I have 3 parts but i cant finish Part C. i have to much work to do thats why. I can attach two files to provide instructions.
Important key performance indicators (KPI)•
Financial Indicators
Sales by region•
Expenses vs. budget•
Customer Metrics•
Satisfaction, retention•
Numbers of customers •
Image & reputations •
Quality perceptions•
Employee metrics•
Employee turnover rate•
Employee satisfaction
Select 3 key indicators as a measure of your marketing outcome•
Discuss them individually •
How to make the choice convincing?•
It is well-defined and measurable •Better to give a “measurable” example (satisfaction, measured by “buzz” on social media; brand reputation, measured by positive reviews)•
Does it reflect your marketing goals?•Market penetration: revenue (# of loyal customers)vs. brand reputation?•
Is it an important and relevant indicator given the situation of your company?•Market growth: employee satisfaction vs. revenue generation?
Alexander Rodriguez & Elena Torres
Marketing in Tourism & Hospitality 3396
Professor: LuLu
Marketing Analysis 2020
The Ritz Carlton Philadelphia
Table of Contents
PART A: Situational Marketing Analysis of The Ritz Carlton Philadelphia
1.1 Ritz Carlton Philadelphia……………………………………………………………….
2.1 Gold Standard…………………………………………………………………………..
2.2 Mission Statement……………………………………………………………………….
2.3 Vision……………………………………………………………………………………
2.4 Strategic Goals………………………………………………………………………….
3.1 Overall Market Segmentations ……………………………………………………
3.2 Psychographics………………………………………………………………………….
4.1 Identify Competitors…………………………………………………………………….
4.2 Side by Side Comparison……………………………………………………………….
4.3 Strengths & Weaknesses………………………………………………………………..
5.1 Macro Analysis…………………………………………………………………………
5.2 Micro Analysis………………………………………………………………………….
6.1 SWOT Table……………………………………………………………………………
6.2 Summary………………………………………………………………………………..
PART B: Opportunity/Problem of the Ritz Carlton Philadelphia
PART C: Proposed Solution to Identified Problem
5 Measurements……………………………………………………………….
Background Introductory
The Ritz Carlton is one of the most famous luxury hotels in the world. The company was founded in the year 1983, and it is currently owned by Marriott International. Ritz Carlton is a Hotel company that operates multinational hotel businesses. The businesses are luxury hotel services, providing companies with an American origin. The hotel chain comprises over one hundred hotels with around 28,000 rooms of services to clients. The chain of hotels is distributed to over thirty countries in the world. The company has a motivation for providing five-star hotel services to its clients. The company exists in the form of a conglomerate, which is an umbrella of around twenty properties in the United States. It also has service resorts and luxurious hotels in countries such as Sydney, Asia, Europe, and even Australia. The company is known to operate some of the most rewarded programs in the industry. A brand that has it all. Quality, passion, and commitment to all its guests. It was introduced by Albert Keller, the man behind the dream of what is known today as the Ritz Carlton. History tells us stories of the first couple of properties established during the early 19th century. It was a destination like Boston, and Philadelphia, As the properties began to flourish financially, it began to offer more amenities across its brand. In the eyes of the public, it began to be distinguished by its abidance created through its fine furniture, Stewart, and architectural designs. Due to the great successes, the brand spread 23 more locations around the country. Later on, it was acquired by the Marriott international. This was the backbone to what’s known as today a global, wide brand. It is located in thirty different countries with ninety-three properties. Taking a look at the Ritz Carlton today it has over 40,000 ladies and gentlemen working for the company. Besides, the Ritz Carlton has received great attention when it was awarded “the AAA Four and five Dimond Award in 2015 followed by the J.D power North American Hotel Guest Satisfaction in 2017” (The Ritz Carlton, 2020).
Introduction to the Ritz Carlton of Philadelphia
The Ritz Carlton Philadelphia is inspired by its historic past The Grant Trust Company. T. In 1908 the historic building was built for The Ritz Carlton Philadelphia, a bank with the building features glorious architecture and pillars and 9,000 tons of Georgia marble that embody and hellenic era. The location of the hotel also serves as design inspiration, the hotel is located in downtown Philadelphia on south broad street which is also known as the avenue of the arts. The building changed hands in 2000 and was converted into a hotel now known as the RItz Carlton Philadelphia. The hotel is modernized to uphold the standards of the brand. The Ritz Carlton Philadelphia now offers many luxurious accommodations which include suits like the governor’s suite, the presidential suite, and general suits with one bedroom. The hotel offers luxurious views and amenities.
