Table of Contents
Classification On The Basis Of Management And Affiliation
Various types of hotels on the basis of Affiliation and Management are :
- Independent hotel
- Chain hotels
- Management contract hotels
- Franchising and referral groups
Independent Hotel
These are family-owned and operated hotels that are not required to confirm any policy or procedure, they also do not need to adhere to a particular image and can offer a level of service geared towards attracting a specific target market and can quickly adapt to changing market condition. However, these hotels do not enjoy the advantage of volume purchase, advertising exposure, or management insight and consultancy power of a chain hotel.
Chain Hotel
Chain hotel ownership can take a number of forms. Depending on the association that the chain organization has with each property. These hotels usually impose certain minimum standards, rules, policies, and procedures, which is to be followed by other properties of the same chain. These hotels are usually classified as operating a management contract or as a franchise or referral group.
Marriott International, a renounced hotel chain worldwide
Management contract hotel
These hotels are the properties owned by other entities. Under this type of contract, the owner or developer usually retains the financial and legal responsibility for the property, the management company pays its expenses and in turn, receives an agreed-upon fee from the owner or developer and the remaining cash goes to the owner who also pays for debts, insurance, taxes.
Franchising and Referral groups
Franchising is simply a method of distribution whereby one entity that has developed a particular pattern or format for doing business. The franchiser usually provides a strong brand name, national and international central reservation system, management training programs, advanced technology, and central purchasing services.
Referral groups consist of independent hotels, which have joined together for some common purpose. While each property in the referral system is the same but there is no similarity in the quality of service and guest expectations. Hotels within this group refer their guests to other affiliated hotels. With this kind of approach, a hotel may gain a much greater level of exposure.