Successful Hotel Resorts

Successful Hotels And Resorts

Table Of Contents

Market Intelligence Report

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Successful Hotels and Resorts – Lessons From The Leaders ii

Tourism Intelligence International Tourism Intelligence International is a leading hotel and resort research and consultancy company with offices in Germany and Trinidad. This report — Successful Hotels and Resorts – Lessons from the Leaders — is another in a series of tourism market analyses. Tourism Intelligence International is the publisher of Tourism Industry Intelligence, a monthly newsletter that provides analyses of and tracks the key trends and developments in the international travel and tourism industry. Other reports from Tourism Intelligence International include: Sustainable Tourism Development – A practical Guide for Decision-Makers !1,499.00 How the British will Travel 2010 !1,299.00 Successful Tourism Destinations – Lessons from the Leaders !1,299.00 How the Americans will Travel 2007 !1,299.00 How the Japanese will Travel 2007 !799.00 How Germans will Travel 2005 !699.00 How the British will Travel 2005 !699.00 Impact of Terrorism on World Tourism !499.00 The Berlin Report: A New Tourism Scenario – Key Future Trends !499.00 Tourism Intelligence International: German Office Trinidad Office An der Wolfskuhle 48 50 Richmond Street 33619 Bielefeld Port of Spain Germany Trinidad, West Indies Tel: (49) 521 16 38 83 Tel: (868) 625 44 43 Fax: (49) 521 16 38 84 Fax: (868) 625 44 20 E-mail: [email protected] E-mail: [email protected] Website: http://www.tourism-intelligence.com © 2005 by Tourism Intelligence International. All rights reserved. Terms of Use and Copyright Conditions The material contained in this report has been derived from statistical, trade, company and other sources, including Tourism Intelligence International estimates. All information is verified to the best of the authors’ and publisher’s ability. While every effort has been made to ensure the accuracy of the information contained in this publication, Tourism Intelligence International cannot accept liability for any data herein, any interpretation made therefrom, or for any loss arising from reliance thereon. Tourism Intelligence International reserves all copyright under international copyright law. Successful Tourism Destinations – Lessons form the Leaders may not be copied, stored, reproduced or published in any format, in whole or in part, by any means — electronic, mechanical, photocopying, recording or otherwise — or disseminated to any third party without prior written permission of Tourism Intelligence International. Published July 2005 ISBN 976-95061-5-X Cover designed by The Experts Limited, produced and printed by Tourism Intelligence International.


Successful Hotels and Resorts – Lessons From The Leaders x

About the Authors

Dr. Auliana Poon graduated with a B.A. (Honours) and an M.Sc. (Economics) from the

University of the West Indies (Trinidad). She attended one of the leading European

Schools, the Science Policy Research Unit at Sussex University (England), where she

graduated with a D. Phil. (Tourism & Technology). She is the author of Tourism, Technology and Competitive Strategies which one reviewer claims “should certainly be

on the compulsory reading list for all those seeking to advise and direct strategic plans for

both old and new tourism destinations”. Auliana Poon held positions as Senior

Economist at the Caribbean Tourism Organisation and Tourism Advisor in Belize,

Central America. She heads Tourism Intelligence International. Auliana Poon led the

team that developed the tourism policy and strategy for the new South Africa in 1996;

developed strategies for trendsetting companies such as Sandals International (Jamaica)

and Conservation Corporation (Africa); and designed the “tourism begins at home”

programme that sparked the turnaround in the Bahamas tourism industry in the early

1990s.

Eric Adams graduated with First Class Honours (Mathematics and Economics) from the

University of the West Indies (Trinidad). He holds an M.Sc. in Actuarial Science from

the University of Iowa (USA) and an MBA (Finance and Investments) from George

Washington University (USA). Eric Adams is a Business Consultant specialising in the

areas of tourism and financial forecasting, investments and financial IT systems

development. Eric Adams is an Associate of the Society of Actuaries and a Member of

the American Academy of Actuaries. He also lectures in tourism forecasting demand and

has developed forecasts for tourism arrivals to the Caribbean and other territories.

