Facing the Differences between Franchising and Company Ownership. An Empirical Investigation of a French Hotel Chain

Rozenn Perrigot ()
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Rozenn Perrigot: CREM - Centre de recherche en économie et management - UNICAEN - Université de Caen Normandie - NU - Normandie Université - UR - Université de Rennes - CNRS - Centre National de la Recherche Scientifique

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Abstract: This paper aims at comparing the performance of company-owned hotels and franchised hotels within a plural form chain. In this perspective, the main advantages of mixing both: franchising and company ownership within a same chain are reminded before establishing the following hypothesis: franchised units perform better than company-owned units. The empirical study of more than 300 hotels belonging to a same chain, through basic statistics but also a Data Envelopment Analysis, does not provide any support to this hypothesis. And at the contrary, company-owned hotels are more efficient than the franchised ones. A discussion of this contradictory result allows to highlight the contributions, limits and perspectives of this research.

Keywords: Franchising; company ownership; plural form; efficiency; DEA; hotel industry; franchise; succursalisme; réseau mixte; performance; hôtellerie (search for similar items in EconPapers)
Date: 2005-10-27
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Published in Proceedings of the 23rd conference of The European Federation of the International Council on Hotel, Restaurant, and Institutional Education, Oct 2005, pp.8

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Persistent link: https://EconPapers.repec.org/RePEc:hal:journl:halshs-00010406

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