DAYS INN:

A CASE STUDY IN
FRANCHISING
HOSPITALITY ASSETS IN
CHINA

SUBMITTED BY:
LABRADOR, DANICA RUBYLYN
LEGRIA, KRISTINE
REYES, CHARLENE ERICKA
TIONLOC, ANDREA YSABEL
VADIL, TERRI JEANNE
VASQUEZ, REYNALYN
WITTY, MARJORIE

SUBMITTED TO:
PROFESSOR ELGIE TOLENTINO
 December 2021
I. EXECUTIVE SUMMARY
Cecil B. Day created Days Inns in 1970 in the US and began franchising hotels in 1972 and
within eight years had made an arrangement of over 300 lodgings in the United States, Mexico,
and Canada. In 1992 Cendant Corp. furthermore, Wyndham Worldwide Corp. obtained the Day
Inns additionally they trade bunch RCI with other housing branches, for example, Ramada and
Howard Johnson that whose headquarters located in New Jersey, USA yet demerged from
Cendant Corporation in July 2006 and that is was the authentic advancement of day motel branch.
Days Inns hotel provide trendy features with the touch of technology and best facilities that offer
good services and meet guest satisfaction

however In the case of a hotel franchise, a company operates a hotel under one of the brands
owned by one of the large international chains and the company benefits from the services and
expertise of the international chain. In return a franchise fee is paid (by the franchisee) to the
international hotel group (the franchisor). The fee is based on revenues received. Operational
decision making and dayto-day management control lies with the franchisee. Hotel chains have
generally preferred to use non-equity forms of organization for international expansion and
operations mainly due to cost-efficiency concerns. Non-equity-based agreements such as
franchising and management contracts are the most common forms of organizational structure for
market entry among hotel chains, partly because of the high initial capital requirements involved
in setting up a hotel.

II. TIME CONTEXT

The problem was observed during the time wherein the three Singaporean brothers, David Tan,
Harry Tan and Ted Fang who in 2003 successfully acquired the Days Inn master franchise for
Greater China from Wyndham Worldwide Corporation and decided to change the traditional and
economy brand of Days Inn in China and upgraded the brand image and market positioning of the
hotel with a range of hotel Days Inn brands; (1) Days Hotel & Suites, a 5-star luxury hotels and
holiday resorts; (2) Days Hotel, a Superior 4-star hotel, (3) Days Inn Business Place, a Full-
service business hotel; (4) Days Inn, a 3-star city hotels; (5) Days Suites, a superior hotel style,
service apartments.

III. VIEWPOINT
This study was conducted in the perspective of the Wyndham Hotel Group in order to showcase
the franchising violations that the Days Inn in China have committed towards the Days Inn
franchise. This study needs to provide a strong and effective strategy in order for the Wyndham
Hotels & Resorts to reacquire the direct franchising rights for the Days Inn Brand In China.

IV. PROBLEM STATEMENT

They have upgraded the brand image and market positioning of the hotel with a range of hotel
Days Inn brands, which they should not have done as they are not the proprietor.
 V. STATEMENT OF OBJECTIVES
a.) Identify the historical development and ownership of the Days Inn Brand.
b.) Classify the Days Inn product characteristics.
c.) Identify the franchising and management contracts.
d.) Recognize the service-based products.
e.) Adding new innovative technology.
f.) To create diversification within the lodging commerce, because it gives benefits and makes a
solid use.
g.) To adopt a new updated strategy.
h.) Find out the popularity and interest of different generational groups rebuilding new kinds of
Days Inn brand for the future.
i.) To plan, develop and solve future modern problems
j.) To have modern equipment that will help to improve the service.

VI. AREAS OF CONSIDERATION

A. Internal Forces Strengths Weaknesses

Management

Days Inn China offers 24-hour room

services.

Possible negligence towards the

implemented franchise management
contracts.

Human Resource

Highly skilled workforce through

training and learning programs.

The Management Team is focusing

on building relationships in business.