Johannes Spalburg has more than 15 years of international Sales & Marketing

experience in the Hospitality & Travel Industry, while based in 5 different countries on 3

different continents (Europe, the Americas and Southern Africa). He holds an MBA in

Hospitality Management from Cornell/Essex (IMHI, France) and speaks 6 (six)

languages, including Dutch, English, French, German and Spanish, as well as Italian. Jo

Spalburg joined the Caribbean Tourism Organisation (CTO), the umbrella organization

that represents the tourism interests of 33 Member States in the region. Based in London,

he was responsible for developing, co-ordinating and implementing all strategic

marketing activities for the region in Europe, until his departure in July 2003. Prior to

joining the CTO, Jo Spalburg worked as Marketing Consultant for Horwarth International

France (Paris) and during the previous 10 years, he occupied various Sales & Marketing

positions - at Headquarters, Regional and Local level- for a number of international

hospitality and travel firms, including: MKI Ltd – i.e. Wyndham Hotels & Resorts, South

Seas Resorts, Renaissance Cruises, Pemberton Hotels and many other independent Hotels

and Resorts- (London), ITT Sheraton Luxury Hotels (London), Jet Hotels (Air France

Group, Paris), Hilton International France (Paris & Strasbourg) and Steigenberger Hotel

Krasnapolsky (Amsterdam).

Kevon Wilson, graduated with Upper Second Class Honours from the University of the

West Indies (St. Augustine, Trinidad) in 2000, after reading a Bachelor of Science degree

in Management and Finance. Kevon Wilson is one of the Research Analysts for Tourism

Intelligence International. His most recent assignment was in the Commonwealth of

Dominica where he provided technical support to the Eco-Tourism Development

Programme, a programme funded by the European Union and implemented by Tourism


Successful Hotels and Resorts – Lessons From The Leaders xi

Intelligence International. Kevon Wilson is also a Senior Executive at an investment

agency, in charge of Product Development and Administration. Prior to joining tourism

Intelligence International, Kevon Wilson spent two years in London where, apart from

pursuing his studies, he worked as a manager at one of the largest UK-based restaurant

chains, JD Wetherspoon.


Successful Hotels and Resorts – Lessons From The Leaders xii

Acknowledgements

In preparing this report, the authors would like to thank the Hotel and Resort Companies

for the information that they have provided; the World Tourism Organisation for its

assistance in supplying data; Michelle Kam Hong, from our Trinidad office for her

excellent research assistance.

Tourism Intelligence International would especially like to thank Katharina Lube, Nicolas

Marx, Michelle Meier, Xavier Morin, Stéphane Wartner of the Ecôle Hotelier Lausanne

(EHL) for their research assistance. This report is a culmination of the research

collaboration with EHL, through one of the Student Business Projects, 2002.

Tourism Intelligence International recognized early on that despite the differences

between the cruise lines and all-inclusive hotels, there are clear similarities in the

performance and the contributing factors to success. The results of the EHL study were

so promising that it prompted us to investigate other successful companies in this report.


Successful Hotels and Resorts – Lessons From The Leaders

iii

Table of Contents

Chapter Page Nos.

About the Authors x

Acknowledgements xii

Executive Summary 1

Accor S.A.

Company History and Profile

Founders With clear Vision

Company Profile

Performance

Growth

Reduced Direct Investment

Excellent Segmentation Strategy

Economy Hotels

Portfolio with Luxury Brand

Geographic Segmentation

A Leader Throughout Europe

Great Expectations for Accor North America

Human Resource Management

Building Success through Strategic Partnerships

Marketing Strategy

Customer Retention

Cultural Diversity (Think Global, Act Local)

Branding

Sofitel – Accor’s Premium Brand

Sustainable Development

Technology Adoption

Competitive Analysis

S.W.O.T. Analysis

Strengths

Weaknesses

Opportunities

44

47

47

50

51

53

56

59

60

62

62

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65

66

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iv

Threats

Key Success Factors

Future prospects

80

82

84

Amanresorts

History

Company Profile

Aman’s Formula for Success

Providing services to up-scale/high-end guests

S.W.O.T. Analysis

Key Success Factors

Lessons to be learnt

86

89

93

96

100

103

105

107

Banyan Tree Resort and Spa

Company History

A Vision Of The Ultimate Resort Experience

Banyan Tree’s New Villa Concept - A Paradise

For Two

The Tropical Spa Concept: A ‘Sanctuary For The

Senses’

