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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/

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