EVALUATION OF THE EFFICIENCY OF FRANCHISING IN THE HOTEL BUSINESS

Abstract

The development of tourism is inextricably linked with the effective functioning of accommodation facilities, which in many countries form a significant share of gross domestic product. The hotel complex of Ukraine needs development and significant investment resources for reconstruction and bringing to international standards. Franchising can become an effective and efficient mechanism for conducting hotel business, which will reduce the risk of business activities, optimize investment, increase the level of hospitality services. The article analyzes the conceptual approaches to the organization of hotel business on a franchise basis in the Ukrainian market, explores the essence and mechanism of business processes on a franchise basis, outlines the economic relations between participants in such relations, identifies advantages and disadvantages of franchising for participants: franchisor and franchisees. In order to assess the effectiveness of opening hotels under franchise agreements, in addition to financial indicators based on discount estimates, it is necessary to take into account the additional benefits that franchisees will receive from consulting services of the franchisor, such as concessional lending, rent, transfer of contracts with suppliers and contractors. reduction of the period of reaching full capacity, transfer of the established business practice, etc. It is the transfer of an efficient business model that will reduce operational risks and guarantee high economic performance. The state and prospects of hotel activities in the conditions of activity restriction due to the COVID-19 pandemic are also considered. Crisis conditions of economic activity always give impetus to new ideas and development of new services. The vectors of further development are the informatization of most technological operations in the industry, and the optimization of operating costs, the formation of a new product, such as renting office space for business people who are ready to work and relax at the same time.