Pearson New International Edition International pcl tp indd 1

OVERVIEW OF THE LODGING INDUSTRY
65

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FRONT OFFICE SEMANTICS
Brand proliferation:
Oversaturation of the market with different brands.
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Conflicts between franchisors and franchisees. Franchisors must ensure that all
franchisees uphold the organization’s standards of operation. Hotel owners and
operators (franchisees) desire to affiliate with strong brands that will help them
sell more rooms and maximize the value of their assets. Hotel operators are
keenly concerned about how their franchisor manages their brand’s image and
operations. However, most brand managers are not directly responsible for hotel
operations (they manage brand images not hotel properties). Thus, conflicts can
arise about how to best position the brand in the marketplace and about what
each operating hotel within the brand should do to assist in the effort. For
example, assume the managers of a limited-service brand believe that their
guests want irons and ironing boards in guestrooms. Assume also that no such
standard exists. Brand managers believe that such an upgraded standard is desir-
able. Hotel owners and operators who must bear the substantial cost of buying
and installing the irons and ironing boards may, however, disagree.
The issue of who pays for brand-mandated programs and amenities is
common to all segments of the hotel industry. However, such concerns are
stronger in limited-service properties because of the historic strength of fran-
chisors in setting and enforcing brand standards.