Banyan Tree Spa Academy

Green Vision

Marketing

Targeting Up-Market Clients

The Internet

Brand-Building – A Strategic Imperative

Core Values Inherent In The Brand

Committed To Staff

Growth

Angsana Resort & Spa

Colours Of Angsana

Financial Performance

S.W.O.T. Analysis

Strengths

Weaknesses

Opportunities

108

111

111

115

121

123

123

124

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131

135

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v

Threats

Key Success Factors

Lessons

Challenge

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146

Carnival Corporation

Profile

History

Company Profile

Decentralised Strategy

Marketing Strategy

The “Fun-Ship” Formula of Success

Catering to the needs of ‘Fun-Seekers’

Leaders in Innovation

More Homeport Deployment

Commitment to Travel Agents

Carnival’s marketing relationship with Travel

Agents

Future outlook for the Travel Agents

Market-Based Pricing

Advertising and Promotion

E-commerce Strategy

Generating Success by Providing Superior Quality

and Wider Choices

Repeat Customer Practices

Putting People First

Environmental Responsibility

Expansion Strategy

Global Diversification Strategy

Why Diversification?

Performance

SWOT Analysis

Strengths

Weaknesses

Opportunities

147

149

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vi

Threats


How has Carnival been able to out-compete rivals?

Challenges

Key Success Factors

Navigating the Waters Ahead

177

178

180

181

182

186

Club Méditerranée

History

Company Profile

Club Med or Club Dread?

An Attempt to turn apparent Failure into Success

Upgrading an Obsolete Brand

Re-inventing the All-inclusive Concept

Refocusing Marketing Efforts

New Pricing Strategy

Advertising in line with refocused strategy

Wooing Travel Agents

Keep Customers coming back for more

Extending the Brand

Arrival of Accor as a shareholder in Club

Méditerranée

Performance


SWOT Analysis

Factors that caused Club Med to get into problems

Key Success Factors

Outlook for All-inclusive Market


Future Prognosis

188

191

195

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199

202

203

205

207

208

209

211

211

213

214

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220

222

223

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227

Four Seasons Hotels and Resorts

Company History

Company Profile

Company Portfolio

Expansion Strategy

228

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vii

Financial and Operating Performance

Mind, Body and Soul – A spa for all seasons

Human Resources

Innovator par excellence

Core Competency – Management of medium-sized

luxury lodging facilities

Marketing

Building a successful brand

Major Competitors

S.W.OT. Analysis

Key Success Factors


Future Prognosis

240

244

246

248

249

250

251

252

255

257

260

261

Marriott International, Inc.

Marriott International Profile

Company Profile

New services – Keeping in tune with customers’

needs

“The Marriott Way” – The “Spirit to Serve”

The Spirit to Serve – Associates

The Spirit to Serve – Customers

The Spirit to Serve – The Community

Focusing on Core Competency – Hotel

Management

Company Portfolio – Diversification Strategy

Full Service Lodging

Select-Service Lodging

Extended-Stay Lodging

Timeshare

Growth – A Vision to be the World’s Leading

Provider of Hospitality Services

Performance – Indicators of Success

Financial Strategy – Signalling Success

Marketing Strategy

Effective Sales & Distribution Channels

263

265

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270

271

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275

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viii

E-Commerce Strategy

Value Pricing Strategy

Strong and Differentiated Positioning Strategy

Promotion

Cultural Sensitivity in Marriott’s Promotional

Strategy

Technological Innovativeness

SWOT Analysis

Strengths

Opportunities

Threats


Competitive Edge

Marriott’s Competitors

Future Prognosis


293

295

295

296

297

298

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299

300

300

301

301

302

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306

Sandals Resorts International

History of Sandals Resorts International

Sandals’ Ultra All-Inclusive Offer – Setting the

Industry Standard

High Quality – Affordable Prices

From an Innovative Follower to World Leader

Market Segmentation

Successful Relationships with Travel Agents

Raising the All-Inclusive Bar even further

The Beaches Brand

Internal Marketing

Social and environmental responsibility

SWOT Analysis

Key Success Factors


Future Prognosis

308

310

313

319

320

321

323

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325

327

331

335

338

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ix

Walt Disney Company

History

Company Profile

Organizational Structure of the Company

Financial Performance

Expansion Strategy

Global Expansion

Human Resource Management

Imagineering Success

Enhancing the guest experience

Diversification with resorts

Why Resorts?

The Euro Disney Story

Disneyland Hong Kong

Dubailand

Major Competitors

SWOT Analysis

Key Success Factors

Lessons To Be Learnt

Future Outlook

342

345

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350

353

356

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Successful Hotel Resorts

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