5 Common Reasons Hotels May Be Unhappy With Their Franchisor Brands

1. The fees are very high
Many brands may charge exorbitant sums of money as franchisee fees and also levy other charges, which hotels have to keep paying annually to the brands. If the hotels do not get enough value in return they may feel the money they are paying is not justified, which could result in resentment and feelings of dissatisfaction.

2. Unreasonable PIPs
Another common complaint of hotels is that brands make them go through huge amounts of renovation and upgrades, all in the name of maintaining brand standards. This can put a heavy toll on the hoteliers’ pockets, making them very upset and unhappy.

3. They don’t get sufficient benefits
Some hotels are in a good location and they could easily get guests without trying too hard or associating with a brand. In such cases, when hotels join a brand they want to get something extra. Likewise some other hotels are good at marketing and getting attention, so they too may not find any difficulty in having higher occupancy rates.

They want an increased earnings through charging higher rates due to brand association or some other ways to get a boost in their earnings. When that doesn’t happen they may not want to continue with that brand and pay heavy fees to them when they could get all the business they want themselves.

4. They don’t get enough protection
Some greedy brands may not provide enough territorial protection to their existing franchisee partners. When a hotel operates under a brand, it should get an assurance that another hotel of the same brand will not operate within a specified radius.

The radius is usually determined by the market and the existing guest demand of that particular location. Brands have to ensure that the business of the franchisee hotels is not adversely affected by the opening of another hotel. The brands should provide enough protection to their franchisee partners so that they can operate the business properly and have a good chance of growth.

5. They are not given sufficient freedom
People want to operate their businesses in their own way. Nobody likes to be told at every step what to do and what not to do. Nobody enjoys the undue interference of others in the running of their business.

Likewise many hotels do not like the over-interference of brands. They want more freedom to operate their properties. They joined the brand for the benefits and are willing to follow certain rules and regulations as well as comply with certain standards, but there should also be a certain amount of freedom allowed to them. Brands should not try to dictate every small thing to the hotel, making the hotels virtual slaves to the brand.

Experience the Difference with Stay Express
If your hotel has been facing any such problems listed above then don’t worry as Stay Express was started with the intention of helping hoteliers run their business efficiently and more profitably, but without the hassles commonly seen in a hotel franchise setup. Click here to learn more – How Stay Express Can Help Hotels Prosper