Rosewood Hotels Resorts Executive Summary
Rosewood Hotels & Resorts: Branding to Increase Customer Profitability and Lifetime Value
Background:
Rosewood Hotels & Resorts are a private hotel management company for 25 years, headquartered in Dallas - Texas which have a global reputation of having unique luxurious hotels and properties.
As of 2003, Rosewood had 12 hotels worldwide.
115,000 unique guests stayed at Rosewood hotels.
Major competitors are Ritz Carlton, Four Seasons, St. Regis, One & Only and Mandarin Oriental hotels under corporate brands, and “the collection” of individually branded unique hotels such as Auberge, Rock Resorts and Orient – Express.
What makes Rosewood Unique?
Each hotels and resort had its own name and brand.
Featuring unique architectural details, interiors and culinary concepts.
Commitment to unique, one-of-a-kind, luxury properties – A Sense of Place.
Design and service standards were meant to be flexible enough to adapt to local conditions.
Rosewood-related advertising and branding was soft and non-intrusive.
Believed in individual branding of each hotels.
Important factors to consider:
Only 5% of Rosewood guests had stayed in more than one properties.
No loyalty or rewards programs like other competitors.
What should be the strategy to increase the brand?
What should John Scott, the new President and CEO do?
Calculate and forecast CLTV (Customer Lifetime Value) for next six years.
Show this to the board so prove that branding strategy will improve the profit per guest.
All the calculations in the xls are based on Exhibit 8.
Recommendation:
Rosewood should go ahead with the Corporate Branding strategy as the CLTV is higher than their non-branded strategy.
Should have its brand name on everything from telephone greetings to bathrobes to clothes hanger to making sure the travel agents and websites include Rosewood’s name for everything going forward.
Start with the loyalty programs like competitors but market its uniqueness as their major strength.
Questions:
1) Why
Background:
Rosewood Hotels & Resorts are a private hotel management company for 25 years, headquartered in Dallas - Texas which have a global reputation of having unique luxurious hotels and properties.
As of 2003, Rosewood had 12 hotels worldwide.
115,000 unique guests stayed at Rosewood hotels.
Major competitors are Ritz Carlton, Four Seasons, St. Regis, One & Only and Mandarin Oriental hotels under corporate brands, and “the collection” of individually branded unique hotels such as Auberge, Rock Resorts and Orient – Express.
What makes Rosewood Unique?
Each hotels and resort had its own name and brand.
Featuring unique architectural details, interiors and culinary concepts.
Commitment to unique, one-of-a-kind, luxury properties – A Sense of Place.
Design and service standards were meant to be flexible enough to adapt to local conditions.
Rosewood-related advertising and branding was soft and non-intrusive.
Believed in individual branding of each hotels.
Important factors to consider:
Only 5% of Rosewood guests had stayed in more than one properties.
No loyalty or rewards programs like other competitors.
What should be the strategy to increase the brand?
What should John Scott, the new President and CEO do?
Calculate and forecast CLTV (Customer Lifetime Value) for next six years.
Show this to the board so prove that branding strategy will improve the profit per guest.
All the calculations in the xls are based on Exhibit 8.
Recommendation:
Rosewood should go ahead with the Corporate Branding strategy as the CLTV is higher than their non-branded strategy.
Should have its brand name on everything from telephone greetings to bathrobes to clothes hanger to making sure the travel agents and websites include Rosewood’s name for everything going forward.
Start with the loyalty programs like competitors but market its uniqueness as their major strength.
Questions:
1) Why