Academic literature on the topic 'Hotel franchising'

Franchising is a major trend in the hotel industry. Despite the fact that almost two thirds of branded hotels in the US are franchised there is a distinct lack of empirical research on franchising in the hospitality industry. In this article we have reviewed one of the most relevant lines of research in franchising literature usually referred as franchising and the society, and we have concentrated on analyzing one of the most controversial issues in this line of research: the territorial rights in hotel franchising contracts. The paper identifies the main sources of conflict when dealing with territorial rights in hotel franchising contracts.

The essence of the principle of network organization is that multi-level hierarchy is replaced by groups of enterprises, and specialized units coordinated by market mechanisms replace administrative mechanisms. Franchising, one of the forms of hotel management, is a contractual relationship between companies with a well-known brand and other hotels. As well as the positive role of franchising management in the hotel chain, there are also a number of problems. Key words: hotel, Franchising, hospitality, industry, service, tourist

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.

The article explores the global trends in the development of tourism and hotel and restaurant business, provides insights to the basic franchising concept and offers a definition of the term franchising in the hotel and restaurant business. A statistical analysis of profitability indicators of the global tourism market has been performed. The results of the world and domestic hotel and restaurant industry survey have validated positive prospects for the implementation of franchising in the hotel and restaurant business in Ukraine. The research findings demonstrate qualitative and quantitative profitability indicators for the franchising companies operating in the global developed markets, in particular, the franchising networks performances in the hotel and restaurant sectors in Europe and the US have been investigated. The world top franchise business leaders have been identified. The study results have verified a strong correlation between high profitability in the hotel and restaurant industry and the number of franchisors engaged in this sector. An overview of the specifics of franchising relations legal regulation across countries is provided along with revealing the major challenges in the national legislation domain as to the basic terminology of legal regulation of franchising as a whole. A special emphasis is placed on mutual benefits the franchise system provides for a franchisor and a franchisee. The reasons behind the slowing down of the franchising process implementation practices in the domestic hotel and restaurant business settings are revealed.

Saudi Arabia has formulated and enforced a new tourism law to develop its tourism sector with special emphasis to open more international activities in the hotel industry. The main objective of this study was to determine the influence of new regulations of hotel industries in Saudi Arabia on the decision making process of the hotel companies in relation to international franchising. Qualitative research design was used to investigate the connection between new regulations of hotel industry in Saudi Arabia and its cross-border franchising activities. Data was retrieved from two primary sources: governmental agencies and, the hotel and leisure companies involved in franchising. The main sectors covered were the investment in tourism lands, establishment of tourism based associations, and replacement of foreigners, price and classification. Data was generated through twelve in-depth interviews with the representatives of the sample companies, from April to September 2016. The primary data generated during interviews was complemented by data from industrial publications and the annual reports to know about the current status of Saudi hotel industry and the activities of the sample companies. Findings confirmed that the regulatory reforms of a hotel industry, by following new hotel-based regulations, added new vigor to hotel based industry and enhanced its international profile. The new tourism law authorized the Saudi Commission for Tourism and Heritage (SCTH) to identify and propose new lands for tourism investment, which may increase its importance among the global hotels’ franchisors.

Objectives: This paper aims to provide the theoretical basis of a franchise business with particular reference to the hotel industry. In addition, this paper aims to provide a detailed analysis of the world's most prominent franchises in the hotel industry and compare the situation in Croatia to the rest of the world. Methods: Almost half (47%) of all franchised hotels globally are owned by four large franchise chains: Accor, Marriott International, Hilton and InterContinental Hotels Group. In order to provide the essential theoretical knowledge about the franchise and franchise business, these four hotel franchises are analyzed. Results: Franchise business presents an excellent opportunity for future hotel owners. However, the analyzed hotel groups do not offer direct or indirect financing forms to help interested entrepreneurs enter into a franchise business. Conclusion: A franchise business is an attractive entrepreneurial alternative for entrepreneurs who have lack of knowledge and lack of capital. The franchise business in the hotel industry in the Republic of Croatia is present but not to the same extent as in other tourist developed countries. Therefore, it is necessary to design appropriate sources of financing that would facilitate entry into the franchise relationship.

