Case Study – Rosewood Hotels
This paper will discuss the pros and cons of the Rosewood Hotels moving from individual brands to a corporate brand. It will look at the history of Rosewood hotels, how they got to where they are, their customer base, and where they want to go. It will look at the concept of customer lifetime value as it relates to the Rosewood Hotel customer, then make a recommendation for or against tying its corporate Rosewood brand to all of its present and future hotels.
Rosewood Hotels was established by the Caroline Rose Hunt Trust Estate in 1979. Rosewood launched its first hotel the mansion on turtle Creek, Dallas Texas in 1980. Over the next 25 years rosewood purchased several high-end hotels, operating them under various names, each with their own prestigious reputation. The Rosewood corporate name historically has always been kept in the background, remaining unknown except to travel agents and other hotels and related travel organizations, (Dev & Strook, 2007). “Competition in the luxury hotel segment is intense and it was becoming difficult to position Rosewood's collection of properties in an increasingly crowded field of luxury operators,” (Dev & Strook, 2007). In recent years rosewood and its management team headed by Robert Boulogne has been strongly considering establishing Rosewood as the corporate brand, similar to the Four Seasons and Ritz-Carlton brands. Rosewood has also looked at the idea of the frequent stay program among all the hotels in the Rosewood chain. However, the idea of frequent stay program would likely not benefit Rosewood. It would actually cheapen the brand. Being a luxury hotel, Rosewood's customers are likely to be less interested in a discount program then and just knowing where other luxury hotels are. It may be just as easy to be the brochure in the room showing the locations of other Rosewood hotels to help improve brand awareness. Disadvantages
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References: Dev, C, Strok, L, 2007 “Rosewood Hotels and Resorts: Branding to Increase Customer Profitability and Lifetime Value" Harvard Business School Publishing. Taken From JWMI 2012
Kotler, P., & Keller, K. L, (2009), 5th Ed. A Frame Work For Marketing Management. Prentice Hall, Upper Saddle River NJ
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