Product segmentation in the hotel industry is typically good for franchise companies because it allows them to
Question:
Product segmentation in the hotel industry is typically good for franchise companies because it allows them to maximize the number of hotels they have in a given geographic area and thus maximize the fees they receive. Critics contend, however, that excessive product segmentation unfairly pits hotel owners against other owners operating virtually identical hotel products (albeit with different brand names) within the same franchise group and in the same geographic area. As fewer and fewer franchise companies own increasingly larger numbers of brands, this debate will likely intensify. As a GM concerned about guest satisfaction, how does this issue affect guests? Explain your answer.
Step by Step Answer:
Hotel Operations Management
ISBN: 978-0134337623
3rd edition
Authors: David K. Hayes, Jack D. Ninemeier, Allisha A. Miller