Choosing independence or affiliation: The case of Portuguese four-and five-star hotels

Abstract

In the increasingly competitive hotel environment, decision-makers must consider the risks and benefits of remaining independent or affiliating with a brand or consortium. This research sought to understand the level of importance associated with a set of motivating factors considered by Portuguese four- and five-hoteliers as it relates to remaining independent or affiliating. The study results suggest that independent hoteliers rank control over decision making and shorter decision making as most important in remaining independent, and increased sales and more aggressive marketing as most important in the decision to affiliate. Affiliated hoteliers rank shorter decision making and absence of fees as most important in remaining independent, and increased sales, brand value, and more aggressive marketing as most important in the decision to affiliate. Interestingly, independence and freedom were considered less important in the decision to remain independent, by all respondents. We apply Hofstede’s cultural dimensions theory to explain some of the key findings.