Ritz carlton case

Topics: Hotel, Hotel chains / Pages: 10 (1163 words) / Published: May 6th, 2015
Ritz Carlton Case
Group C-2
Arthur Ferrandez
Georg Zollinger
Joan Alba
Joy D’souza
Lisa Wesner
Timothee Hochet

Q1: What is Ritz Carlton really selling?
• First of all, it is crucial to have clearly in mind the difference between the two companies involved in the case, Millennium Partners and the Ritz-Carlton company; • Millennium Partners: a real estate development group focusing on luxury flats in major US cities, which diversified its portfolio by investing in the hotel business.
• Ritz-Carlton: company actually managing hotels for several real estate groups, from the opening season to the potential closing season.
• Lets now focus on the Ritz-Carlton business model. The main chunk of revenues for the company is the management fee, of approximately 3%, which is charged for it services.

Q1: What is Ritz Carlton really selling?
• Additionally, the company strengthens its revenue stream through land rent, franchise fees, profit sharing, management incentives and resort timesharing.
• However, the Ritz-Carlton has a very specific philosophy concerning its business.
Indeed, it does not see itself as a mainstream hotel managing company, as it does not even reckon to be in the hotel business. According to the president Schulze,
Ritz-Carlton is a service provider and not any kind of service but a service of excellence, with an extremely strong commitment and fidelity towards its customers. • Indeed, its whole business model is based on the quality of its services, as it is the main reason why it can charge extremely high prices, attracting celebrities and high-end business men.

Corporate Strategic Map
Financial
Perspective

Profits
RevPAR
Add/Retain Value
Customer

Occupancy Rate

Customer
Perspective

Customer Satisfaction

Existing

Internal
Perspective

Migrate

Additional
Hotel

New
Brand Reputation

Service Quality
Best Staff
In Hotel Services

Capacity,
Learning &
Growth
Perspective

Hiring and
Training

Market
Research

Increase number of awards

Better

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