Alongside the views and luxurious rooms the hotel also offers fine dining that mirrors a latin cuisine and with a mezcal menu. The onsite etery named the Aqimero restaurant is perfect for a date night and romantic evening. It does not just top there the hotel also offers relaxation with it’s Spa and salon which is known as the Richel D’Ambra. This spa offers services such as massages, facials, hair, and make up.
The Ritz Carlton Philadelphia also is known for its renown event space. The property has over 26,000 sq. ft. of event space. Perfect for weddings, parties, meetings and exclusive events. The grand ball room can hold up to 600 guests which is perfect for conferences. The Ritz Carlton Philadelphia upholds historical integrity by incorporating the original establishment’s architecture by using the original banks vault and a meeting space guest who chose to use the luxurious historical space. The meeting spaces also come with AV services that include large projector, screens, speakers, and surround systems. The catering services are also provided at request by the event host and these services include customizable menus and signature beverages that fit the needs of any event.
The Ritz Carlton Philadelphia has an endless amount of opportunities for its guests. Being in the heart of Philadelphia it allows its guest to be able to explore while not having to go far. The Ritz Carlton does all this because it created a foundation of excellence which is known as the Gold Standards this standard encompasses the values and Philosophy by which the hotel brand operates on (Ritz-Carlton, 2020).
Our Philosophy
Since the first day, the Ritz Carlton opened the doors one thing that has shown throughout the brand is its “Gold Standards’ ‘ this is what defines us from all the rest of the competition. The gold standards are “what encompasses the values and philosophy by which we operate”. Overall it has six elements, which are “The Credo” it’s the place where genuine care is the mission. We ensure guests will have personalized service, “Motto”, At the Ritz Carlton we address ourselves as ladies and gentlemen. “Three steps of Service” which sensationally outlines our greeting styles and language. The “Service values” are a set of values that inspire the ladies and gentlemen to be part of the company and to feel that what they do creates empowerment and most important genuine care. The “6th Diamond ” is Mystique, Emotional engagement and functional. These are carefully selected to remind the ladies and gentlemen of our purpose and how we should carry ourselves. Overall The Ritz Carlton has engraved all these concepts in us to maximize your time here. As a leader in our industry, we believe that fostering diversity, quality, individual aspirations is what makes us unique.
Mission
“The Ritz-Carlton is a place where the genuine care and comfort of our guests is our highest
mission. We pledge to provide the finest personal service and facilities for our guests who will
always enjoy a warm, relaxed, yet refined ambience.” (Luxury Hotels & Resorts). The Ritz Carlton mission is a mission that all properties embody. The statement is displayed on the company website. This statement reiterates the idea of exceptional service.
The Ritz Carlton mission explains they promise to go to the highest level of services to satisfy their guest while making sure they are doing so in the most “genuine ” way. This mission explains they will do all they can to provide the service they promise. Because of this mission it allows all employees to uphold this preige mission to keep the level of service at such a high standard.
Vision
“The Ritz Carlton inspires life’s most meaningful journeys”. (Luxury Hotels & Resorts) this vision of the Ritz Carlton is short but does not fall behind on the high standard. Their vision inspires life’s most meaningful journeys through their Gold standard. The Credo is where the hotel companies vision really comes into play. Being that the Gold standard is the foundation of excellent service the Credo is defined in this company as “The Ritz-Carlton is a place where the genuine care and comfort of our guests is our highest mission. We pledge to provide the finest personal service and facilities for our guests who will always enjoy a warm, relaxed, yet refined ambience. The Ritz-Carlton experience enlivens the senses, instills well-being, and fulfills even the unexpressed wishes and needs of our guests.”(The Gold Standard 2020). As a A vision statement is a declaration of an organization’s objectives, intended to guide its internal decision-making. The Ritz Carlton does this by implementing the credo in their everyday operation. While doing this the company also uses the three steps of service as a guide to the day to day within the company. The company is known for their motto that helps them with these acts of service. The company’s motto “we are ladies and Gentlemen serving ladies and gentlemen” in itself is a high class statement is another example of high standard and promises.
The Employee Promise also falls in line with their Vision Statement. Stating, “At The
Ritz-Carlton, our Ladies and Gentlemen are the most important resource in our service
commitment to our guests. By applying the principles of trust, honesty, respect, integrity and
commitment, we nurture and maximize talent to the benefit of each individual and the company.
