Features of franchising expansion into the Ukrainian tourist market
Purpose - To determine the differences between the introduction of franchising model by tourist operators in the European and Ukrainian markets
Design/Method/Approach. Theoretical approach based on generalization, systematic and comparative analysis. Content analysis, statistical, graphical and tabular methods are applied.
Findings. The business franchise models of the largest multidisciplinary mass tourism tourist operators in Ukraine are characterized. The general conditions for carrying out tourist activity on the principles of business franchising for travel agencies are determined. The differences between business franchising models in the European and Ukrainian markets have been found. The franchising is a mechanism of animation of business and cooperation of opportunities aimed at active promotion of the tourist product to the target market.
Practical implications. The practical significance of the results of the study lies in their possible application by travel agencies in deciding whether to join the franchise network and tour operators in addressing the issues of diversification of projected business risks.
Originality/Value. The novelty of the conducted research is to clarify the conditions for conducting tourism activities on the basis of franchising in the countries of Europe and Ukraine, highlighting the distinctive features of the European business franchising model, which are clearly defined vertically integrated management structure, strong national marketing management, corporate franchise management , the effective motivation of the franchisee.
Research limitations/Future research. As a result of the economic crisis in the tourism business, a promising direction for further research on this issue is to find ways to stabilize the network business in tourism. It is of interest to change the financial status of travel agencies upon receipt or termination of franchisee status.
Paper type – theoretical.
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