Franchising is already an important component of global strategy in many service sectors such as hotels. This article asks, “Given a choice between a company-run and a franchised operation, what factors will tip the strategic selection toward franchising, for a particular hotel property?” The modal choice is influenced by both the environment or conditions in the market in which the hotel property is located— as well as the characteristics and strategy of the global hotel firm that is to decide whether to franchise, or run the property themselves. The propensity to franchise is shown to reflect a mix of factors, including: level of development of the intended foreign market; the extent of globalization and international experience of the firm; and strategic factors such as the degree of investment in its global reservations system and brand, as well as the size of its overall operations.

Starting from the situation in Croatian tourist sector the paper points to the possibility of introducing new forms of managing assets such as hotel management and franchising. The hotel company management is shown, as well as the advantages and disadvantages of particular types of contracts and the basic parts of management contracts are briefly explained. The advantages and disadvantages of franchising contract and its characteristics are also presented.

Purpose The purpose of this study is to analyze the extent to which under- and over-investment problems affect hotel firms’ value around the time when acquisitions are announced. Design/methodology/approach Hotel firms are classified based on their financial constraints (under-investment), corporate governance mechanisms (over-investment) and organizational structures. Multivariate analyses are conducted utilizing the panel ordinary least squares regression to examine the effects of financial constraints, corporate governance mechanisms and organizational structures on acquisition returns. Findings The results show that financial constraints have a larger effect on the firm value compared to the effect of corporate governance. Also, acquisitions are viewed as over-investments in poorly governed, franchising and hotel-real estate investment trust (REIT) firms. Research limitations/implications The analyses are limited to gains from acquisitions in the hotel industry. Therefore, future studies may examine the effects of capital expenditures and cash holdings on hotel firm value. Practical implications Acquisitions could help financially constrained firms reduce informational asymmetries. Firms could expand through franchising when they are financially constrained. However, franchising firms should take restrictive actions to control managers from making acquisitions. The hotel-REIT organizational form does not seem to cause under-investment problems, and it functions as an additional corporate governance mechanism. Originality/value In addition to the C-corporation organizational structure, hotel firms extensively adopt REIT and expand through franchising, which might affect under- and over-investment problems. Nonetheless, little is known about whether capital investments create or reduce value for hotel firms. This study helps to explain how financial constraints, corporate governance mechanisms and organizational structures affect hotel firms’ value.

The article is devoted to defining the conceptual foundations of hotel franchising in the context of globalization of the world economy. In the course of the analysis the definition of the concept of franchising was given, the development of the hotel industry in Ukraine on the basis of the franchising agreement was considered. The most successful Ukrainian national networks were identified and compared with the international network in terms of such parameters as numbering and pricing policy. In addition, the investment climate of Ukraine was studied in order to place their branches by foreign TNCs with the help of SWOT-analysis. A development strategy for Ukraine was proposed in the direction of expanding its investment potential using the vector of strategic orientation. Hotel business in the XXI century is one of the most profitable sectors of the economy. International experience shows that a key factor in the success of tourism development is a highly developed tourist infrastructure. Franchising is an ideal solution for entrepreneurs who want to create decent competition for their foreign and domestic counterparts, to form a business in such a way that it is profitable almost immediately, to avoid risks and to get as much income as possible at the lowest cost. After analyzing franchising for the safety of doing business in the hotel business, we came to a clear conclusion and we can confidently call it a unique way to start a business, protecting business from failure. After all, with its help you can learn the practical experience of a successful business, get its name, reputation and trust of visitors from around the world. Hotel franchising will improve the tourism image, create a long-term strategy for sustainable development of the tourism sector of Ukraine and get the economic effect: obtaining new sources of foreign exchange earnings, job creation and as a result - prosperity of the national economy, especially given the investment climate of Ukraine for foreign TNCs is very favorable.