The Ritz-Carlton fosters a work environment where diversity is valued, quality of life is
enhanced, individual aspirations are fulfilled, and The Ritz-Carlton Mystique is strengthened” (The Gold Standard). By valuing diversity the Ritz Carlton is able to inspire their workers to be themselves while upholding the standards and create a welcoming environment for them this trickles down into the service that is provided for guests and the welcoming ambiance.
Target Market
Ritz-Carlton offers luxurious services to individuals and groups of individuals. Therefore, the target market for the hotel is limited due to various factors such as commitment and the disposable income available for an individual or a group of individuals.
Families: The Ritz Carlton not only caters to upper and middle class travelers alone, but also their families. The Ritz Carlton in Philadelphia is central to kid friendly attractions. It has neighborhoods that are walkable and museums close by. The Ritz Carlton caters to young guests just as much as their parents. The hotel offers “Ritz Kids”. This attraction of the hotel is an educational, fun program designed especially for them. Through hands-on activities, guests learn about the history and culture of the city and connect with fellow adventurers.(Ritz Carlton, 2020). The Ritz Carlton offers babysitting services, while also offering a family fun itinerary for families who chose to stay to explore the city. For instance on the website one can find that the hotel has a 5 day plan full of activities and events for families to enjoy together. These additional services really embrace the luxury experience so one does not have to plan ahead. The guest can simply relax and enjoy.
Moreover, they prefer safeguarding their privacy, which means organizations and companies such as Ritz Carlton should ensure that consumer privacy is maintained and respected. Data involving their status and intended purpose in luxury hotels should remain protected. Security is a major concern to all humans, but for this group, they put it as a major concern, which means the hotels should take much responsibility.
Business travelers
Another part of the Ritz Carltons target market is the business travelers. These travelers make up for about 31% of the market. Travelers who again are not cost conscious are perfect for this company because business travelers need and want to align with the services provided at the hotel while their companies are paying for the accommodations. The Ritz Carlton’s location is a huge resource for business travelers needing to navigate throughout the city, as though the hotel is located right on south broad street it is close to the SEPTA subway, taxis, ubers and other transportation services. The Ritz Carlton is also located in the center city where most business takes place.
Individuals on their retirement are also a target. These individuals are expected to have a lot of disposable income and a lot of free time. They are therefore expected to spend most of their time at the luxurious places. Some will even come along with their families and therefore are a great
opportunity for the company.
Individuals booking special events are also a target market for the hotel. These people include people booking for dinner, business meetings and seminars, vocational training and weddings. The hotel, therefore, provides an interface between the people having special events and the appropriate services they might require. Such may include seminar and meeting halls, wedding grounds, food, rental houses, and luxurious activities such as swimming pools.
3.2 Psychographics
Internal Analysis
| Strengths ❖ Location ❖ Accessabilities ❖ Service ❖ Brand recognition ❖ Amenities ❖ Meeting spaces ❖ Competitive Rewards program ❖ Vendo of raw & finished goods are openly available ❖ Strong distribution network ❖ Quality of employees
| Weaknesses ❖ Number of reviews & rating ❖ Noise from the city ❖ Not Tech oraintied ❖ Must uphold 5 star standards/ not always met due to rapid tech development. |
| Opportunities ❖ Technology ❖ Increasing demands for luxurious services worth investing ❖ Market penetration
| Threats ❖ Safety ❖ Competition with new luxury hotels & existing luxury properties. ❖ CoronaVirus ❖ Travel bands ❖ Compromising the existing of sustainability/growth of hotel ❖ Low performance can demonstrate dominance of brand with 5 star properties
|
One of the strengths of the Ritz Carlton Hotel is its strategic positioning. The hotels that fall in the hotel chain of Ritz Carlton are usually found in some of the best locations for such businesses (Gürel & Tat, 2017). Before deciding on where to establish their business branches, the company must conduct extensive research about the area or location, the cost of operation of running the business, and also the nature of the market. Analysis of the cost of running the business includes determining the price that will be incurred by the company to transport raw materials, employees, and also the ease of access of the customers to the facility. In the same case, the analysis of the nature of the market enables the company to determine a location where there are potential customers. There are examples of areas that are every populated but still lack the potential customers that are necessary for the business. However, Ritz Carlton has been able to beat this challenge because their branches are located at places where there is efficient access to raw material, labor and also adequate customer base that provide a market to the products and services offered by the company.
