Christine Delva
HMGT 1101
Prof. Duchamp
Oct. 5th, 2015
Chapter 2
There are different aspects when it comes to Hotel Business. In this chapter it explains the pros & cons of owning a hotel throughout the world. You must have the acknowledgement of franchising and management operation when it come having your own business. Location plays a major role when staring a business. You have to make sure it where can transportation to their destination and have activities such restaurant or store to visit. You have considered the type of service you offered and price must attract to the people eyes. Hotels should have many different amenities such as spa, business center or baby-sitting and etc. can help your business grow as well. Today world owning a hotel business is very competitive and some hotels are franchise under other company just to have a connection in order to grow their own business.
1). Capital Intensive (Example) = The Tempt Agency made a capital intensive decision opening up a contract with New York City Housing Authority to provide job opportunity to the people.
2). Fair Return on Investment (Example) = Jude has a radio station, the business is going well. He decided one year anniversary for business going well. From the event he makes triple the investment from when he just started his business.
3). Feasibility Study (Example) = When a business is starting up, a company have and must do feasibility study to see whether if there business will grow and have a great success.
4). Direct Economic Impact (Example) = If you make more money, you spend more money. Christmas time people get their bonus from work which causes them to spend more money which helps other business to grow.
5). Indirect Economic Impact ( Example) = All general managers manages all the money that comes in the hotel, making sure all the money are spent properly especially starting from the wages or salaries of the staff workers.
6). Franchising (Example) = Subways offers franchising for people who wants to start their own Subway business but would have to meet their qualification.
7). Management Contract (Example) = Mrs. English earn and now has her management contract so her job prompts her to handle all the responsibilities for the operating and managing the hotel property thoroughly.
8). Referral Associations (Example) = Tamara has contract with a franchiser for her beauty salon. But thanks to her brother who has a deal with referral association, he made switch to another franchiser at lower cost to help her business.
9). Real Estate Investment Trust= (Example) = Marriot are protect under real estate investment trust ever since they purchase it and doesn’t have to bother with double taxation from false investors or investments.
10). Vacation Ownership (Example) = My uncle is a frequently flyer with many airlines, so he sign up to become their value customer(VIP) and because of that he gains points, free flights and other things from these airlines.
