HOTEL SERVICES \\ 721110 Five Force

THREAT
(NEW ENTRANTS)
HIGH threat
HIGH barriers
Market Segmentation STEER
SOCIAL FACTORS

GEORGE & MARGARET This year, 35% of Americans

- Guests want a luxurious environment
A N A LYS I S
$ Millions to enter industry

People who stay at - Hotel employees msut be trained to meet expectations of guests
- Location
George: - Staff
Age: 42 - Building say they will spend more on travel - There is an increasing rate of international couples visiting
luxury hotels
F O R LU X U RY H OT E L
Currently lives in: Chicago - Its good for someones image to stay at our hotel
Work:
&
HOLIDAY VACATION INDUSTRY
than they did last year. TECHNOLOGICAL FACTORS
Income: $275,000/year - System to design and plan a trip unique to each guest
Hobbies: Fishing, boats, classic cars
Clean room and comfortable (COMPETITIVE
- In-room phone to keep schedule
bed, likes to have good restaurants nearby, RIVALRY) ECONOMIC FACTORS
hands-on staff. (SUPPLIERS)
- If the economy is doing well, more people stay at the hotel
Were focusing
HIGH competition (BUYERS)
Must have a good brand identity
- Economy affects prices of running the hotel which determines
Hotel service brought him food at 2am. Supplier power = Low cost of room rentals for guests
on...
Buyer power = Low
Morning/night person: wakes up at about 10 on Competition:
Ex: guests Ex: groceries ENVIRONMENTAL FACTORS
weekends and goes to sleep at about 2 or 3 if he Four Seasons
goes out with Margaret. Ritz - Climate affects rate of tourism (busy/slow season)
Daily habits: needs to be caught up with recent POWER POWER - Insurance costs for given location
news with breakfast in the morning (newspaper or
tv news). He drinks espresso every morning and
GROWTH RATE 2009 2010 2011 - Changing climate = changing services to accomodate guests needs
REGULARITY FACTORS
Margaret:
Age: 37
Work: hospital volunteer
Reasons for travel:
season of work
MARKET TRENDS North America -21.3% 8.7% 10.5% - Hotel must run with regulation laws
- Requirements and guidelines must be followed and met
Income: $0
(SUBSTITUTES)
Conscientious spending vs conspicuous consumption - Must have efficient on-site management
Hobbies:
restaurants Money can buy time and experiences Ammount spent on travel each year?
Med/Low
Performance as status symbol $879,546,256,337.36 US Dollars
Favorite hotel experiences: She loved her stay at the Eden Rock in St. S Internal Strengths Which Means So Actions Needed Are
Barths when the chef of the hotel restaurant came out to meet her
and George.
Morning/night person: she wakes up at 9am every day and likes to
DID YOU KNOW... THREAT
Consumer as Chief Marketing Officer
On average, americans spend about
$1,600 on trips each year
Client retention
Customization
Satisfied customers
Adaptable services
Maintain relationship by spending money
Maintenance of operations

In 2012, nearly one-quarter

go to sleep at 11 pm, unless she goes out. Exclusive key partners Desireable business ties with hotel Maintain positive internal business
Daily habits: She goes for a walk every morning when she wakes up Ability to accomodate Efficient staff hired by hotel Continue promising training program
Key Partners Key Activities Value Proposition Customer Relationships Customer Segments (almost) all of guests needs

(23%) of domestic leisure

bath once a week, gets her nails done once a week, gets a massage/- Hotel management Comfort Higly personal assistance
W
Interior designers
facial once a month. Internal Weaknesses
Reasons for travel: to indulge in luxury services while experiencing
Construction companies
Government agencies
Legal matters
Tourist activities manage-
Luxury
Unique atmosphere
Advertisement Families
Couples High us Which Means So Actions Needed Are

Four Seasons High promices made To attract guests, we promice to Create exceptional reputation in hotel

travelers relied on friends

- ment Sightseeing planning Groups of people
Food companies to guests offer them a great deal market
Gen. supply companies services Business travellers
Guided access to main Too dependent on connections Without key partners, we struggle Rethink how we maintain connections
Cosmetic brands
tourist sights to tourist locations for guests to efficiently plan a trip for guests with local businesses

and relatives to plan

Technology companies
Ticket reservation for major
O External Opportunities
Tourist attraction sights

OFFERINGS
Car companies events Which Means So Actions Needed Are
THE EXPECTATIONS Key Resources Channels
Gaining trust of travelers More frequent guests Maintain same exceptional service

Customization: their trips, while three in ten Investments

Partnerships
Website
Applications
Email
Create best cultural experience Have impressive trips planned for
tourists with unique local attractions
for every guest
Attention to detail when planning
visit locations
34 percent expect that products and services
(31%) utilized their own
Information Technology
Real estate Advantage of small local More business opportunities for Working closely with small businesses
should be customized to their needs and desires businesses guests visit locations to help promote with hotel guests

True distinctiveness: past experiences. Low

T External Threats Which Means So Actions Needed Are
32 percent expect that the company should be an Cost Structure Revenue Streams
Fragile economy Unpredictable flow of guests per Have easily changed costs to make up
time period for less income

Accomodation
Comfort
Accessibility
Trip planning
Price

Location

Professionalism
Amenities
Value

Design

Resources
innovator, successfully rewriting the rules in their Hotel maintenance Partner contract fees Usage fees from accommodation services Harsh online reviews Guests had a bad experience Accomodate any guest need to create
category Food and beverage services a pleasurable stay
Resources Booking and sightseeing services Property costs rise Taxes have gone up Must cut costs elsewhere
Constant exceeding of expecations: Marketing Partner contract fees
Unexpected maintenance fees Inefficient running costs More maintenance staff for smooth
hotel upkeep
32 percent expect surprise and delight; many extend VALUE FACTORS
Lawsuits Accidents happen Calculate this into cost structure and
that to once-in-a-lifetime experiences
.
Ceci Michelena|| SERV 421 || Assignment 4 || Fall 2013 make up for cost elsewhere