Table of Contents

Introduction on Global Tourism and Hospitality:..................................................................................4

LO-1: Understand the size and scope of the global tourism and hospitality industry..........................5

1.1. Examine the worldwide tourism and hospitality industry, size, nature and sub-sectors:..................5

1.1.1. Size of the Tourism industry:.....................................................................................................5

1.1.2. Nature of the Tourism industry:.................................................................................................5

1.1.3. Sub-Sectors of Tourism Industries:............................................................................................5

1.2 Examine the responsibilities of industry stakeholders:......................................................................6

1.3 Describe the history of the tourist and hospitality industries:............................................................7

1.3.1. Earlier eras:................................................................................................................................7

1.3.2. Middle Ages:.............................................................................................................................7

1.3.3. Economic Revolution:...............................................................................................................8

1.3.4. Century 20:................................................................................................................................8

1.3.5. Present Days:.............................................................................................................................8

1.4 Examine the interconnections and connections between tourism and other industries:.................9

1.4.1. Industry of Hospitality:..............................................................................................................9

1.4.2. Industry of Transportation:........................................................................................................9

1.4.3. Retail Sector:.............................................................................................................................9

1.4.4. Entertainment:...........................................................................................................................9

1.4.5. Agriculture:................................................................................................................................9

LO-2 Understand the food and accommodation sub-sectors within the global tourism and
hospitality industry..................................................................................................................................10

2.1 Characterize the distinctions between different types of accommodation and their operation.........10

2.2 Characterize the distinctions between different types of food operation..........................................10

2.2.1. Commercial food service:........................................................................................................10

2.2.2. Non-commercial food service:.................................................................................................11

2.3 Analyze the factors affecting accommodation location decisions....................................................11

 2.4 Analyze the effectiveness of transport and distribution systems......................................................11

LO-3: Understand the issues and influences affecting the global tourism and hospitality industry. 12

3.1 Review the development of the industry and the reasons for change...............................................12

3.1.1. Technological Developments:..................................................................................................12

3.1.2. Economic Developments:........................................................................................................13

3.1.3. Business Requirement:............................................................................................................13

3.1.4. Peoples expectation.................................................................................................................13

3.1.5. Domestic and foreign Traveler:...............................................................................................13

3.2 Evaluate the impact of government activity and political issues......................................................13

3.2.1. Politics and tourism:................................................................................................................13

3.3 Define the contribution of the industry on the economy and its impacts.........................................14

3.3.1. Positive Impacts:......................................................................................................................14

3.3.2. Negative Impacts:....................................................................................................................15

3.4 Evaluate the effect of trends in modern lifestyle habits...................................................................15

3.4.1. Economic growth and decline:.................................................................................................15

3.4.2. Sustainability:..........................................................................................................................16

3.4.3. Socio-economic groupings:.....................................................................................................16

3.4.4. Technological developments:..................................................................................................16

3.4.5. Disposable income:..................................................................................................................16

3.5 Evaluate the way in which external factors affect the industry and organizations within it.............16

3.5.1. Globalization:..........................................................................................................................16

3.5.2. Greenhouse:.............................................................................................................................16

3.5.3. Ethnic tourism:........................................................................................................................16

3.5.4. Corporate Social Responsibility (CSR):..................................................................................17

LO-4: Understand the growth of global tourism and hospitality brands............................................17

4.1. Define the characteristics and uses of branding..............................................................................17

 4.1.1. Branding:.................................................................................................................................17

4.1.2. Reasons for Branding...............................................................................................................17

4.2. Analyze the development of global tourism and hospitality brands...............................................18

4.2.1. History:....................................................................................................................................18

4.2.2. Role of Branding:....................................................................................................................18

4.3. Analyze the benefits of branding and brand loyalty.......................................................................18

4.3.1. Benefits:...................................................................................................................................18

4.3.2. Loyalty Program:.....................................................................................................................19

