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Contemporary Issues Hotel Industry : A Comparison Of The Performance Of Independent And Franchise Essay

Decent Essays

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

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