Preview

Analysis of the Four Season's Hotel and its business strategy in the luxury hotel Industry

Powerful Essays
Open Document
Open Document
7649 Words
Grammar
Grammar
Plagiarism
Plagiarism
Writing
Writing
Score
Score
Analysis of the Four Season's Hotel and its business strategy in the luxury hotel Industry
INTRODUCTION

Methodology of Report

The following report was derived from the primary use of secondary sources, in addition to telephone contact with hotel representatives. Secondary sources included research from the Internet, industry books, company marketing communications, trade and general business newspapers and magazines, among others. Through all the sources, relevant data and information was extracted into the report's appendices. After individual analysis and group discussion, the following report was devised. The mandate of this report is to provide a macro examination of the luxury hotel industry and specifically the future outlook of Four Seasons Hotel and Resorts, Inc.

Company History and Background

The vision for Four Seasons Hotel and Resorts (FSH) began back in the 1960's when current chairman and CEO, Isadore Sharp, envisioned a luxury lodging chain that was able to set itself apart by focusing on personalized and quality services. This has proven to be a fruitful strategy as FSH's success has placed it as one of the world's largest luxury hotel chains and has earned a 5-year return on equity of approximately 19-20% (Refer to Appendix 16). Today FSH has expanded from being a single hotel operating in one country to having 55 properties in 25 countries. FSH is mostly involved with management operations in hotels and resorts, however, it has recently ventured into non-hotel endeavours. The firm is currently involved in 3 lines of businesses, ranging from hotels to resorts to residential condominiums all around the world (Refer to Appendix 9).

The origin of FSH was rooted in ownership operations, whereby the corporation owned both the real estate and the building. In addition, the firm would manage the hotel or resort's daily operating activities. In more recent times, FSH has realized that management operations is actually a more lucrative business model that also minimizes risk levels. Through this separate form of business, revenue is only

You May Also Find These Documents Helpful

  • Good Essays

    Four Seasons is the world’s leading operator of luxury hotels and resorts. They are well known not only in the U.S. but they are a huge international hit. They have been successful over the last thirty years because of their strengths of diversity and originality. Four Seasons does not want to be a globalization of markets like McDonald’s, where everyone is the same. They are not a “cookie-cutter company.” This is a great tactic to have because then you would not be such a high class hotel and resort. Also, when you go international you have to be in touch with all of the cultural changes which can make or break your business. They have done an exceptional job of adapting to the different cultures. When you walk into a four seasons hotel “it does not scream four seasons at you.”…

    • 759 Words
    • 4 Pages
    Good Essays
  • Good Essays

    Four Seasons

    • 1193 Words
    • 5 Pages

    Case Summary: Four Seasons Goes to Paris? – Entering a foreign market Basic facts about Four Seasons Hotels and Resorts Four Seasons Hotels and Resorts is a Canadian international luxury hotel management company. Between 1996 and 2000 they increased revenues and margins by about 20% and 10% respectively. Their revenue per room was about 30% higher than that of their competitors. Four Seasons generally operates, but does not own, mid-sized luxury hotels and resorts. By 2002, they indisputably became the world 's leading operator of luxury hotels, managing 53 properties in 24 countries. The Four Seasons management structure follows the idea of regional adaption, meaning that each property has a general manager, who is supported by a regional HR director, a regional marketing director and an area director of finance. Being able to adapt to different national cultures, as well as living up to Four Seasons ' corporate culture, is the most important requirement for all staff. The strong corporate culture of Four Seasons entails not only longevity of staff careers, but also determines their market strategy and day-to-day business. Four Seasons ' International Strategy Four Seasons has several universal standards (7 service culture standards and 270 core operating standards) to guarantee exceptional service in every location. All operating standards are of flexible character: in case that adaptations make sense for a specific geographical region the standard can be adjusted there (for example the standard that the coffee pot should be left on the table during breakfast to refill cups was amended in France, because it was perceived as a lack of service). These tailor made hotels ensure regional diversity and avoid an obtrusive Four Seasons standardization. The balance between diversity and singularity is the key component for success in the Four Seasons business model. The distinguishing edge of Four Seasons Hotels is their exceptional and personal service. Therefore,…

