Hotel Chains’ Entry Mode in Bulgaria
Anatolia, 25(1), 131-135
9 Pages Posted: 13 Jun 2013 Last revised: 26 Sep 2014
Date Written: 2014
This exploratory research note focuses on the entry modes applied by foreign and domestic hotel chains in Bulgaria. Results reveal that foreign chains put an emphasis on non-equity entry modes (marketing consortium, management contract, franchise), while domestic chains prefer ownership (full or partial). Hotel chains perceive non-equity modes as most suitable for penetrating the Bulgarian hotel market, while local hotels consider equity and non-equity modes as equally suitable. Considering the very low market penetration of hotel chains in Bulgaria, the authors conclude that there is a vast ground for their expansion in the country and that this expansion should be based on non-equity modes. Research limitations and directions for future research are also discussed.
Keywords: hotel chain, entry mode, type of affiliation, franchise, management contract, Bulgaria
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