Course Information
HMGT 1101 / Section D500
Professor John Richard Akana
jakana@citytech.cuny.eduMeta
New York Times-
Recent Posts
Recent Comments
- rsamuel1 on NYC Attraction Assignment (due 11/23)
- brittany Petersen on 36 Hours Submission
- Melanie Santiago on 36 Hours Submission
- Kiyana Whitney on 36 Hours Submission
- RRivera on Chapter 3 (due 10/26)
Archives
Categories
Franchising are used in say sports teams, business companies, and clothing lines. In a hotel business it is the one of the forces that helps in the development of operations. This was created and used by the hotel called the Ritz Carlton in 1907. it allows a company to use other peoples money for growth rather than financing. This concept is used mostly to expand a business. Their are benefits such as Lower Fee Percentage charged by credit card companies and Centralized reservation systems. Drawbacks are high fees including accounts for about 7-26% of reservations. Pros and Cons of franchising in a business are Up-Front fees and difficulty maintaining standards and controls. This can help you by working directly in many ways even owning your business. Investments don’t pay corporate income tax and required to distribute 95% of net income. Many hotels provide substantial direct and indirect economic impact to the communities in which they are located. A ripple effect is where money is spent by the employees of the hotel in the community. The Classification of Hotels consists of 50,800 hotels and motels as to location, price, and types of services offered. Locations such as City Center, Resort, Airport, Freeway Motel, Casino, and Conventions. Types of Hotels are Full Service, Economy/Budget, Boutique, Extended-Stay Hotels and All-Suites Extended Stay Hotels, Condos and Mixed-Use Hotels, and B&B’s. You can have a Vacation Ownership which you receive points and boost your membership. Some trends are Capacity Control and Globalization.
Growth in the hospitality industry is all about franchising and management contracts. Franchising began in 1907 by the Ritz Carlton. There are many benefits as well as drawbacks to being a franchise owner. Some of the benefits are advertising, lower fee percentage, standard plans and on the other hand your drawbacks could be high fees, standards to be met and conformity. Having a franchise is not easy but it can be quite rewarding. Some of your pros to being a franchise owner are the referral associations, where already successful franchises will refer guests to your location that may be in your area or considering your area. Management contracts, where you can put down as little as possible up front until your business booms with out the stress of being a new owner. Investors in the franchise do not have to pay corporate tax and they qualify for other tax breaks.
There are many types of hotel chains based on locations. All offering great hospitality but serves different purpose depending on the purpose and or need of the guests i.e distance to airport, conventions, all inclusive, bed and breakfast, motels, long term stay, full service and the list goes on. Hong Kong has some of the best and the biggest hotels and chains in the world while, Kenya, the Ice Hotel and the Underwater Hotel has some of the most unusual in the world. While many go on vacation and rent out a room for a week or so there are the elites that actually own their vacation home for the year or longer.
The economy has changed and the hotel industry have changed with it. Many hotels now offer sustainable and green lodging for their guests. Whether that be a more energy efficient air conditioner, to less frequent changing and tidying of rooms to bamboo flooring. Hotel chains has learned to build energy efficient buildings. Cutting cost but not cutting on expectations of their guests.
Franchising and management contracts are 2 of the main drives behind the operations of hotels. Franchising was introduced by the Ritz Carlton in 1907. Hotels benefit from franchising in the financial, central reservations system and brand recognition aspect for success. However it does also have some disadvantages such as high fees it must pay to the franchiser and the fact that it must maintain the same standards of that brand/flag. The franchiser also as well faces pro’s and con’s. Referral Associations are similar to franchises but at a lower cost. Management companies offer management contracts to hotel owners to manage their hotels. The benefits is that a management company offers expertise, a central reservation system, and a time frame period(5, 10, or 20 years). The hotel in return pays the company a percent of gross/profit, known as a management fee.
Because there are so many hotels(about 5,800) they are broken down into classification based on location, price, and type of services provided. From here come the well known terms of resort, casino, conventions, freeway motels, economy budget, boutique, extended stay, mixed use hotels, bed & breakfast inns. Vacation ownership better known as Timeshares began in the 1960’s.
Sustainable and green lodging reduces cost, through using local materials and constructing energy efficient buildings.