This thesis deals about franchising and its aplication in practice. The objective of this thesis is evaluation of weak and strong points of franchising system of OREA HOTELS. The first part deals about definitions, advantages and disadvantages of franchising and expansion of franchising in the world. The practical part deals about advantages and requirements of franchising system of chosen company. Recommendations that would lead to improvement of those weak point are part of this thesis too.

This research develops and tests a model of the service unit ownership and control patterns used by international service companies. The main purpose of this study is to investigate trivariate causal relationships among environmental factors, organizational structure, and perceived performance in the internationalization process of service firms. A service firm operating in foreign soil has a choice of three general entry mode strategies offering different degrees of ownership and control of its remote operating units located in foreign countries -- full ownership arrangement, joint venture arrangement, and franchising arrangement. The entry mode strategies chosen depend on the factors relating to internal environment of a specific firm, industry related factors in which the firm operates, and external environment of the operating units at national context. This study identifies these factors, investigates how they affect the firm's choice of entry modes, and finally examines the impact of entry mode on firm's performance. The overall model has been explained by contingency theory that conceptualizes optimal level of ownership and control mode as a response by the firm to the interplay of environmental factors and as a determinant of firm's performance. To this core can be added complementary theories which are borrowed from agency theory, transaction cost theory, and resource dependence theory. These theories explain the linkages between market entry mode and each type of environmental factors. In order to empirically test the hypotheses, data were collected from hospitality firms regarding the ownership structure of subsidiaries located in foreign countries. As a whole, the conceptual model developed in the study received strong support from the empirical study. This study found a positive impact of contingency fit on performance and so support contingency theory in which some combinations of the environmental dimensions and organizational structure will lead to better organizational performance. Another finding of this study indicates that the increased level of ownership and control will result in enhancing the level of perceived performance. It should be noted that contingency model-based mode choice would provide managers with the optimal performance because there is not one best performing mode choice in volatile international market. Next, the relationship of market environment with organizational structure was examined through three different perspectives. Market environment was investigated at firm, industry, and national context, which includes five factors -- monitoring uncertainty, asset specificity, cultural distance, political uncertainty, and economic uncertainty. The model is suggestive of a picture in which five environmental factors vie for affecting the choice of market entry modes. All five environmental factors were found to be significantly related to firms' organizational structure. Among five environmental factors, cultural uncertainty has the largest effect on the choice of entry mode followed by monitoring uncertainty, political uncertainty, asset specificity, and economic uncertainty. One of the important implications of this research is the inclusion of franchising as an actual management strategy and competitive business practice that is related to international ownership and control strategy. Higher degrees of uncertainty associated with the foreign market encourage external dependence of the venture, in which the operation depends more heavily on local relationships. Franchising substitutes the loss of ownership by an increase of external relationships and it takes without losing control on retail operation. Resource exploitation depends on the local market for either inputs or outputs for better performance. Understanding the fit between the each set of contingent variables and the elements of ownership and control strategy will allow marketers to determine when franchising is the suitable mode of operation in global markets. Collectively, these results suggest that the choice of an organizational form for international service firms involves a complex balance of firm, industry, and country level factors. Managers can maximize performance by aligning entry mode strategy with external contextual circumstances as well as internal resources. Managers may also be able to make better mode choice decisions using the theory-driven criteria examined in this study, increasing their chances for financial and non-financial success.
Ph. D.

