Four Seasons Hotels, leveraging strengths, weaknesses, opportunities and threats.
1.0 Recommendations:
1. Continue the Emphasis on Delivering High and Personal Customer Service
2. Leverage the website for marketing purposes, focus on increasing revenues and not necessarily reducing costs.
3. Establish and manage a customer awareness database to be leveraged by all Four Seasons properties.
4. Solicit select feedback from customers regarding use of technology, e.g. concerning automated checkout (i.e. should it be an option).
5. Implement a 'Seasons Pass' - rewards program to enhance customer service and loyalty.
Rationales:
2.0 Continue the Emphasis on Delivering High and Personal Customer Service
The Four Seasons Company, as per current financial, seems very profitable and the earnings per share are increasing each year. From 1997 to 1998 EPS increased by 66% and from 1998 to 1999 it increased by 22%, actually from 1997 to 1999, the value has more than doubled. The main reason for the increase seems to be a total net earnings increase of 112% in two years. (See Exhibit # 1 for figures). This is a result of increase in revenues and also because costs increased less than revenues. This indicates that in addition to higher sales, efficiency improvements have been effective as yearly costs for operating items dropped 68% and the interest costs also have decreased by 105%, making it interest income.
Based on this information, the company is recommended to continue their emphasis on high personal service and quality for their hotels as the customer base are not price sensitive but concerned about service and luxury. It is important to have non-complaining, satisfied customers as this group is more satisfied than those where 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 strong company. A key to this development is to continue to focus on employee satisfaction and employment procedures as this is resulting in low turnover
1. Continue the Emphasis on Delivering High and Personal Customer Service
2. Leverage the website for marketing purposes, focus on increasing revenues and not necessarily reducing costs.
3. Establish and manage a customer awareness database to be leveraged by all Four Seasons properties.
4. Solicit select feedback from customers regarding use of technology, e.g. concerning automated checkout (i.e. should it be an option).
5. Implement a 'Seasons Pass' - rewards program to enhance customer service and loyalty.
Rationales:
2.0 Continue the Emphasis on Delivering High and Personal Customer Service
The Four Seasons Company, as per current financial, seems very profitable and the earnings per share are increasing each year. From 1997 to 1998 EPS increased by 66% and from 1998 to 1999 it increased by 22%, actually from 1997 to 1999, the value has more than doubled. The main reason for the increase seems to be a total net earnings increase of 112% in two years. (See Exhibit # 1 for figures). This is a result of increase in revenues and also because costs increased less than revenues. This indicates that in addition to higher sales, efficiency improvements have been effective as yearly costs for operating items dropped 68% and the interest costs also have decreased by 105%, making it interest income.
Based on this information, the company is recommended to continue their emphasis on high personal service and quality for their hotels as the customer base are not price sensitive but concerned about service and luxury. It is important to have non-complaining, satisfied customers as this group is more satisfied than those where 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 strong company. A key to this development is to continue to focus on employee satisfaction and employment procedures as this is resulting in low turnover