Marketing Strategic Alliances: The Small Hotel Firm

Abstract

Investigates the concept of strategic alliances in the context of hotel sector small firms. The rapid increase in the number of international strategic alliances is recognized as one of the most significant management trends of the 1990s. In particular, they may affect firms′ cost structures, and provide access to important strategic resources. In this respect, strategic alliances are potentially important strategic options for the non‐dominant small hotel firm. Investigates the role of such strategic alliances within the hotel sector, where the small firm represents around 75 per cent of operations. Places specific focus on the marketing function, where examples of strategic alliances can be seen mainly in the form of: public sector referral; airline; hotel reservation service; and hotel marketing consortia. Evaluates the use of strategic alliances as an effective means of achieving improved small hotel firm business performance and draws conclusions. Finally, presents the rationale for adopting the given tripartite model.