Independent hotels versus string hotels


In the last year there was an economical downturn all over the world and so the occupancy rate was immediately lowered. This helped the unbiased hotels to bring down their prices and endure well on the market and cope up with the economic downturn, (Domains, 2007). The competition between the indie and chain hotel keeps growing and each of them is wanting to survive in the economy. There are different types of strategies that are being used by impartial as well as chain hotels. An Independent and chain hotel operates within an environment which is competitive and has lots of tiers. Globalization has created number of jobs & boost the investment of countries for variety of fees as globalization requires hold in the worldwide hospitality industry.

Key factors: hotels, strategies, marketing, opportunities, competitive, globalization, financial slowdown.


Now in 1990s the hospitality industry has truly become a global industry & is speedily learning to be a global industry. In terms of size as well as global impact it rates second. The hospitality industry is a sector where there are relatively low obstacles to entry & also there is a limited scope for economies of range. This article will discuss about those strategies, opportunities, marketing and who will endure in the slowing economy. The hotels are split into different types but they are broadly classified into impartial hotels & string hotels.

Independent hotels: Unbiased hotels are the hotels that are owned and managed alone, means by a person or several few people. It generally does not allow other proprietor to utilize that brand. Independent hotels are likely to operate in single or limited range of market probably may be with limited services or product. They have a large amount of debtors owing to the fact that they are more likely to extend credit and therefore may be observed more vulnerable to cash flow problems. Amount of independent hotels has a multifaceted selection of accommodation, food, beverage & leisure products, with a number of price bundles & relatively large numbers of employees. These hotels deliver heterogeneous marketing offers & so it would be very difficult to offer an unconditional guarantee. Self-employed hotels are likely to face greater uncertainty regarding market. Storey (1994) also argues that even if indie hotels are improbable to invest in research, they will respond to the market. For example, Burns (1996) highlights that, the financial constraints which are enforced on these hotels means that the proper options are circumscribed by the option of capital. 3rd party hotels mostly try to narrow down the goal of their activity in one short statement that presents the 'eyesight' or the 'objective' of the organization, (Hannagan1995, p. 121).

The organizational issues as well as the tactical issues of small companies are obviously and fundamentally different from those of the large chain businesses. "We cannot explain a caterpillar and then use the same classification for a butterfly" in the same way is the difference between large chain and small companies, as said by Penrose 1959.

Strategies for small organizations to develop continuously

Burns (B: 3:pp. 40-8) has advised four options for the expansion of small unbiased firms
  • Remain with existing service or product: but look an bigger market. This strategy has been low risk but it is suffering from limitations regarding development.
  • Develop the product or service
  • Develop its market by opening new branches
  • Combine product development with market development:- it deals with moving into a new market & products, is considered as a high risk strategy.

The Individual Hotel Strategy:

An independent hotel mostly emphasizes customers and products not on ways of production. They mostly focus on the non-pricing elements of the marketing combination, such as fulfilling a little or nationwide market, quality and needs. They don't normally keep or keep personal stats of the visitor except the standard regular mailing list of the customers. self-employed hotels tend to be more product oriented than larger businesses, because they are more focused on product not on market. Their is increased internal consistency in the tiny firms desire and activities, as the energy is only with a single individual or a group of people. They provide appropriate and successful products

Generally as considered by Burns (B: 3), for small organizations, the most appropriate approaches are those which concentrate on market more than product development because it takes low hazards.

In citing the work of Covin & Slevin, Stanworth & Gray argues that small businesses to operate successfully, the strategic position as well as organizational composition have to be very different about the issue of changing behavior depending on the changing conditions.

  • Strengths: They can be closely worried about the friends and the service quality is well-maintained. They may have good understanding of international market. As the decision making process is relatively shorter they can easily change the changing tendency of customer needs & wants and thus offers more customized & individualized products.
  • Weakness: They have a limited customer base. They don't have specialized knowledge in marketing and therefore they cannot benefit with the economies of size. Because of limited resources the marketing advantages cannot be completely capitalized.
  • Opportunities: They have a good scope of functions in the local or national market. They are able to quickly respond to customer needs and so new ideas & activities can speedily unveiled, thus opportunities can be capitalized.
  • Threats: Indie hotel are gradual and responsive nonetheless they are very intricate and gradual (Noble and Griggs, 2005). They have got a limited usage of capital as well as the business skills. The marketing skills are not necessarily count up & the staff skill is also limited (Gaedeke & Tootelian, 1992).

Chain hotels: During 1980s, many hospitality firms got employed in expansion apart from their national boundaries in many forms such as expert franchising agreements, joint ventures & strategic alliances. For instance in European countries, Britannia, Accor hotel, Elite hotel and many such string hotels operates.

According to Hamel & Prahalad (1985), in key foreign markets the international chain hotels have a syndication system which helps them in mix subsidization strategies, world level volume level and international retaliation. They also state that the business enterprise go global because there is minimum quantity required for cost efficiency which is unavailable in the local market/ home market.

From the hospitality & travel and leisure operating the main element players have persuade major repositioning &product development strategies. The development of Courtyard by the Marriott hotel group created the use of new researches & products development techniques. Marriott with the courtyard brand efficiently widened to more than 200 hotels from just 3 test hotels.

Yip (1989) says strategies change as a company enters internationally. To remain successful string hotels need to develop total worldwide strategy in 3 basic phases; first to develop main strategy which acts as a base to have the ability to support in competitive advantages, secondly internationalized the main strategy through adaptation and enlargement of activities internationally. Finally as the international strategy is mixed across countries, globalization occurs. There are different forces that happen to be behind the industry globalization, they may be, market factor, cost factors, environmental factors and competitive factors.

Chain hotel Strategy: Pg 93 there will vary strategies which have employment with multinational or chain hospitality firms, however they mostly donate to at least three of the generic strategies which can be as follows
  • Exporting a central technology that has been well developed in their house country/market. Example: - Accor, Marriott.
  • The

Bibiliography and References

  • http://www. hospitalitynet. org/news//4043200. html
  • http://jvm. sagepub. com/cgi/content/abstract/7/1/63
  • whitla paul, Davies Howard, Walters GP. Peters (2007). Global strategies in international hotel industry. International journal of hospitality management.
  • Johnson, G & schools, K( 2002) Exploring commercial strategy, (6th addition)
  • Go, F & Pine, R(1995) Globalisation strategy of the hotel industry

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