    • 1193 Words
    • 5 Pages
    Good Essays
  • Powerful Essays

    Four Seasons Inc

    • 777 Words
    • 4 Pages

    Company History: Four Seasons Hotel, Inc is a Canadian-based international luxury, five-star hotel Management Company. It is one of the world’s most admired and successful luxury hotel chains, and has been named by Fortune consecutively for 16 years as one of “100 Best Companies to Work For” since 1998. The company was also awarded the “Best Business Hotel Chain Worldwide” by Business Traveller. Four Seasons Hotel was founded in the 1961 in Canada by Isadore Sharp, and the hotel (a motel at that time) in Toronto was an oasis for business travellers. It became an upscale luxury hotel when they expanded in London in 1970s. It was also then that Four Seasons would make the four strategic decisions that formed the pillars of its business platforms: exceptional quality, luxury services, explicit culture, and renowned branding. In the 1980s, Four Seasons expand in the United States and moved from owner-operator to hotel managers. In the 1990s, Four Seasons has acquired a strong branding and also begin to build its portfolio of resorts. It also begins to expand in Asia (e.g. first Four Season Hotel in Asia was opened in Tokyo in 1992) and Europe. From 2000 onwards, Four Seasons continued to achieve global growth in both size and recognition. In 2002, Four Seasons Hotel Shanghai marked the company’s entry into the growing Chinese market. In May 2008, Four Seasons marked its entry into the Indian market with a contempory hotel in Mumbai’s Worli district.…

    • 777 Words
    • 4 Pages
    Powerful Essays
  • Better Essays

    The Marriott Company was formed more than 50 years ago by J Willard and his wife, Alice Marriott. Since then, there are now over 3,700 hotels in 75 countries worldwide. There has only been 2 CEOs for the company; J Willard, and now his son, Bill. In 1983, Courtyard at the Marriott was developed and proved to be a success. This research also uncovered other segments of the residence market could be popular as well. With the economic downturn, companies are looking harder at how to get customers in the door, and then, keep them come back often. For Marriott Hotel chains, the goal is more “heads in beds”. When a business person is on the road traveling, they have many choices to choose from when it comes to a hotel. Marriott decided to increase the likelihood that potential guests choose their unique hotel chain by specializing needs of different types of business travelers calculated by doing research on different markets.…

    • 1385 Words
    • 6 Pages
    Better Essays
  • Powerful Essays

    Marriott International is ranked as number one in market capitalization and revenues in the lodging industry. In fact, it has been ranked by Fortune as among the “100 Best Companies to Work For.” It has a total of six business segments in its portfolio, namely: the North American Full-Service Lodging Segment, North American Limited Service Lodging Segment, International Lodging Segment, Luxury Segment, Timeshare Segment, and the Synthetic Fuel Segment. It has a deep history, which started way back to 1927 when J. Willard Marriott and his bride opened a 9-seat root beer stand. Through the years, competition has been tight, and Marriott International’s closest competitors would be the Accor, the Hilton Hotels Corporation, and the Intercontinental Hotels Group PLC. Financially, Marriott International is doing well, but growth is not as high compared to the previous years. Furthermore, there is potential for growth in the international market.…

    • 9308 Words
    • 38 Pages
    Powerful Essays
  • Powerful Essays

    Four Seasons Goes to Paris

    • 3140 Words
    • 90 Pages

    Four Seasons Hotel and Resorts (FSH) always prided itself on being the choice for a luxury hotel experience. Since its inception date in 1960, FSH expanded its renowned services to include the current number of 67 hotels in 30 different countries with continued expansion in progress. FSH attributed its success to its organizational culture, which did, and continues to embody, the dedication to great service and luxury hospitality. Part of this culture is to recognize that the employees are the key to success, and that in following the "Golden Rule", do unto others, as you would have them do unto you, an atmosphere of fairness, respect, and consistency is established. The success of their philosophy on how to treat employees was, and continues to be, evident in their consistent run on Fortune Magazine's list of the "Top 100 Best Companies to Work For". Furthermore, ingrained into the mission statement was the firm's need for profitable financial planning so that the longevity of its existence and continued service to employees, customers, and shareholders was and is ensured. In the case presented, we look back at FSH's expansion into the French luxury hotel market. The opportunity for this expansion came about with the management and renovation of the historic Parisian Palace, the Hotel George V, one of the six category palace hotels in Paris. Along with the opportunity to expand its European market and support its growth policy around the world, the opening of FSH Hotel George V Paris (hereafter, FS George V), also provided the challenges of incorporating the existing organizational culture with the French culture, laws, and regulations. Although FSH had experience in the global market, French culture and laws provided unique issues to be resolved, particularly in their management of Human Resources. During the development process of FS George V, the…

