Hospitality Company Annual Report Analysis Essay

Hospitality Company Annual Report Analysis - Essay Example mple; Wyndham owns and operates over 15 of the biggest hospitality brands and hotel chains in the world such Howard Johnson, Days Inn, Travelodge, Ramada International and Wyndham Hotels and Resorts among others. As a whole the company has divided its business operations in three distinct segments: a) Lodging-by franchising hotels in the economy, mid-scale and upscale as well as extended stay categories of the lodging industry. The company also provides hotel management services for full-service hotels worldwide. Through their franchising agreements the company provides nightly bookings for their franchisee hotel owners through promotion of brand awareness, global sales promotions, ensuring customer service and satisfaction as well as upholding brand image. A large percentage of the revenue from this most profitable segment comes from franchise fees based on a percentage of gross revenues, royalties, as well as service and marketing fees. Another important source of income in the lodging segment is management fees that are collected under management contracts which offer their customers all the benefits of their global branding as well as all management, marketing, financial as well as booking and reservation services. The company also earns revenues from the Wyndham rewards program, when a participating customer stays at one of our hotels. b) Vacation Exchange and Rentals-The company affiliates themselves with developers and owners of vacation properties to allow owners of intervals to exchange their ownership stake for other intervals or leisure services within our network of vacation exchange business participants. This segment derives its revenues mostly from annual membership dues and exchange fees for members trading their intervals. c) Vacation Ownership- develop, market and sale and financing of VOI (vacation ownership interest) for prospective customers. This business segment provided some of the highest revenues for the company in 2010. Wyndham