IDEAS home Printed from https://ideas.repec.org/a/sae/toueco/v16y2010i3p493-515.html
   My bibliography  Save this article

The Franchise Contract in Hotel Chains: A Study of Hotel Chain Growth and Market Concentrations

Author

Listed:
  • Onofre Martorell Cunill
  • Carles Mulet Forteza

Abstract

Hotel chains can expand by using a variety of different growth strategies. Some studies argue that hotel chains use a wide array of strategies, with none prevailing over the rest. Several arguments can now be put forward to demonstrate that systems not based on capital transactions, particularly franchise agreements, are the strategies that hotel chains prefer when carrying out expansion programmes. The conclusions show that the franchise system has become the growth strategy most widely used by hotel chains and that the sharp rise in the use of this system has led to increasing market concentrations by hotel chains.

Suggested Citation

  • Onofre Martorell Cunill & Carles Mulet Forteza, 2010. "The Franchise Contract in Hotel Chains: A Study of Hotel Chain Growth and Market Concentrations," Tourism Economics, , vol. 16(3), pages 493-515, September.
    • Handle: RePEc:sae:toueco:v:16:y:2010:i:3:p:493-515
    DOI: 10.5367/000000010792278446
    as

    Download full text from publisher

    File URL: https://journals.sagepub.com/doi/10.5367/000000010792278446
    Download Restriction: no
    File URL: https://libkey.io/10.5367/000000010792278446?utm_source=ideas
    LibKey link: if access is restricted and if your library uses this service, LibKey will redirect you to where you can use your library subscription to access this item
    ---><---

    References listed on IDEAS

    as
    1. 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.
    2. Fevzi Okumus, 2004. "Implementation of yield management practices in service organisations: empirical findings from a major hotel group," The Service Industries Journal, Taylor & Francis Journals, vol. 24(6), pages 65-89, November.
    3. Stanworth, John & Curran, James, 1999. "Colas, burgers, shakes, and shirkers: Towards a sociological model of franchising in the market economy," Journal of Business Venturing, Elsevier, vol. 14(4), pages 323-344, July.
    Full references (including those not matched with items on IDEAS)

    Citations

    Citations are extracted by the CitEc Project, subscribe to its RSS feed for this item.
    as


    Cited by:

    1. Orestis Papadopoulos & Marti Lopez‐Andreu & Mandi Jamalian, 2021. "Violation and lack of awareness of employment rights in the United Kingdom's hotel industry: Isolation, fragmentation and barriers to labour enforcement," Industrial Relations Journal, Wiley Blackwell, vol. 52(4), pages 315-330, July.
    2. Roberto Grandinetti, 2022. "A Routine-Based Theory of Routine Replication," Sustainability, MDPI, vol. 14(14), pages 1-23, July.
    3. Georgina Lukanova, 2021. "Impact of COVID-19 on the Restaurant Franchising," Izvestia Journal of the Union of Scientists - Varna. Economic Sciences Series, Union of Scientists - Varna, Economic Sciences Section, vol. 10(3), pages 3-12, December.
    4. FitzPatrick, Mary & Davey, Janet & Muller, Lisa & Davey, Howard, 2013. "Value-creating assets in tourism management: Applying marketing's service-dominant logic in the hotel industry," Tourism Management, Elsevier, vol. 36(C), pages 86-98.