The continued success of the hotel is contributed by various strengths. This enables the hotel’s management to efficiently predict the likely economic outcomes and therefore make informed strategies. Strategic positioning is one of the hotel’s strengths. This ensures that there are adequate customers, easy access to raw materials, labor, and that the costs of operating are not high. Additional strength to the hotel depends on the feedback and reviews of the customers in regards to the quality of services offered by the employees. Studies prove that the recruitment of the employee follows a philosophy that says that ladies and gentlemen should serve other ladies and gentlemen. Moreover, the employees are highly trained in all levels of hospitality.
Synergy among the stakeholders and the stakeholders and the employees also contributes to increasing the performance of the hotel. There is a policy that requires the management and its employees to spend fifteen minutes daily to discuss the performance of the hotel. An additional strength that makes the company outstanding is the practice of instilling confidence and trust in its employees. Such a move makes the employees feel like the part of the company, and therefore they offer quality service. For instance, employees have been trained to work under no supervision.
There are, however, several opportunities for further growth. For instance, with extensive improvement in technology, the demand for luxury also increases. Therefore the hotel could invest in luxurious services to increase the profits.
The hotel, just like other institutions, also faces some situations that threaten the existence of the company, the highly considered threat to the Ritz-Carlton hotel is the competition from other well-established hotels such as, The Logon, The Kimpton and The Rittenhouse in Philadelphia offers similar kinds of services.
The other strength that is associated with the success of Ritz Carlton Company is based on the quality of employees. The company makes use of one philosophy when recruiting its employees. The philosophy is that ladies and gentlemen should serve other ladies and gentlemen (Šošková, 2016). The interpretation and understanding of the philosophy create the foundation on which employee recruitment and training takes place. The philosophy ensures that the employee task force is composed of all aspects of the market. There are beautiful and professional young and old combinations of employees in the company. In that case, the customers will be served according to the kind of service they demand. The result of this is that the quality and efficiency of services provided in the hotels are unmatched by other competing businesses.
The other strength is based on the practice of high synergy amongst stakeholders of the company. The company has made a culture of requiring all employees and other stakeholders to spend about fifteen minutes of their daily work time to recap about the achievements that they have done for the company (Šošková, 2016). Adoption of such a culture is vital because it enables us to bring onboard all employees and stakeholders of the company. More so, it is a motivation for employees to make sure that they have achieved something that is of significant contribution to the company. In that way, the productivity of employees in the Ritz Carlton Hotels remains unmatched to other competing companies. The culture is of significant importance because it helps the company to instill job satisfaction and appreciation.
Consequently, Ritz Carlton Hotel Company has a strong distribution network that enables it to meet its customers’ needs on time. The low-cost company structure enables it to offer services at affordable cost, meaning that its production cost is still low. The company offers high standard products and services that enable it to be at the top among the luxury hotels in Philadelphia that follow a credible line of service. Ritz Carlton falls under the gold standard category due to its unique way of offering services to consumers. The employees are highly skilled and trained, enabling their customers to enjoy quality services. The Hotel has extensively invested in training its employees, which has led to employing a large number of skilled employees.
The other issue that makes the Ritz Carlton Hotels stand out amongst its competitors is its practice of instilling confidence and trust in its employees. The company has made it a habit to risk trusting its employees even when there is no direct supervision. Such behavior helps to impart the feeling of honesty, goodwill, and appreciation on the part of employees. The management of Hotels has authorized every employee of the company to be issued with about two thousand US dollars (Šošková, 2016). The money is entrusted to the employees so that they can use it to facilitate the delivery of the required and quality services to the clients. Such a move by the company does not only work to improve the quality of services provided by the employees but also lets them develop the feeling that they are part of the company. In that way, the employees perceive themselves as part of the larger fraternity other than taking them-selves to be just employees. In the long run, the employees develop job satisfaction and motivation that end up improving their productivity in their responsibilities and roles.
