The core business of Hotel Groups like Accor, Hilton, Marriott and IHG is to provide services to property owners who either want to join their brand system under a franchise agreement or entrust them with the day-to-day operation of their hotel under a management contract. In either case, it's as much the Group's brand awareness as it is the quality of its services that will drive hotel performance and convince the owner to choose its flag.Service fees (distribution, marketing, IT, etc.) and brand trademark royalties make up the bulk of a Hotel Group's revenue. This means that revenue growth is fueled by two key factors: the Hotel Group's ability to expand its network through new franchise and management wins (hunting) and its ability to sell more services (farming).
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