Benefits of a Hotel Franchise
Choice Hospitality Group
A franchise agreement for your hotel can provide endless opportunities.
There are several key business perspectives to consider when choosing a franchise partner. Firstly we will look at the value the agreement brings to your hotel, both the financial cost of the model, and what will the return be in your market.
Some key benefits we can bring to you with a franchise agreement are the following:
We will work with you as a partner, agreeing the best terms and conditions for your business. Our relationship will be defined by flexibility and ease, unrestricted by extensive requirements and enhanced by access to industry leading technology, market intelligence, efficient OTA agreements, guest booking platforms and resources not easily accessed by independent hotels.
We will review the terms or the agreement and also brand standards required for the chosen brand. It is important to understand what is expected as a franchisee and what flexibility there is for your hotel
2. Innovative Operational Systems and Support
When choosing a global partner, you want to know that innovation and staying ahead of the competition is a key element of your partners strategy. We will look at the platform provided as a central reservations system, the global distribution connectivity, PMS options and of course connectivity to consortia, OTA’s and wholesalers as well as the company’s mobile strategy.
Online reputation plays an ever increasing part in a company’s brand reputation, how this is managed through a franchise agreement is also important to consider
3. Loyalty Programmes
Although it may not seem it, some global loyalty programmes can be a big win to your hotel, providing additional revenue streams, longer stays and better average room rates. Understanding how active your chosen brand is in this market is key. What is their loyalty programme and how can you become involved? These are areas we will review with you on choosing a global partner. Loyalty programmes can give your hotel greater exposure to international markets which in turn creates more revenue.
4. Global Sales and Marketing Structure
A huge benefit of franchising with a global brand is the support structure of Sales and Marketing, allowing you to get in front of potential new clients without having to leave your office. With a network of European and American teams working on your behalf, you will be represented through sales calls and relationships with Travel Management Companies, Corporate Travel Managers, Consortia Agencies, and Leisure Wholesalers and Operators.
An important process in global sales is the RFP process, which you will be guided through by your global support team. We can assist you managing this and improving those relationships, from prospecting new clients through intelligence reports, to sales calls and business case presentations.
5. Cost Saving
Finally, in return for your franchise fee you should be included in some cost saving efforts across your business. This varies with provider but generally through PMS systems, website providers, OTA commission agreements, preferred agreement with TMC’s and Consortia and also procurement savings. We will assist in asking the right questions and reviewing these benefits with you.
A global franchise can help you capitalise on the short and long term opportunities in the hospitality industry. Whether you are building a new hotel, or converting an existing, we would love to discuss our franchise model with you and show you the benefits to your business model.
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