Having a look at the role of hotels as a lucrative segment in in the hospitality sector.
Around the globe there are number recognisable hotel brands and chains that are well-received amongst visitors and vacationers for offering a consistent experience for visitors all over the world. When it comes to hotel industry trends, the franchise design is a much safer and simpler method for setting up an effective hotel business. Among the main advantages of the franchise design, and part of the reason it is so popular among business owners is brand recognition. Not only does this business design allow hotel brand names to broaden their reach but it provides a standardised model for setting up an establishment. In many cases it is the duty of the franchisor to offer all the resources that are needed for operating the business. Bulat Utemuratov (Булат Утемура́тов) would acknowledge the benefit of this business model. Similarly, Lee Bu-Jin (이부진) would concur that franchising is among the leading hospitality industry trends worldwide.
As the world becomes more globalised, travel and hospitality appear to be a growing segment of business that many financiers are wanting to enter into. For many first timers or those looking to launch a business from scratch, running an independent hotel is a popular approach to check out. This design will indicate that the owner is fully responsible for both the functional and financial prosperity of a hotel. For any entrepreneur, setting up a business from scratch can be both exciting and overwhelming. There are many components that must be thoroughly considered and prepared for. A well thought out hotel business plan will require a variety of aspects consisting of marketing, financial arrangements and resource management. It can be beneficial to employ specialists who are knowledgeable in this field to ensure functional success. It will also be necessary to obtain materials and products at a cost-effective cost point and have the ability to sustain any running expenses over time.
For business owners who do not have much practice in the hospitality industry, hotel investment in a managed hotel model is an easy pathway for entering into the sector. For property owners, this design will mean that all hotel operations will be dealt with by a management business or third-party operator. A managed hotel can operate in both an independent setting or as part of website a larger hotel group or brand name. The role of the owner in this case, could be to manage a number of everyday operations and admin responsibilities. However, it is also possible to outsource these responsibilities to the management provider too. Robert Kuok (郭鹤年) would agree that the benefit of outsourcing is that it can bring in both competence and experience, which are vital for running a successful business.