Everything you need in one beautiful print and digital magazine. Ravi Patel, president of Hawkeye Hotels, took the branded side in the debate. Register a free Taylor & Francis Online account today to boost your research and gain these benefits: Comparing chains versus independent hotels based on international sales: an exploratory study, a University of Bologna, Rimini, Italy;b Horwath HTL, Rome, Italy, c Universidad Internacional de La Rioja, Logroo, La Rioja, Spain, d Universitat Politcnica de Valncia, Valencia, Spain, Social media analytics: A tool for the success of online retail industry, Asymmetric information and deal selection: Evidence from the Italian venture capital market, Global-local trajectories for regional competitiveness: Tourism innovation in the western cape, Catalysts in introducing information technology in small and medium-sized hospitality organisations, A comparison of the performance of brand-affiliated and unaffiliated hotel properties, Expansion strategy of international hotel firms, Hotel chain affiliation as an environmental performance strategy for luxury hotels, Visitor attractions and events: Responding to seasonality, Modal choice in a world of alliances: Analyzing organisational forms in the international hotel sector, How firms relate to their markets: an empirical examination of contemporary marketing practices, Efficiency evaluation of hotel chains: A Spanish case study, Profitability determinants of hotel companies in selected Mediterranean countries, Determinantes en la eleccin del modo de entrada de las hoteleras espaolas en destinos forneos, The eclectic theory of international production: A case study of the international hotel industry, A comparison of the performance of independent and franchise hotels: The first two years of operation, European Hotels and Chains Report, Horwath HTL. Retrieved from https://skift.com/insight/skift-insights-deck-soft-brands-weighing-the-risks- rewards-and-realities/, Stone, R. (2018). By clicking "Log In," I agree to LoopNet's. al. The Shifting Scene of Independent Hotels in America, Groups360 Adds Choice Hotels to Group Instant Booking Platform, Meeting Profs Travel Report: Air Travel Chaos Looms, Japan Lifts Covid Controls, Smart Meetings Virginia Beach Experience: Lessons in the Future of F2F, Smart Moves at Lark Hotels, Noble House and More. Kelso said that investors should be prepared for swift changes in financing options. On the contrary, O'Neill and Carlbck (2011) reported that unaffiliated hotels had higher RevPAR. If you forgot your password, click to reset it. The brand companies franchise their brands to the hotel owners. Retrieved from https://www.hvs.com/article/953-a-case-for-being-independent, Skift Report (2018). This website uses cookies to improve your experience while you navigate through the website. (2016) reported that these two advantages offset each other as there were no significant differences in revenue per available room (RevPAR). The cookie is used to store the user consent for the cookies in the category "Other. The main pro of a hotel chain is reliability, meaning that wherever a guest goes they can know what to expect, which is generally a high level of service. What are the advantages of an independent country? If you decide you want to try something new, like adding outdoor dining or offering new desserts, you don't have to worry about getting approval like you would with a franchise. Top 10 Pros & Cons of All-in-one Hotel Software Solutions You may also be able to start an independent restaurant with less cash than you would with a franchise. This means they may fall short in some aspects of the guest experience. Advantage: Full Control Over Operations More space for original design, product creativity and a unique identity. Short-term tenancy can be both an advantage and a disadvantage for hotel assets, and well dig more deeply into that later in this article, but its also just one of the unique facets that new investors need to be aware of when entering the hotel space. Kelso described how this differs from other real estate asset classes. Competitive advantages of chain hotels | Download Table - ResearchGate Patel concurred with that assessment. You also have the option to opt-out of these cookies. According to Holverson and Revaz ( 2006 2015 1997) identified the main disadvantages of SME (independent) hotels as insufficient management and marketing skills within the distribution channel. Hotel owners might decide that being independent is just too expensive for them and that the high effort that is required for the independent operation could not be justified when help from influential brands and large distribution platforms is available (Stone, 2018). They are usually located in trendy neighbourhoods in large cities, have luxury amenities, and have a modern design. Independent hotels are different from chains in that they are not built with the idea of having a standard offer, but with the idea that they are unique. For example, Franchise Direct reports that starting a KFC location can run anywhere from $1.4 to $2.7 million in initial investment costs, while Domino's looks for a net worth of $250,000. Business travelers can take advantage of the chain hotel. A hotel owner needs to assess the benefits and costs of affiliating as well as compare various affiliation alternatives against each other (Carlbck, 2017). Skift Research. If you've ever spent a . Beautiful Design. They aim to provide a unique and authentic experience at every hotel. However, affiliation with the brand does not guarantee an improvement in financial performance. A 5-star hotel should give you a better experience than a 3 . Jared Kelso, executive managing director, C&W Capital Markets. Both parties expectations, responsibilities, and duties should be set in this document. A boutique hotel is a small, upscale, luxury hotel that has a distinct personality, intimate experience, and personalized service. Independents need a simple-to-use solution that enables easier adoption and employee training. Enz and Canina (2011) compared the financial results of 104 newly opened affiliated and unaffiliated hotels in the United Kingdom during the first two years of operation. It is a type of hotel that does not have an affiliation with any particular chain. Another downside is, with the decision of belonging to a Chain, you decide against uniqueness. Click here for Desk booking system for hot desking. Multiple factors account for this decline. Advantages of an independent restaurant include potentially lower startup costs, full control over operations and avoidance of franchise risks. A lot of people have made mistakes [and] learned a lot, and you can participate in that learning..
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