Cooperation

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Cooperation

Managing the Emerald Forest Hotel, there are several competitors who all run a hotel in the same market. All the others hotels are your direct competitors. But there is also, on a higher level, so called generic competition on budget and time. And on another level on the way customers fill in their needs. So if a hotel takes it seriously, there is a possibility to cooperate with direct competitors, or one of them. This could even be a good idea. But choosing the proper partners is essential. You can never 'merge' the hotels, but doing promotions together, organise big conferences, aim at different target groups or do some of the purchases together.

• Agreement

If you do so, take it seriously and make an agreement between the (two?) partner hotels with the basic rules in it.
As the normal economic competition rules apply to your city, you are not allowed to work too close together on prices: making price-covenants with competitors is forbidden. Creating an organisation which covers the interests of several hotels or of all of the hotels in your city (for instance, in a promotion) is allowed. This could be a DMO like construction a smart-city construction or for instance, a city marketing like construction. So an association of some or all hotels in a city to take care of their general interest, might be a good idea. In the city Emerald Forest Hotel is in, there is no organization like this yet like big cities do have, for instance Iamsterdam. Any serious cooperation could bring advantages to all the partners if there was a serious ground (an agreement) and described obligations and advantages for all parties. But there will also be some costs to be made. It is important is that the customers have to have a free choice.

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