The local government and the business management company get the profits from the room rental. Wuzhen standardized prices for all 400 guest house rooms in town.
"I booked my room online by looking at the pictures of it. It was quite convenient. Although Wuzhen has some other hotels, I chose to live in the guest house so that I am closer to the local culture." Hou Juehui, Tourist said.
This pricing system is very different from other ancient towns in the Yangtze Delta Region, where residents who turned their houses into hotels set prices individually.
Gao and other hosts’ income is mainly from cooking meals. But the prices for most dishes are set by Wuzhen’s business management company. So the competition isn’t over price, but the quality.
"The menu can’t really cover all the dishes we serve. Sometimes we have special dishes in different seasons. But we have to report the price to the company to get approved." Gao Cairong said.
Gao says he and his wife now make 200,000 yuan a year - a lot more than this old job. And he says the reward goes beyond money. Gao is happy to see his old house being preserved.
Wuzhen has also attracted many non-local businessmen who come here to make money. This street has about 40 stores. It takes 20 minutes to walk the length of Nvgong Jie and check out all of them. And what’s impressive is none of them is selling the same product.
Wang Pingping, runs one of the stores. She says it took her nearly half a year to get permission for the store, because the town has very strict rules.
"They need to see if our products are delicate, distinctive and, most important, handmade so that they can match the style of this street and the town." Wang Pingping, Store owner said.
"I mean, they can’t sell the same product, because that will eventually lead to a price war that will do nothing but sacrifice the quality of the products." Yao Jie, Marketing Director of Wuzhen Tourism Co., said.
