Factors Affecting Hotel Franchising in Taiwan

• Main Authors: Tung Chun Liu, 劉東春
• Other Authors: Chia Yu Chen
• Format: Others
• Language: zh-TW
• Published: 2011
• Online Access: http://ndltd.ncl.edu.tw/handle/33464415553700669518

碩士 === 世新大學 === 觀光學研究所(含碩專班) === 99 === With tourism industry growing in Taiwan, this research attempts to examine how international tourist hotels develop management strategies as properties of franchises chain, and subsequently gain a competitive edge in the domestic market. A basic structure of franchises and chain of Taiwan’s international tourist hotels, from a dynamic point of view, is presented in this paper to support the findings. This research conducts in-depth interviews focusing on the executives who actually manage Taiwan’s well-known international tourist hotels. Since the resources and management strategies at such hotels are invariably highly confidential and inaccessible to outsiders, the survey reveals some rationales of the decision process of the sample hotels. The argument developed in this research comprises a strategic framework encompassing the multiple viewpoints of “dynamics”, “resources” and “capability”. Such a framework is focused on the specific resources and capabilities possessed by the sample hotels which operate in a dynamic competitive context. Moreover, those specific resources and capabilities can be employed for future use to ensure a competitive advantage for hotels. The external path/environment for the franchise/chain strategies of Taiwan’s international tourist hotels is determined by various factors, namely strategies concerning the path to co-ventures, asset specificity, the “resource-binding effect” involving franchise partners, and the “signal spillover effect”; these three factors are not only part of the dynamic strategy adopted by Taiwan’s international tourist hotels to cope with the external environment for their franchises and chain stores, but they have also formed a highly dynamic, dependent and strategic relationship with the hotel headquarters as well as an internal path within the organized partnership. As for the strategy concerning the path to co-ventures, those based on franchises and chain stores have become the main reason behind the path dependency. The resource-binding effect involves: human resource management, equipment, extension of brand synergy, and a comprehensive package of the parent company’s successful experiences that can be replicated. A non-temporary market position defined by the specialized asset should exist, in order to ensure the time-based competitiveness in the franchise and chain hotels. For the signal spillover effect, it is imperative that a high level of brand awareness be built for Taiwan’s international tourist hotels by reinforcing the consumers’ brand knowledge, so that a brand image can be derived (or projected) and a personalized touch added to the brand name.