Hotel Entrusted Management In The Incentive Constraints Mechanism Research

The hotel industry in China has gained great development for three decades of reform and opening up. According to statistics by Nation Tourism Bureau, there are more than1000high level hotels had been established just in the year of2011including some famous hotel management brands in the world. With the continuous development of China’s economy and tourism, domestic tourism is gradually to all the depth development of the sub-level market segments. This market has tremendous potential for development in China is continuing to attract domestic and foreign investors stationed. But behind the rapid development of the hotel industry, there is the distance in the model and the level of the hotel management between in domestic and in developed countries.Firstly, I reviewed the hotel history and current situation of the hotel industry in China, and pointed out the problems in the model of hotel management contract at this stage. Then reviewed the literature of the domestic and in world related the hotel management contract. The distance was found in the research on the hotel management contract between in domestic and in overseas. I also studied the theoretical basis so as to setting up well-knit foundation for the project research.In the paper, the questionnaire in the article by Zou Yimin&Bao Juan was used to do a survey between owners and managers of the sample hotel. We acknowledged if the sample hotel is a prerequisite for successful in the hotel management contract. Then we found it will be achieved tremendous economic and social benefits through comparing in two years of the business performance before and after implementing the incentive and restraint mechanisms in the sample hotel.In the paper, the focuses of the owner and management side were fully analyses under the mode of the hotel management contract. We understood deeply the interest conflict’s core issues between the owner and the management side through game theory model analysis.Finally, the incentive and restraint mechanisms of a wide range was designed for the management from the owner side. It is tried to find the way to implement the scientific and effective diversification incentive and restraint mechanisms will balance the interests between hotel owner and management side. The research will influence the development of the hotel management contract in high-level hotel industry in China.