1. Clarke and Chen Copyright 2007 international hospitality management: concepts and cases

2. Clarke and Chen Copyright 2007 international hospitality management: concepts and cases Chapter one: Introduction

3. Clarke and Chen Copyright 2007 international hospitality management: concepts and cases Management in International Hospitality Industry In additional to traditional hospitality management skills, international hospitality management requires –Social science understanding –Political science appreciation –Legal awareness –And an innate ability in: Anthropology Sociology Psychology Economics Geography

4. Clarke and Chen Copyright 2007 international hospitality management: concepts and cases Reasons for Growth in International Business – External impacts Rapid increase in and expansion of technology Transportation is quicker while costs are lower Communication enables control from afar Liberal government policies on trade and resources Development of institutions that support international trade Consumer pressures Increased global competition

5. Clarke and Chen Copyright 2007 international hospitality management: concepts and cases Why Engage in International Business Expand sales –Growth motive –Profit motive –Managerial urge Acquire resources –Better components, services, products –Foreign capital –information Minimize risk –Take advantage of the business cycle for products/services –Diversify among international markets

6. Clarke and Chen Copyright 2007 international hospitality management: concepts and cases International presence of major hotel groups Hotel GroupCountries Accor90 InterContinental90 Best Western83 Starwood81 Hilton Group plc73 Marriot67 Carlson66 Le Meridien55 Golden Tulip45 Hyatt44

7. Clarke and Chen Copyright 2007 international hospitality management: concepts and cases Chaining penetration by region RegionBranded rooms as % of total North America65 East Asia25 Middle East25 South America20 Europe25

8. Clarke and Chen Copyright 2007 international hospitality management: concepts and cases Modes of International Business Importing and exporting Tourism and transportation Licensing and franchising Turnkey operations Management contracts Direct and portfolio investment

9. Clarke and Chen Copyright 2007 international hospitality management: concepts and cases London's hoteliers back Olympic bid London's hotel chiefs have joined forces to back thecapital's 2012 Olympic bid and have agreed to provide 40,000 affordable rooms for the event. Speaking at the HCIMA's London Conference on Monday (6 September 2004), Charles Wijeratna, director of London 2012, the capital's bid vehicle, confirmed a deal had been struck after nine months of dialogue with the major chains.

10. Clarke and Chen Copyright 2007 international hospitality management: concepts and cases London's hoteliers back Olympic bid The International Olympic Committee (IOC) views provision of reasonably priced rooms as extremely important for new bids, after hoteliers in Athens doubled rates during the Olympics in 2004. As a result, many international tourists boycotted the games on cost grounds, leaving some events only half-full.

11. Clarke and Chen Copyright 2007 international hospitality management: concepts and cases Global competition case (September 11, 2004) European hotel giant Accor is on a hiring spree as it looks to dramatically expand its operations in China by the end of next year. In the next 18 months, the group will open five Sofitel hotels (all five -star), in Shenyang, Anshan, Hefei, Dongguan and Shijiazhuang. It will also open four business-class brand Novotel hotels in Shenzhen, Jinan, Beijing and Nanjing. Two economy-class Ibis hotels will be opened in Chengdu and Qingdao.

12. Clarke and Chen Copyright 2007 international hospitality management: concepts and cases InterContinental Hotels Group Continues Aggressive Holiday Inn Expansion in Latin America( MIAMI Oct. 1, 2004) InterContinental Hotels Group (IHG) (NYSE:IHG) (LSE:IHG), the world's largest and most global hotel company, continues its aggressive expansion of the Holiday Inn brand in Latin America with the opening of the 100-room, 14-story Holiday Inn Santa Fe in Santa Fe, province of Santa Fe, Argentina. This opening demonstrates IHG's commitment to continue expanding its mid-scale brands throughout the region.

13. Clarke and Chen Copyright 2007 international hospitality management: concepts and cases Global competition case (September 9, 2004) --Regent International Hotels today announced a key new addition to the company's fast-growing development in China -- The Regent Shanghai. The hotel is the third Regent to be announced in China during the past seven months. Construction of the 53-story development is well underway in Shanghai's Changning District, close to the business district.

14. Clarke and Chen Copyright 2007 international hospitality management: concepts and cases Levels/Terms of International Companies Multinational Enterprise (MNE): global approach to markets and production Globally integrated company: integrated operations located in different countries Multidomestic company: multinational companies that allow local responsiveness

15. Clarke and Chen Copyright 2007 international hospitality management: concepts and cases National Operations for International Companies Multidomestic strategy: countries operate autonomously Global strategy: integrate various country operations into an international headquarters control Transnational strategy: integrate various country operations while dispersing the location of control

16. Clarke and Chen Copyright 2007 international hospitality management: concepts and cases Standardized vs. Responsive Practices Global standardization advantages –Reduced costs in development and manufacturing –Economies of scale since fixed costs are spread over more units of production Responding to national preferences –Adjusting operating, marketing, and design to meet specific national preferences

17. Clarke and Chen Copyright 2007 international hospitality management: concepts and cases Sovereign vs. Cross-national Relationship Treaties and agreements address a variety of commercial advantages (transportation, trade, etc) –To gain reciprocal advantages –To attack problems that one country alone cannot solve –To deal with concerns that lie outside the territory of all countries Countries reluctantly cede some sovereignty because of: –Coercion –International conflicts