Some of the amenities it offers are its ballroom (St. Luis), which is conveniently located in the lobby. The huge ballroom can hold up to 125 to 700 guests with a private entrance for guests. Another great amenity that it offers is a corporate meeting space. It covers a diverse number of meeting spaces such as “The Plaza, The Diplomat, The Directors, The Pavilion, The Promenade, The Colonnade, The Ambassador, etc.”(The Ritz Carlton, 2020). On the other hand at the Ritz Carlton Philadelphia property also offers F&B rooms that can cater to any occasion such as “The Wine Room, The Monarch, Dalon II, Ballroom pre-function, etc.” (The Ritz Carlton, 2020). When it comes to selection, The Ritz Carlton has it all. Another great benefit is the Philadelphia Ritz Carlton property holds its own undistinguishable restaurant, which offers breakfast options, lunch options such as our favorite dish “Mediterranean Quinoa” and dinner options as well with sushi Bar. The Ritz Carlton also offers some of the best live entertainment on Fridays and Saturday nights after 9 pm. In addition to its state of the art fitness center and spa all these great /amenities under one roof and a brand that shows how much we value customer wellness.
The chain of companies maintains a robust feedback system that addresses the concerns of guest feedback and appraisal. The hotel uses the system to collect and analyze guest feedback. Analysis of feedback from guests and other customers enables the company to correct their practice so as to provide a better quality of services on a later date (Šošková, 2016). The systems also help the hotel to simulate guest attendance patterns. Such simulations are necessary because they help the hotels to be aware of when they expect booms and drops in the number of guests visiting the hotels. The data collected by the system is also used by the hotel to provide customized services to loyal customers. There are very few hotel organizations that provide or use such methods. In that case, Ritz Carlton stands an excellent chance to maintain and attract new customers as compared to its competing business entities.
Despite the numerous strengths of the Ritz Carlton Hotels, the company also has a few weaknesses. In this case, the failings identified below refer to areas of the system of operation of the hotel that requires improvement.
The Ritz Carlton Hotel is a five-star Hotel. The implication here is that the hotel should focus on the delivery of actual five-star services (Perera, 2017). Since five-star services fall under luxurious services, then the hotel must consider providing an experience to its clients. Provision of experience refers to the delivery of services that the client will always remember and make them demand secondary or subsequent services from the hotel. The Ritz Carlton hotel has failed to meet some of the services offered by five star hotels making it a major weakness in the competitive market. The challenge of such services is that they are expensive to provide. However, this is a feature that needs to be addressed, considering the intensity of competition in the industry.
The other challenge or problem that the hotel encounters are that of maintaining its brand image. The current market has introduced new aspects of luxury. Some of the services considered to be luxurious were not present in the past decade or century when the hotel was established (Perera, 2017). Some small bits such as Wi-Fi could be regarded as luxury such that some part of the millennial generation will not get out of their homes because they have all the luxury they require. In that case, it becomes a problem for the hotel to maintain its brand image because the features that it was known for in the past decade have ceased to be of luxury.
Consequently, Ritz Carlton Philadelphia faces a weakness in its rating. The company rates at 4.0 based on the Trip advisor and another related website (DeMers, 2017). Comparing ten hotels in Philadelphia, more eight hotels have averaged 4.5 stars. Only Bellevue which has a rating of 4.0 stars. The rating remains a threat to Ritz Carlton since many customers researching hotels around Philadelphia may prefer other competitors. According to Forbes, 88% of customers may prefer choosing the hotels according to ratings, whereas 12% are not interested in ratings. It illustrates that the hotels have low higher online reviews, which means that it is ranked at low rates. Another challenge is the price difference. According to Middleton, hotels such as The Sofitel, it offers luxury rooms at a rate of two hundred and forty and three hundred forty dollars.
In comparison, Ritz Carlton luxury rooms range at one thousand dollars (Middleton, 2018). Ritz targets the upper and middle-class customers who don’t consider the supper price. The majority may tend to favor hotels that offer affordable prices, which is a major blow.
Despite the strengths and weaknesses exhibited by the Ritz Carlton Hotel, there are also a few opportunities that can be realized in the hotel. As the level and demand for technology increase, so is the demand for luxury. Therefore, the hotel could take an increase in demand for luxurious services as a new opportunity worthy of investment. This could be an active facilitator for the expansion of the hotel (Perera, 2017). On the other hand, there are also threats that are associated with the company. Threats refer to those factors that compromise the existence, sustainability, or growth of the hotel. One of the significant risks in the industry is competition. A slight fall back in the performance of the Ritz Carlton Hotel could see the immediate dominance of the market by the close competitors of the company. This could render Ritz Carlton out of business.
