Contemporary issues in hotel industry: - A comparison of the performance of independent and franchise
1) Correctly identify explicit and implicit assumptions, challenges to the assumption made with their evidence. (15 marks)
Although, franchisee plays a dominant role in the hospitality industry but there are still many entrepreneurs who enters the industry as independent hoteliers. These independent hoteliers have the zeal to work and the independent performance has often been evaluated in comparison to the performance of the franchisees. Although the comparison showed that franchisee properties performed better than the individual hoteliers but with the passage of time the comparison faded. When a person tries to open a hotel, he needs to decide first whether he would go for a franchisee business or open his own hotel. Since the time when the entrepreneur start thinking that he wants to start a hospitality business, from that time side by side there are challenges which always need to overcome to start that business. Here we are talking about the hospitality business, although choose to open a hotel. According to the article given there are certain assumptions are given which shows that opening a franchise of a hotel is better option that going for the own business and the challenges which the entrepreneur faced in that respect with the proper evidences , these are discussed below:-
1. Reorganized brand name and trade mark provide tangibility to the services of hotel
The first choice of business is the franchise. In a franchise, legal binding agreement is entered into between two firms, the franchisor (the product or service owner) and the franchisee (the firm to market the product or service in a particular location). The franchisee pays a certain sum of money for the right to market this product” (Rubin, 1978, p.224). The franchising is more prevalent in the restaurant industry (Hoffman & Preble, 2003). The two distinct features of this business type include; first, in order to notable service components should
The hotel industry is a very hard industry to enter into, due to one of the biggest obstacles, which is brand recognition. Right now there are a few large hotel chains that make a large footprint in the market. It is hard for a new entrant to come into the industry and compete with these large hotel chains without bringing something new to the table. Many large chains in the industry dominate the industry due to economies of scale due to franchising.
Hilton Hotels is one of the biggest players in the US lodging industry. It contributes to about 9% of the total rooms in US lodging market. It has presence in over 78 countries with more than 2500 hotels. Lodging industry is highly capital intensive industry, so to reduce capital expenditure Hilton Hotels opted for self-owned Hotels as well as franchising model with the real estate owners. One of the key features of lodging industry is low switching costs for customers. There is very little margin to differentiate from the major competitors in the industry which include Marriott international, IHG, Accor etc.
specialty hotels, or any other type of hospitality interest and identify the main problems associated with
The 3rd most largest sector of workforce size is in hospitality, leisure, travel and tourism.In UK theres lots of unemployed people which the UK government social mobility stategy, guide and sopprt them to benifits into higher skilled and managment roles.there are 106,300 people to replace both those who are leaving and to fill a new job.
In Zimbabwe, Harare is an unbeatable destination for hospitality services of all sorts. Hospitality is the harmonious mixture of shelter, food and beverage, the physical environment, the behavior and attitude of people, Pizer (2011). The hospitality services are mostly found in hotels and a hotel is ............. The researcher wants to find out what are the challenges that are faced by the hotels in Harare. The researcher embarks on this study to gain a deeper understanding of the research problem and to hone the research problem solving skills in the area understudy. The researcher carries out this research by desire to understand the challenges that are faced by hotels, and also to determine whether the findings will have the significance in addressing the research problem. Hotels are part of the greatest contributors that contribute towards the Gross Domestic Product (GDP) of Zimbabwe, Deswell (2007). The hotels are responsible for being hospitable because hospitality is essential in attracting visitors to the establishment such as the star rated hotels. The research is worth doing because it provides a fresh insight about what solutions to implement so as to avoid future operational challenges that will continue to affect the operations of hotels in Harare. The study also sought to identify the challenges that affect the hotel operations in Harare with a view to recommend measures that can
The Hotel is situated in the bustling East Cork market town of Midleton, located just 14 miles (15 mins drive)
The interworking’s of a large corporation such as the Intercontinental Hotel Group (IHG) requires careful examination to ensure the company can obtain and sustain success within the industry. Throughout the internal environment analysis, the report will provide insight one the resources, capabilities, core competencies, and competitive advantages being deployed by IHG. According to the 2015 IHG annual report, “IHG brands primarily use a franchise based business model, where the hotel group manages hotels on behalf of the hotel owners” (InterContinental Hotels Group, 2016, p.12). In addition, the business strategy allows for an asset light strategy, where IHG can help the hotel owners generate higher returns on their invested capital.
Limitations that occurred with this report are the sources. Some sources might not be creditable or up to the standards of the International College of Hotel Management. Another limitation is that some of the sources will be bias and not have enough knowledge and information for this report.
Four Seasons Hotels and Resorts have a worldwide presence running more than 60 properties in over 25 countries. Among them are luxurious hotels and top destination spots, making Four Seasons a leading player in the hospitality industry. Its unique management style has enabled it to clinch the top position and becoming a world-renowned brand. The company has geared its efforts towards creative innovative ways to address the needs of their guests while maintaining a high ethical code in all aspects of the business (Hallowell, 2003). Four Seasons Hotel and Regent Hotel brands are the managers of most of the properties. The brand originates from Toronto, Canada where Lsadore Sharp opened the first hotel in 1961. His vision was to develop a chain of luxurious hotels providing quality services and facilities.
Mussoorie offers a wide range of hotel, from budget to luxury there are hotels available for people coming from any background. Mussoorie has quality budget hotels even for people with a shoestring budget. Though these budget hotels do not have the perks of lavishness available in luxury hotels but are great for backpackers, solo travelers, students or even families alike.Let us explore some of the hotels in hotels which are pocket-friendly and could be trusted any time you travel to Mussoorie.
Also, “Helidony” hotel faces the management challenge due to the fact that it is a new property and in order to succeed it has to be managed properly. However, hiring an inexperienced person to run the hotel or department is a huge risk, while finding a proper person is a huge challenge. Having a good reputation and raising customer satisfaction takes time and inept employees working on the property and communicating with the guests may lead to unwanted consequences (Sommerville, 2007). As the hotel, in the beginning, will have a limited customer base future expansion of it, is the hotel goal the same as attempts to retain the customers and increase their loyalty. But having unreliable employees who are influencing the customer experience may
Hotel Chain as showing to us practice is the most effective way of integration to hospitality business. The main advantage of such integration it is immediately creating customer base and bigger potential market of customers, cost reduction due to general management, logistics, marketing; common quality standards; centralized training and, as a consequence of all
Total quality management, market orientation and hotel performance: The moderating effects of external environmental factors
This segment strategy is based on the idea that brand name is part of process of giving tangibility to what is essentially in tang legible. In this regard the brands values is based on potential guests awareness of the brand, there perception of its quality and over all customers satisfaction.