Usually allows for the hotel company to manage the property for a period of five, ten, or twenty years. for this, the company receives as a fee, often a percentage of gross and/or net operating profit, usually about 2-4.5 percent of gross revenues.

Management contract

Explanation:

Management contract is referred to as or known as the arrangement where operational authority of the organization or enterprise is moreover vested by the contract in the separate organization or enterprise that tends to perform the necessary or significant managerial functions in turn for a fee. These contracts does not just involve selling a diverse methods of things but also tends to involve doing them.

in 2001, dell computer became the world’s largest personal computer vendor, continuing to

gain market share and post profits in an industry struggling with slumping sales and billions of

dollars in losses. dell sells 90% of its pcs directly to the final customer, largely bypassing the

reseller channel that accounts for most of the world’s pc sales. this direct customer relationship

is the key to dell’s business model, and provides distinct advantages over the indirect sales

model. dell’s direct relationship with the customer allows it to tailor its offerings to customer

needs, offer add-on products and services, and use the internet to offer a variety of customer

services. in addition, dell’s pcs are built to customers’ specifications upon receipt of an order,

giving dell additional advantages over indirect pc vendors who must try to forecast demand and

ship products based on those forecasts. dell’s direct sales and build-to-order model has achieved

superior performance in the pc industry in terms of inventory turnover, reduced overhead, cash

conversion, and return on investment (kraemer, et al., 2000).

explanation:

answerplace value;