    Most related items

    These are the items that most often cite the same works as this one and are cited by the same works as this one.
    1. Onofre Martorell-Cunill & Anna M. Gil-Lafuente & Antoni Socias Salvà & Carles Mulet Forteza, 2014. "The growth strategies in the hospitality industry from the perspective of the forgotten effects," Computational and Mathematical Organization Theory, Springer, vol. 20(2), pages 195-210, June.
    2. S. Verbieren & M. Cools & A. Van den Abbeele, 2008. "Franchising. A Literature Review on Management and Control Issues," Review of Business and Economic Literature, KU Leuven, Faculty of Economics and Business (FEB), Review of Business and Economic Literature, vol. 0(4), pages 398-443.
    3. Arora, Ashish, 1999. "Exploring the internalization rationale for international investment: wholly owned subsidiary versus technology licensing in the worldwide chemical industry," DEE - Working Papers. Business Economics. WB 6430, Universidad Carlos III de Madrid. Departamento de Economía de la Empresa.
    4. Di Guardo, Maria Chiara & Marrocu, Emanuela & Paci, Raffaele, 2016. "The effect of local corruption on ownership strategy in cross-border mergers and acquisitions," Journal of Business Research, Elsevier, vol. 69(10), pages 4225-4241.
    5. Michael J. Turner & Chris Guilding, 2010. "Accounting for the furniture, fittings & equipment reserve in hotels," Accounting and Finance, Accounting and Finance Association of Australia and New Zealand, vol. 50(4), pages 967-992, December.
    6. Arvanitis, Spyros & Hollenstein, Heinz & Stucki, Tobias, 2016. "Does the explanatory power of the OLI approach differ among sectors and business functions? Evidence from firm-level data," Economics - The Open-Access, Open-Assessment E-Journal (2007-2020), Kiel Institute for the World Economy (IfW Kiel), vol. 10, pages 1-46.
    7. Sullivan, Ursula Y. & Coughlan, Anne T., 2004. "The Detail of Drugs: Horizontal Distribution Alliances in the International Pharmaceutical Industry," Working Papers 04-0114, University of Illinois at Urbana-Champaign, College of Business.
    8. Hufei Ge & Silu Chen & Yujie Chen, 2018. "International Alliance of Green Hotels to Reach Sustainable Competitive Advantages," Sustainability, MDPI, vol. 10(2), pages 1-15, February.
    9. Vachani, Sushil, 2005. "Problems of foreign subsidiaries of SMEs compared with large companies," International Business Review, Elsevier, vol. 14(4), pages 415-439, August.
    10. Zdolsek, Daniel & Kolar, Iztok, 2013. "Management disclosure practices for disaggregated (financial) information in Slovenian unlisted companies," Journal of East European Management Studies, Nomos Verlagsgesellschaft mbH & Co. KG, vol. 18(2), pages 232-263.
    11. Gomez Selemeneva, D., 2008. "Cooperación en el Caso de la Gestión Hotelera en Cuba: Modelo para su Monitoreo Considerando el Criterio de los Expertos Implicados [Coopetition in the Case of Hotel Management in Cuba: Model of Co," MPRA Paper 11175, University Library of Munich, Germany.
    12. Mai Thai & Li Chong, 2013. "Dynamic experimental internationalization: Strategy of SMEs from a transition economy," Journal of International Entrepreneurship, Springer, vol. 11(4), pages 370-399, December.
    13. Liang, Hueimei & Lee, Kuo-Jung & Huang, Jen-Tsung & Lei, Hsien-Wei, 2013. "The optimal decisions in franchising under profit uncertainty," Economic Modelling, Elsevier, vol. 31(C), pages 128-137.
    14. Paloma Almodóvar & José Emilio Navas López & Patricia Huerta Riveros, 2009. "La tipología estratégica como factor determinante de la empresa conjunta internacional," Investigaciones Economicas, Fundación SEPI, vol. 33(3), pages 407-438, September.
    15. Wrona, Thomas & Trąpczyński, Piotr, 2012. "Re-explaining international entry modes – Interaction and moderating effects on entry modes of pharmaceutical companies into transition economies," European Management Journal, Elsevier, vol. 30(4), pages 295-315.
    16. Dunning, John H. & Pak, Yong Suhk & Beldona, Sam, 2007. "Foreign ownership strategies of UK and US international franchisors: An exploratory application of Dunning's envelope paradigm," International Business Review, Elsevier, vol. 16(5), pages 531-548, October.
    17. Keith D. Brouthers & Liang Chen & Sali Li & Noman Shaheer, 2022. "Charting new courses to enter foreign markets: Conceptualization, theoretical framework, and research directions on non-traditional entry modes," Journal of International Business Studies, Palgrave Macmillan;Academy of International Business, vol. 53(9), pages 2088-2115, December.
    18. Jópez Milla Julián & Driha Oana Madalina, 2009. "Spanish Hotel International Expansion: Evolution And Tendency. The Role Of Eastern Europe," Annals of Faculty of Economics, University of Oradea, Faculty of Economics, vol. 1(1), pages 181-187, May.
    19. Chadee, Doren D. & Qiu, Feng & Rose, Elizabeth L., 2003. "FDI location at the subnational level: a study of EJVs in China," Journal of Business Research, Elsevier, vol. 56(10), pages 835-845, October.
    20. Gómez Selemeneva, D. & Ortigueira, Luis C., 2007. "La expansión internacional como Estrategia Corporativa: Estudio de Caso de la Industria Hotelera en Iberoamérica [International Expansion as Corporate Strategy: A Case Study of Hotel Industry in Ib," MPRA Paper 11240, University Library of Munich, Germany, revised 06 Feb 2008.

    Corrections

    All material on this site has been provided by the respective publishers and authors. You can help correct errors and omissions. When requesting a correction, please mention this item's handle: RePEc:sae:toueco:v:16:y:2010:i:3:p:493-515. See general information about how to correct material in RePEc.

    If you have authored this item and are not yet registered with RePEc, we encourage you to do it here. This allows to link your profile to this item. It also allows you to accept potential citations to this item that we are uncertain about.

    If CitEc recognized a bibliographic reference but did not link an item in RePEc to it, you can help with this form .

    If you know of missing items citing this one, you can help us creating those links by adding the relevant references in the same way as above, for each refering item. If you are a registered author of this item, you may also want to check the "citations" tab in your RePEc Author Service profile, as there may be some citations waiting for confirmation.

    For technical questions regarding this item, or to correct its authors, title, abstract, bibliographic or download information, contact: SAGE Publications (email available below). General contact details of provider: .

    Please note that corrections may take a couple of weeks to filter through the various RePEc services.

    IDEAS is a RePEc service. RePEc uses bibliographic data supplied by the respective publishers.