Due to modern technology and

innovation, it is possible to do so
without hiring labor.

Marketing ( 4 P’s )

Product
Leading performer in economy
hospitality and offers free breakfast
meals.

Best advertise situating Days Inn

China Brand having 5 star Inn to
predominant lodging.

Offer multiple bars and restaurants,

and expanded meeting and banquet
facilities .

Offers 5 variations of the hotel brand.

Each variation is focused on the
different types of Market Segment.

Price

Seasonality affects the Days Inn hotel

rates during the northern hemisphere
spring and summer months.

Days Inn China has upgraded the

brand image and market positioning
with a range of Hotel Days Inn
brands which can be budget friendly
for the tourist.

Place

The Inns are worked and overseen

through the wilderness bunch of
companies which are based in
Beijing and controlled by the
Singaporean Brothers.

Provides safe abode away from home

Promotion

Fastest growing Hotel chains

Has a strong brand marketing to stay

competitive in the marketplace.

Establishing new market strategy

Provided by trained call-centre staff

for consultation of hotel rates to stay
connected with people.
Relationship to customer are
excellent

Creating more in social media to

promote

B. External Forces Opportunities Threats

a. Cultural/Social

New trends in consumer

behavior.

Exploring connection globally

Strong competition in the

industry

Changing customers attitude

towards the company

Emerging competitors

Develop partnership for business

growth.

b. Technological

Developments in Artificial
Intelligence to predict consumer
demand, make better
recommendation engines and
accommodate niche segments.

Security advancement through

the use of technology for guest
safety.

Possible defects with the

function of technology

Malfunctioning of AI during
emergency situation
Automation will eliminate jobs.

c. Political

Growth in the international

market can help to diversify the
risk and will be less dependent
on the domestic market for
revenue.

Increasing trend toward

isolationism in America may
influence other governments
and may result in a decrease of
the number of the hotel’s
franchise.

d. Economy

E-commerce business models

can help to tie up with the local
suppliers and logistics providers
in the international market.

Domestic income and another

source of job opportunities for
unemployed people.

e. Natural

Damage to the environment due

to the accumulated guest and
hotel operations waste disposal.

VII. ALTERNATIVE COURSES OF ACTION

Alternative Course of Action Advantage Disadvantage

Decision Making Participation and interest of the Different ideas and opinions
Individuals

Quality service Attracting customer through Intangibles Unlike they can

positive word of mouth and touch, Quality Service are
increasing the usage rates of intangle
existing customer
 Marketing Plan Having a detailed plan is very
easy to achieve the vision and
also the goal having also the
target audience is advantage.
Not all the are successful
because they were not carefully
researched and planned to know
more and identifies weaknesses
in overall business plan

VIII. DECISION MATRIX

5- Most Likely
4-More Likely
3-Likely
2-Less Likely
1-Unlikely

ACA#1 ACA#2 ACA#3

Decision
Making 5 5 5

Customer
Satisfaction 4 5 4

Quality
service 4 5 5

Marketing 5 4 4
Plan

Work Process 5 5 5

Total: 23 24 23

A. Decision Making
ACA1,ACA2 and ACA3 got the same rate. They most likely the decision Making

B. Customer Service
 ACA1 and ACA3 got the same rate which is 2 more likely But the ACA 2 he rate the Customer
Service 5 which is most Likely
C. Quality Service
ACA 2 got the highest total he got he want the quality service same that he answer the customer
service. he answer 5 which is most likely
D. Marketing Plan
ACA1 he rate is 5 which is most likely but ACA2 and ACA3 they rate is more likely only ACA1
give 5-Most likely.
E. Work Process
ACA1,ACA2 and ACA3 The answer is 5-Most Likely They all want the Working Process

Total: ACA1 and ACA3 got the same total of score.And ACA2 got the highest total of score and i can
see he focus in Customer satisfaction he want the customer to make comfortable because he rate the
customer satisfaction and Customer service is Most likely.

