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  • Rosewood - 12 properties

Roosewood Roosewood Presentation Transcript

  • “Branding to Increase Customer Profitability & Lifetime Value”
  • Introduction
    A private hotel management company with luxury iconic hotels headquartered in Dallas.
    It has 12 hotel world wide with capacity of 1513 rooms
    Rate ranging from $120 for Saudi Arabian properties to $9000 for Canadian lodge.
    Competed with hotels with Corporate branding and individually branded unique hotels.
  • Introduction (cont..)
    Rosewood’s “Sense of Place” Philosophy – Architectural details, interiors reflected the local character and culture.
    Two strategy process
    Repositioning Existing hotels with strong brand equity with the professional management.
    Create new generation hotels having strong brand equity in the property itself.
  • Introduction (cont..)
    1990 advertising was property specific and by early 2000 Rosewood advertising began to feature in all Rosewood properties, but secondary to hotel logo.
    Issue came in 2003 when it realized that Rosewood had low recognition and brand wide usage among guest was an untapped asset.
  • Four Factors Effecting Brands
  • Competition
    Competing with known chains and individually branded properties, to name few:
    Four Seasons with 58 properties
    Ritz-Carlton – 52 properties
    Fairmont – 46 properties
    Orient express
    Rocco Forte etc.
  • Agents perception
    • I book the hotel and not the Rosewood
    • Brand is not as important as the hotels & resorts
    • The brand is not as strong as it was in its past
    • Known only by individual hotels & resorts
    • Clients don’t come asking for Rosewood as a Brand
    • Clients know Rosewood only because I educate them on it
    • 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
    Better customer life time value
  • Advantages of corporate branding cont…
    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.
  • Suggestions
    Don’t dilute individual brand persona
    Subtly add Rosewood to it
    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