Rosewood Hotels & Resorts Essay Example
Rosewood Hotels & Resorts Essay Example

Rosewood Hotels & Resorts Essay Example

Available Only on StudyHippo
  • Pages: 2 (500 words)
  • Published: May 31, 2017
  • Type: Case Study
View Entire Sample
Text preview
Rosewood Hotels & Resorts manages a set of 12 luxury hotels and resorts across various countries. The company aims to enhance customer retention and encourage cross-property stays. Each Rosewood hotel boasts of a distinct brand that caters to the local culture and community, providing a sense of individuality and liberty. However, the absence of major affiliation calls for strategic approaches to achieve the set goals.

The main challenges Rosewood is encountering include:1. Determining if the desired economic returns from higher guest retention can offset the cost of a $1 million investment needed to implement the corporate branding strategy. 2. Historically, Rosewood has let its hotels differentiate themselves as distinct brands while remaining a subdued sub-brand. Due to market pressures, however, Rosewood is reconsidering its marketing approach and exploring the possibility of moving from individual branding to

...

corporate branding. 3.

It is important for Rosewood to promote the brand without compromising the uniqueness of each property. This is particularly challenging because most customers associate with the distinct brand identity, and are unaware that it falls under the Rosewood name. Failure to address this could result in existing customers distancing themselves from the hotels.

Currently, Rosewood Company's focus is on increasing their multi-property visits which are presently at a low of 5%. To achieve this goal, the company has received two recommendations: 1) Accommodating hotel managers who might oppose the idea of moving their hotels under a parent brand. Hotel managers could be given financial benefits to encourage them to promote cross-selling of properties instead of solely relying on marketing and advertising the Rosewood name. 2)

In order to boost sales of Rosewood properties, it is suggested that trave

View entire sample
Join StudyHippo to see entire essay

agents be provided with incentives to promote them to clients. Additionally, a strategy of rotating hotel staff between various Rosewood properties could be employed to encourage word of mouth marketing and increase cross-selling.

A comprehensive guest profile can be maintained through the use of CRM or other IT tools in a customer database, which can be shared across different Rosewood properties to expand the company’s customer preference program. It is important that the Rosewood brand does not overshadow individual hotel brand names until it has been fully developed and has gained enough customer exposure. The focus should be on setting up more hotels under the Rosewood brand without interfering with existing ones. Once the Rosewood brand has been established, it can then be integrated into the existing hotel brands such as Carlyle and Mansion of Creek, but not in place of them. Building brand equity should be the top priority for Rosewood.

The optimal course of action suggested is to prioritize establishing and reinforcing the Rosewood brand, while developing brand recognition, customer loyalty, quality assurance, and brand association. Based on the customer lifetime value (CLTV), implementing corporate branding would result in a higher Net Present Value for Rosewood. To accomplish this objective, Rosewood should consider methods such as event marketing and advertising campaigns, enforcing consistent service standards throughout its properties, transferring personnel across locations, and encouraging customer retention.

Get an explanation on any task
Get unstuck with the help of our AI assistant in seconds
New