Competitive Analysis
The Four Seasons is a 4 star property which is located at 1N 19th St, Philadelphia PA, 19103. This is a beautiful glass building. It has a great view of the surrounding city of Philadelphia . The hotel is known for its modern yet upscale taste in furnishing. For the locals and guests its favorite area is the “sleek restaurant” (Four seasons, 2020). It also offers spa services as well as an indoor pool. Overall it offers 219 rooms with 39 being suits. The four seasons are known for the architectural aesthetics. (The Four Seasons, 2020)
The Logan is a 5 star property which is located in center city Radis as well. The physical address is one Logan square, Philadelphia, PA, 19103. It holds many similar amities. However it holds roughly about 391 rooms. With the property it has a steakhouse which is very popular on weekends. It also has its rooftop bar and spa services for those who are interested in the night life or relaxation. The rooftop bar is one of the top visited areas of Logan, due to its great views around it. (The Logan, 2020)
The Kimpton which is located at 117S 17th St, Philadelphia PA, 19103. This property is one of my personal flavorists is a 4 star property with a unique boutique style . It holds 268 rooms. Some of the amenities it offers are spa services and a full bar. The spa services are very similar to the Ritz Carlton since it can be “in room service”. (Kimpton, 2020)
The Rittenhouse is considered to be a 5 star property. It is conveniently located in the same radius, at 210W Rittenhouse square Philadelphia PA 19103. It holds 118 rooms. Some of its amenities are full bars. And restaurants. Overall it holds a great ambiance that guests enjoy.
Rittenhouse is a 5 star property and holds similar products and services, such as bar, and restaurant but it is defined as modern compared to others. (The Rittenhouse, 2020)
For the most part the Four Seasons has similar amenities and service products but still doesn’t level to the Ritz Carlton. The Ritz Carlton is a distinguished brand for centuries. Its unique personalized services is what makes it unique compared to the Four seasons. It may not have the city overlooked at the restaurant but it holds history and that’s something valuable that loyal guests seek. The second one discussed was ”The kimpton” holds a unique positioning being that it’s a boutique. Its unique in itself however the level of accommodations is something that The Ritz Carlton has more experience and more options. The Logan is a great place to stay and enjoy the roof bar, however it is new to the market and that being said its still under constant changes. Last but not least the RittenHouse. This property is located in an affluent sector of center city. It has a great restaurant and public press. But one thing I see is the location for events is difficult compared to the Ritz Carlton offering various rooms and layouts. Overall all these properties are competitors. And Part of this paper is to understand our competition in order to stay financially afloat.
Side By Side Comparison
| The Ritz Carlton | Kimpton Palomar | The RittenHouse | The logan | The Four Seasons | |
| Average Rating | 4.0 | 4.5 | 4.5 | 4.5 | 4.5 |
| Number of rooms | 301 | 268 | 118 | 391 | 219 |
| Price range per night | $330- $1,300 | $200-300 | $373 – $595 | $240 – $330 | $600 – $1000+ |
| Spa | Y | Y | Y | Y | Y |
| Room Service | Y | Y | Y | Y | Y |
| Business center | Y | Y | Y | Y | Y |
| Fitness center | Y | Y | Y | Y | Y |
| Valet | Y | Y | Y | Y | Y |
| On-Site Dining | Y | Y | Y | Y | Y |
| Meetings/event space | Y | Y | Y | Y | Y |
External Analysis
The Analysis of the PESTLE in the Ritz Carlton Hotel includes a discussion of the influence of politics, economy, social factors, technology, and also environmental factors. There is a significant influence of politics on the performance and running of the hotel (Perera, 2017). One of the major political factors affecting the hotel is terrorism. The hotel has most of its clients as international business people, tourists, or diplomats. Neither of the categories listed above would risk booking space and time in a hotel that is located in a region prone to terrorism or political instability. More so, the weight of this issue is that terrorist groups have the tendency of attacking high-class facilities that house tourists and high profile individuals so that their effect could carry some weight to the targeted countries.
International economic activities also have a significant influence on the performance and functioning of Ritz Carlton. The slowed rate of economic growth in China, the financial conflicts in Europe, and the economy between China and the United States tend to affect the hotel negatively (Perera, 2017). The overall effect of the listed factors is that they reduce individual bargaining power. As a result, the numbers of individuals that can afford luxurious services reduce. The number reduces because most of the people are not confident of the economic future, and therefore, they hold onto what they already have.
Despite the effect of economic and political factors on Ritz Carlton, there is also the effect of cultural elements. Some social activities attract tourists and thus increase the size of the potential market for the hotel (Lee & Kwag, 2017). Technology is also a factor that is of significant influence on the hotel industry. Advancement in technology has introduced a change in the description of some of the luxurious products. For example, the spread of technology has eradicated the aspect of Wi-Fi from being luxurious. It has become a basic need for every business.
