Why Hotel Franchising is Here to Stay
Franchising is here to stay. It is not going anywhere, according to Sharif Khan, who is an experienced hotelier and has over 20 years of experience in this industry. He has owned and managed hotels, been a franchisee and now is a franchise owner as well. So he has experience of both sides of the hotel franchising business.
To operate successful hotel, some structures are needed to be in place. Guests want to see structured hotels. When they see a hotel is franchised, they will think that it must be better maintained, will have better amenities, and will have proper hygiene protocols.
So when you compare an independent property vs a franchised property, the perception of the guests will most likely be more favorable of the franchised one.
Due to this the franchised hotels can charge a higher rate than independent hotels even if they are located in the same locality, just next to each other. They can afford to do this because the guest’s opinion and perception will be heavily weighed in favor of the franchised properties. Many guests will be more than happy to pay the higher price for staying at a franchised hotel, specially in the era of the pandemic, with all the lurking health concerns among people.
There have also been recent cases of crime and violence in hotels, which may have caused apprehensions among many people. In these cases of violence, many times the guests have been the perpetrators rather than the hoteliers. Still, regardless of whoever is at fault, such things can be pretty damaging for the business as many guests will be fearful.
While such incidents of violence are not specific to independent properties, and can and do happen in franchised properties too, the overall impression and perspective of guests is that franchised properties are safer and they have more security. This may or may not always be the case, but this is what a significant portion of the population thinks.
So operating a franchised hotel may be better for business as people will have lesser fears and apprehensions of staying with you as compared to an independent hotel. In business, the public perception matters a lot. If people think your independent hotel is not as safe or as clean as your neighbouring franchised hotel, it will be hard to convince them otherwise, regardless of what the actual truth is.
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