36,324 research outputs found

    In-house and arm’s length: productivity heterogeneity and variation in organizational form

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    This paper analyzes how firms are organized in the U.S. hotel management industry. For most hotel brands, properties with intermediate room occupancy rates are relatively more likely to be managed by company employees rather than by independent franchisees. Properties with the lowest and the highest occupancy rates tend to be managed by franchisees, at arm's length from the hotel chain. This variation in organizational form is consistent with a model in which the incentives embodied in management contracts vary with property-level productivity. We infer that most hotel chains franchise low productivity relationships to keep property-level fixed costs low and franchise the most productive relationships to create high-powered incentives for franchisees. Franchisees of high-productivity properties work harder than the managers of both chain-managed properties and low-productivity franchises because the performance incentives in franchise contracts are proportional to hotel revenues and complement the incentives arising from having control over the property

    KNOWLEDGE MANAGEMENT AS A NEW MANAGERIAL PARADIGM

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    Knowledge management research in Croatian hotels shows that it has become a new pattern of management, but only in cases of managements that handle the hotel product that is a brand (a protected hotel product with a trademark). Knowledge management as the property of a hotel organization entails the management of a series of processes associated with knowledge, such as: the advancement of the organization\u27s knowledge, protecting the organization\u27s knowledge, utilizing knowledge and sharing knowledge among everyone in the organization. Although the percentage of branded hotels in Croatia has significantly increased, from 2% in 2003 to 5% in 2007, the number of unbranded hotels still remains very high and adds up to 499 hotels. These are mainly hotels that still fall short of wholly using their knowledge and experience (know-how) as a license or franchise of the hotel product with a brand

    Franchising Model for Expansion of the International Travel Business

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    The hotel sector of the travel industry is the leader according to the indicator of economic growth, which is observed in both developed and developing countries. Even under the economic instability and global natural disasters, the industry has seen growth in recent years. The franchising model for expanding activities is central to all successful hotel chains. The article deals with the franchising model for the travel business expansion and the economic performance of hotel chains such as Marriott International, Wyndham Hotels, and Hilton. They hold a prominent place in the global hotel business, have a steady tendency to expand their business, hold high positions in the ranking of the best franchises in the world and have been recognized by experts. The main risks for the franchisor and franchisee are determined when making a decision on the expansion of the international travel business, which must be taken into account when developing new markets for hotel chains. The main advantages of the franchising model of expansion, which promote understanding between the parties of the franchise agreement, dynamicize hotel chains expansion and allow for reducing their expenses and increasing incomes. It was found that the growth of net profit and total income in the indicated hotel chains was due to the increase in the number of rooms in franchising and the positive dynamics of franchise income. A more dynamic pace occurred after the crisis growth in revenues from the franchisee compared with the managerial model. A closer relationship between revenues and key financial indicators has been proved when using a franchising model

    An overview of franchising in the hospitality industry of Turkey

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    Tourism is regarded as one of the fastest growing industries of our time. International hotel chains seem to contribute this development to a great amount. These hotels invest in Turkey since 1950s. Recently, these investments seem to be made majorly as franchises. Today, franchising seems to be one of the major strategies to enter global markets. And the system is popular because of its organisational and financial advantages. Although Franchising is adopted and frequently used in tourism industry, there are not (if any) any studies investigating facts and figures of the subject. In this regard, herein it is aimed to overview the current state of franchising in the Turkish tourism industry. Therefore, international hotel chains operating through Franchising in the hospitality industry of Turkey are reviewed in this study. Findings of the study suggest that international hotel chains aiming to expand in the market of Turkey prefer franchising as the major growth strategy to any other

    Franchise in Romanian tourism

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    Both on national and international scale, tourism business is improving continuously, by adjusting to the tourists' demands, resulting in modification and adaptation of organization and association forms in this area. One of these is the franchise affiliation, an original way of doing business that combines the entrepreneurs interest in keeping their own undertaking with that belongs to a group with well-known brand which aims to expand on national and international market. This paper will discuss two important areas of the Romanian tourism industry in which franchise agreement is applied: travel agencies franchise and hotel franchise. On a national scale, franchise was adopted as an expanding strategy by the travel agencies, on one hand, notorious tour-operators that has accumulated know-how and has proven its successful applicability, and, on the other hand, small and medium entrepreneurs who saw in the franchise affiliation an opportunity to develop faster and more reliable business. Also, the Romanian hotel owners with financial resources have seen in hotel franchise an easier way to obtain higher profits. In today's competitive and global hotel market, being part of a group of hotels that share a recognized brand and provide quality services might mean the difference between financial success and failure.franchise, know-how, brand, travel agents franchise, hotel franchise

    Plural Form and Franchise Chains Efficency: A Dea Meta-Frontier Approach applied to French Chains

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    This paper deals with the performance of franchise chains related to their percentage of company-owned outlets (PCO). This research uses a Data Envelopment Analysis (DEA) to assess franchise chains’ efficiency, and a meta-frontier approach to analyze chains’ efficiency between and across sectors. The sample includes 43 chains of the service and retail sectors, located in the French market. Data are available over the 2005-2007 period allowing a longitudinal analysis. The main findings show that the meta-frontier is built up on retail chains rather than on service chains, and that there is a relationship between the PCO and the chain efficiency. Finally, there is no significant difference between the observed PCOs and the optimal PCOs which means that franchisors in our sample have already reached a PCO that is close to the PCO that optimizes the chain efficiency.Creation-Date: 2012-02Franchising, Plural Form, Percentage of company-owned outlets (PCO), Efficiency, Data Envelopment Analysis, Meta Frontier

    Franchising as it Relates to the Hospitality Industry

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    Co-branding hotel owners and operators to increase willingness to pay

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    Although hotel brands are well established in the industry, customers have not been educated about the different kinds of properties, nor has hotel  structure been utilised as a functional marketing tool. Drawing on previous studies, the purpose of this study is to evaluate consumer branding  preferences and willingness to pay because of co-branding and informed ownership, operational, or franchise branding. This two-part study looks at  consumer awareness and consumer preferences in the first part through semi-structured interviews, and in the second part, an experimental survey.  Results reveal that most travellers do not understand the difference between a corporate-owned and -managed hotel and a franchised hotel. Co-  branding efforts for management and ownership companies were not significant in both value perceptions and willingness to pay. However, co-branding  efforts by ownership companies with parent companies increased their guests’ willingness to pay

    Spring 2017, Affordable Drinking Water in Emerging Markets: Student Field Research in Rwanda

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