4.4. Explain the use of tourism and hospitality globalization strategies and their risks.........................20

4.4.1. Strategic Alliance:...................................................................................................................20

4.4.2. Franchise:................................................................................................................................20

4.4.3. Joint Ventures:.........................................................................................................................20

4.4.4. Acquisitions.............................................................................................................................20

4.4.5. Management contracts:............................................................................................................20

Bibliography:.........................................................................................................................................21
Introduction on Global Tourism and Hospitality:
The tourism and hospitality industries contribute considerably to the global economy by creating
jobs, driving economic growth, and fostering cross-cultural contacts. These industries were
significantly impacted by the COVID-19 pandemic, which resulted in lost jobs and money.
Priority has been given to sustainable tourism, which promotes eco-friendly behavior and helps
the neighborhood. The way these industries function has also changed as a result of advances in
digital technology, with new tools and platforms improving consumer experiences and
streamlining processes (revfine, 2022).
LO-1: Understand the size and scope of the global tourism and hospitality industry.
1.1. Examine the worldwide tourism and hospitality industry, size, nature and sub-sectors:
1.1.1. Size of the Tourism industry:
With millions of people employed worldwide and billions of dollars in annual income, the
industry is significant. The global travel and tourism industry supported around 330 million jobs
globally in 2019 and contributed about 10.4% to the global GDP, according to the World Travel
and Tourism Council (WTTC).

1.1.2. Nature of the Tourism industry:

The hospitality and tourist industries are extremely dynamic, with a focus on providing visitors
and travelers with first-rate experiences. The marketplace in which the company works is
extremely competitive, and consumer preferences and needs are continuously changing. (The
future of work in the tourism sector, 2022).

1.1.3. Sub-Sectors of Tourism Industries:

The worldwide tourism and hospitality industry is divided into several sub-sectors, including
lodging, food and beverage, travel and transportation, tourism, meetings and events, attractions,
entertainment, recreation, technology, cruises, and casinos. These subsectors offer a variety of
services, including lodging, food, transportation, tourism promotion, event planning, landmark
preservation, entertainment events, self-care activities, technological solutions, onboard
hospitality services on cruises, and regulated gaming facilities (COTHM Dubai, 2023).

1.2 Examine the responsibilities of industry stakeholders:

Stakeholders are essential to the growth of sustainable tourism, and each group brings something
special to the table. Governments enact laws and regulations, corporations give goods and
infrastructure, tourists fuel the economy, workers make sure everything runs smoothly, locals
uphold cultural integrity, and NGOs provide sustainability advice. For the tourism sector to
balance economic growth, environmental preservation, and social well-being, various groups
must work together (Rahman, M. 2017).
1.3 Describe the history of the tourist and hospitality industries:
The tourist and hospitality industries have a long and fascinating history that dates back
centuries. Here is a brief overview of the major developments in these industries over time:

1.3.1. Earlier eras:

People used to travel for a variety of purposes throughout antiquity, including trade, pilgrimage,
education, and conquering. For instance, the Greeks created the idea of "hospitality" or "xenia,"
which involves providing guests with food, shelter, and security. People go to Rome to see the
city's well-known attractions and to take in its cultural activities (JOBS, 2020).

1.3.2. Middle Ages:

The Crusades and religious journeys to sacred locations like Jerusalem and Mecca throughout
the Middle Ages increased demand for lodging and other travel-related services. To meet these
demands, monasteries and lodgings were built. The affluent also developed the idea of the
"grand tour," taking trips to Italy and other European nations to study art, culture, and history
(JOBS, 2020).

1.3.3. Economic Revolution:

Significant advancements in transportation were made throughout the Industrial Revolution in
the 18th and 19th centuries, enabling more people to travel. In response to the rising demand for
planned excursions, the first travel firms were founded. Trains, steamships, and vehicles made
travel simpler and more affordable (JOBS, 2020).

