Brands are getting bigger day by day – be it designer clothing, consumer products or anything else. The hotel and hospitality industry is no exception. Hotel brands like Hilton and Holiday Inn are famous for their own and known for their own niche visitors. Big hotel brands enjoy the loyalty of most of their patrons, who rarely enjoy the organization alone.
Smaller stand-alone hotels that have not yet become a brand to them are beginning to recognize the importance of joining a large hotel chain to make a profit beyond the reins. From being responsible for all the curiosity of the business to cheating along with the unreasonable marketing budget of the hotel chain, becoming a franchisee is the best way to start the journey to financial well-being. This is the best option when you maintain ownership and do not completely lose managements, including cutting off the indomitable benefits of a central reservation system, marketing and rigid operational procedures. Not to mention the strong support of the parent brand which will make your hotel presence important in the market, increase the acquisition rate and consequently skyrocket.
The current situation
Although worldwide, hotel markets do not show a tendency to associate with brands, 30% are associated with small amounts, while the hotel market in the United States shows a completely opposite trend. A study found that more than 70% of hotels in the United States are disciplined. And other markets are certainly catching on.
Achieving brand suffrage
However, gaining hotel franchise is easier than finishing. There is already a byline to join the big brands. This allows brands to pick their picks from an array of stand-alone stands and choose enough gel with their existing image. Most of the time, the process of selecting a hotel to grant them the right to vote is a complex one, involving a large number of crunching and analysis. Costs vs. benefits are thoroughly examined before any significant steps are taken.
Thus, for hotels wishing to be affiliated, the following considerations may prove helpful.
Reading in line is essential to determine the total cost of being approved. The royalty fee is the main part of the Iceberg ip. Additional charges include the annual fee for the reservation system, the joining fee, a liquidated loss fee in case of premature termination and the cost of the marketing program. Calculate all costs during the contract period when comparing prices.
Be sure about the brand image
Each brand has its own niche. One brand may be known as a business hotel and the other may be known for leisure travelers. It’s important for you to focus their attention on a completely different travel market which makes it important to examine what makes your current position more attractive to your own brand.
Get to know the franchisors
It is important to get to know the franchisors directly or indirectly, as they can determine the fate of your hotel in the years to come. Find out more about their work style through direct conversations with them. Also try to talk to the franchisees and find out if they are satisfied enough with the franchisors. Talking to former franchisees, who for some reason stopped this authorization, may also prove helpful. Analyze franchisor feedback on how to offer franchise affiliations to other hotels in your market.
Check that the market section fills it out
Focus on the market that attracts your visitors. Hotel chains that already have a franchise in your market can provide better recognition. In addition, the image of existing franchises can benefit you in ways that protect you from the burden of placing your image in these markets. Also consider the demographics where the brand is more popular and your brand is clearer than any brand that could be new.
Do some number crunching
Ask for official statistics on the occupancy rate in the operating market, to see if affiliation really brings a better job than the previous scenario. Prove that the brand has a proven competitive advantage over its competitors in your market.
Look at some crystal balls
Generally, hotel franchises are valid for 20 years. The franchisee needs to control the chain image during this period by regularly inspecting the property and finishing franchises that do not meet the standards. Also, if you are looking at a long-term relationship with the brand, analyze whether it will continue to grow further or start stabilizing in a few years, try to lean towards analy marketing initiatives and brand growth. Are brand technology aware and ready to spend money on advanced reservation systems or internet connection in rooms? Knowing the brand’s location in the coming years can save you the hassle of closing it before the expiration date.
All in all, it is important for your business to make the decision to think about joining the hotel brand, while hastily planning the day of resurrection for the hotel of choice.