What is the definition of Representation Company, in the hotel industry?
Representation Company is a corporation that runs either the whole hotel or an opening 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 requirements of the hotel.
There are quite a few causes why a hotel may make a decision to employ a representation company. It might be lack of information in an exact area, economic reasons (to lower costs), rising quality or other reasons.
Examples might be: Hiring a PR agency, a Sales Representative or a Income Manager. It can also be an association that provides reservation services, including dispensation of voice reservation requests and/ or GDS connectivity for hotels (as its distribution partner).
Advantages of representation companies are knowledge, terminable contracts, room and cost savings, as well as no training or retraining mixed up. One disadvantage is a definite loss of power over the outsourced department.