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

Onofre Martorell Cunill and Carles Mulet Forteza

Tourism Economics, 2010, vol. 16, issue 3, 493-515

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.

Keywords: hotel chains; growth strategies; franchise system; market concentration; direct effects; forgotten effects (search for similar items in EconPapers)
Date: 2010
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Persistent link: https://EconPapers.repec.org/RePEc:sae:toueco:v:16:y:2010:i:3:p:493-515

DOI: 10.5367/000000010792278446

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