Franchising in Hotel Business
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|1.||DEFINITION AND HISTORY OF FRANCHISING||4|
|1.1.||Definition of Franchising||4|
|1.2.||History of Franchising||4|
|2.||THE SPECIFICS OF PAYMENTS IN HOTEL FRANCHISING||6|
|3.||FRANCHISING IN THE HOTEL BUSINESS: ADVANTAGES AND DOWNSIDES||8|
|3.1.||The Advantages of Franchising for Franchisors and Franchisees||8|
|3.2.||Hotel Franchising Drawbacks and Complications||9|
|4.||THE PROBLEM OF UNEQUAL DISTRIBUTION OF HOTEL FRANCHISES IN THE WORLD||11|
|4.1.||The Factors which determine the Distribution of Hotel Franchises in the World||11|
|4.2.||The Real Distribution of Hotel Franchises in the World||12|
|4.3.||Possible Ways of Improving the Situation of Unequal Hotel Franchise Distribution||13|
|5.||HOTEL FRANCHISING IN LATVIA||14|
|6.||FUTURE TRENDS IN GLOBAL HOTEL FRANCHISING||15|
Basically, all the aims of the paper have been reached using the tasks mentioned in the introduction. Firstly, an overview of mechanics of franchising was made and then a research on franchising within the wider context of the international hotel industry was completed.
If we overview the whole material of the research, it becomes obvious that franchising represents but one option for hotel companies who wish to pursue a growth strategy.
It has also been proved that not only company-specific factors may influence the choice of a franchisor or franchisee, but even and especially the country-specific factors. Based upon some existing researches, it was possible to draw some broad generalizations as to where and when franchising might be the preferred development strategy for a hotel chain.
Moreover, some future trends in the franchising of hotel business have been mentioned and these trends are very closely related to the factors influencing the development of franchising particularly in the hotel business.
All the factors and trends are also used in describing the situation with hotel franchising in Latvia and telling about the possible ways of developing this system in this particular country. And the research explicitly shows that hotel franchising is still not so popular in Latvia not because of the cultural distance factor, mentioned in the research, but because of some political and economical country-specific factors. However, if the situation changes to the better, franchising may eventually become a popular growth choice also in Latvia.
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