Traditional Culture Encyclopedia - Hotel franchise - What are the scale effects and economies of scale of hotels?

What are the scale effects and economies of scale of hotels?

These two main aspects are as follows:

1. Economies of production scale: Hotels can achieve the best economic scale and reduce the production cost of hotels by supplementing and adjusting their capital.

2. Scale effect: hotels can produce and serve different customers or markets through mergers and acquisitions to meet the needs of different consumers, thus generating economies of scale.