Kesso Diallo

Chapter 2 Summary

It’s basically about improved transportation in the hotel industry and how hotels can be classified based on their locations. Also they state how vacation ownerships offer purchasers many opportunities to furnished stay away places. Lately the talk about International perspective; foreign investments .

Capital intensive
– airlines are considered capital intensive .

Fair return on investment
– example you pay $200 for a stock that pays $5 dividend and u sell the stock In one year for $205 , which mean you made a $10 profit .

Feasibility study
– when you start up a company or you know its growing you must do a feasibility study to if the company will gain success

Direct economic impact
– for example you spend all your time making money you make more and you end up spending more than you think . On special holidays people usually earn bonuses and they spend alot of money on companies which helps them grow.

Indirect economic impact
– managers manage all the money that comes in especially making sure it used properly including the salaries earned by workers.

Franchising
– some companies offer franchising to people who are willing to open the same business as them also they would need to meet certain standards.

Management contract
for example someone earns more and now the person has his or her management contract and gets promoted to handle all responsibilities fully.

Referral Association
My mom has a contract with a franchiser for her restaurant but her best friend who have a deal with a referral association , made a change to another franchiser at a lower price.

Vacation ownership
well my dad travels alot with different airlines so he became a VIP and he earns point for free plane tickets and other bonuses.