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Chapter 2 The Emergence of International Hotels

1. . Competencies forThe Emergence of International Hotels. List the innovations introduced by American hotels in the early twentieth century, trace the development of U.S. hotel chains from 1901 to World War II, and identify some of the risks that deterred American hotels from expanding internatio

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Chapter 2 The Emergence of International Hotels

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    4. 3 American Hotel Innovations Running water Private baths Larger guestrooms Room service In-room radios Hotel-to-hotel reservation services Telephones Light switches by the door Indoor plumbing Sewage disposal systems Central heating Air conditioning Passenger elevators Electric lighting Application of modern communication systems

    5. 4 Expansion Deterrents Hard to discern best locations Investment risk Difficulty of obtaining financing Risk of nationalization Risk of political upheaval Currency fluctuations Restrictions on repatriation of profits Competition from domestic hotels

    6. 5 Post–World War II Developments Leading to International Hotel Expansion Return to peace, desire to travel Latin American/Caribbean development Assistance to war-torn economies Europeans’ interest in American hotel-keeping Air transportation accessible to middle-class

    7. 6 Hotel Chains' Two-Pronged Growth Strategy Developing segmented hotel products Rapidly expanding in foreign markets

    8. 7 Advantages/Disadvantages of Hotel-Airline Alliances Advantages Common customers Joint marketing Improved market share Disadvantages Gains often offset by costs Joint benefits fewer than anticipated Lack of hotel managers

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