Hotel as Chain or Independent the Advantages

Hotel as Chain or Independent

The Advantages and Disadvantages of Hotels Affiliating with a Brand

Dev, Chekitan S., James R. Brown, and Zheng Zhou Kevin. "Global Brand Expansion: How to Select a Market Entry Strategy." Cornell Hotel and Restaurant Administration Quarterly 48.1 (2007): 13,27,8.

The intent of this research is to evaluate the best possible management and ownership strategy for a hotel or hospitality business to attain and keep competitive advantage. The study found that the strengths and weaknesses of specific regional markets played a far greater role in defining the overall competitive advantage of a business compared, with local ownership being a critical success factor. The study concludes that the best possible scenario is to have a local owner of the hotel capable of infusing a strong sense of customer service into the business over time. Customer service is a precursor how well a given organization culturally fits into a given country or region.

Enz, Cathy A., Linda Canina, and Daniel Palacios-marques. "The Relationship between New Venture Entry Mode and Firm Performance." International Entrepreneurship and Management Journal 9.2 (2013): 129-45.

The basis of this research study is a comparison of hotels entering the United Kingdom hotel and hospitality market between the years of 2006 to 2010. Controlling for exogenous variables and external conditions specific to each submarket, the study found that a branded, franchised business led to greater levels of financial performance. The franchise model was also responsible for a faster ramp of revenues in the first six months of operation and also led to a higher level of operational efficiency. The franchise operations also streamlined and made more manageable the more complex aspects of operating a hotel. What is interesting about this study is that the franchise value lasted just six months and after that, the company had comparable performance to independent hotels. The conclusion of the researchers is that brand affiliation reduces the initial risk of launching a new hotel yet over the long-term doesn't deliver a sustained competitive advantage.

Holverson, Sonja, and Frederic Revaz. "Perceptions of European Independent Hoteliers: Hard and Soft Branding Choices." International Journal of Contemporary Hospitality Management 18.5 (2006): 398-413.

The intent of this study is to evaluate the effectiveness of branding and franchising in hotels throughout Europe. The researchers look at which branding strategies in North America are most effective in stabilizing growing businesses. The study also looks at small and medium-sized independent businesses and compares them to national chains that are franchised. The study concludes that European hoteliers who wanted to stay independent yet adopted the areas of franchise marketing and process improvement where able to retain their individuality while still gaining the benefits of a franchised operation.

O'Neill, John, W., and Anna S. Mattila. "Strategic Hotel Development and Positioning: The Effects of Revenue Drivers on Profitability." Cornell Hotel and Restaurant Administration Quarterly 47.2 (2006): 146,154,102.

The sampling frame of this study is 1,900 U.S. hotels whose performance was analyzed between 2002 and 2003, specifically focused on the net operating income percentage, occupancy and average daily rate (ADR). Brand affiliation was not a contributing factor in explaining the variation in hotel performance, but the net operating income, regional focus and price point were. The study concentrates on net operating income (NOI) as a measure of overall hotel performance and shows that in recessionary times the budget hotels that relied on quantifiably differentiated value did the best in terms of continual occupancy rates.

Walsh, Kate, Cathy A. Enz, and Linda Canina. "The Impact of Strategic Orientation on Intellectual Capital Investments in Customer Service Firms." Journal of Service Research: JSR 10.4 (2008): 300.