    • 3140 Words
    • 90 Pages
    Powerful Essays
  • Good Essays

    Four Seasons Analysis

    • 1266 Words
    • 6 Pages

    Four Seasons Hotels (FSH) is a Canada-based privately held company that owns and operates hotels, resorts and residence clubs. The company manages 83 hotels and resorts in 35 countries. It primarily operates in Canada, Singapore, Thailand, Australia, the UK, Ireland and Japan. It is headquartered in Toronto, Canada.…

    • 1266 Words
    • 6 Pages
    Good Essays
  • Powerful Essays

    Globalization of the world has triggered travel and tourism from industrialized countries. This enhanced number of tourists from all over the world compelled hotel and tourism industry to develop themselves according to the needs of present global world. This wave of tourism also brings itself many benefits, as tourism and hotel industry became one of the major sources of revenue generation for many countries. As competition in the market of tourism continuously increases, so there is a chance of much more diversification and customization of tourism market. These internal changes of the business require three things:…

    • 4096 Words
    • 17 Pages
    Powerful Essays
  • Best Essays

    With operations in 24 countries, the Four Seasons hotel has gained a reputation for being one of the most well renowned luxury hotels in the world. In order to offer the most quality service and comfort to customers, the Four Seasons places an emphasis on offering personalized service. Tangible features are also of great importance to the luxurious status of the hotel. Perceptions of quality service and luxurious features vary upon countries and cultures. When entering a new market in a new region, it is critical for the Four Seasons to adapt to changes in culture in order to best facilitate the needs of the customers in those regions. Employees must have the abilities to understand and meet the personal needs in order to best serve the customers, as well as maintain the consistent luxurious status of the Four Seasons. When entering the French market, the Four Seasons was faced with many necessary adaptations in order to align the culture of the Four Seasons with the culture of France.…

    • 3942 Words
    • 11 Pages
    Best Essays
  • Powerful Essays

    Starwood Hotels & Resorts Worldwide, Inc. is one of the leading hotel and leisure companies in the world with 1,000 properties in 100 countries and approximately 145,000 employees at its owned and managed properties.…

    • 1636 Words
    • 7 Pages
    Powerful Essays
  • Powerful Essays

    feasibility for hotel

    • 1296 Words
    • 6 Pages

    The purpose of this paper is to investigate the opportunities and risks of operating a high class hotel at the designated location. In order to determine whether a feasible operation of such an establishment is possible, the various key factors of competitive business in this particular market will be analyzed…

    • 1296 Words
    • 6 Pages
    Powerful Essays
  • Powerful Essays

    Indian Hotel Industry

    • 27210 Words
    • 109 Pages

    Since the opening of the market and the rapid economic development, the travel and tourism industry has blossomed. The hotel industry’s fortunes are closely linked to this sector of the economy. But the availability of hotel rooms has not kept pace with the increasing demand. Moreover, as India accounts for only 0.5% of the global tourist trade, there is immense scope for growth. The World Tourism Organization (WTO) expects the Indian tourism industry to grow by 8.8% in the next 10 years. This will need the creation of even larger number of hotel rooms. As there is already a shortage of hotel rooms and this 9% shortfall is likely to be met only by the 1st half of 2009, the sector players will benefit in near term with higher profits. The importance of the sector has already made the GOI increase the allocation to the tourism ministry significantly.…

    • 27210 Words
    • 109 Pages
    Powerful Essays
  • Good Essays

    Business Fourseasons

    • 3503 Words
    • 15 Pages

    The story of Four Seasons Hotels and Resorts, which opened its first hotel in 1961, is a tale of continual innovation, remarkable expansion and a single-minded dedication to the highest of standards. The Canadian-based company has, for nearly 50 years, transformed the hospitality industry by combining friendliness and efficiency with the finest traditions of international hotel keeping. In the process, Four Seasons has redefined luxury for the modern traveller.…

    • 3503 Words
    • 15 Pages
    Good Essays
  • Satisfactory Essays

    INTRODUCTION TO HOTEL MANAGEMENT IHM110 Week 2: Introduction to Hospitality Industry and the Origin of the Hotel IHM 110 Outline • Meaning and definition of Hospitality industry • The origin of the hotel • What service the industry provides and who it provides for • Characteristics of the hospitality industry IHM 110…

    • 568 Words
    • 5 Pages
    Satisfactory Essays
  • Powerful Essays

    Corporate Hospitality

    • 1517 Words
    • 7 Pages

    Corporate hospitality is in fact a small part of the market or economic operation, with its visible effects. Companies and clients are both actively participating in it, making it an increasingly viable one for people to invest in. This is because of the fact that there are organizations that cater to those interested in…

    • 1517 Words
    • 7 Pages
    Powerful Essays