The international expansion of hotel brands

With the emergence of globalization, the tourism market is becoming increasingly competitive and challenging, the hotel industry is growing exponentially, causing brands to focus on the growth and advancement of their hotels.

Thanks to this, hotel brands concentrate their market management on internationalization strategies that promotes the development of their brands in different geographical locations, offering new products and services according to the resources that serve as opportunities.

In the hotel industry, market share complicates the distinction of the products and services offered by hotels, causing hotel chains to base their internationalization strategy on management contracts and franchises.

This strategy consists of the union of companies with the same level of production to achieve a higher level of reach, distribution and sales in the market.

According to this, internationalization has a number of benefits for hotel brands, I will mention some of them below:

  • Competition is reduced, while national and regional prestige is gained.
  • Access to new markets and consumers globally.
  • Resource costs are reduced.
  • Increase the list of suppliers and shareholders by having so much power in the market.
  • Economies of scale are taken advantage of.

A good example of a star hotel brand at an international level is the Hilton Hotel & Resorts of the Hilton Worldwide company, with a presence in 124 countries and 584 locations in total. At this rate, the company has become the leading hotel chain in the market, establishing its five brands (Hilton, Waldorf Astoria, Conrad, Embassy Suite and DoubleTree by Hilton) worldwide.

As we can see, internationalization is a market strategy that gives way to many opportunities. However, let us not forget that there are also disadvantages, including the tourism sector is very sensitive to the interrelationships that countries have with each other and the political, social and economic situation that each one of them experiences.


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