У дисертаційній роботі досліджено теоретичні та прикладні засади забезпечення конкурентоспроможності підприємств готельного бізнесу. Уточнено понятійний апарат за темою дослідження, систематизовано чинники, що забезпечують конкурентоспроможність підприємств готельного бізнесу. Проаналізовано сучасний стан і динаміку розвитку ринку готельних послуг Одеської області, визначено основні проблеми та перспективи його розвитку. Апробовано методичний підхід до оцінки конкурентоспроможності підприємств готельного бізнесу з використанням багатовимірних статистичних методів, що дозволяє враховувати показники результатів їхньої фінансово-господарської діяльності та рівня споживчої атрактивності. З’ясовано шляхи підвищення конкурентоспроможності підприємств готельного бізнесу в умовах невизначеності і ризику. Обґрунтовано ефективність мережевих форм підприємництва в готельному бізнесі. Досліджено доцільність використання франчайзингу і контрактів на управління в практичній діяльності вітчизняних підприємств готельного бізнесу. Запропоновано аналітичну діагностику механізму забезпечення конкурентоспроможності підприємств готельного бізнесу шляхом створення на засадах системного підходу моделі, яка сприяє імплементації готельної мережі як інтегрованої підприємницької структури в національну економіку України.
В диссертационной работе исследованы теоретические и прикладные основы обеспечения конкурентоспособности предприятий гостиничного бизнеса. На основе обобщения теоретического материала уточнен понятийный аппарат «предприятия гостиничного бизнеса», «конкурентоспособности предприятия гостиничного бизнеса». Охарактеризованы концептуальные подходы к раскрытию специфики гостиничного бизнеса. Определено роль и место предприятий гостиничного бизнеса в индустрии туризма. Усовершенствованы научные подходы к классификации средств размещения, которые конкретизируют требования Национальных стандартов Украины, учитывают рекомендации Всемирной туристической организации, международный опыт функционирования гостиничного бизнеса, специфику деятельности и основную функцию отдельных типов средств размещения. Систематизированы факторы, которые обеспечивают конкурентоспособность предприятий гостиничного бизнеса. Предложена авторская классификация методов оценки конкурентоспособности предприятий гостиничного бизнеса с учетом отраслевой специфики по таким признакам: источникам получения информации, уровню реализации конкурентной стратегии предприятием гостиничного бизнеса, способу отображения конечных результатов, виду показателя оценивания. Проанализировано современное состояние и динамику развития рынка гостиничных услуг Одесской области, определены основные проблемы и перспективы его развития. Апробирован методический подход к оценке конкурентоспособности предприятий гостиничного бизнеса с использованием многомерных статистических методов (классической и модифицированной таксономии), который позволяет учитывать показатели результатов их финансово-хозяйственной деятельности и уровня потребительской аттрактивности. На основе результатов проведенной экспертной оценки определен интегральный показатель конкурентоспособности предприятий гостиничного бизнеса, который дает возможность выяснить уровень их конкурентоспособности с позиции потребителя. Выявлены пути повышения конкурентоспособности предприятий гостиничного бизнеса с точки зрения их прибыльности в условиях неопределенности и риска. Обоснована эффективность сетевых форм предпринимательства в гостиничном бизнесе. Исследована целесообразность использования франчайзинга и контрактов на управление в практической деятельности отечественных предприятий гостиничного бизнеса. Предложена аналитическая диагностика механизма обеспечения конкурентоспособности предприятий гостиничного бизнеса путем создания на основании системного подхода соответствующей модели, которая идентифицирует взаимосвязь между закономерностями и принципами внедрения инновационных форм развития гостиничного бизнеса, способствует имплементации гостиничной сети как интегрированной предпринимательской структуры в национальную экономику Украины.
In the thesis theoretical and applied principles of competitiveness ensuring of hotel business enterprises were researched. Conceptual apparatus on study topic was specified, factors, that ensure competitiveness of hotels, were systematized. The modern state and dynamics of hotel service market of Odessa region were analyzed, the main problems and prospects of its development were determined. Methodical approach to assessing the competitiveness of hotel business enterprises, using multivariate statistical methods, was approved, that allows to take into account the result indicators of the financial and economic activity and the level of consumer attractiveness. The ways of competitiveness increase of hotel business enterprises under conditions of uncertainty and risk were defined. The efficiency of network forms of entrepreneurship in the hotel business was grounded. Reasonability of using franchising and management contracts in practice of domestic hotel business enterprises was researched. Analytical diagnostics of competitiveness ensuring mechanism of hotel business enterprises was offered by creating on the principles of a system approach a suitable model which, unlike others, contributes to the implementation of hotel chain as an integrated business structure in national economy of Ukraine.

