Dimensions Influencing Decision Process of Franchising Adoption by Mid-Market Hotels in China
There is a need to explore the dimensions that influence some of the decision-making processes of Chinese mid-market hotels as they get into franchises. It is necessary to conduct a benefit analysis of franchising as a means of participating in hotel operations in the Chinese market. This encompasses all the businesses in the hotel industry that are either making an initial entrance or expanding operations from their present Chinese base. Some of the greatest drawbacks, also doubling up as negative dimensions, include adapting to the preferences and tastes of the market, acquiring reliable business partners, and protection against IPR violations. The other further dimensions include stiff competition, value added services, the legal environment and customer service.
Franchising, despite having enjoyed a relatively obscured existence in the early 90s, has experienced a wildfire success in the recent years. This article shares some of its findings from reliable retrospective studies on franchising in the Chinese mid-market hotel industry. With over 10% of its hotel industry having been taken over by franchised hotel chains, China currently has one of the world’s fastest growing franchise industries in the world. Additionally, the country enjoys playing the world’s largest host of the franchise industry with over 200,000 franchised retail outlets belonging to almost 2600 international brands (Chao, 2008)….