Case Analysis: The Ritz-Carlton Hotel Company

CASE JOURNAL-ROSEWOOD HOTEL& RESORTS Rosewood’s management is on the right track to increasing brand awareness among its customers by pursuing the corporate branding strategy. Implementation of the corporate branding strategy not only increases the number of repeat visitors to the hotels, but also increases the gross profits made by the company by $2,599,000. Corporate branding has a positive impact on the customer lifetime value as well. Rosewood Hotels & Resorts is a privately owned hotel management company that is known for its unique properties like The Carlyle and the Mansion on Turtle Creek that differentiates the company from other luxury hotel competitors.

By reducing rivalry, Holiday inn came with the strategy of delivering high quality revenues at a lowest possible cost. This has helped Holiday inn in maintaining customer loyalty and growing sales. It is not easy for a customer to switch to the competitor when they are loyal to a specific brand. Since Holiday inn is one of the best hotels, its competitors are represented by four stars lodging offering equally attractive product as the one Holiday inn is offering. Since Holiday inn hotel has so many competitors, and they offer equally attractive products and services, then the establishment will most likely have little power in the situation.

In areas of resort saturation like Las Vegas, the customer has so many options; they simply will not tolerate poor service like they may have in the past. In spite of economic conditions, hospitality firms must be able to cut costs and still provide a quality product. A proven, effective way to do this in other industries has been to 3 adopt the principles of Lean and Six Sigma. This paper explores Lean and Six Sigma and how they have been successful in the hospitality industry. Hospitality giants like Starwood Hotels and Caesars Entertainment have implemented Lean and Six Sigma, but smaller firms could benefit from the programs as well.

convention attendees, revenue is also generated by conventioneers utilizing other hotel services like restaurants and drugstores. Additional revenue for the various hotel services is also created by spouses that often accompanying convention delegates (Weber, 2001). Also, Hu (1994) proved that meeting guests tend to spend more on food and beverages and meeting space rental than do other guests. Finally, conventions and meetings are excellent prospects for repeat business (Weber, 2001). The repeated use of a hotel chain for an event can depend on the satisfaction of convention attendees.

Moreover, the hospitality industry is not concerned by only one sector of activity of a business but is concerned by, nearly, all the businesses which are focused on customer expectations and answering the need of the customer. Whereas, this industry has a huge target audience thanks to the wideness the hospitality industry. However, it could be suffering of a lower purchasing power of customer. That means that kind of hospitality is including costly hotels, so, most of the time the customers have to spare money to access to this universe. And, if the purchase power slump the middle-class customers could not spend their money in this industry only wealthiest could do

Tourism is considered as one of the main trade and industry activities in the world that contributes to economic, cultural and political advancement of various regions (Krippendorf, 1989). In connection, tourism has one principle sub-part called hotel business. Several organizations persistently look for better approaches to obtain, preserve and build business, since the expense of losing clients is rising.

The results from the program can also be business analysis, strategy planning and corporate training. Companies finally can train out talents, create loyal customers and increase company's revenues. That is the reason why hotel use mystery customers program to be an action plan.  Steps of Hospitality The other action plan is ‘Steps of Hospitality’ in different department. It is a working steps to provide more superb quality to guest in three departments which is Front office, Food and Beverage and Housekeeping Department.