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

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  • 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
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    References listed on IDEAS

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    1. 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.
    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. 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.
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    Cited by:

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    2. 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.
    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.

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