II. Answer the following questions.

a) What factors led to the emergence of hotel chains?

b) Why are they more competitive than individually owned and operated

establishments?

c) Why do hotel chains spend more money on advertising?

d) What methods do they use in promoting their business/

e) How important is the increased efficiency in making and controlling reservations?

f) How does the standardization of equipment and operating procedures influence

the success of a hotel chain?

g) How are overall standards ensured?

h) How does the sales potential for conventions improve if the whole chain is

promoted?

i) In what way do sponsoring groups arrange their events?

j) What practice seems very attractive to them? Why?

k) What is the most obvious strength of the chain system in terms of planning and

design of new hotels?

l) What enables the large chains to benefit in every way when they build their own

hotels?

m) In what case can large chains share their expert knowledge?

n) Why does hotel design pose special problems?

o) In what way can maintenance costs be cut?

p) How does chain management increase the efficiency of the total organization?

q) What do economies of scale mean?

r) What is the advantage of a centralized personnel office?

III. Sum up what you have learned from the text about:

a) the emergence of hotel chains;

b) the competitive advantage in advertising for hotel chains;

c) the importance of meeting overall standards in all hotels in the chain;

d) the increased sales potential for conventions;

e) the benefits in planning and design of hotels;

f) the ways to cut costs and increase the efficiency of the total organization.

IV. Find in the text words or phrases which correspond to the following definitions:

1. A business that has several outlets. Many hotels are owned by corporations that own,

operate or manage a large number of establishments.

2. A method by which hotel chains have expanded. This involves joining with local

businessmen in investing in a new hotel.

3. A license to operate an enterprise under a corporate name and usually with standards

established by the licensing corporation. This is yet another way in which hotel

chains have grown.

4. A person or firm hired on a fee basis to give advice or carry out work for a limited

period. They are often called in by hotels for such purposes as accounting, interior

design, landscaping, advertising and so on.

5. Purchase of supplies and equipment in very large quantities, usually at a consider -

able saving.

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