APPROACHING THE WORLD:MAIN LARGEST HOTEL GROUPS STRATEGIES
Smaranda Cosma and
Marius Bota ()
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Marius Bota: Babeş-Bolyai University, Cluj-Napoca
Romanian Economic Business Review, 2014, vol. 9, issue 4, 35-52
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.
Keywords: international hotel chains; penetrating strategies; hotels groups; foreign tourism market (search for similar items in EconPapers)
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Persistent link: https://EconPapers.repec.org/RePEc:rau:journl:v:9:y:2014:i:4:p:35-52
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