碩士
世新大學
觀光學研究所(含碩專班)
99
With tourism industry growing in Taiwan, this research attempts to examine how international tourist hotels develop management strategies as properties of franchises chain, and subsequently gain a competitive edge in the domestic market. A basic structure of franchises and chain of Taiwan’s international tourist hotels, from a dynamic point of view, is presented in this paper to support the findings. This research conducts in-depth interviews focusing on the executives who actually manage Taiwan’s well-known international tourist hotels. Since the resources and management strategies at such hotels are invariably highly confidential and inaccessible to outsiders, the survey reveals some rationales of the decision process of the sample hotels. The argument developed in this research comprises a strategic framework encompassing the multiple viewpoints of “dynamics”, “resources” and “capability”. Such a framework is focused on the specific resources and capabilities possessed by the sample hotels which operate in a dynamic competitive context. Moreover, those specific resources and capabilities can be employed for future use to ensure a competitive advantage for hotels. The external path/environment for the franchise/chain strategies of Taiwan’s international tourist hotels is determined by various factors, namely strategies concerning the path to co-ventures, asset specificity, the “resource-binding effect” involving franchise partners, and the “signal spillover effect”; these three factors are not only part of the dynamic strategy adopted by Taiwan’s international tourist hotels to cope with the external environment for their franchises and chain stores, but they have also formed a highly dynamic, dependent and strategic relationship with the hotel headquarters as well as an internal path within the organized partnership. As for the strategy concerning the path to co-ventures, those based on franchises and chain stores have become the main reason behind the path dependency. The resource-binding effect involves: human resource management, equipment, extension of brand synergy, and a comprehensive package of the parent company’s successful experiences that can be replicated. A non-temporary market position defined by the specialized asset should exist, in order to ensure the time-based competitiveness in the franchise and chain hotels. For the signal spillover effect, it is imperative that a high level of brand awareness be built for Taiwan’s international tourist hotels by reinforcing the consumers’ brand knowledge, so that a brand image can be derived (or projected) and a personalized touch added to the brand name.

Examines the development and modern concepts of hotel management — system, process and situational approaches. Describes the features of hospitality management related to the organization of the network business, using franchising and management companies. Given numerous examples from the practice of Russian and foreign enterprises of hotel business. Meets the requirements of Federal state educational standards of higher education of the last generation. For students enrolled in the specialty "Hospitality", as well as graduate students, professors from specialized higher education institutions, listeners of professional retraining programs of employees of the enterprises of hotel business.

The main thesis supported in this study is that connectivity is embedded in the hotel franchise due to its systemic nature, the number of participating levels, elements and entities, the complex relationships between them, the transfer of tangible and intangible assets, multifaceted communications of formal and informal nature and others. In this regard, the main purpose of the paper is to reveal the nature of connectivity in the hotel franchise and how it affects the functioning and development of the system. The first part of the report examines the peculiarities of the relationships between business entities in the hotel franchise. The next part presents two main concepts for connectivity management in franchising networks in the hotel industry, and at the end some conclusions and recommendations for the development of franchise partner networks are systematized.

The subject of this paper is the legal aspects of franchising contracts that relate to the transfer of industrial property rights. The Franchise Agreement is an unnamed commercial contract in most countries of the world. The areas where franchising activities are most common are retail, tourism, hotels, recreation, business and personal services. However, the areas in which this business arises is not exhaustive. The transfer of property rights to industrial property rights falls within the autonomy of the contracting parties. Owners of industrial property rights usually traded industrial property rights through a license contract as a form of constitutive traffic and a cession contract as a form of translational traffic. However, there is no impediment to the exercise of these rights as a form of constitutive traffic and through other more complex contracts. One of these contracts is the franchising contract. This work does not include the economic aspects of franchising, but exclusively relates to legal aspects.