1.3.4. Century 20:

In the beginning of the 20th century, when tourism grew even more, new types of lodging, such
motels and hostels, appeared to accommodate all kinds of guests. The airline business prospered
as well, making air travel more widely available and inexpensive (JOBS, 2020).

1.3.5. Present Days:

Nowadays, the tourism and hospitality sectors contribute significantly to the global economy by
creating millions of jobs and providing support for numerous businesses throughout the globe.
The way people travel and reserve lodging has been completely transformed by technology, with
online booking services, review websites, and smartphone applications all playing a major part in
the market (JOBS, 2020).

1
.
4

Examine the interconnections and connections between tourism and other industries:
The tourism sector has strong ties to other sectors of the economy. Following are linked to
tourism:

1.4.1. Industry of Hospitality:

Hotel, resort, and restaurant businesses are all part of the hospitality sector, which is closely
related to the travel and leisure sector. The need for hospitality services is increased by tourists'
need for locations to dine and stay (Mohammed, 2021).
1.4.2. Industry of Transportation:
The tourism sector is strongly related to the transportation sector, which includes the railroads,
aero planes, and vehicle rental agencies. Since tourists must go to their destinations, a need for
transportation services arises (Mohammed, 2021).

1.4.3. Retail Sector:

Another sector with ties to tourism is the retail sector, which comprises stores, boutiques, and
gift shops. Retail services are in high demand because tourists frequently like shopping for gifts
and souvenirs (Mohammed, 2021).

1.4.4. Entertainment:
Theme parks, museums, and other cultural events are all part of the entertainment sector, which
is connected to tourism. While on vacation, tourists frequently look for entertainment options,
which increases the demand for entertainment services (Mohammed, 2021).

1.4.5. Agriculture:
The agriculture sector, which includes vineyards and farms, is associated with tourism. To
experience the local culture and cuisine, tourists frequently love visiting farms and wineries
(Mohammed, 2021).

LO-2 Understand the food and accommodation sub-sectors within the global tourism and
hospitality industry.
2.1 Characterize the distinctions between different types of accommodation and their operation.
Accommodation can be broadly categorized into two types: Serviced and non-Serviced
accommodations. Here are some characterizing their differences in operations.
Serviced Accommodation Non-Serviced Accommodation
Owned and managed by businesses (hotels, motels, Privately owned (vacation rentals, Airbnb
resorts, B&Bs) properties, homestays)
Operate on a for-profit basis May or may not be for-profit
Offer a range of services and amenities to guests Amenities and services may vary depending
(housekeeping, room service, concierge services) on the property and owner's preferences
Standardized rooms and amenities Rooms and amenities may be unique and
varied
 Dedicated staff responsible for managing the Owner or property management company
property and providing services to guests may manage the property
Consistent level of service across all locations of a Service may vary depending on the owner
particular brand and property management
Larger scale operations Smaller scale operations
Guests may expect to pay higher rates for the Rates may vary and may or may not include
added services and amenities additional services and amenities
(Commercial vs non-commercial food services: What is the difference, no date).

2.2 Characterize the distinctions between different types of food operation.

Restaurants, cafés, fast food chains, food trucks, catering services, and institutional providers are
just a few examples of the different sorts of food operations based on its purpose and intended
customer. Additional categories include commercial and non-commercial services. (Commercial
vs non-commercial food services: What is the difference, no date).

2.2.1. Commercial food service:

Commercial food service refers to food and beverage establishments that run for profit with the
sale of F&B items as their main objective. These businesses, which are typically privately
owned, must be profitable. To guarantee return business and positive evaluations, the caliber of
the food and eating experience is essential. Quick-service and full-service restaurants, catering
and banquet businesses, as well as drinking venues like bars and nightclubs, are examples of
commercial food service (Commercial vs non-commercial food services: What is the difference,
no date).

