The use of management contracts by international hotel firms in Thailand

Abstract

Purpose

Seeks to examine the extent to which management contracts used by international hotel firms in Thailand mirror those used in the USA.

Design/methodology/approach

The study builds on previous research carried out in the late 1990s that highlighted new developments in the content and operation of hotel management contracts in the USA. Using a series of semi‐structured interviews with Thai hotel owners/representatives and international hotel firm executives, the focus is on establishing current management contract practices in Thailand.

Findings

The use of management contracts in Thailand, in substantive terms, largely mirrors practices in the USA. There were some detectable differences that existed which appear to be due to the relative lack of experience of Thai owners in dealing with international hotel firms.

Research limitations/implications

This study was essentially exploratory and was limited to a sample of management contracts representing around 20 per cent of all such contracts in Thailand. Future research should focus on examining the motivations of parties, methods of selecting and evaluating international hotel firms, and the specific issues parties confronted in implementing management contracts in Thailand.

Practical implications

Although at an early stage, this research suggests that Thai hotel owners need to gain greater knowledge of the practices of international hotel firms in other markets with a view to improving their bargaining power.

Originality/value

This study provides evidence of the influence of hotel management contract practices and trends in the USA on the relatively youthful hotel market of Thailand.

Citation

Panvisavas, V. and Stephen Taylor, J. (2006), "The use of management contracts by international hotel firms in Thailand", International Journal of Contemporary Hospitality Management, Vol. 18 No. 3, pp. 231-245. https://doi.org/10.1108/09596110610658634