Four Seasons Hotels Essay Example for Free

quad Seasons Hotels EssayThe quadruple Seasons Company, as per current financial, seems very profitable and the stipend per share are increasing each year. From 1997 to 1998 EPS maturationd by 66% and from 1998 to 1999 it increased by 22%, actually from 1997 to 1999, the value has more than doubled. The main(prenominal) reason for the increase seems to be a total terminate earnings increase of 112% in two years. (See Exhibit 1 for figures). This is a result of increase in r chargeues and to a fault because costs increased less than revenues. This indicates that in addition to higher(prenominal)er sales, efficiency improvements have been hard as yearly costs for operating items dropped 68% and the interest costs also have diminish by 105%, devising it interest income. Based on this information, the company is recommended to slide by their emphasis on high personal service and quality for their hotels as the customer base are non footing sensitive but concerned about service and luxury. It is important to have non-complaining, satisfied customers as this sort is more satisfied than those w here service recovery is needed, even when service recovery is performed at a high level. Also, satisfied customers are more loyal and a key to continue having a financially inexpugnable company. A key to this development is to continue to focus on employee satisfaction and employment procedures as this is resulting in belittled turnover (compared to the industry average), highly endured and motivated staff and consequently excellent service.Also, the strong financials support follicle-stimulating hormones (costly) growth strategy, and would further indicate that the company has the back-b ane to support such a strategy.3.0 Leverage the web direct for merchandising purposesThe Four Season Hotel (FSH) should further leverage their astounding website. First, they should maximize the site for mass marketing purposes. For example, the site would allow custom ers to appreciate all FSH properties, and a customer who has never seen a FSH faeces view get ons, conference halls, restaurants etc. The website can further provide up-to-date information on vacancies, promotions, metropolis tours etc. This same information could be updated at any time to reflect specials across various(prenominal) FSH. For instance, the Milan hotel might anticipate low vacancy one week, and could attempt to fill some vacancies by listing a Milan resident special on the site e.g. with a two night stay and build up a free dinner in the restaurant.Internal marketing is other great possibility for the FSH, as long as the high tech is followed by high touch, and the system is not used to set back the human element. The intranet site should focus on cost-saving promotions, healthy competition between across respective FSHs, employee feedback pages etc. Management should use the intranet as an additional medium to disseminate information to employees and as a inwardness to obtain information from employees.An easy to use e-commerce site for the hotel would be interesting for selectFour Seasons customers. Again, this should not replace the high touch that the FSH brand is identified with, but rather add another convenience for its customers. For example, some customers like making their reservation via the Internet and having an additional option with regards to making a hotel booking could turn out overconfidently.4.0 Establish and manage a common customer awareness databaseThe hotel should alter the existing database containing guest preferences into a centralized database available to all FHS properties. This should be deemed a high priority. It would be a typical one-time fix to enhance customer satisfaction and for implementation it could leverage FSHs existing intranet platform.The main driver for a change of this sort would be its authority to further improve the FSHs customer service. For example, as existing FSH customers ar e highly concerned about time there should be no need for them to fill in forms with preferences for each new hotel they arrive at. Also, it would be perceived as impressive for the customer arriving at a new hotel where the personnel would already know their preferences. This would increase the feeling of interest and personal touch during the hotel stay and consequently enhance customer loyalty and satisfaction. Additionally, the fact that only 9% of Four Seasons hotel guests are apply tenfold properties should not lower the importance of making such a change.In fact, 9% of their customer base means that approximately 400.000 customers each year use multiple Four Seasons Hotels. (See Exhibit 1) Also, the positive word-of-mouth this change would bring will nearly likely increase the number of guests staying at multiple properties. Furthermore, as the hotel has a growth strategy, the number of hotels and rooms will continue to increase and as such enhance the need for the common database.Also, in addition to customer satisfaction, having one database for all hotels would decrease costs for the chain in the long run as it will not have to maintain 50+ different databases.5.0 Four Seasons management should solicit select feedback from customers.The idea here is quite simple and essentially comes down to ensuring that the hotel maintains its brand. The FSH has done very well by establishing a strong brand and enjoys a high % of repeat customers. Management and employees alike know what the Four Seasons stands for and the experience they aim to offer the customer. That said, and as technology races forward it is important for businesses to leverage it where possible and profitable. The key for the Four Seasons is to leverage it in a way that does not negatively impact their brand i.e. detract from the boilers suit customer experience offered by Four Seasons employees, which is highly personal, intimate and customer oriented.For example, management could solic it feedback from customers as to whether they would use an automated (electronic) checkout service and whether customers view this as something consistent with the Four Seasons brand. This selective feedback could be centralized at first in that it is sponsored by the corporate office (so as to solicit feedback that could be leveraged across all properties) and then tweaked per location to take into consideration cultural specifics etc. Findings could be leveraged across properties and stored in the central database to eventually maintain, reinforce and eventual(prenominal)ly improve the Four Seasons brand, customer experience and ultimate profitability.6.0 Implement a Seasons Pass Loyalty Program Enhancing Customer Loyalty.Implementing a Loyalty program contributes to making guests feeling special, which undoubtedly makes a difference in his or her experience. A loyalty program could even extend to other value chain partners, thereby, allowing for further tracking of guest prefere nces. Without a loyalty program, FSH loses out on building strong relationships with its guests. As switching costs are minimal, loyalty is low unless a competitor differentiates and thereby increases its odds of attracting return guests. In order to compete successfully inwardly this tier, a reputable brand name is imperative, which also represents a significant barrier to entry for potential new entrants.The common database will undoubtedly enhance the relationships because clients enjoy the sense of community that is established when creation part of a loyalty club. Therefore it is important to have mechanisms in place to ensure guests to roost loyal to FSH and choose the company as his or her accommodation provider. To facilitate this, the hotel should introduce a frequent guest card, the Seasons Pass, which will serve two functions1. Track guest activities within FSH so that their preferences can be recorded.2. Allow guests to collect points every time they stay at a Four Se asons property and use them towards service companies affiliated with Four Seasons, creating loyalty as a result. It will also aid individual FSH locations to better understand which facilities within the hotel or resort are the most sought after and will be able to segment the information based on the arena of the world or type of consumer (leisure or business). Through partnering with external companies such as high-end car renting companies, airlines, and travel agencies, FSH will be able to offer guests a solution to every decision they may encounter during their stay. Thus the Seasons Pass and the networked database will ultimately be the bridge to building and maintaining positive guest relationships.Exhibit 1 Financial data for the Four Seasons Hotels EOY 1997 to EOY 1999Exhibit 2 Number of customers using multiple Four Season Hotels each year* Assumed average coverage rate by the year is based on information in case, The Roccoco New York Hotel by Anna S. Mattila. Using the rate sodding(a) by the Roccoco New York boutique hotel.** As no information of number of customers per room is provided, one per room is assumed.