In Chapter 2, we begin talking about Franchising. Franchising and Management contracts are the two most important hands in developing and operating hotel businesses. These began in 1907 with the highest chain of hotels, The Ritz Carlton that allowed companies to uses other’s money for growth rather than pure financing. It also allows the hotel companies to manage property from five to twenty years. There are pros and cons to franchising. The pros are increased market recognition and up-front fees while the cons are the caution in selecting franchisees and the difficulty in maintain standards and control. The Chapter also teaches about the economic impact of hotels, one is the benefit of Transient Occupancy Tax (TOT) also known as bed tax. Within the classification of hotels are the location types. There are city centers, resorts, freeway hotel or motel, bed and breakfast inns as well as many others. Popular accommodations in hotels are “green lodging” Green lodging is the use of local materials to save the hotel and the community money but also help the planet from excessive waste and pollution. Other trends are rapid increase on vacation ownership, gaming, more spa & treatments and much more capacity control.
Chapter 2
In this chapter, it starts to speak on franchising. Franchising and management contracts are the two main driving forces in the development and operation of the hotel business. The franchising business began in 1907 by the Ritz Carlton. The franchising concept allows a company to use other people’s money for growth rather then financing. There are benefits to the franchise as well as drawbacks to the franchiser. There are also pros and cons for the franchise company/franchiser. One of the pros is the increase of share and recognizing the share. A con is making sure you are selecting a franchise carefully and maintaining standard.
Vacation ownership began in the French Alps during the late1960s. Vacation is the fastest growing segment of U.S travel and tourism industry. Having a sustainable or green lodging hotel or resort can save money in cost of materials. The use of incorporating ways of using natural lighting and building energy efficient buildings can cut cost significantly.
Ultimately, Franchising can build you a future or it isn’t for you. In order to be successful in buying a franchise you must be knowledgeable in every aspect. Know the in’s and out’s and make a careful selection.
Chapter 2
In this chapter it talks about franchising and marking being two of the main driving forces in the development and operation of the hotel business. Franchising allows companies to use money from an outside source that can help the company expand. While there are many pros when it comes to franchising there are also cons. One of the pros is that it can increase market shares and there is recognition to the business but be careful of who you select as a franchisee as it maybe difficulty to maintain standards and control. Management contracts which were responsible for the rapid boom of the hotel industry since the 1970s allowed hotel companies to manage the property for a period of 5-20 years.
Vacation Ownership being during the late 1960s in the French Alps. It has been the fastest growing segment of the U.S. travel and tourism industry. For a one time purchase and a yearly maintenance fee it allows purchasers to own to own there vacation for a predetermined number of year or in perpetuity. Green lodging is cost effective; saving money by using local materials and using natural lighting.
As we look into Chapter 2 we start to get an insight of hotel business. First, it discusses franchising and management contract that aid the development and operation of the hotel business. Franchising in the hotel business (franchisor) allows the franchisee to use their trademark as well as their business systems and procedures to promote the market which expands the franchisor business. It benefits franchisor because they only pay a one-time upfront fee and a market increase but it’s also difficult to maintain and control franchisee. Management contracts which increased hotel industry since 1970 which involves managing property and marketing. Real Estate is huge part of hotel development because you can have two choices, one is to build new property which won’t make much profit till year later because of high construction cost, two, remodel a hotel and pay for the remodeling, the cost for upgrading, energy, and maintenance. Then, it goes on to the classification of hotels, which includes location, price, and types of services. These types vary from casinos, resort, bed & breakfast inns, condotels, etc. Hotels have been being inspected and rated since 1977 called the AAA Diamond Award and less two percent of the 50,800 hotels and motels receive 5 Diamonds. The Oriental hotel in Bangkok, Thailand has been rated number one in the world. The Four Seasons and The Ritz Carlton are also highly rated hotels generally and Ritz Carlton was also credited for starting franchising in 1907. This chapter really gives a lot of insist on how to be a successful business owner in the hotel industry
Franchising and management contracts are the main functions in the development and operation in the hotel business. It began in 1907 by The Ritz Carlton. Franchising is used to expand business. Some benefits includes setting high standards, listing in franchisor’s directory, lower the percentage charged by the credit card companies just to name a few. The Referral Association offers group buying discounts to members also management training and continued education programs. Management contracts are responsible for the hotel industry’s rapid boom since the 1970’s. Investors do not pay corporate income tax and instead are required to distribute at least 95% of net income to shareholders. Hotels provide large direct and indirect economic impact to the communties in which they are located. The indirect comes from the ripple effect United States lodging industry consists of 50,800 hotels and motels. AAA uses descriptive criteria to evaluate the hotels rate yearly in the USA, Canada, Mexico and the Caribbean. City center, resort, airport, freeway hotel and motel, casino and convention are some types and location hotels. The best highest and most unusual hotels and chains can be found in Bangkok, Thailand, Hong Kong and London. The Ritz Carlton is one of the highest quality chain hotels. The best biggest and most unusual is found in Kenya. Vacation ownership began in the French Alps in the late 1960’s. The European Union and North American Free Trade Agreement is made up of a total population of 441 million consumers. Several hotel chain headquarters are based in Hong Kong. The green lodging can save money on the cost of materials plus the cost of transporting them.
