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Approaching The World:Main Largest Hotel Groups Strategies

Author

Listed:
  • Cristina Fleşeriu

    (Babeş-Bolyai University, Cluj-Napoca)

  • Smaranda Cosma

    (Babeş-Bolyai University, Cluj-Napoca)

  • Marius Bota

    (Babeş-Bolyai University, Cluj-Napoca)

Abstract

In 2009, the world hotel market reached a saturation level, having too many hotels opened in a short time interval. Beginning with 2010, the number of tourists started increasing again, exceeding 1 billion in 2013. Emerging countries began gaining more and more foreign tourists. All these changes are taken into consideration by the international hotel chains having a significant role in the economies of the countries hosting their hotels. The most often used strategies to penetrate a foreign market are the franchise and the management contract. However, quite often, the penetration into a foreign market can contain a mixture of strategies, rather than only one. The purpose of the paper is the identification of predominant strategy of penetrating a foreign market for top 10 largest hotel groups in the world, finding of main strategy for every hotel group and analysing of the dynamics for the strategy of penetrating a foreign market in every hotel group under analysis for the interval 2002-2013. The research reveals that 70% of the hotel groups under investigation use mainly franchise strategy. Hotel groups owning a large number of hotels (over 3500 hotels worldwide) and which coordinated large service distribution networks prefer a strategy that involves an average level of financial involvement, average risk and operational control.

Suggested Citation

  • Cristina Fleşeriu & Smaranda Cosma & Marius Bota, 2014. "Approaching The World:Main Largest Hotel Groups Strategies," Romanian Economic Business Review, Romanian-American University, vol. 9(4), pages 35-52, december.
    • Handle: RePEc:rau:journl:v:9:y:2014:i:4:p:35-52
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    References listed on IDEAS

    as
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    2. Farok J Contractor & Sumit K Kundu, 1998. "Modal Choice in a World of Alliances: Analyzing Organizational Forms in the International Hotel Sector," Journal of International Business Studies, Palgrave Macmillan;Academy of International Business, vol. 29(2), pages 325-356, June.
    3. Chen, Jean Jinghan & Dimou, Irini, 2005. "Expansion strategy of international hotel firms," Journal of Business Research, Elsevier, vol. 58(12), pages 1730-1740, December.
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