Strategic Development and Operation of Deluxe Hotels Operating in Greece: management contracts vs franchising

Ioanna Giannoukou

Department of Business Administration, Technological Educational Institute of Western Greece

Abstract: As business environments become more complex and competition in the hotel industry increases, the majority of hotel owners recognize the need for strategic management to choose an effective operating arrangement. The central tenet behind strategic management is that a properly articulated strategic fit between organizational competence and various environmental situations is critical for good performance. Considering the fact that most business entities are concerned with a unique strategy for improving their performance in dynamic business environments, research should be designed to identify the link between the operating arrangement and performance, through a useful set of guidelines. This study attempts to investigate the effect of strategic alliances (equity and non-equity) on the performance of hotels operating in Greece by hotel chain brands and the efficiency of management contracted hotels in comparison to those hotels that operates in franchising. The results of this study reveal the distinctive characteristics of hotel operation in Greece.

Keywords: Strategic Development, Hotel Operations, Hospitality Management, Greek tourism, Performance.