6 Why have chain and brand identification hotels and motels continued to expand

6 why have chain and brand identification hotels and

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6. Why have chain and brand-identification hotels and motels continued to expand worldwide versus independent properties? Chain and brand-identification hotels and motels are expanding worldwide faster than independent properties due to a few reasons. The most significant is the ability to have positive cash flow from existing properties. Chains are also more complete in offering marketing/branding, standards (in product and service), and distribution channels. From a guest or investor perspective, independent properties just do not have these total benefits. Considering this, it is understandable that we have seen a massive increase in chain hotel developments over the last decade and more. These groups continue to penetrate new markets and develop sophisticated brands and products. 7. Define franchising. What are the trends and benefits of such groupings? Give examples. Franchising is defined as a relationship in which a franchisor provides a licensed privilege to the franchisee to do business and offers assistance and support in organizing, training, merchandising, marketing and managing in return for a monetary consideration. Franchisees have the advantage that they receive a known “name”. A franchisee also has the benefit of receiving the knowledge, advice, and assistance of a proven operator. The better the franchisor’s reputation, the more the franchisee benefits. Furthermore, franchising makes unit costs much lower, since the costs of promotion, advertising, and reservation systems are spread over all outlets. Franchised hotel industry trends include owners focusing more on new development and renovating and maintaining their existing properties in order to keep
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