Global Business - Licensing and Franchising

HOTEL CHAIN RECRUITMENT FOR SKILLS
Hospitality industry is a pure customer oriented sector which always attempts to new and
innovative services to customers for maximising their satisfaction level. Present report is based on
Crowne Plaza which a multinational brand in Hotels headquartered in United Kingdom
CONTRIBUTION OF HOSPITALITY INDUSTRY TO LOCAL, NATIONAL AND
INTERNATIONAL
INTRODUCTION
Hospitality industry is very broad in size and growing continuously with the high speed. It can be said that this growth is
directly contributing in the overall growth of world. Contribution of hospitality industry at local, national and international
economies are described as below:
Local: At local level, contribution of hospitality industry in economy involves enhancement of job opportunity for local
citizens. It has been observed that with the increasing number of rooms in the hotel, requirements for hospital staff also
increases. As a result, people of local area are getting more job opportunities. This also enhances taxes income for local
government as more number of people are paying taxes now.
National: At national level, hospitality sector has increased around 9.5% of job opportunities across UK. This is the huge
contribution of this industry as people are now self-independent and can now fulfil their requirements at own level.
International: At international, approximately 7 million jobs have been enhanced in the world. It can be said that this
contribution is valuable at international level because it increases fiscal income for international government too as they can
now collect variety of taxes from Hotels as well as its working staff.
DIFFERENT TYPES OF BUSINESS
Lodging: It is simply defined as accommodation place where people used to stay during their
visit from one place to another. Lodging is commonly named as Hotel industry that is availing
accommodation facility to its customers. It can be said that Crowne Plaza Hotel comes under
lodging sector. This hotel is offers variety of product and services to its customers for influencing
them for longer duration of time. It includes fitness centre, Indoor pool, advance reservation
facility, complimentary breakfast facility etc. to its guest.
Transportation: Transportation services can be seen in the form of cabs, ships, buses, flights,
trains as it helps traveller to move from one place to another in less period of time. It is part of
hospitality industry as with the help of transportation facilities only guest can reach the place of
their want. Products and services offered by transportation sector of Hospitality industry includes
mobile services, online booking option, itinerary for client, variety of transportation options with
minimum time limit.
Food and Beverages: This segment can be seen as the part of hospitality sector. Mainly hotel
industry also builds its own cafeteria or restaurant for delivering best quality food to its customer.
In relation to Crowne Plaza Hotel, this Hotel is having its own restaurant that provides excellent
food services to guests within their building premises only. Restaurant and Bar section of Crowne
Plaza involves variety of food item and soft as well as hard drinks options along with the
specialisation of different places which avail options to guest in order to choose best one for them.
Tourism: This sector mainly deals with the travellers and make them feel comfortable in overall
visit. It can be said that tourism sector influences in interest to visitors to travel more and explore
different places. In relation to Crowne Plaza, it can be said that this hotel is having tie up with
different tour operators who maximises their profitability by filling vacant rooms of hotel.
As per the above stated types sector within hospitality industry, it can be said that
maximum of them are interrelated and performs their work responsibility in effective manner.
GLOBAL BUSINESS AND USE OF FRANCHISING AND LICENSING AGREEMENTS
Hospitality industry is adopting different ways like franchising and licensing agreements while
expanding their business at international level. It has been analysed that with the help of franchising
option, hotels like Crowne Plaza are the now easily able to grab international market in more
effective manner. Along with this, it has been observed that growth of overall world and franchising
helps hospitality sector to establishes their business in new countries. This could be easily
understood by an example. If Crowne Plaza is expanding in already developed country, then it is
easier for them to establish in a new country as they can easily grab available resources from the
local area. But, at the same time if they expanding non developed country then required resources
will not be available to them. As a result, it will impact negatively on the growth of hospitality
industry.