8.6. Associations and unions in the hotel industry: a look into the future

The first associations were formed in Europe in the 14th century, when the first guilds of innkeepers were organized. At the turn of the XIX-XX centuries. syndicates, corporations and joint stock companies were created, uniting various enterprises, and the process of initial capital accumulation in the hotel business was carried out.

In London in 1906, the “Union of Hotel Owners” was organized; it united 1,700 hotels in Europe. The trend towards capital consolidation has greatly contributed to the creation and, accordingly, the offering of higher quality hotel services.

Let's consider the main factors influencing the desire of hotel owners to unite; first of all, these include:

The need for the hotel to be fully occupied;
- ensuring compliance with equipment and equipment standards;
- high competition;
- market conditions;
- improvement of flexible personnel policy and vocational training;
- creation of investment funds.

The main goals of creating associations are:

Exchange of information through the media;
- creating an image among members of associations;
- representation on federal level(regional);
- preferential group insurance;
- periodic advertising campaigns;
- joint price control;
- assistance in improving enterprise management;
- protection of permanent members in career advancement.

The most famous associations that are successfully developing in the hotel services market:

1. HORTEK (confederation of national associations of hotels and restaurants) - 1200 hotels and restaurants, 22 national organizations.
2. AN&MA (American Hotel and Motel Association). Organized in 1910. Unites 70 American and 33 foreign national associations, 675 related enterprises. This association contributed to the emergence of MAFO.
3. MAFO (American Association of Franchise Associations).
4. "The Leading Hotels of the World" (1927) includes 315 luxury hotels.
5. IGA (International Hotel Association).

The information provided is clear evidence that the global hotel business is undergoing a process of consolidation of hotel services in order to generate additional profits, stimulate sales of hotel products and insure possible commercial risks.

Having studied the materials in this section, you have received information that:

A hotel, as a complex entity, requires a clear management structure;
- there are hotel chains and “independent” hotel consortia;
- the entry of a hotel into one or another hotel chain significantly increases the income of the enterprise;
- increasingly, hotel enterprises are resorting to concluding a franchise agreement;
- the role of hotel chains in the global hospitality business is constantly increasing;
- hotel chains are penetrating the Russian hotel business;
- hotel associations play a significant role in the development of the hotel business.

Test questions and assignments

1. Explain the main reasons requiring the creation of a system for organizing the hotel business.
2. What is the advantage of W. Ritz hotels?
3. How is K. Wilson’s hotel business model different?
4. What are the main requirements that the Holiday Inn hotel chain meets?
5. What are the functions of a franchisor?
6. What is the role of the hotel concept in the development of the hotel business?
7. What is the advantage of a transit hotel?
8. What are the main characteristics of a holiday hotel?
9. What are the conditions for signing a franchise agreement?
10. Name the main hotel chains in the world of hospitality.
11. How effective and justified is the introduction of hotel chains into the Russian hotel business?
12. Will there be associations and unions arising in hotel business, contribute to better delivery of hospitality services?
13. What, in your opinion, are the reasons for the consolidation of the hotel business?
14. How intensively are similar processes implemented in Russia?

The association's charter defines the following main tasks:

– the union of national hotel associations of all countries, as well as individual hotels and restaurants serving foreign tourists;

– protection of personal and professional interests of hotel and restaurant owners;

– development of the hotel industry, studying issues of freedom of movement, management of the hotel industry, international financial settlements, insurance, labor supply, etc.;

– informing members of the association about hotels, restaurants and travel agencies.

International Federation camping and caravanning is an international tourism organization whose members are national federations and associations of camping and caravanning. The FICC has a Tourist Information Center and several specialized commissions. The FICC Secretariat is located in Brussels (Belgium).

International Association of Tourism Experts (AIEST) – an international tourism organization that unites both individual members - individuals engaged in scientific activities in the field of tourism, and associated members - organizations and institutions interested in the activities of AIEST. The organization has the character of a scientific community and its goal is to support scientific activity its members, ensuring the exchange of documentation and experience, supporting the activities of tourism research institutions and centers for training tourism personnel. The AIEST Secretariat is located in Bern (Switzerland).

International Organization for Vocational Training in Tourism(AMFORT) was created in 1969 with the aim of improving methods of professional tourist training, streamlining and standardizing programs, and introducing technical means into training. AMFORT members are research centers and educational establishments, official tourism organizations and enterprises, tourism specialists. At the initiative of AMFORT, an international tourism specialist certificate was issued. The AMFORT secretariat is located in Madrid (Spain).

Among the leading organizations operating in the field of tourism business and entrepreneurship are: World Association travel agencies(WATA). It was created in 1949, is an international association of travel agencies and has 188 member organizations in 160 cities in 82 countries. The main goal of the organization is cooperation between highly professional travel agencies around the world to create a unified market image and establish uniform standards for the quality of tourism services. Among the tasks of BATA are information services; coordination and assistance in the activities of travel agencies; development and dissemination of documents regulating the development of its tourism business sector; consulting; financial aid and protecting the economic interests of its members; protection and representation of its members at international forums, exhibitions and fairs. To implement its objectives, the association, in particular, conducts seminars and working group meetings; developed a voucher (WATA Voucher) - the most practical document for cooperation between travel agents and suppliers; published a collection of 130 confidential tariffs, which is used by 10 thousand travel agencies; publishes a quarterly newsletter (WATA Gazette). WATA's headquarters are located in Geneva.

