What Does Enterprise Mean In the Hospitality Industry?
If you’re trying to answer the question “what does enterprise mean in the hospitality industry,” you’re certainly in the right place! In this article we’ll cover everything you need to know.
We’ll begin by breaking down the enterprise definition with examples. Then, we’ll dive into the specifics of an enterprise in the hospitality industry. Whether you’re interested in learning more about the structure of an enterprise hotel or a chain restaurant, we’re discussing it all!
What Does Enterprise Mean
An enterprise refers to a business model, primarily of a larger scale. In many cases, people will categorize chains and franchises as enterprise-level entities. This is because they require more solutions and instructions than smaller businesses.
Regardless of the industry, enterprises inhabit a formal structure. Then, this structure is split into several working parts that contribute to the company's profits. As a quick refresher, enterprises can be one of the following business types:
- Sole Proprietorship
- Limited Liability Company (LLC)
Enterprises can also operate in various industries or even a niche market. With this said, it's also common for enterprises to fluctuate in size and value. However, the ones that are in need of enterprise-level tools tend to be big with several units.
Now that we've answered the question "what does enterprise mean," let's discuss some defining traits of one. See below for the top five ways to distinguish a large enterprise from other companies:
- Enterprises usually have an extensive hierarchy. If it's necessary that a brand has multiple departments and a wide range of leaders, it likely fits this category. This is due to a chain of command being vital for decision-making and strategic efforts.
- If there's one thing that all enterprises have in common, it's that they're aiming to generate revenue. So, they must offer a product line of goods or services to the public. There are many ways that enterprises can maximize revenue, such as cutting overhead expenses or through product differentiation.
- The person or team who launches an enterprise must have an entrepreneur mindset. If not, they won't be able to secure nearly as many resources or funding opportunities that's vital to keeping the business afloat. If not, they can run into major risks.
- Like most businesses, enterprises work with a customer profile in mind. From marketing efforts to product development, they aim to solve an issue or answer a question. With this in mind, customer satisfaction is at the top of their priority list. So, expect larger enterprises to offer things like discounts or a customer rewards program.
- To work efficiently, enterprises must onboard tech solutions. Innovating the structure comes with numerous benefits, as it can streamline operations across the brand. For instance, a cloud based POS system can sync customer data across multiple locations. Or, a restaurant inventory app can allow eateries to cut costs and eliminate food spoilage.
As you can see, enterprises are very complex entities. If you'd like to read on and answer the question "what does enterprise mean in the hospitality industry," we've got you covered. See below.
What Does Enterprise Mean In Hospitality
The term "enterprise" within the hospitality industry refers to a business of a larger scale. More often than not, enterprises in the space are likely what most customers refer to.
Many people tend to get confused, as technically, one can call all businesses an enterprise. An enterprise simply refers to an operating business turning a profit. However, hospitality brands might include a few extra details. So, let's break it down.
When we discuss enterprises in this space, we're most focusing on major chains and franchises. It doesn't matter if you're dealing with a chain in the restaurant industry or a multi-unit resort in the hotel industry. In general, these are the kinds of structures that require enterprise-level solutions. And with this need, comes unique traits.
If an enterprise exists within the hospitality space, it's likely a multi-unit franchise. This refers to the existence of multiple locations under a single brand name. With this kind of business entity comes a lengthy and detailed hierarchy.
For instance, an enterprise in the space will consist of associates, managers, directors, and C-suite executives. There is often a centralized structure, too, which most of the time, stems from a corporate office. This is also where the concept of franchise "manuals" comes in.
For instance, a franchise owner can supply each franchisee with a set of guidelines they must follow to operate the business. This pertains to marketing assets, hiring processes, menu types, and so on.
When businesses are able to operate in unison across the board, they're able to grow and expand at a rapid pace. In turn, this is how a business owner can achieve an enterprise-level entity.
Hospitality Enterprise Examples
Determining what does enterprise mean in hospitality is a bit different, as you can see. The ways in which a business within this ecosystem operates is tailored to specific business types. For instance, the way a multi-unit hotel operates might look different from a quick service restaurant.
- Restaurants and other food service businesses
- Hotels, motels, lodging resorts
- International cruise lines
- Movie theaters and other types of entertainment centers
- Live music venues and sports arenas
- Other types of travel groups
You'll find that each of these businesses embody a structure that allows for streamlined operations. Multiple elements like food tech, a sustainable budget, and inventory management techniques are vital. However, these are just a few components. Overall, there are many elements in an enterprise.
Frequently Asked Questions About What Does Enterprise Mean
If you're still asking yourself the question, "what does enterprise mean," we've got you covered. Let’s face it, the differences between a major enterprise and a smaller business can be subtle. So, if you'd like to learn more about enterprises, see below:
What Is Considered An Enterprise?
An enterprise is a type of large business entity that has scaled over time. There are typically many sectors, departments, and a large staff. In fact, when a business gets to an enterprise level, it's common to onboard various solutions and protocols that are suitable for enterprises.
What Type of Enterprise Is a Hotel?
Hotel enterprises make up a large sector of the hospitality industry. They're business models that often fall within franchise brands, making them enterprise-level structures. With this in mind, hotels often require enterprise-level tech solutions.
What Are Enterprise Examples?
Enterprise examples include some of the largest brands within a particular industry, such as:
- Holiday Inn
What Are Considered Enterprise Services?
Enterprise services are customer-facing services that solve an issue or cater to a market. For instance, food service takes place in restaurants the way travel arrangements are offered by hotels. However, the services can vary from one enterprise to the next.
What Is An Enterprise Role?
An enterprise role is one where a person manages the workplace. They're usually higher-level positions. In some cases, the person in the role is even responsible for an entire team and financial matters.
Wondering "what does enterprise mean" throughout the hospitality space is a common question. Now that you know all about and its distinct traits, it's time to update or launch a business accordingly. From proper team structures to advanced solutions, there are many ways to get started. Need some help? Book a demo with us today to learn about our enterprise-level solutions.