The Ever-Changing Hotel Company Configuration - Pandox

Past, Present and Future: The Ever-Changing Hotel Company Configuration Professor Angela Roper International Centre for Hotel & Resort Management

Past Hotel Company

Configuration

2

Pandox Hotel Market Day 2015

Entrepreneurs starting from one

owned/managed hotel

3


First brands grew by franchising

4


Early internationalization

5


Current Hotel Company

Configuration

6


Configuration seen through

customers’ eyes

7


Vertical disintegration

8


• Argued that the trend to move from real estate-based to fee-based

business models was triggered by specific transactions:

Motivating factors: specialization

gains

9


1992

Marriott Corp

ownership &

management

split

2000

Bass told to

pursue asset-

light

2005

Host acquired

38 Starwood

properties

2005

Consortium

acquired 73

IHG

properties

Hotel company strategies

10


Motivating factors: technology

companies precipitating change

11


Motivating factors: pure gains from

trade

Firm differentials seen in

franchised brands

Franchised brands curtail national

competitors

12


Motivating factors: demand

smoothing benefits

13


Enabling factors: organizational

partitioning

14


Enabling factors: supplementary

stakeholders

15

• Specialist lawyers, accountants, consultants & data

providers offering services that create & augment

business relationships:


Necessary conditions: standardized

information & simplified coordination

Formulaic methods

Standardisation; replication;

codification

16


Factors Which Will

Determine The Next Stage

17


• Like half-man, half-horse

centaurs:

• Quasi-franchising

• Soft brands

• Platforms

• “Manchising”

• Three-way franchising

Value-added of franchises &

management contracts?

18


Personalized, individualized and

alternative?

19


Influence of shareholders on

consolidation?

20

“This greater scale should offer a wider choice of brands to consumers,

improve economics to owners and franchisees, increase unit growth and

enhance long-term value to shareholders. “ Arne Sorenson, 16.11.2015


Possible Future

Configuration Scenarios

21


• Global majors consolidating further

• Brand proliferation gap

• Technology driving global majors

back in control

• Challengers globalizing through

acquisition & strength in an

integrated travel value chain

• New business models will develop

• Different players in value chain

moving forwards and backwards

Vertical disintegration or back to

integration?

22


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The Ever-Changing Hotel Company Configuration - Pandox

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