Franchise or Management?

As an investor, if there is something wrong with the hotel, what could have happened? you are not earning enough income, you are not getting enough quality guests, guest satisfaction is low, you have problems in food or restaurant service, For example, when you have a lot of discomforts, such as something that does not fit your mind financially, you are not very satisfied, or when you say that you have an income, but there is a deficit somewhere, which is quite normal,

If you want your hotel to be international or have mostly foreign quality guests, these three models below will definitely suit for you.

  1. Management
  2. Franchise
  3. Consultancy

Investors who sign a certain contract in the management business model give it to the company to operate it from A to Z. The company tries to represent the hotel in the best possible way by putting its own trade mark, procedures and standards, to increase revenues by paying attention to guest satisfaction and higher quality of service.

In return, they share an agreed amount earned. However, the investor, not the operator, undertakes the number of fixtures and missing materials spent for the hotel and the material to be spent for the works. While reciprocal agreements vary widely, they can usually be based on net profit or overall gross turnover.

The management firm, which is the operator, prepares sales plans according to the location and size of the hotel, and ensures that all instruments such as the products in the hotel, spa, fitness, pool, patisserie restaurant, meeting rooms and ballroom for invitation organizations work and earn income.

Of course, the goal here is for both parties to gain. The greater the business potential, the more the operator and the investor win. In this model, the investor does not interfere with the operating hotel and transfers the work to the professional team. At the end of the year, when the management model is compared with the franchising model, the profit share of the company that will operate it is higher. Since the investor does not interfere in anything, he increases the income share ratio in the contract according to the franchise.

Franchise, on the other hand, is not very different, in fact, the most important issue here is that the hotel investor has a general manager appointed by himself in the hotel, in the management of the facility and at the head of the business. The general manager helps the franchise company’s brand to be appropriate and enforced at the hotel. The franchise company is not at the hotel, but it makes inspections from time to time, and shares and shares all kinds of information from outside in order to increase the image of the hotel and the quality of its employees. The good condition of the hotel will ensure mutual continuity, loyalty and merit for both the investor and the guests. According to the management, the commission amounts to be undertaken by the firm are lower. The most important benefits of this model are:

  • Utilizing the power of the brand
  • Advertising and promotion advantages
  • Convenience and management experience in opening procedures
  • Increasing the quality in existing businesses
  • Establishment of standards and infrastructure
  • Decreased costs
  • Continuing education and technology support
  • Follow-up of satisfaction
  • Professional elimination of deficiencies. By acting jointly, the risks and management problems that the enterprises will encounter are minimized.
  • Standard management, accounting, sales and stocking functions are possible.

In the CONSULTANCY model, on the other hand, the company helps the hotel for a short time regarding any specific issues or department that goes wrong, corrects, improves and leaves. Contracts are for a maximum of one year, after which they are renewed. Although a fee is charged per job, different contracts can be drawn up for sales and marketing. This may include training, surveillance and supervision. If the hotel is in the opening process, it makes the pre-opening calendar, applies it and continues until the opening and even after the opening. In this process, the studies are divided into two subjects; architecture, design and operation. In the architectural part of the hotel, the technical, design, electrical, mechanical, the room, spa, fitness, restaurant, and meeting rooms are established, arranged and made ready for the guests.

Turizoom Hotels & Resorts achieves outstanding results by offering hotel, expert assistance focused on sales and marketing programs, quality and guest experience platforms, training programs, reservation systems and comprehensive revenue-generating initiatives.

When considering our brands, know that you are partnering with an industry leader, a company at the forefront of hotel development, and an ambitious and successful hotel franchisor.

We are open to all sorts of communication requests for the development and reputation of your hotel. Do not hesitate to contact us for any subject you need.

Our way of doing business consists of 3 different models.