2.2.2. Non-commercial food service:

Non-commercial food service enterprises typically provide F&B goods in institutional, lodging,
or membership-based contexts as a secondary support service. The primary goal should be to
cover expenditures; financing can come from grants or the hosting organization. Non-
commercial food service providers may be brought in by the host group directly or hired out. The
quality of the food and the dining experience are being worked on more and more. Hospitals,
educational institutions, corporate staff cafeterias, lodging facilities, nightclubs, and vending
machines are a few examples of non-commercial food service.
2.3 Analyze the factors affecting accommodation location decisions.
The factors are affecting the accommodation location decisions which are mentioned below:

1. Proximity to tourist attractions, transportation hubs, shopping, entertainment, restaurants,

and other amenities.
2. Safe and secure location.
3. Accessibility and ease of finding the hotel/motel.
4. A pleasant and picturesque location, such as near a beach, lake, or mountain view.
5. Room quality and characteristics of the hotel.
6. Characteristics of the tourist destination.
7. Competitive environment.
8. Price, facility, and cleanliness (Akhtar, 2021).

2.4 Analyze the effectiveness of transport and distribution systems.

Transportation infrastructure is critical in the tourism business, connecting origin and destination
areas while providing safe, convenient, and efficient travel. It affects location accessibility as

well as tourism competition and demand. A destination's success may be hampered by

insufficient infrastructure, whereas efficient connection cuts down on travel time and expenses.
The sector's success depends on the quality of transport services because it affects visitors'
perceptions overall, chance of returning, and referrals to others (Yang et al., 2017).
LO-3: Understand the issues and influences affecting the global tourism and hospitality
industry.
Several problems and factors have had an effect on this industry, including as political unrest,
natural disasters, pandemics, technology developments, shifting customer tastes, and
sustainability concerns.

3.1 Review the development of the industry and the reasons for change.
3.1.1. Technological Developments:
The tourism and hospitality sectors have been significantly impacted by technology, which has
increased operational effectiveness, decreased costs, and improved client experiences.
Automation, the replacement of labour, and efficient web marketing have all been made possible.
Online booking, mobile apps, and advancements in hotel and travel technology have upset
established business models and high-end hospitality software development services. (Saurabh
and Vidyapeeeth, 2019).

3.1.2. Economic Developments:

The tourism and hospitality sector are the world's third-largest sales sector, with a 15.1% CAGR
to $4,548.42 billion in 2022 and $6,715.27 billion by 2026. It has a tremendous impact on
economies by enlarging consumer markets, encouraging export trade, and producing foreign
currency revenue, outpacing global economic growth (Kvach, Koval and Hrymaliuk 2018).

3.1.3. Business Requirement:

Businesses can take advantage of features like meeting spaces, audio-visual equipment, high-
speed internet, and culinary services at hotels like Icon Hotel and Indigo Hotel. Having these
amenities makes hotels stand out from rivals and draw business travellers, especially when they
are close to corporate offices or business districts (Stephens, 2013).

3.1.4. Peoples expectation

Travelers of today look for distinctive experiences, top-notch customer service, and
individualized support all along their route. Sustainability and social responsibility are also given
top priority. Tourism businesses need to adjust to match these changing consumer expectations if
they want to remain competitive (Hu et al., 2019).
3.1.5. Domestic and foreign Traveler:
Travelling domestically, like touring the United States, enables one to gain a deeper
understanding of one's own country's landscapes and history, yet travelling internationally, like
visiting Japan, exposes them to uncommon experiences and broadens viewpoints. Both sorts of
travel broaden one's perspective and depth of understanding (K, 2020).

3.2 Evaluate the impact of government activity and political issues.

3.2.1. Politics and tourism:
The connection between politics and tourism describes how various political philosophies can
affect how tourism is regulated and supported. Political ideologies can also be utilized to
promote tourism locations to particular tourist demographics. (Pradeep, 2021).

