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Book Review: The Growth Strategies of Hotel Chains

Strategic hotel management is an area explored by many academics and practitioners, yet the literature in this area remains inadequate. There is a plethora of texts available on strategic management and a limited number of these take a hospitality focus, so in such an incomplete field Cunill’s book makes a welcome appearance. As the hotel industry becomes more global, this is an area of increasing importance. The book provides this international angle through a range of examples of leading hotel companies that are used to illustrate the theory presented. The book is structured into 13 chapters from ‘The Concept of a Strategy’ to ‘The Internationalization – Globalization of Hotel Chains’. Chapter 1 contains a brief introduction to the concept of strategy and explains its different interpretations. In the following chapters, there is a pattern to the structural layout. The theory element starts the chapter and this is followed by industry examples; a summary then concludes the section. Chapter 2 explores in a brief and direct manner such concepts as cost leadership, differentiation and market niche strategy. Each of these concepts in turn is then illustrated by a number of examples or mini case studies, which vary in length from a couple of lines to half a page. The practice of cost leadership is explored through five hotel company examples and differentiation via nine hotel companies. Whilst these examples are relevant, it could be argued that there is an over use of them to illustrate the points raised. Chapter 3 deals with diversification versus specialization and is illustrated by five lengthy and descriptive examples of hotel companies, Cendant Corporation, InterContinental, Accor, Marriott International and Carlson Hospitality Worldwide. Although the language and style used to explore the theoretical element is uncomplicated, the section would benefit from subheadings to guide the reader through the 10 pages of text. The next three chapters all relate to integration: vertical, diagonal and horizontal. There is some interesting, detailed and upto-date information presented here with regard to hotel portfolios, which highlight examples from 1995 to 2002. Some of the classic works are also explored but it is disappointing to note that many of the references put forward are rather dated. If a greater range of current literature were included, it would enhance the book. The following chapter is on Mergers and Acquisitions and begins with an examination of internal and external growth. The 10-page table of hospitality mergers and acquisitions highlights the dynamic and fluid nature of the international hospitality sector. It also reflects the changing competitive nature of the industry and the growth in importance of the European hospitality companies. However, the table only presents data from 1993 to 2000; it would be interesting to note how this situation has developed since 2000. Chapters 8, 9 and 10 deal with strategic alliances – joint ventures, franchising and management contracts. Hospitality franchising is considered from its historical roots through to the present day. However, there is only partial reference to the other hospitality franchising literature that is currently available. The advantages and disadvantages Journal of Vacation Marketing Vol. 13 No. 2, 2007, pp. 181–182 & SAGE Publications Los Angeles, London, New Delhi and Singapore. www.sagepublications.com DOI: 10.1177/1356766707074740