a case study of rosewood hotels and resorts
TRANSCRIPT
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
COMPETITORSGroup of Luxury Hotels
COMPETITORSINDIVIDUALLY BRANDED
UNIQUE HOTELS
“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
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
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%
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
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
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
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
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
Created by Shyam Siddharth of PSG TECH Coimbatore for an Internship by Prof. Sameer Mathur IIM Lucknow.
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