Some factors that affects the industry are:

1. International terrorism:
Travel and tourism are affected by international terrorism, which refers to terrorist acts that
cross international boundaries and use violence and intimidation to further political, ideological,
or religious goals. an example, the 9/11 terrorist attacks in the US caused a sharp decline in
foreign travel to the nation (Seabra, Reis and Abrantes, 2020).

2. Visa restrictions:
Limitations on the number or types of visas granted to foreign tourists make it more difficult for
them to enter a country, which lowers tourism. For example, US travel ban on citizens of
particular countries, which reduced travel to and from those countries (Chi, Lee and Chang,
2022).

3. Permit restrictions:
The need for unique permits or licenses to access certain locations or engage in particular
activities, which reduces tourism. Examples include limiting visitors' access to sensitive
locations like military installations, wildlife refuges, or historical sites (Illinois, 2002).

4. Foreign exchange restrictions:

Restrictions on foreign exchange, which make it more difficult for visitors to get local currency
or spend money in a country, leading to a decline in tourism. Example of Cuba's dual currency
system, which mandates that tourists use a different currency than natives (Lioudis, 2020).
5. Political instability:
Political unrest or violence in a nation that discourages travel because of concerns for security
and personal safety. Example of violence in Syria has caused a sharp decline in foreign travel
(Seabra, Reis and Abrantes, 2020).

6. Tourism policies:
Government rules and incentives, as well as the construction of infrastructure, assist the tourism
sector and encourage expansion and sustainability. For instance, Thailand's "Amazing Thailand"
campaign, which promotes the nation as a vacation spot and encourages investment in
infrastructure related to tourism (Kariyapol and Agarwal, 2020).

3.3 Define the contribution of the industry on the economy and its impacts.
3.3.1. Positive Impacts:
Tourism and hospitality contribute considerably to employment creation, economic growth,
foreign currency profits, and infrastructural development. According to the World Travel &
Tourism Council (WTTC), the tourism industry supported 330 million jobs worldwide in 2019,
accounting for one out of every ten jobs. It also contributed $8.9 trillion to world GDP, or 10.3%
of overall GDP. Furthermore, worldwide tourist visits were 1.5 billion in 2019, with receipts
totaling $1.7 trillion. Tourism can also fuel infrastructure developments, as evidenced by the
2016 Olympic Games in Rio de Janeiro, which resulted in a $10.8 billion investment in
transportation and urban development (Rasool, Maqbool and Tarique, 2021).

3.3.2. Negative Impacts:

Negative effects of the tourism and hospitality sector include the spread of diseases, an uptick in
crime and terrorism, environmental degradation, and cultural deterioration. The COVID-19
pandemic is an illustration of how tourism can encourage the spread of disease, while tourist
influx may increase crime rates. As the 2015 Paris attacks shown, tourist attractions can serve as
terrorist targets. The sector may also contribute to
resource depletion, pollution, and waste production, which could
harm local biodiversity and
ecosystems. These negative
effects emphasise the significance of ethical and sustainable methods in tourist management
(Wikipedia Contributors, 2019).

The Impact of Global Tourism

3.4 Evaluate the effect of trends in modern lifestyle habits.

3.4.1. Economic growth and decline:
While economic downturns can harm the sector, economic expansion can result in an increase in
tourism. The COVID-19 pandemic has significantly reduced travel demand (Revfine, 2019).

3.4.2. Sustainability:
The drive towards sustainability has resulted in environmentally beneficial solutions in the
tourism industry, such as trash reduction and the use of renewable energy sources. (Revfine,
2019).

3.4.3. Socio-economic groupings:

Individuals are classified into socioeconomic groups based on their economic situation. The
emergence of the middle class in emerging nations such as China has boosted travel demand
(Revfine, 2019).

3.4.4. Technological developments:

Through the use of social media, smartphone apps, and new booking systems, technology has
completely changed the tourist and hospitality sectors. While airlines let customers check in,
book flights, and obtain boarding passes through mobile apps, hotels provide mobile check-in
and keyless room entrance (Krysik, 2022).

