(American Hotel & Lodging Association, 2007)
In the work entitled: "Hotels in China, India and Mexico are Capturing the Imagination and Resources of the Hotel Industry" it is stated: "Take a look at the headlines these days and you will realize that overseas expansion for the hotel industry is hot, particularly in developing markets. In the last month alone, Starwood Hotels & Resorts Worldwide, UK-based InterContinental Hotel Group, Hong Kong's Shangri-La hotels and Marriott International announced major expansion plans in China. Starwood has plans to grow from 57 hotels in China, Hong Kong and Taiwan to 100 Greater China hotels by 2010.
InterContinental has 51 hotels now in China and intends to develop 74 more by the 2008 Summer Olympics. Shangri-La has 20 hotels and plans for 17 more by 2008. Marriott plans to expand its 26 hotels in China to 35 by 2008 and 100 by 2010.
India represents another rapidly developing market for the industry. InterContinental and Wyndham Hotel Group officials both announced at the Lodging Conference last month that they are focusing on China and India as target growth regions. Some speakers likened India to the U.S. In the 1950's before the Interstate Highway System was built, predicting that the many highways being built there will eventually make a huge difference in terms of the ability to travel." (Butler, 2007)
The following chart illustrates some of the challenges that Butler states in terms of doing business in these countries and the difficulty of conducting certain aspects of business as compared to the United States. The following chart lists the 'Ease of Doing Business' by country and ranking assigned to India, China, Mexico and the United States.
Ease of Doing Business in India, China, Mexico and the United States
Source: Butler (2007)
As one can clearly see in the above chart the difficulty of doing business in terms of starting a business in India is rated at 134th hardest in the world in which to start a business while China ranks 93rd hardest and Mexico 43rd as compared to the United State's ranking of 3rd hardest country in which to...
For any hospitality services business to attain the role of trusted advisor they must consistently keep these elements of the proposed Services Expectation Model synchronized with each other. The approaches companies take to create Cooperative Advantage of accomplishing improved organizational performance on the one hand and superior customer value on the other require the prerequisite of their being a tightly coupled integration between Validation and Reinforcement of Trust and Social
While companies of all types and sizes stand to benefit from strategic alliances, the relevant literature indicates that companies competing in the hospitality industry are particularly well situated to gain a competitive advantage in this way. In this regard, Rahatullah and Raeside report that, "The strategic alliance literature reveals that resources alone can not bring competitive advantage, but complementary resources can contribute to the strategic fit of partners in the
Terrorism Affects the International Tourism Industry There is an undeniable relationship between terrorism and tourism. This is because of the industry power tourist sites are attractive avenues for terrorists to cause unprecedented magnitudes of economic and social disruption. The 21st century economy is dominated by three sectors namely information technology, tourism, and telecommunications. Tourism generates ten percent of international employment with a surplus of 30% in the Caribbean region. World
46). Likewise, Gillispie suggests that an incremental approach can be used to "test the waters" for even very small companies seeking to project an internationalized presence. In this regard, Gillespie recommends that companies, "Craft a scaleable master design that represents the major aspects of your business worldwide and anticipates the degree of localization that will be required in each market. The degree of localization can have a real impact
Another strategy companies often rely on are franchising their operations to attain economies of scale and global growth at the same time (Altinay, 2007). Franchising however has significant risk as it requires a high degree of branding consistency and brand enforcement over time (Altinay, 2007). Any expansion strategy has a direct implication on a company's value chain. A merger, acquisition, alliance or joint venture can completely re-define the value chain
Starwood hotel chain expand their business into Kazan market? Kazan is one of the largest cities in the Republic of Tatarstan in Russia. With a populace of just one, 143, 546 recorded for the year 2010 in the earlier results of the national Census, it ranks as the eighth most populated city in Russia and was branded as the third capital of Russia in 2009. Subsequently, it has also been
Our semester plans gives you unlimited, unrestricted access to our entire library of resources —writing tools, guides, example essays, tutorials, class notes, and more.
Get Started Now