Network Strategies of Hospitality Companies in Emerging and Transitory Economies: Evidence from Russia
This chapter sheds light on network organisational forms—hotel chains—actively implemented in hospitality services. The concepts of networks are critically analysed and applied to explorative case studies of hotel chains operating in Russia. The chapter adds to the literature in the hospitality industry by expanding on existing theories of network strategies and illustrates their different patterns within the framework of modern hotel chains’ strategies. A detailed description of the current Russian hotel market situation is presented. The main trends in the Russian hospitality sector are analyzed and key factors stimulating the development of Russian hospitality are outlined. The huge potential of the Russian hospitality sector is revealed. Among the factors impeding the future development of the market, the following are identified: the lack of a developed service standards system and the lack of developed marketing policies and strategies (i.e. inefficient pricing, sales, and communication policy; lag in modern technologies). The formation of domestic and international hotel chains in this environment is described. The chapter focuses on the strategies of domestic and international hotel chains operating in the Russian market. Within this theoretical framework and using the current market situation, the strategies of domestic and international hotel chains are differentiated and classified.