The use of management contracts by international hotel firms in Thailand

Panvisavas, Veerades; Taylor, J. Stephen

Abstract

Purpose
Seeks to examine the extent to which management contracts used by international hotel firms in Thailand mirror those used in the USA.

Design/methodology/approach
The study builds on previous research carried out in the late 1990s that highlighted new developments in the content and operation of hotel management contracts in the USA. Using a series of semi‐structured interviews with Thai hotel owners/representatives and international hotel firm executives, the focus is on establishing current management contract practices in Thailand.

Findings
The use of management contracts in Thailand, in substantive terms, largely mirrors practices in the USA. There were some detectable differences that existed which appear to be due to the relative lack of experience of Thai owners in dealing with international hotel firms.

Research limitations/implications
This study was essentially exploratory and was limited to a sample of management contracts representing around 20 per cent of all such contracts in Thailand. Future research should focus on examining the motivations of parties, methods of selecting and evaluating international hotel firms, and the specific issues parties confronted in implementing management contracts in Thailand.

Practical implications
Although at an early stage, this research suggests that Thai hotel owners need to gain greater knowledge of the practices of international hotel firms in other markets with a view to improving their bargaining power.

Originality/value
This study provides evidence of the influence of hotel management contract practices and trends in the USA on the relatively youthful hotel market of Thailand.

Citation

Panvisavas, V., & Taylor, J. S. (2006). The use of management contracts by international hotel firms in Thailand. International Journal of Contemporary Hospitality Management, 18(3), 231-245. https://doi.org/10.1108/09596110610658634

• Journal Article Type: Article
• Acceptance Date: Jan 1, 2006
• Publication Date: 2006-04
• Deposit Date: Nov 29, 2019
• Journal: International Journal of Contemporary Hospitality Management
• Print ISSN: 0959-6119
• Publisher: Emerald
• Peer Reviewed: Peer Reviewed
• Volume: 18
• Issue: 3
• Pages: 231-245
• DOI: https://doi.org/10.1108/09596110610658634
• Keywords: Tourism, Leisure and Hospitality Management
• Public URL: http://researchrepository.napier.ac.uk/Output/826283