BYRAM RADESH DAVULURINIT,SURAT

Some Resorts and Hotels

Bachelorette Bermuda Resort

Jumba Bay Resort

The Carlyle,A Rosewood Hotel,New York,USA

Mansion on Turtle Creek,Dallas,USA

The IllustriousRosewood Hotel

ROSEWOOD HOTELS & RESORTS (ROSEWOOD)

is a private hotel management company .• operated a “collection” of individually branded unique

hotels & resorts

• Has global reputation with iconic luxury hotels

HISTORY

1984• Hotel Hana

Maui, Hawaii

FOUR important factors effecting brands:

• External competition• Agent’s perception• Employee’s perception• Guest’s perception

External competition

➢ Competing with known chains and individually branded properties to name few :

➢ four season with 58 properties .

➢ ritz-Carlton -52 properties .

➢ Fairmont -48 properties .

➢Orient express .

➢Rocco forte etc.

Agents perception

o I book the hotel and not the Rosewood

o Brand is not as important as the hotels & resorts

o The brand is not as strong as it was in its past

o Known only by individual hotels & resorts

o Clients don’t come asking for Rosewood as a Brand

o Clients know Rosewood only because I educate them on it

o We have to drive understanding of Rosewood. Once they understand what Rosewood is, it does

mean something

Employees’ perception

• It’s a brand of dilemma – don’t see great opportunity, few business opportunity .

• Secret club – known by some guests who go and the industry .

• Very low awareness. Those who know are past guests .

Guest perception

• Brand Rosewood means nothing.

• Guests have used various properties but couldn’t realize that all were a part of same

group

• Even after staying at the property, guests don’t tend to know the name Rosewood

• Rosewood as a brand doesn’t encourages me to try different properties

• I dint know until my travel agent mentioned it

Current Issues After switching to automated data gathering through CRS, consolidated guest data

revealed that -

5% multi property return visit while corporate branded hotels enjoyed 10% -15% cross

property usage rate.

Rosewood was at the low end of the scale and there were an opportunity for increasing

cross-property usage.

Probable Solutions

• Through frequent-stay program• Corporate branding approach

Issue with frequent-stay program• This type of program had been successful only for large multi segment operators with

broad geographic distribution.

• Loyalty through these type of program was fostered by offerings such as—flexible check

in, check out time, personalized services, freedom to request a specific room, capacity of

employees to solve most unusual problem etc…

Advantages of corporate branding

✓ Collective experience

✓ Consistent service – in all aspects

✓ Encourage guests to use more than one property

✓ Better brand recognition

✓ High customer loyalty

✓ As per the survey, Individual brand or collection hotels had 5% to 10% cross selling rates while corporate

branded hotels enjoyed 10% to 15% cross property usage rates

Issues in Corporate Brand Promotion

• Internal resistance : Few Hotel Managers were inclined to promote their own Hotel Rather than promoting the Rosewood

• Some corporate guests didn’t want to be a part of bigger Organization due to their emotional attachment to a particular hotel.

Advantages of corporate branding

Better customer life time value

Building Brand Equity

Aakers Brand Equity Model

Calculating Customer Lifetime ValueCustomer lifetime value (CLV) describes the net present value of the stream of future profits expected over the customer’s lifetime purchases

Branding Strategy

Revenue and Cost AnalysisWithout Rosewood Branding (2003) With Rosewood Corporate

Branding

Total number of unique guests (a) 115,000.00 115,000.00

Average daily spend (b) $750.00 $750.00

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 1.2

Average marketing expense per guest (system-wide) d $130.00 $138.70

Average new guest acquisition expense (system-wide) $150.00 $150.00

Total number of repeat guests (e) 19,169 24,919

Of which: Total number of multi-property stay guests 5,750 11,500

Number of Multiproperty Guest 5% 10%

Average Guest Retention Rate (f) 16.67% 21.67%

Average Gross Profit per Guest $576.00 $624.00

Total NPV of CLTV without Corporate BrandYears 0 1 2 3 4 5 6

Gross profit per guest 609.50 646.07 684.83 725.92 769.48 815.65

Acquisition expense per new guest 115.00

Marketing expense per guest 132.60 135.25 137.96 140.72 143.53 146.40

Net Profit per Guest (115.00) 476.90 510.82 546.88 585.21 625.95 669.25

Retention factor 1.00 0.22 0.05 0.01 0.00 0.00

Discount factor 0.93 0.86 0.79 0.74 0.68 0.63

Net Present Value (NPV) (115.00) 441.58 94.90 20.38 4.38 0.94 0.20

448.62

Total NPV of CLTV with Corporate Brand

Years 0 1 2 3 4 5 6

Gross profit per guest 661.44 701.13 743.19 787.79 835.05 885.16

Acquisition expense per new guest 115

Marketing expense per guest 142.86 147.14 151.56 156.10 160.79 165.61

Net Profit per Guest (115.00) 518.58 553.98 591.64 631.68 674.27 719.55

Retention factor 1.00 0.22 0.05 0.01 0.00 0.00

Discount factor 0.93 0.86 0.79 0.74 0.68 0.63

Net Present Value (NPV) (115.00) 480.17 102.92 22.05 4.72 1.01 0.22

Total NPV 496.09

• Adopt Corporate Branding

• Strengthen Rosewood’s Brand Equity

Suggestions• Get internal teams confidence

• Show them a bigger picture

• Incentivize trade and ask them to push a brand

• PR can do wonders

• Build a Rosewood membership plan

• Tie up with travel agencies/tour operators etc

Thank You