What is the meaning / definition of Representation Company, in the hospitality industry?

is a company that manages either the entire hotel or an outlet at the hotel on behalf of the property. As part of outsourcing, a representation company can be on-site or off-site, depending on the needs of the hotel.

There are several reasons why a hotel may decide to hire a representation company. It might be lack of knowledge in a specific area, financial reasons (to lower costs), increasing quality or other reasons.

Examples might be: Hiring a PR agency, a Sales Representative or a Revenue Manager. It can also be an organization that provides reservation services, including processing of voice reservation requests and/ or connectivity for hotels (as its distribution partner).

Advantages of representation companies are expertise, terminable contracts, space and cost savings, as well as no training or retraining involved. One disadvantage is a certain loss of control over the outsourced department.

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