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Hello, everyone.
Welcome to this presentation.
My name is Dr. Simone Bianco.
I'm a researcher in the field
of hospitality strategy.
Today, I introduce the topic
of market entry strategies
in the hospitality industry,
focusing on a
specific case study,
which is the Hilton's
expansion in China.
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In this presentation,
I'll present the global
hotel industry as a whole,
before focusing
on Hilton Hotels.
We'll see the entry strategies
pursued by hospitality companies
when they enter new markets.
We'll then focus on how
Hilton is expanding in China.
Finally, we'll talk
about the future trends
and what are the lessons
learned from this presentation.
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Value of the global hotel industry
is around $1.6 trillion worldwide,
and it's one of the biggest
employers on the planet.
Despite the industry
being one of the most hit
by the COVID-19 pandemic,
travel has restarted,
with different paces
around the world.
However, the travel industry has
an almost 6% projected
growth by 2032.
Looking at the hotel
industry specifically,
we have different key players.
Number one is Marriott,
followed by the topic of
today's presentation,
which is Hilton.
And then we have Hyatt,
Accor, Intercontinental,
and many others.
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When hospitality
firms enter a market,
they have two main groups of
strategies they can adopt.
The first one is equity,
while the other
one is non-equity.
The main difference
among these two
is that equity strategies
require physical ownership
of the hotel that is operated,
while non-equity
strategies don't.
In this type of
strategy, essentially,
firms give the right
to use their brand
and their type of operation
without physically
owning the structure
in which this operation is used.
Among the equity strategies,
we have greenfield
and acquisitions.
The difference between these two
is that in a greenfield entry,
the firms enter the new country
by building the hotel from zero.
On the other hand, in an
acquisition strategy,
they buy an already
existing hotel.
These two types of entries
are called full ownership,
because the firm has the full
ownership of the establishment.
Another type of equity strategy
is called joint venture.
This strategy entails
a partnership with
a domestic firm that can
help the brand to navigate
a specific environment
of the country,
giving their knowledge
of operations
as they are from the country.
Joint venture is a
shared ownership
as the firm does not fully
own the establishment,
but this is shared between
the firm and the host firm.
Among equity entry modes,