3.4.5. Disposable income:

Determines how much money people have available for travel and recreation. Grand hotels offer
to high-net-worth consumers, whilst budget hotels cater to frugal ones. Airbnb offers low-cost
lodging options. (Revfine, 2019).

3.5 Evaluate the way in which external factors affect the industry and organizations within it.
External elements influencing the travel and hospitality sector include:
3.5.1. Globalization:
This phenomenon has increased the number of people who can travel and work remotely while
doing so. It has also made travel more affordable. International travel is now more reasonably
priced thanks to low-cost airlines (Rasool, Maqbool and Tarique, 2021).

3.5.2. Greenhouse:
Coastal tourist spots are at risk from climate change due to rising sea levels and natural
calamities like hurricanes and wildfires. The Maldives, for instance, might be flooded (UNWTO,
2020).

3.5.3. Ethnic tourism:

Ethical tourism entails supporting regional companies, visiting indigenous people in a
sustainable manner, and conserving their traditional ways of life. Members of the community
may manage eco-lodges and homestays to generate revenue (Gao et al., 2022).

3.5.4. Corporate Social Responsibility (CSR):

Patagonia is an example of a firm that prioritizes CSR by contributing 1% of sales to
environmental organizations and taking a strong stand on issues such as climate change and
public lands conservation. Patagonia has created a dedicated customer base by emphasizing
sustainability and ethics (WTTC, 2022).
LO-4: Understand the growth of global tourism and hospitality brands.
4.1. Define the characteristics and uses of branding.
4.1.1. Branding:
The process of developing unique identities for goods, companies, or locations in order to stand
out in the market, get recognition, and draw customers or tourists. To ensure that clients receive
a consistent and superior experience, this entails creating a distinctive brand identity, working
with partners in the sector, and engaging in marketing campaigns. Loyalty programmes,
collaborations with influencers or celebrities, and the use of cutting-edge technologies to
improve the customer experience are some examples of branding techniques (Webster et al,
2015).

4.1.2. Reasons for Branding

Ritz-Carlton's branding strategy emphasizes exclusivity, luxury, and top-notch service through
various tactics.

1. Premium pricing: The Ritz-Carlton charges a premium for its rooms and services,
positioning itself as a luxury brand.
2. Elegant design: The hotels are designed to be elegant and luxurious, with high-quality
materials and attention to detail. The interior design reflects the local culture and
location, creating a unique sense of place.
3. Exceptional service: Its known for its exceptional services that staff are trained to
anticipate guests' needs and provide personalized service to create a memorable
experience.
4. Brand consistency: Ritz-Carlton's brand features a consistent lion logo and gold-blue
colors.
5. Emotional appeal: Ritz-Carlton's branding aims to forge emotional connections with
guests by offering luxurious, memorable experiences that surpass expectations.
(Freshessays.com, 2022).

4.2. Analyze the development of global tourism and hospitality brands.

4.2.1. History:
Between 3000 and 1000 BC, the ancient Egyptians used possession markings to distinguish
between products and property (Rowe-Cernevicius et al., 2011).
Early Development (Late 1800s to Early 1900s): The Ritz and The Savoy, as well as travel
companies like Thomas Cook & Son, organized the first journeys (RDAEP, 2018).

Golden Age of Travel (1920s–1930s): Commencement of operations of business airlines like Pan
Am and KLM; rise of luxury travel with magnificent ocean liners and railroads (Pitrelli, 2020).

Post-WWII Expansion (1950s–1960s): Enhanced international travel accessibility; quick growth

of hotel brands including Hilton, InterContinental, and Sheraton (RDAEP, 2018).

Package Holiday Boom (1970s–1980s): Popularised by tour operators were all-inclusive package
vacations, the rise of mass tourism, and the expansion of hotel chains that catered to niche
markets (Goffi, 2022).

