Hotel and motel chains

The fast development of means of transportation resulted in a corresponding boom in hotel construction. This rapid construction of new hotels led to the emergence of hotel chains as a dominant force in the accommodation industry.

The hotel chains have several competitive advantages over individually owned and operated establishments. One of the most important advantages is having the resources to spend more money on advertising. The hotel chains have advertising and public relations personnel on their corporate headquarters staffs, who give valuable advice and support to their colleagues in the individual hotels. The headquarters staff usually has more overall influence with the information media — newspapers, magazines, radio and television — than is possible for staffs in the individual hotels.

The most important and most obvious advantage is the increased efficiency in making and controlling reservations, when a chain owned by an airline, the traveller can make his reservations for flights and for hotel rooms at the same time and place.

Another advantage comes from the standardization of equipment and operating procedures. The chains publish detailed manuals that specify procedures to be followed even in such tasks as making beds and setting tables. This results in a very visible degree of uniformity between the hotels in the chain. The travelling public has an excellent idea of what kind of accommodations and service to expect. Even when the different hotels in the chain are not tightly controlled by a central office, there is usually an inspection system in order to guarantee that the overall standards are met.

Another advantage for the chains is the increased sales potential for conventions. Some convention salespeople work in the corporate headquarters and promote the whole chain rather than one hotel. In this way the sponsoring group can hold its meetings in one location one year and another the next, while at the same time receiving the assurance of very similar service and costs. Since it's commonly accepted now that conventions should combine business and pleasure, the practice of changing locations every year is very attractive to many sponsoring groups.

Another of the strengths of the chain system consists in the superior planning and design of hotels. The benefits begin here even before the location is selected because the chains have access to expensive market research data on site selection and size of the hotel.

The large chains employ architects and interior decorators who specialize in hotel work. Many chains often hire consultants to advise them. The chains can either use their expert knowledge directly to build their own hotels or pass it along to others when participate in a joint venture, a management leasing arrangement, or a franchising operation.

Hotel design poses special problems in such matters as size and location and their relationship to each other. For example, the space allotted to service and storage areas, which must be adequate but not excessive, may make the difference between the profitability and un-profitability of the operation. In the interior of furniture, fabrics, and equipment that have been tested can sharply cut maintenance costs. From the time that construction of a new facility is decided on, the experts at corporate headquarters can give valuable advice and help so that the design of the hotel will contribute to its success.

Chain management also increases the efficiency of the total organization in many ways. For example, it permits very large bulk purchases for some kinds of equipment and supplies which result in economies of scale.

The accounting and auditing systems of the chains are centralized. A centralized personnel office for managerial and technical positions throughout the chain also provides an advantage in securing competent people.

Дата добавления: 2015-11-16