When guests stay at a hotel chain like Marriott, Hilton or Hyatt, these companies don’t typically own the property. They may not even run it. So what is happening in the hotel industry and what benefits are smaller companies receiving from these “flags” in the industry?
WSJ explains why hotel companies like Marriott and Hilton actually own less than 1% of their properties and why hotel owners like MCR Hotels choose to fly a flag or go independent.
Chapters:
0:00 The hotel industry
1:30 Franchise model
2:47 Pricing hotel rooms
4:28 Loyalty programs
5:25 Independent hotels and branding
The Economics Of
How do the world's most successful companies generate revenue? In this explainer series, we'll dive into the surprising stories behind how businesses work--exploring everything from Costco's "treasure-hunt" model to the economics behind Amazon's AWS.
Hyatt is smaller than its hotel chain competitors. So how did it get to be the most expensive? Watch the Economics of Hyatt: on.wsj.com/3PLS0T6
How did Marriott become the largest hotel chain, with over 30 brands? Marriott’s CFO explains why this is just the beginning for the hospitality giant: on.wsj.com/4aFZFds
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