CORPORATE VISION:
Our vision is to apply and set the highest standards of service quality in order to justify and sustain our
reputation among guests, partners, competitors, and the larger community. We utilise and continually
introduce environmentally friendly technologies and procedures in order to maintain the natural system
while simultaneously meeting the requirements of modern society.

CORPORATE MISSION:
Days Inn's aim is to provide the best quality of hospitality services in order to meet the needs and
expectations of its guests. Our goal is to make the Hotel a meeting place, a location for business success, a
place for enjoyable meetings, and a place for grand events.

CORPORATE OBJECTIVES:
-To deliver a delightful experience for the customers.
-Establishing and maintaining a good relationship with customers.
-Provide high-quality services to customers who desire to travel for the sake of enjoyment, comfort, and
incredible experiences.
-To create and implement a project that will increase efficiency in the hotel industry.

STRATEGY:
-Digital Presence & Social Media Promotions
-Enhancing existing relationships with customers and improving customer loyalty.
-Facilitate positive interactions
-Conduct a yearly study to improve products and services.
-Acquire new customers from innovative offerings
-Invest in Total Quality Management
-Collaborate with possible investors

POLICY:
Privacy- Days Inn uses high ethical standards and respects your privacy. Except for disclosures required
by law in any relevant jurisdiction and the disclosure of your name, email address and your credit card
details for completing your reservation with the relevant business of your choice, we will not disclose
your personal information to third parties without your consent. All partner businesses are required
contractually to maintain the privacy rights of guests and guard their personally identifiable information
with strict adherence to hospitality industry legal standards.

Data from all categories may also be used for our legitimate business interests / purposes concerning data
analysis, audits, fraud monitoring and prevention, internal quality assurance, developing new products,
enhancing our Services, helping us comply with legal requirements or process, enforcing compliance with
our Terms of Use or any product, service or program terms and conditions, helping protect our Services,
determining the effectiveness of our promotional campaigns and operating and expanding our business
activities. We may share or disclose it to respond to requests from public and government authorities
globally; to protect our operations or those of any of our Affiliates or other third parties; to protect our
rights, privacy, safety or property, or that of our Affiliates, you or other third parties or to allow us to
pursue available remedies or limit damages we, our Affiliates or other third parties may sustain.

Damage/Theft – we reserve the right to charge Guests the cost of theft of hotel property and/or rectifying
damage caused by the deliberate, negligent or reckless act of the Guests to the Hotel’s property or
structure. Should this theft or damage come to light after the Guest’s departure, we reserve the right to
make a charge to the Guest’s credit/debit card or send an invoice for the amount to the registered.

Free of charge- Our service to customers who are looking to discover places to stay, venues to dine and be
entertained is free of charge. Unlike many of our competitors, we will not charge you for our service or
add any additional reservation or booking fees to the rates displayed on our site. We will not charge your
credit card, as you will pay Days Inn or 3rd Party Data Provider directly for your stay or service. We are
simply a search and booking platform for business with the simple goal of finding the right place for your
stay, dine, or be entertained at the right price.

IMPLEMENTATION OF THE PLAN OF ACTIONS:

Functional Areas Strategies/Activities Person Time Frame Budget

Responsible

A.) Usage of Use technology to IT Department Quarterly CNY

innovative promote the Head and
technology. company's Personnel/ 12,728.20
offerings (for Programmers/
example, social Electronic
media platforms). Engineers.

Use technology to
speed up guest
service with high
standards.

B.) Customer Educate all Customer Relation Annually CNY

Service employees on the Head
 fundamentals of
customer service 9,546.15
and establish a
training program
in this area.

C.) Product/Ser Train employees General Annually CNY

vice on any new or Manager/Ope
Modification expanded services rations
that the Manager 10,818.97
organization plans
to offer.

In order to
preserve the
natural system
while serving the
needs of modern
society, make a
plan for the
development of
new products, as
well as things that
can still be used.