Franchise networks in Russian tourism

Authors

  • Vyacheslav M. Kitsis National Research Ogarev Mordovia State University (Saransk, Rep. of Mordovia, Russia)
  • Irina M. Kalabkina National Research Ogarev Mordovia State University (Saransk, Rep. of Mordovia, Russia)

DOI:

https://doi.org/10.24411/1995-042X-2020-10404

Keywords:

franchising, franchise networks, franchise, tourism, tourist enterprises, tourist market, brand, trademark

Abstract

The tourist business is among the industries with a fairly high degree of risk, since the tourist market is characterized by a high level of competition. Creating a travel agency is quite simple, but it is very difficult to withstand competition in the tourism market. Consumers, as a rule, trust firms that have long proven themselves with stable market positions. The wave of bankruptcies of large Russian tour operators, combined with the unfavorable economic conditions in the country, cause the distrust of potential customers to little-known tourist firms. In this regard, it is most economically feasible for small and medium-sized tourist enterprises to use this form of association with major travel agencies, such as franchising, speaking on the market under their brand name. Thus, the formation of franchise networks. Based on this, the purpose of the article is to study the conditions for the operation of tourist franchise networks in Russia. The object of study is the franchise system. In the course of the research, it was revealed that franchise systems in the tourist industry of Russia, despite the nearly 30-year history, have not yet received an adequate level of development comparable to leading foreign countries. The development of tourist franchise networks in our country is hindered by various kinds of factors, among which legislative and economic ones stand out. At the same time, as the materials of the article indicate, the development of franchise networks in Russian tourism is quite dynamic, and a number of networks, according to ratings, are among the first hundred franchises of the country. The results of the study can be used in the practical activities of tourism organizations, as well as in the educational process in the training of personnel for the tourism sector.

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Author Biographies

Vyacheslav M. Kitsis, National Research Ogarev Mordovia State University (Saransk, Rep. of Mordovia, Russia)

PhD in Geography, Associate Professor

Irina M. Kalabkina, National Research Ogarev Mordovia State University (Saransk, Rep. of Mordovia, Russia)

PhD in Economics, Associate Professor

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Published

2020-11-25

How to Cite

Kitsis В. М., & Kalabkina И. М. (2020). Franchise networks in Russian tourism. Services in Russia and Abroad, 14(4/91), 44–56. https://doi.org/10.24411/1995-042X-2020-10404

Issue

Section

STATE, MUNICIPAL AND CORPORATE GOVERNANCE IN SERVICES SECTOR: CURRENT ISSUES