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CVCT provides expert analysis and consulting
assistance to hotel owner and operators considering either a change in
franchise affiliation or pursuing independence.
There are benefits and costs associated with
franchise brand affiliation. The primary reason experienced hotel owners and
operators should have when deciding to affiliate with a brand is incremental
revenue generation.
The costs associated with franchise
affiliation to generate incremental revenues can be substantial. The
Franchise Analyzer is an effective tool to compare the costs of franchise
affiliation among the most popular brands and independence.
Based upon contributions from a franchise,
the costs per reservation received often exceed $50.00 per reservation.
Depending upon the current market situation, hotels may be able to
significantly reduce these costs and improve cash flow by dropping their
franchise flag, launching an aggressive local marketing and sales strategy
and contracting with a third party reservations provider.
CVCT and our Franchise Analyzer can help an
owner/operator determine the breakeven factors in terms of occupancy and ADR
when considering leaving a franchise for a third party reservations service
provider.
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