Wellspring by Silks (晶泉丰旅) in Yilan County’s Jiaosi Township (礁溪) is reshaping its marketing strategy to focus on females and couples to boost competitiveness as it turns three years old next week.
The new approach is intended to help the boutique brand under the Formosa International Hotels Group (FIH, 晶華酒店集團) to carve out a niche in a town famous for hot springs.
Competition has sharpened over the years, due to improved transport and the entry of new players.
“Change is necessary to stay competitive nowadays,” Wellspring by Silks general manager Cindy Chen (陳惠芳) said.
The township has seen several new tourist hotels in recent years and more plan to join, encouraged by improved infrastructure. The Hsuehshan Tunnel (雪山隧道), Asia’s sixth-longest, cut travel times from Taipei by half to 50 minutes.
Rooms have soared 67 percent since the opening of the 13km tunnel 13 years ago, pushing average occupancy rates among tourist hotels down to 51 percent last year from a peak of 72 percent in 2014, government data showed. Smaller lodging facilities fared worse, with occupancy rates of 40 percent.
Six older facilities exited the market last year, succumbing to intensifying competition, Tourism Bureau statistics showed.
Wellspring by Silks sees a viable business in targeting female travelers who value lifestyle, in contrast with an emphasis on family tourists by well-established Hotel Royal Chiaohsi (礁溪老爺大酒店) and Evergreen Resort Hotel in Jiaosi (長榮鳳凰酒店), as well as Mu Jiaosi Hotel (礁溪寒沐) and Maison de Chine Jiaosi (兆品酒店礁溪), Chen said.
Mu and Maison de Chine pose a particular threat, as both are new and within walking distance of Wellspring by Silks, she said.
The new approach is intended to set the facility of 122 guest rooms apart from its rivals and boost occupancy rates from 60 percent last year to 70 percent this year, Chen said.
Room rates would remain at NT$6,000 per night, as gaining customers is the top priority, Chen said.
NOT ALL GOOD: Analysts warned that other data for last month might be less rosy due to the virus and analysts expect the PMI to contract again next month Chinese factory activity saw surprise growth last month as businesses went back to work following a lengthy shutdown, but analysts said that the economy faces a challenging recovery as external demand has been devastated by the COVID-19 pandemic, while the World Bank said that growth could screech to a halt. China is slowly returning to life after months of tough restrictions aimed at containing the virus, which put millions of people into virtual house arrest and brought economic activity to a near standstill. The strict measures saw a closely watched gauge of manufacturing plunge to its lowest level on record in February,
The output of the global smartphone industry this year is to contract by 7.8 percent on an annual basis as the COVID-19 pandemic ushers in a global recession, Taipei-based market researcher TrendForce Corp (集邦科技) said in a report on Monday. The global production of smartphones is expected to fall to 1.29 billion units, as the pandemic dampens demand for consumer electronics, leading to a decline in shipments across Europe and North America, TrendForce said. With consumers delaying smartphone purchases and thereby lengthening the device replacement cycle, overall prices would suffer a setback that is expected to negatively affect the profitability of smartphone
ELECTRONICS Lite-On delays sale of unit Lite-On Technology Corp (光寶科技) yesterday said it would postpone the sale of its solid-state drives (SSD) business to Kioxia Holdings Corp, formerly known as Toshiba Memory Holdings Corp, due to disruptions amid the COVID-19 pandemic. Last year, the Taiwan-based electronics components supplier struck the deal with the Japanese firm, agreeing to sell the unit for US$165 million. Citing unfinished integration work due to the pandemic, Lite-On has deferred today’s closing date until further notice, adding that the delay would not have a negative effect on the unit’s operations. AUTO PARTS Hiroca approves dividend Automotive interior parts supplier Hiroca
ALL ABOUT STRATEGY: The company is optimistic, saying that its gross margin should increase year-on-year, but it is scaling back on its plans to expand capacity Quang Viet Enterprise Co (QVE, 廣越), which makes down jackets and garments for sportswear and outdoor brands including Adidas AG, yesterday said that revenue might drop 5 to 10 percent annually this year as some customers trimmed orders in response to the COVID-19 pandemic. That would mark its first revenue decline since 2016. Quang Viet posted record-high revenue of NT$16.26 billion (US$537.45 million) last year, up 22 percent from 2018. Down jackets made up 40 percent of it revenue last year. North Face Inc and Patagonia Inc are this year likely to reduce orders by 20 to 30 percent from a