Franchising as a Model of Business and Hotel Development in the Process of Market Globalization

Abstract

The paper presents the structure of three hotel concerns operating in the European market, which has been formed over recent years due to their foreign expansion. At present, the global hotel market is occupied by both international hotel chains and autonomous hotels, for which the concept of franchising can be a suitable mode of operation. The most frequent presentation of the hotel business development is based on a dualistic approach: one involves bridging a development gap (the so-called development divergence), and the other involves the process of improving the position that an organization occupies in the environment (Machaczka, 1988). The globalization process in the modern economy leads to the internationalization of businesses. The aim of this paper is to present a model of business and hotel business development through franchising. The determinants of expansion and globalization factors are defined by the critical analysis of the literature. The corporate globalization model is analyzed, and the concept of offensive development and business expansion are indicated, which results from the application of franchise in the asset-light business model. In addition, the paper presents hotel concerns which employ this type of model of development and expansion into new markets.