'an, Xiamen, initiated by a crowdfunding platform, participants can become junior builders with an investment of 17,500 yuan and enjoy 0.5% equity in the project; if they invest 35,000 yuan, Yuan, you can become a senior founder and enjoy 1 equity. According to the platform’s public data, as of February 25, there were 599 supporters and more than 2.83 million yuan in funds raised.
There are many similar B&B crowdfunding projects. In "Start" alone, there are four or five B&B crowdfunding projects in Xiamen. Mr. Zheng’s homestay project called ONEDAY has nearly 1,000 people participating and supporting it, and has raised nearly 3 million yuan. Although only more than 300 people participated in Mr. Zhao's homestay project, 3.825 million yuan was raised. On Mengda crowdfunding, several Xiamen young people are crowdfunding the homestay project LiHo. This project has been completed, and the crowdfunding funds have reached the target amount of 122.70.
B&B crowdfunding is becoming a branch of the crowdfunding industry that cannot be ignored. Crowdfunding models include private equity crowdfunding, income rights crowdfunding and consumer crowdfunding. In the "cold winter" of the crowdfunding industry, B&B crowdfunding is developing in full swing. Various crowdfunding platforms have opened special sections one after another, and some have even transformed into comprehensive service providers specializing in homestays. The service content has also added site selection support, customer diversion, butler training, etc.
According to the latest statistics from Human Innovation Consulting, as of the end of December 2017, there were 294 crowdfunding platforms in operation in my country, including 4 new platforms, on which there are many types of homestays. The products to be raised are being snapped up, and many platforms such as Colorful Investment, Zhongcai.com, Ant Short-term Rental, and JD Crowdfunding are in full swing in planning homestay crowdfunding projects.
Hidden risks
Although B&B crowdfunding is very popular, in the eyes of industry insiders, the dividend period for B&B investment may have passed, and industry risks cannot be ignored.
Investors who participate in B&B crowdfunding projects first face the problem of difficulty in early research and inspection. After all, the quality of the operation team of each B&B project is different, and the housing and land use conditions are complex and diverse. In addition, there are still hidden dangers in issues such as later revenue recognition, distribution and capital security.
Industry insiders pointed out that there are still policy risks in B&B crowdfunding. Although the current situation of homestays is generally favorable, due to the disorderly development of some homestay projects in the early stage, the lack of land use certificates and construction permits, and the launch of projects without going through relevant procedures, there is a high risk of being ordered to make rectifications later.
In October 2017, the National Tourism Administration promulgated the first B&B standard "Basic Requirements and Evaluation of Tourist B&Bs". Since the implementation of the new regulations, many B&B booking platforms and B&B companies have actively rectified and developed in accordance with the standards. However, The chaos in homestays that plagues tourists such as safety, sound insulation, and sanitation is still difficult to end.
In addition, according to statistics from the Milestone Research Institute (MTA), since the second half of 2016, the growth of occupancy rates of a large number of B&B brands has slowed down or even declined, and the number of B&Bs in many places has dropped significantly.
Pay more attention to the marketing significance
Although there are hidden concerns about B&B crowdfunding, in the eyes of relevant people, the marketing and promotion significance of B&B crowdfunding is greater than the fundraising significance. Wang Jinan, a professor at the School of Finance and Economics at Jimei University, said that from the perspective of the project side, crowdfunding for homestays is actually publicity and fundraising. If it is just to raise money, crowdfunding is actually not cost-effective. It consumes energy and the returns paid to investors are higher than Bank loan interest. B&Bs choose crowdfunding mainly to increase market awareness and the participation of consumer groups.
“On the one hand, the crowdfunding method attracts more people to invest, and on the other hand, it is also to obtain more customer resources.” Mr. Luo, a homestay entrepreneur, said that publicity through crowdfunding has made many people interested in homestays. Interested consumers become partners, and more customers will be brought in through them. This can also be regarded as a precision marketing model.
Cao Lei, director and researcher of the China E-commerce Research Center, said that crowdfunding can quickly withdraw funds invested in the project, but sponsors should pay more attention to post-investment management to truly maximize the value of capital. In addition, crowdfunding platforms should also pay attention to risk management and control of projects.
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