Rosewood Hotels and Resorts have decided to take a step towards the future of their company, and are considering what it would look like to improve their customer loyalty, and possibly corporately branding themselves. Taking a closer look at the importance of a customer’s lifetime value, weighing all sides of becoming a corporate brand, and if that will create more loyal Rosewood customers can help them decide what steps to take next. Rosewood has immense amounts of potential to lead the race of luxury hotels, and making the correct business decisions will take them to the top.
Loyal customers are what keep companies in business. People naturally talk about negative situations before they talk about positive ones, so when someone has a bad …show more content…
They believe it would increase the loyalty of their customers when they travel to cities that have Rosewood hotels, and possibly increase their profits as well. Branding each and every Rosewood hotel does not seem to be the best option because each Rosewood hotel has its own unique feel to it, and branding the hotel may take some of the distinctive features away from it. John Scott, the newest Rosewood president and CEO stated that they, “try and tailor each property experience to what is special about a given location, architecture, history and culture,” and attempting to bring each hotel under one corporate name could hinder the unique success of each hotel (Dev & Stroock, 2007, p. 2). From the survey taken, most customers had no idea what the Rosewood brand even was, and travel agents said that, “the brand is not nearly as important as the properties” (Dev & Stroock, 2007, p. 12). Customers simply know the name of the property, but do not know the Rosewood brand; therefore, adding Rosewood to the beginning of each property would carry no real weight in influencing customers. Rosewood management must assess whether increased customer retention will outweigh the price of $1,000,000 to implement their corporate branding …show more content…
6). Because each of the Rosewood hotels are unique in their own way, placing them all under one brand would likely not increase customer loyalty as drastically as the owners hope. The research done in the Rosewood case study shoes that individually branded properties have seen substantially more growth over the past seven years compared to corporate braded properties (Dev & Stroock, 2007, p. 9). A large reason Four Seasons and Ritz-Carlton have such loyal customers is because people enjoy the esteem that comes with staying at one of their resorts, and often times that is the only reason people visit their hotels. This is not the case for Rosewood hotel because like mentioned earlier, there is not much weight carried with the Rosewood name. This proves that is it not essential for Rosewood to corporately brand their hotel, and would not increase customer loyalty too much.
The best option for Rosewood is to continue being the individually branded hotels they are, and avoid corporate branding. Measuring the success of their company would be done by comparing the current year’s profit to the previous year’s and seeing if it has grown. If they suddenly stop being
Loyal customers are what keep companies in business. People naturally talk about negative situations before they talk about positive ones, so when someone has a bad …show more content…
They believe it would increase the loyalty of their customers when they travel to cities that have Rosewood hotels, and possibly increase their profits as well. Branding each and every Rosewood hotel does not seem to be the best option because each Rosewood hotel has its own unique feel to it, and branding the hotel may take some of the distinctive features away from it. John Scott, the newest Rosewood president and CEO stated that they, “try and tailor each property experience to what is special about a given location, architecture, history and culture,” and attempting to bring each hotel under one corporate name could hinder the unique success of each hotel (Dev & Stroock, 2007, p. 2). From the survey taken, most customers had no idea what the Rosewood brand even was, and travel agents said that, “the brand is not nearly as important as the properties” (Dev & Stroock, 2007, p. 12). Customers simply know the name of the property, but do not know the Rosewood brand; therefore, adding Rosewood to the beginning of each property would carry no real weight in influencing customers. Rosewood management must assess whether increased customer retention will outweigh the price of $1,000,000 to implement their corporate branding …show more content…
6). Because each of the Rosewood hotels are unique in their own way, placing them all under one brand would likely not increase customer loyalty as drastically as the owners hope. The research done in the Rosewood case study shoes that individually branded properties have seen substantially more growth over the past seven years compared to corporate braded properties (Dev & Stroock, 2007, p. 9). A large reason Four Seasons and Ritz-Carlton have such loyal customers is because people enjoy the esteem that comes with staying at one of their resorts, and often times that is the only reason people visit their hotels. This is not the case for Rosewood hotel because like mentioned earlier, there is not much weight carried with the Rosewood name. This proves that is it not essential for Rosewood to corporately brand their hotel, and would not increase customer loyalty too much.
The best option for Rosewood is to continue being the individually branded hotels they are, and avoid corporate branding. Measuring the success of their company would be done by comparing the current year’s profit to the previous year’s and seeing if it has grown. If they suddenly stop being