Franchise in Romanian tourism

Bunea-Bontaş, Cristina Aurora and Petre, Mihaela (2009): Franchise in Romanian tourism.

Abstract

Both on national and international scale, tourism business is improving continuously, by adjusting to the tourists' demands, resulting in modification and adaptation of organization and association forms in this area. One of these is the franchise affiliation, an original way of doing business that combines the entrepreneurs interest in keeping their own undertaking with that belongs to a group with well-known brand which aims to expand on national and international market. This paper will discuss two important areas of the Romanian tourism industry in which franchise agreement is applied: travel agencies franchise and hotel franchise. On a national scale, franchise was adopted as an expanding strategy by the travel agencies, on one hand, notorious tour-operators that has accumulated know-how and has proven its successful applicability, and, on the other hand, small and medium entrepreneurs who saw in the franchise affiliation an opportunity to develop faster and more reliable business. Also, the Romanian hotel owners with financial resources have seen in hotel franchise an easier way to obtain higher profits. In today's competitive and global hotel market, being part of a group of hotels that share a recognized brand and provide quality services might mean the difference between financial success and failure.

• Item Type: MPRA Paper
• Language: English
• Keywords: franchise, know-how, brand, travel agents franchise, hotel franchise
• Subjects: L - Industrial Organization > L1 - Market Structure, Firm Strategy, and Market Performance > L14 - Transactional Relationships ; Contracts and Reputation ; Networks; L - Industrial Organization > L8 - Industry Studies: Services > L83 - Sports ; Gambling ; Restaurants ; Recreation ; Tourism; M - Business Administration and Business Economics ; Marketing ; Accounting ; Personnel Economics > M5 - Personnel Economics > M55 - Labor Contracting Devices

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