Saturday, November 19, 2011

Hotel Franchises foes or partners?

This picture below can say a thousand words - precisely it is an image of angry hoteliers who feel the franchises they are associated with them compete against them. Hoteliers understand the concept of marget segmentation. Owners of Days Inn, Knights Inn, Howard Johnsons, Super 8, Travelodge have one thing in common-they are part of the same Franchise group- Wyndham hotels group. All these franchises are low budget franchises that cater to the same clientale. However, instead of having secured areas of business for indivudual franchisees, Wyndham hotel group have been approving locations within the vicinity, sometime directly next to its sister property. They are simply competing against each other, and as the pie gets smaller, more and more hotel owners are filing for bankruptcy. Similiarly, Choice hotels have been pitting Sleep Inns, Comfort Inns, and Quality Inns in the same market with no clear distinction in its clientale. Hotel Franchises such as Wyndham Hotels Group and Choice Hotels are reaping the benefits for their unethical business practices, while Hoteliers are suffering. I think its time, the government takes a look at the sufferings of small businesses, and stop greedy franchises from manipulating hoteliers. Please share your thoughts.





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