in the chapter 2, I learned franchising and management contracts are the two main forces that allows other peoples money to for growth than financial business. The advantage of franchising is to rapidly expand businesses. Franchises have a very strong support system that include cash flow, advertisement, marketing, sites, building constructors and more. Although in the United States there are 50,800 hotels and motels, each has a specific type of target market to accommodate.Vacation Ownership is the fastest growing segment of the travel and tourism industry.Boutique hotels are usually independent. Unusual hotels are mainly international and I think an unusual one is Dubai, because it has an underwater hotel.
Chapter two begins by describing and explaining franchising. It states the origin in the Ritz Carlton hotel back in the year 1907, and talks about the uprising benefits and downfalls of franchising. It also speaks on the contracts that are to be signed when dealing with a franchise market and what they are providing and stating. It later moves on to explaining the economical impact hotels have had in the business world, and how the lodging industry is made up of approximately 50,000 hotels and motels in different classifications in the united states. From location and different types the chapter indicates some of the biggest and best rated hotels worldwide, some of these hotels just got added to my bucket list when I become rich.
Franchising began in 1907 by the ritz carlton, a way for companies to grow with investor’s money. The investor will pay a upfront fee to the company and in return they are able to use the company brand. This included the company name, slogan, and worldwide recognition. This also means that there are sets of standard the company has came up with that the franchisees have to follow. when just beginning a new franchise it will be hard to make a profit, but it will be harder if it was a new company. Having a franchise means that people will already know the brand and their stander, new companies however will have to slowly gain recognition by trial and error. While the franchise company knows all the beginner errors and will skip through it. Also being a franchise there will be a lower percentage of tax the company have to pay for credit card transaction fees. The biggest problem for franchise and franchisee is standard, it’s hard to keep up with company standard and it is also hard for the franchise to make sure that the standards are being kept up to code. Being a hospitality management major student we will all surely interact with franchise one way or another; we might work with one, work for one, or even own one ourselves.
Chapter 2 is about franchising is a huge driving force within hospitality management. It’s a concept that expands a company’s and businesses’ growth through outsiders’ capitals rather than financing of their own. Trademarks, operating procedures, and other business procedures are all rights granted to be used by the franchisee. Franchising has a number of positive effects as to where they must have a standard set of plans, national advertising, a centralized reservation system, discounts and a few others. But much to the positives, there are always some drawbacks to them as well, such as high fees, central reservation system accounts for about 7~26% of reservations, conformity and must maintain standards. More pros would be that they have increased market shares and recognition along with up-front fees. And a few more cons are being careful in selection in franchisees and difficulty maintaining standards and controls. Franchise is like an insurance company in a way but at the same time it isn’t. It can offer many support services to entrepreneurs and help them reduce any risk of failure. Franchising can exist almost anywhere in anyone’s future; you could work directly for a franchisor, in a franchisor-owned unit, for a franchisee, or even own a franchise yourself as well. In any of these ways franchising may involve you while approaching within the hospitality management fields. If it doesn’t then that can be a bit risky as the franchisor helps resolve and/or overcome any mistakes that has been made by any new entrepreneurs that has made a contract with them. Managing contracts is a big thing for any sort of business. It is the main reason as to why businesses grows and expands. It gives them less risk, more safety measures and trust and more things allowed to be done to whichever thing or person it says that can be managed in so-on-what time it is stated to be used for. Such as allowing hotel companies to manage the property for a period of 5, 10, or even 20 years. Its helpful for maintaining certain connections and relationships, as to much to networking.
