A case study of rosewood hotels and resorts

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Transcript of A case study of rosewood hotels and resorts

Page 1: A case study of rosewood hotels and resorts
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2001 2002 2003Number of Hotels(Year beginning) 11 13 13

Number of Hotels Added 2 2 0

Number of HotelsLost 0 2 1

Total Number OfHotels (Year End) 13 13 12Total Number Of Rooms (Year End) 1859 1714 1513

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COMPETITORSGroup of Luxury Hotels

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COMPETITORSINDIVIDUALLY BRANDED

UNIQUE HOTELS

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“SENSE OF PLACE”PHILOSOPHY

EACH HOTEL IS UNIQUE

EACH HOTEL REFLECTED

LOCAL CHARACTER

FEATUREDARCHITECTURAL

DETAILS

FEATUREDINTERIORS AND

CULINARY CONCEPT

CORE VALUES OF ROSEWOOD HOTELS AND RESORTS

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WHY?

People were unawareOf Rosewood As a

Brand

Cross Property UsageWas As Low As 5%

Return Visits Were as Low As 40%

Matrices were not typical of a

Luxury Hotel Chain

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ADVANTAGES

•COLLECTIVE EXPERIENCE•CONSISTENT SERVICE – IN ALL ASPECTS•CROSS PROPERTY USAGE•HIGH CUSTOMER LOYALTY•BETTER BRAND RECOGNITION•CROSS SELLING RATES WERE 10% BUT FOR OTHER LUXURY HOTELS IT WAS 10-15%

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CHALLENGES

• Distinctiveness of each of the premium properties could not be compromised.

• Risks Of Alienating some Loyal Guest

• Huge Marketing Investments – $1 Million/Year

• Need Of Other Brandings. Ex. Spa Branding

• Private Owners of Carlyle Hotel Were Reluctant

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Scenario with an introduction of corporate branding-Parameters Without Rosewood

Branding (2003)With RosewoodCorporate Branding

Total number of unique guests 115,000 115,000

Average daily spend $750 $750

Number of days average guest stays 2 2

Average gross margin per room 32% 32%

Average number of visits per year per guest 1.2 1.3

Average marketing expense per guest (systemwide)

$130 $139

Average new guest acquisition expense (systemwide)

$150 $150

Total number of repeat guests 19,169 24919

Of which: Total number of multi-property stay guests

5,750 11500

Average Guest Retention Rate 16.67% 21.67%

Average Gross Profit per Guest $576 $624

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CUSTOMER PERCEPTION

•Used various properties across the world but could not realize they belong to the same chain

•I did not know until my travel agent mentioned it

•Brand Rosewood means nothing

•Rosewood as a brand does not encourage me to trydifferent properties

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AGENTS PERCEPTION

•Clients know about Rosewood when we educate them about it

•We book the Hotel not Rosewood

•It is known only by individual hotels and brands

•The brand is not as strong as it was in the past

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THINGS IT SHOULD DO

•SHOULD NOT LOSE INDIVIDUAL BRAND PERSONA

•SUBTLY ADD ROSEWOOD LOGO ACROSS PROPERTIES

•SHOULD GO FOR PUBLIC RELATIONS

•PARTNER WITH TRAVEL AGENCIES

•SHOULD LAUNCH CAMPAIGNS OVER

•SOCIAL MEDIA PLATFORMS

•BUILD EXCLUSIVE MEMBERSHIP PLANS

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Created by Shyam Siddharth of PSG TECH Coimbatore for an Internship by Prof. Sameer Mathur IIM Lucknow.

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THANK YOU