Year: 2022 | Month: September | Volume 67 | Issue 4

Franchise Market as a Driver of Hospitality Development

Liliia Honchar Liudmila Batchenko Alina Poplavska Igor Komarnitskyi Inna Krupa Andrii Beliak
DOI:10.46852/0424-2513.4.2022.27

Abstract:

The article is devoted to analyzing the current state of the global franchise market and the study of problems, trends, and prospects for its development. The study’s primary purpose is to substantiate the impact of the franchise market on the development of the hospitality sector. The study results show that today the franchise market is developing rapidly, with the most active in the hospitality industry, formed by the hotel and restaurant business. Today the franchise market is most actively developing in fast food. Analysis of the development trend in recent years has shown a significant market decline in 2020 due to the pandemic. It proves that the franchise market is a driver of the development of the hospitality industry, as the growth rate of income of companies that work in franchises exceeds the total income of companies in the hospitality industry. At the same time, the impact occurs not only in the economic aspect but also in the social one. Franchising is a stimulant for employment growth. It also helps to improve the quality of services and stimulates the development of small businesses. The paper also summarizes the main discussion issues of the positive impact of franchising in the hospitality sector. The primary trend in market development is the digitalization of tourism technology.

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