Franchising in international hotel business

Abstract

The features of franchising usage in the international hospitality industry are disclosed. The basic factors in the formation of additional benefits of franchise agreements in the hotel business are explored. The mechanisms of franchise relations interaction are outlined. The permanent role of the hotel operator in solving problems of the franchise agreement is explored. The mechanisms of allocation of financial and organizational resources at in franchise agreement of hospitality industry are researched. The features of franchise payments in hotels of different rank are highlighted. The features of formation of franchise industry average size of payments in key hotel chains in the world are investigated. The advantages and disadvantages as well as the main duties of the franchisor and franchisee are systematized. The five criteria for success hotel business organization that develop under the network name are highlighted. The features of manchising usage as a classic symbiosis of management and franchising in hospitality industry are disclosed. The first stage of manchising consists of permanent influence of the main hotel operator on the development of hotels included into the network. The second stage of manchising includes classic franchise agreement of hotel operator and other hotels in its network. The prospects development of franchise relations in the hospitality industry in the nearest future is forecasted. The unique experience in the regulation of franchise relations in the hospitality industry is analyzed via the example of Ukraine’s leading national hotel operator Premier Hotel and Resorts. The different examples of implementation of specialized program «Compass»provided by this operator are proposed. The above mentioned specialized program «Compass»is designed to further development of the network of budget hotels under the single standards of franchise agreement.