Hotel Front Office Management, 3rd Edition

BUSINESS AFFILIATIONS 19Business AffiliationsBusiness affiliations, which indicate either chain or independent ownership of hotels, alsocategorize the hotel industry. These classifications are the most easily recognizable byconsumers with regard to such features as brand name, structural appearance, and ambience.Long-lasting marketing effects develop a brand loyalty and acceptance that aremost important in long-term profitability for a hotel.Chain AffiliationWhen asked to name several chain operations (a group of hotels that follow standardoperating procedures such as marketing, reservations, quality of service, food and beverageoperations, housekeeping, and accounting), most people would probably mentionHoliday Inn, Marriott, Sheraton, Days Inn, Hyatt, Hilton, or Econo Lodge. Studentsshould stay up to date regarding developments in the industry, such as acquisitions, restructuring,and other changes in these organizations. This information, which will beimportant to know when making career decisions, can be obtained from trade journalssuch as Hotels (published by Cahners, Des Plaines, Illinois), whose annual July issueincludes a listing of hotel chains, addresses, and number of rooms; the Wall Street Journal;and other newspapers, magazines, and Web sites.Chain affiliations, which include hotels that purchase operational and marketing servicesfrom a corporation, are further divided into franchisee, referral, company-ownedproperties, and management contract companies. Franchise corporations offer supportto the franchisee, who is the owner of the land and building, in the form of reservationsystems, advertising, operations management, and management development. In returnfor these services, the franchisee pays fees for items such as initial start-up, rental of signsand other equipment, use of the corporation’s reservation referral system, and nationaladvertising, among others. 17Anyone wishing to enter the hotel business by investing personal funds wants to besure a profit will be realized. Perhaps because of a lack of experience in operating a hotelor motel or a lack of business acumen, a poor credit rating, or limited knowledge of realestate development, this type of entrepreneur may need to seek the guidance of others.He or she can receive direction from a corporation, such as Days Inn, Sheraton, or Hilton,concerning land, building, and management development.Referral PropertySometimes a hotel organization will choose to become a referral property, a hoteloperating as an independent that wishes to be associated with a certain chain. Since theproperty has been physically developed, the entrepreneur may only want assistance withmanagement, marketing and advertising, and/or reservation referral. Likewise, the feesare based on services required. The chain’s quality assurance standards must, however,also be met by the referral property.TLFeBOOK