Need to know what a hotel term means? Look it up in the Xotels Glossary. We explain definitions of terminology industry lingo from hotel revenue management, ecommerce, marketing and distribution.
What is the meaning / definition of Royalty Fee?
The term royalty fee refers to the monthly re-occurring fee a franchisee pays to the franchisor. The fee is generally a in the Franchise Agreement agreed upon percentage of the profits. Typically this ranges from between five and nine percent. This fee is generally oriented towards allowing the franchise healthy enough profit, after all expenses, thereby allowing the business to succeed both initially and ongoing.
Additionally to the re-occurring royalty fee, franchisees also pay an initial payment or initial franchise fee. This fee varies greatly from franchise to franchise - but is generally agreed upon in the franchise agreement.
What is the meaning / definition of Rural Hotel?
A rural hotel, is a hotel located outside of a town or city. It caters towards rural tourism, which is a type of eco-tourism. Tourists visiting can actively participate in a rural lifestyle. With the atomisation of much of the agriculture in rural areas, this type of tourism can drive the economy in rural areas by offering tourists a "back-to-the-roots" experience. By working on a farm and participating in the daily chores existing in the rural lifestyle city-dwellers are able to experience a lifestyle foreign to them. With the increasing estrangement between city and rural lifestyle the interest in rural tourism and rural hotels is only expected to grow.