Ever wonder what the most profitable business entity is in the hospitality industry? The short answer would be a hospitality group, of course! These are major corporations that consist of numerous brands. Some may label each brand within a hospitality group as a sub-sector.
Though a hospitality group might follow trends in the hospitality industry, it’s ultimately up to each brand underneath it. They’re unique in that they hold a significant amount of power, yet appear fairly generic to the public.
Defining a hospitality group is very similar to the enterprise definition. Of course, there are minor differences; but, the concept is quite similar from a general perspective. Read on, and we’ll cover all you need to know about them!
Hospitality Group: Definition
A hospitality group refers to an "umbrella" company, where multiple brands exist underneath it. With a single group can be restaurants, hotels, resorts, country clubs, live music venues, and more. The sole purpose of an entity of this stature is to provide products and services to the masses.
You see, independent and boutique businesses within this ecosystem have very limited reaches. But when you launch a major industry group, the potential for expansion is endless. This doesn't just apply to the size of businesses, but your geographic reach, too.
High-level operations are also a must within any hospitality group. The business owner and other leaders often opt for strategic efforts for long-term growth. These frequently involve advanced solutions to streamline operations. Not only do these decisions support operational efficiency, but they help make the most of their resources.
For instance, a cloud based POS or reservation system can sync customer data across numerous locations. As one can imagine, these kinds of tools can quickly simplify tasks for an enterprise hotel or for enterprise restaurants. In fact, cloud technology can create central hubs for all operations.
One of the most popular sectors within a hospitality group is restaurant groups. Typically, there will be a certain theme amongst each restaurant group. For instance, some may focus on fast food or fast casual. On the other hand, you might have restaurant groups that specialize in fine dining establishments.
It’s vital that brands within a restaurant group use restaurant technology. This is because if each brand is a multi-unit entity, then service and menu types should be standard across the board. So, solutions like a restaurant inventory app or digital catering platform can go a long way.
Best Restaurant Groups
Dining out and ordering takeout are two luxuries that many consumers love. Luckily, many restaurant groups include brands that offer both services. According to recent reports, here are the top five options:
- McDonald’s Corporation
- Yum! Brands
- Darden Restaurants
- Bloomin’ Brands
- Restaurant Brands International (RBI)
Hotel and Resort Groups
Hotel and resort groups are more diverse than those in the restaurant industry. They tend to follow hospitality industry trends a bit more than others. Plus, the brands underneath are much more complex than eateries.
Hotels and resorts also require much more attention to detail. Because of this concept, it’s vital that franchise hotel groups invest in an advanced suite of tech solutions. Not only are there a ton of moving parts to oversee, but it’s too lucrative of a sector not to be careful.
Something like a hospitality ordering system or event management system just scratches the surface of what’s needed amongst a hotel group. Any hospitality franchise brand is in need of valuable tools. But when it comes to umbrella companies that house multiple chains, it becomes a necessity.
Best Hotel and Resort Groups
Whether you're on vacation or in-transit to another destination, there are many hotel and resort groups to choose from. As of 2023, these are the top five players in the market:
- Marriott International
- Hilton Hotels
- Hyatt Hotels
- InterContinental Hotels Group (IHG)
- Wyndham Hotels and Resorts
The Impact of Operating a Hospitality Group
Despite the complexities that come with operating a hospitality group, there are many advantages of doing so. Great things take time and effort. And like a lot of other ventures, this is just one of many prime examples.
The ability to nurture so many relationships with brands is one of the best perks of working in a hospitality group. As the umbrella company of multiple brands, there are many outlets to do so. From developing branding techniques and long-term growth strategies with each one, it's never surprising to gain a sense of loyalty.
Due to there being so many working parts to a hospitality group, they often turn to innovation. So, it's safe to say that this industry helps move the needle in the hospitality software space. As the demand for solutions increases, hospitality software companies have no choice but to innovate their product line.
So in theory, each and every hospitality group is contributing to an ever-changing ecosystem. By onboarding SaaS and high--tech amenities, hotel and restaurant groups are able to rise above the competition. In turn, they're also shaping the landscape for innovators.
And did we mention that implementing such products is also ideal for the customer experience and guest retention? While improving the marketplace, they're also able to cater to consumers. It's truly a win-win for both parties.
Frequently Asked Questions About a Hospitality Group
A hospitality group is the largest type of entity within its space. The fact of the matter is that there are many factors that contribute to its operations. To cover all our bases, we answered some of the most popular questions that people also ask regarding the topic. See below:
What Services Does a Hospitality Group Offer?
A hospitality group usually offers the following services:
- Food service
- Lodging amenities
- Catering events
- Event planning
- Guest services
How Can Guests Book Reservations Within a Hospitality Group?
Guests should be able to book reservations by visiting a website, using an app, or making a phone call. With digital options, guests can select a date and time slot. For hotels and resorts, they can even choose the room type and other upgrades.
Are All the Hotels Within a Hospitality Group the Same?
No, hotels within a hospitality group can be unique from one another. Underneath one hospitality group, many hotel brands can exist. This means that the hotels under a certain group can vary in size, theme, location, and amenities.
Do Hospitality Groups Offer Special Packages or Deals?
It's pretty common for hospitality groups to offer packages, deals, and discounts. These include perks like group rates, vacation packages, and loyalty offers. Since there are multiple brands under each group, it's important to double-check before making a reservation.
Can Customers Earn Loyalty Rewards From Hotels Under a Hospitality Group?
Yes, there are many ways for customers to earn points and loyalty rewards from a hospitality group. Not only is it common for them to have a rewards program, but there might also be transfer partners. This means that if a guest earns points from one hotel, they can transfer them to another.
So many growth opportunities exist within the hospitality group ecosystem. Now that you know all about this entity, you can modify it accordingly. Whether you want to increase foot traffic or maximize profits, you can do so. From the adoption of tech solutions to revenue management, there are many ways to elevate a hospitality group.