Chapter two begins by discussing how franchising and contracting has shaped the hotel industry. Franchising and contracting both has there set of opportunities and difficulties for those who would take these routes. They both offer great support and resources to be successful, however the selection process and maintaining company standards are some of the difficulties that are presented. Hotel development and their economic impact to communities also continue to grow. Many hotel operations are thinking differently when designing new hotels. They are trying to attract and stand out amongst their competitors. Vacation ownerships, clubs and point-based programs are giving customers multiple options on how to plan out future vacations through various payment options and point systems. Lastly, chapter two closes by mentioning the increases trend of building green lodging. Having a sustainable or green lodging helps with savings in the cost of materials, transportation, and most importantly energy being used.
Chapter 2 starts off with the introduction of franchising to the hotel industry. First started with the Ritz Carlton back in 1907, this is a technique used to expand a brand or business. Just like any decision you make there are pros and cons. If you are a franchisor the upside is that you are guaranteed your money up front but on the other hand you have to be extremely careful about who you choose to go into business with. Management contracts was another topic, they allow a “brand” or another hotel company to manage a different property for a number of years in return for a management fee. 2-4.5% of the gross revenue. This chapter also goes into the development and classifications of hotels and the impact they have on the economy. All hotels start out as a business venture by someone looking to make a substantial return on their original investment. The impact of these hotels will hit the economy both directly and indirectly. Directly because the communities will always benefit from the transient occupancy tax and indirectly because of supplies or products being brought for the hotel of by the staff for personal reasons in that same community. There are different types of hotels , hotels that are for conventions , primary service is to provide the facility where the convention may take place. Resorts, mainly for vacationing , you have an all inclusive package. Airport hotels, hotels near the airport for those bust travelers and several other types do. Hotels are also classified by their type whether it be full or limited service, economy hotels( good on price) and bed and breakfast inns.
Stated in. chapter 2 franchising and management contracts play a major role in success when operating a hotel. Franchising which began back in 1907 by the Ritz Carlton. The concept is produced which allows a big company to get help from other people instead of financing they just borrow you can say. As we all know there are plenty of franchisee out there such as hotels, fast food, clothing and many more all these companies are “granted the rights, to use trademarks, operating procedures, and other business procedures”. Meaning all franchisee must follow standard operating procedures. Also mentioned in this chapter there are pros and cons in franchising such as the good being good recognition in market sales and negatives such as not keeping up to date with standards of that franchise. It is possible for all of us to either work for on or even own a franchise in the future. Management contracts which helped the hotel industry in 1970s become beneficial because you don’t have to finance anything upfront and it allowed you to manage the hotel company for 5 to 20 years. As developers build hotels they expect to receive positive profits on the hotel they build within a certain amount of years. Of course it could take time but that’s because you are either starting from scratch or building a brand new hotel which you have to pay for constructing the hotel or you are either going to remodel the hotel which requires additional cost. As we all know hotels in NYC play a major role in economic perspective. There are 50,800 hotels in the U.S. lodging industry and you could categorize these hotels in many different ways. There are hotels in many different locations for much different reason such as airports, casinos, resorts. There are also many different hotels that offer amenities that others might not. For the future in building hotels or resorts there are ways to potentially save money and become more efficient building them by using darkened glass and lower wattage lighting that produces lower temperatures.
Franchising and management contracts are the two main driving forces in the development and operation of the hotel business.
Franchising allows a company to use other peoples’ money for growth rather than financing Franchising is used to rapidly expand businesses. The franchising has some benefits and also has some limitations for both franchisers and franchisees. Management Contracts provides operational expertise, marketing, and sales clout, often in the form of a centralized reservation system and get lower management fee.
U.S. lodging industry consists of 50,800 hotels and motels. Hotels may be classified as to location, price, and type of services offered.
Chapter 2 is about Franchises and Management. Franchising is using outside sources of investments to expand businesses into other branches. The franchising concept began with the Ritz Carlton in 1907. The use of franchising helped Ritz Carlton expand and grow. The location of a hotel impacts the community economically in which it is placed. It provides job opening for the community and helps the community grow by paying the workers so the workers have money to spend. This makes money revolve and circulate helping to community to grow and expand. Different types of franchises include city centers, resorts, freeway hotel or motel, bed and breakfast inns and along with many others. One particular one that helps the community and environment is Green Lodging. One thing is that it can save money on materials and help prevent excess waste from harming the environment. Some pros of franchising are the increased market recognition, lower fee percentage, and standard plans. However there are also cons much as being cautious when selecting franchisees, difficulty in maintaining standards, and high fees.