International Hotel Association- presenter international organization in the field of hospitality - was created in 1946. The main task of the IGA is to protect the interests of its members in international governmental and non-governmental organizations. For this purpose, regular research is carried out in the field of international legislation and in the field of marketing, much attention is paid to the problems of hotel construction, their classification, and the efficiency of capital investments. Special contribution to the development international tourism and the hotel industry was the adoption of the International Hotel Regulations in 1981.

In most countries of the world, hotel chains and individual hotels have formed national hotel associations on a voluntary basis to protect professional, industry and economic interests. It is quite difficult to classify hotels due to their wide variety. The level of comfort is the most important and decisive factor influencing the determination of the class of a hotel. In each individual state, understanding the level of comfort as a classification criterion is approached differently. It is this circumstance, as well as a number of factors determined by cultural, historical and national traditions states, prevents the introduction of a unified classification of hotels in the world. This is due to the fact that the development of a system for categorizing accommodation facilities is one of the most difficult problems in the tourism industry and the hotel industry.

In addition to hotel chains, specific associations are actively operating on the world market, the main goal of which is to identify the best representatives of the hotel business. Among them are the international corporation “Leading Hotels of the World” (since 1928), the International Organization “Privileged Hotels and Resorts of the World”, the international hotel association “Quiet Hotels of the World” (since 1968) and others.

Arab Tourism Union (ATU) created in 1954 and unites national tourism organizations of 18 Arab states.

Special international tourism organizations have different profiles and perform specific functions. Some of them are responsible for Scientific research in tourism, others - for the training of tourism personnel, others are professional associations of tourism industry workers, etc. This group of international organizations includes International Academy Tourism (AKIT), International Association of Scientific Experts in the Field of Tourism (AIEST), World Association for Tourism vocational training in the field of tourism (AMFORT), International Club of Famous Travelers (KIGV), International Association of Congress Interpreters (AIIC), International forum Tourism and Travel Lawyers (IFTTA) and many others.

International Hotel Association (IHA)

The International Hotel Association (IHA), the leading international organization in the hospitality industry, was created in 1946. The main task of the IHA is to protect the interests of its members in international governmental and non-governmental organizations. For this purpose, regular research is carried out in the field of international legislation and in the field of marketing, much attention is paid to the problems of hotel construction, their classification, and the efficiency of capital investments.

A special contribution to the development of international tourism and the hotel industry was the adoption of the International Hotel Rules in 1981. In most countries of the world, hotel chains and individual hotels have formed national hotel associations on a voluntary basis to protect professional, industry and economic interests.

The Russian Hotel Association (RHA) was created in 1997, its founders are leading hotels in Moscow, St. Petersburg, Sochi, Ryazan, Irkutsk and other cities Russian Federation. RGA is a non-profit organization that unites hotel enterprises and other collective accommodation facilities, as well as producers of goods and services for them, financial institutions, educational institutions, etc.

The main activities of the RGA:

¦ cooperation aimed at promoting the development of the domestic hotel industry, expanding and improving the quality of hotel services and promoting them to domestic and foreign markets;

¦ participation in the development of federal, regional and local regulations that meet the professional interests of members of the Association;

¦ establishing and maintaining intra-corporate relations that contribute to the expansion of business and professional contacts, the protection of the Russian hotel business, and fair competition;

¦ participation in the development and implementation of national and international programs and projects in the hotel industry;

¦ practical implementation of a specific program of action.

In December 2003, the RGA became a member International Association hotels and restaurants. National hotel associations in turn formed a number of regional associations.

Moscow Regional Hotel Association (MOGA): On August 26, 2004, the leaders of the hotel complex in the Moscow region signed an agreement on its establishment. As the main objectives of its activities, MOGA declares to promote the creation of conditions for the effective functioning of the hotel industry system of the Moscow region; participation in the preparation of regulatory decisions on the regulation of hotel services; participation in the development of government programs for the development of the hotel industry.

MOGA carries out:

¦ development and coordination of the implementation of the program for the development of the hotel and tourist complex of the city and region;

¦ creation, in cooperation with other interested organizations, of a unified system for preparing investment proposals for hotel enterprises;

¦ organizing the selection of investors for the construction of new and reconstruction of existing hotel facilities in Moscow and the Moscow region;

¦ development of proposals for the direction of budget funds, including to individual hotel enterprises, determination of priorities for budget support for specific investment projects;

¦ strengthening the system of interaction between the city hotel complex and territorial authorities, coordinating the development of hotel enterprises and territorial infrastructure.

Of great importance for the future of the capital's hospitality industry is the implementation of the concept of improving the management of the city's hotel complex, the goal of which is to create in Moscow and the Moscow region a hotel industry that meets the best international standards, using high-tech management systems and the latest equipment. This will dramatically improve the quality of service for Russian and foreign guests, achieve a higher occupancy rate of the city’s hotels, create additional jobs, and, therefore, significantly increase the flow of income into the city treasury.