There are also legal factors that affect the hotel industry. Many governments have enacted laws and policies that define how the hotel industry is to function. Such laws include policies on waste disposal as well as the sources of energy required for businesses (Lee & Kwag, 2017). Moreover, tax deductions by governments on the hotel industry will help boost its growth. Travel bans enacted by the government have a major effect on the tourism sector, which is connected to the hotel industry. Travel bans significantly affect the hotel industry and the vast economy. Tax reforms that will enable hotel owners to pay low taxes will lead to an improvement in the industry. Luxury hotels will manage to improve in building more accommodation rooms for their guests. The strength of a currency is key to the growth of the hotel industry. Most vocational spots are affected by the strength and weakness of currency in terms of attracting visitors.
There are also various health policies that should be met by hotels so that they can be mandated to operate in a country. There is a close relationship between legal and environmental factors. The links are that some of the environmental factors are presented in terms of legal policies and laws. Such factors include policies that describe how hotels are to dispose of their waste products. Others include aspects of global warming that make the environment unconducive for pleasurable activities. The environmental factors could also cause escalated costs of power required to operate the hotel. The prices of electricity go hand in hand with the costs of fuel. However, Ritz Carlton stands a chance to excel even further in business because all the factors above are not customized to one hotel. They cut across all of them.
PART B: Problem of the Ritz Carlton Philadelphia
The problem that we have decided to focus on is the reviews and ratings that the Ritz Carlton recienves online in comparison to their competitors. The reviews that are currently on their website and trip advisor could deter the choice of consumers when they are choosing to stay at the Ritz Carlton Philadelphia. Using a common source like Trip Advisor that would allow our consumers to make their decisions based on review will allow us to get a sense of the current amarets opinions and reviews on how the Ritz Carlton Philadelphia can improve their performance significantly . As one can identify below it is prominent that the level of service this individual guest received was not up to the The Ritz Carlton standard. There are key indicators that the level of service and customer satisfaction was not the top priority at the time.
In the review below also shows that the room expectations and again service was not up to standard.
Effect on Target Market
When it comes to luxurious properties one common guest is the business guest. For the most part the experience is companiated by their companies being said the starjasrs of service rise because they can choose where to go. Business itravel is the most complex because of the way things are being purchased. When it comes to previews and rating one negative rating and impacts other companies/guests from choosing to staying or not. One thing is for certain a negative review that is posted can not necessarily be a representation of all ,accomiddies or services that a particular property can offer, on the contrary the lack of service can come from one branch of service. But it still affects the over experience of the guest. Another Target market that was spoken in great detail was the young professionals and families out there that are able and willing to experience time at a luxuruous property, will critically think twice when seeing lower reviews. In today’s market it’s all about perception and what we read and see will affect the decision we take. Knowing how crucial feedback reviews on popular platforms like. Hotwire, select concierge, tripadvisor and many more concierge services. We know how value reviews and ratings really are and how much attention and financial resources we should put. Overall as a five star property we should see that young professionals and families needs and experiences are analysed and monitored for feature changes.
Strategic Direction
Being in the service industry the best way to overcome “low” service rating or unpleasant star ratings is by reaching back to the guest. A good article by the Harvard business review called “Replying to customers reviews results in better ratings” by Davide Proserpio and Giorrgos Zervas. First we must be an active listener and truly listen to the customer experiences and evaluate what happened and how the service was interrupted. Then we must be apologetic and address the issues and thank them for their feedback. Another reason why we should always be proactive about hotel reviews on social media platforms or traditional feedback is because “if the hotel properties does not, then your credibility will be stained”. (Davide Proserpio and Giorrgos Zervas, 2018). Thus showing feature prospects the way to approach low ratings is our acceptance towards reviews. Overall these ratings that are left by guests are a great way to build a relationship with the guest and to insure that he/ or she was heard and that things are being changed. Thus giving the sense of welcoming back to the guest. It shows great customer service and guests are more likely to come back.