Boutique and Niche companies (1990s–2000s): Boutique and niche hospitality companies that
offer distinctive experiences began to emerge; examples include Kimpton Hotels and eco-lodges
like Chumbe Island Coral Park (RDAEP, 2018).

Late 1990s to the present: Peer-to-peer platforms like Airbnb and the digital revolution have
changed how people research and book travel, upending conventional hotel business models (R,
2020).

4.2.2. Role of Branding:

In the tourism and hospitality sectors, branding is essential for uniqueness, recognition, trust,
trustworthiness, consistency, emotional connection, customer loyalty, and marketing
communication. An effective brand makes a company stand out, attracts repeat business, fosters
emotional relationships with consumers, and communicates the company's values and services
across platforms (Steeves, 2019).

4.3. Analyze the benefits of branding and brand loyalty.

4.3.1. Benefits:
1. Memorability: Marriott's recognizable branding gives visitors a memorable experience.
2. Familiarity: Because of Marriott's well-known brand, visitors feel at ease and are more
inclined to select a Marriott resort that they are already familiar with.
3. Premium image: Marriott may demand premium prices because of its status as a luxury
brand.
 4. Extension: Marriott has the opportunity to expand into new markets and product lines
thanks to its powerful brand.
5. Greater company equity: The variety of brands in Marriott's portfolio boosts the
company's overall worth.
6. Market costs: are lower because of Marriott's excellent brand, which also increases
word-of-mouth traveller traffic.
7. Reduced danger for consumers: Guests feel comfortable and secure because to
Marriott's dedication to cleanliness and safety throughout the COVID-19 pandemic
(Shastri, 2021).

4.3.2. Loyalty Program:

Marriott Bonvoy boasts 147 million global members and focuses on brand loyalty through
personalized experiences and special incentives. Loyal consumers drive Marriott's success by
returning to the brand and promoting it to others, emphasizing the necessity of cultivating long-
term customer connections (MD, 2019).

Factors affecrting brand loyaloty

4.4. Explain the use of tourism and hospitality globalization strategies and their risks.
4.4.1. Strategic Alliance:
Strategic alliances are cooperative relationships between businesses that help them gain a
competitive edge. Pooled resources, lower prices, shared risks, and access to new markets are all
advantages. On the other hand, hazards include the possibility of intellectual property theft or
losing control of proprietary assets, as well as misaligned goals, cultural differences, conflicts of
interest, and etc (Shastri, 2021).

4.4.2. Franchise:
Franchise opportunities in the tourism and hospitality industries provide benefits such as brand
awareness, proven business models, economies of scale, and training/support. It also has
drawbacks, such as a lack of flexibility, high expenses, reliance on franchisors, legal
responsibilities, and the possibility of inconsistent quality. For instance, a franchisee of a Hilton
hotel benefits from Hilton's name and backing, but is subject to flexibility restrictions and is
required to uphold quality standards while continuing to pay fees (Siebert, 2015).

4.4.3. Joint Ventures:

A shared adventure in tourism and hospitality entails cooperation between organizations to
produce a distinctive, win-win experience for visitors. For instance, an eco-adventure resort
collaborates with neighborhood tour companies to provide visitors with sustainable practices,
eco-friendly lodging, and a variety of guided activities (Xie, 2018).

4.4.4. Acquisitions
The acquisition of Starwood Hotels & Resorts by Marriott International in 2016 formed the
world's largest hotel chain, increasing Marriott's portfolio with recognized brands such as
Sheraton and Westin. This M&A approach strengthened competitiveness by improving
consumer loyalty programmes, achieving cost savings and operational improvements, and
increasing competitiveness (Burks, 2019).

4.4.5. Management contracts:

Hotel or resort owners work together with management companies to run their facilities under
the terms of management contracts. Owners have access to knowledge and resources through this
strategy, increasing productivity and profitability. However, threats include discrepancies in
strategy, performance, or service standards, as well as difficulties in locating qualified
management firms and negotiating advantageous contract terms (Hodari, n.d.).
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