Skip to main content

A Cutback of a Luxury Hotel Chain

For decades, Four Seasons has been a symbol of luxury life style. People associate Four Seasons with white-glove, impeccable service, a grand palace with huge vases of fresh flowers, elegant furniture and decors, and superb amenities. Now, this luxury icon is striving to operate the hotels in a more effective way.

Four Seasons agrees to work with franchisees and make some changes to cut costs. Examples include: closing high-end restaurants during slow days in the locations with multiple eateries, replacing fresh flowers in lobbies with sculptures or ornate vases, outsourcing laundry service, reconstructing restaurant menus, cutting duplicate positions, combining managerial responsibilities, and cross-training staff for multiple jobs.

Such cuts can help the San Francisco property reduce expenses by 6.6 million, or 15% a year and the Miami hotel save $5.4 million, or 19% a year. Do you feel such changes will hurt Four Seasons’ brand image and customer service? Are there other alternatives that Four Seasons may consider?

References:

Hudson, K. (2010, June 2). Luxury chain to cut the flowers, send out wash at some hotels. The Wall Street Journal, p. B2 & B6.

Picture was downloaded from: http://www.fourseasons.com/dallas/

Comments

Popular posts from this blog

Social media engagement is immune to COVID-19 (by Steven Valenzuela)

In the unparalleled world of COVID-19, individuals are flooded with choices: whether it be what to eat or what church service to watch. While there are marketing strategies to get consumers to purchase products to immediately increase sales, it may be a more beneficial to engage with low spending consumers in the short term, so that businesses can keep them for the long term.   Social media game strong   During this time, it is crucial to keep social media posts constant and consistently more than ever before. A recent podcast by eMarketer reports that social media outlets such as Facebook have seen a significant rise in usage. The reality is that individuals have more time on their hands, which is why it is important for businesses to utilize their free time to create content for their social media channels. In a recent interview with the hospitality net, Leland Pillsbury stated  “Customers are going to come back...And if you allow your competitors to reengage with the guests before

The 7 Ps marketing mix of home-sharing services: Insights from over one million Airbnb reviews

The 7 Ps marketing mix framework is a widely used managerial tool that helps businesses identify the principal components of a service product. The 7 P elements include Product, Promotion, Price, Place, Participant, Physical Evidence, and Process.   The 7 Ps framework can assist marketers in making decisions regarding segmentation, positioning, and differentiation. Even for the same type of products with different brands, marketers can still drive higher sales through the improvement of a product’s marketing mix.     The empirical study about 7 Ps of home-sharing services   Building upon the 7 Ps marketing mix framework, I led a research team in a big-data, supervised machine learning analysis of over 1.14 million English reviews of 37,092 Airbnb listings in San Francisco (SFO) and New York City (NYC). We aimed to discover new meaningful business intelligence through the analysis of an immense quantity of online review information that is created by consumers in the cyber marketplace

We are in this together (by Konica Chhin)

It’s no secret that the hospitality industry has been hit hard with the current pandemic we are dealing with. From vacant hotel rooms to empty restaurants, sales have plummeted since the outbreak of Covid-19. Some businesses, especially small, are barely surviving. While we are all required to abide by the stay-at-home order that the government placed, the hospitality industry is considered essential. We are the ones that provide shelter and food for individuals. Let’s take a look and see what our industry has done to help market themselves and stay in business during this unpredictable time. Due to the stay-at-home order and people being cautious, people are not taking vacations or staying at hotels for that matter. Hotels are one sector of our industry that got hit the worse. Most hotel sales have dropped at least 50% and many of them decided to shut their doors. We all know how expensive it is to operate a hotel from paying employees to electricity. There are so many things that