Competitive Trends
Overall the idea of the Ritz carlton Philadelphia gold standard and what they have to offer is a competitive edge. What the company needs to do is utilize their resources and location to have a lingering effect on their target. Meaning, the location is right in the middle of all the Philadelphia “Musts”. Speaking to families that want to have that luxury feel the location is great because it is in the heart of Center City where it is close to great restaurants and stores The Ritz Carlton Philadelphia is right next to the historic city hall that is the home of Dilworth’s park. Families are able to view the aesthetics of the city and also enjoy the fresh air and seating outside of city hall.
Additionally the historic background of the property in itself is a huge trend for consumers, with proper renovation to modernize their rooms and lobby it will have guests yearning to get a feel for the new luxury stays.
Root Causes
The reason that this is an essential problem is not due to the lack of pride and prestige The Ritz Carlton has had renovations done to their property but just as any luxury feel that is “new” their needs to be another renovation. In the modern day times hotels are set to have renovation close to about every 7- 10 years due to ware and tear in the guest room and guest use of common areas. The Ritz carlton was able to have a renovation in 2015 where they were able to revamp their guest rooms and other spaces. Although this is true the reviews leave a doubtful impression of prospective guests when reading these. In order to fix these reviews we must identify key features to improve on to discover a solution.
PART C: Proposed Solution to Identified Problem
Strategic Direction
Being in the service industry the best way to overcome “low” service rating or unpleasant star ratings is by reaching back to the guest. A good article by the Harvard business review called “Replying to customers reviews results in better ratings” by Davide Proserpio and Giorrgos Zervas. First we must be an active listener and truly listen to the customer experiences and evaluate what happened and how the service was interrupted. Then we must be apologetic and address the issues and thank them for their feedback. Another reason why we should always be proactive about hotel reviews on social media platforms or traditional feedback is because “if the hotel properties does not, then your credibility will be stained”. (Davide Proserpio and Giorrgos Zervas, 2018). Thus showing feature prospects the way to approach low ratings is our acceptance towards reviews. Overall these ratings that are left by guests are a great way to build a relationship with the guest and to insure that he/ or she was heard and that things are being changed. Thus giving the sense of welcoming back to the guest. It shows great customer service and guests are more likely to come back.
5 Measurements……………………………………………………………….
References
DeMers, J. (2015, December 28). How Important Are Customer Reviews For Online Marketing? Retrieved from https://www.forbes.com/sites/jaysondemers/2015/12/28/how-important-are-customer-reviews-for-online-marketing/#2582b1dc1928
Downtown Philadelphia Rooms & Suites: Luxury Hotel: Four Seasons. (n.d.). Retrieved February 18, 2020, from https://www.fourseasons.com/philadelphia/accommodations/
Gürel, E., & Tat, M. (2017). SWOT analysis: a theoretical review. Journal of International Social Research, 10(51).
Hotels in Center City Philadelphia: Kimpton Hotel Palomar. (n.d.). Retrieved February 18, 2020, from https://www.hotelpalomar-philadelphia.com/
https://www.ritzcarlton.com/en/about/awards
Lee, J. W., & Kwag, M. (2017). Corporate marketing strategy using social media: a case study of the Ritz-Carlton Seoul. Journal of Asian Finance, Economics and Business, 4(1), 79-86.
Luxury Hotels & Resorts: The Ritz. (n.d.). Retrieved February 14, 2020, from https://www.ritzcarlton.com/en/about/awards
Luxury Hotels & Resorts: The Ritz. (n.d.). Retrieved February 18, 2020, from https://www.ritzcarlton.com/en/hotels/st-louis/spa
Luxury Hotels & Resorts: The Ritz. (n.d.). Retrieved February 20, 2020, from https://www.ritzcarlton.com/en/about/gold-standards
Luxury Hotels in Philadelphia. (n.d.). Retrieved February 18, 2020, fom https://www.rittenhousehotel.com/
Middleton, J., Matthews, R. F., & Volpe, A. (2018, March 29). The best luxury hotels in Philadelphia. Retrieved from https://www.timeout.com/philadelphia/hotels/best-luxury-hotels-in-philadelphia
Perera, R. (2017). The PESTLE analysis. Nerdynaut.
Shaw, A. (2018, May 11). How Social Media Can Move Your Business Forward. Retrieved from https://www.forbes.com/sites/forbescommunicationscouncil/2018/05/11/how-social-media-can-move-your-business-forward/#1ae4c9674cf
Šošková, K. (2016). A Competitiveness Analysis of NH Hotel Olomouc.
The Logan Philadelphia, Curio Collection by Hilton. (n.d.). Retrieved February 18, 2020, from https://curiocollection3.hilton.com
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