Unlike Hilton, Harrah’s or Ritz Carlton, the management in the hotel has been procured due to their ability to provide a local service to a non-branded Hotel with extremely high standards. Each hotel, such as Carlyle, thrives on its location, property history and niche clientele. And the hotel management has been hired and trained to cater to the needs of this niche clientele for Carlyle, not for the Rosewood Brand of Hotel’s. The local Hotel Management has to be 1)trained for the Rosewood Brand and 2)given incentives to cross-sell to other Hotels under the Rosewood Brand.
Training for the Rosewood Brand would require integrating Rosewood Brand in the Hotel Banner, Products and Services without changing the Quality of Customer Experience. The hotel Management needed to focus on managing customer relationships by providing a satisfactory experience and using this experience to cross-sell to different Rosewood Hotels. The training should also talk about new promotional strategies in order to reach out to larger customer base than their segmented niche market.
Each individual Rosewood Hotel needed to capture the underlying ideas of Product Value and Image Value in order to provide a satisfactory customer experience and to retain customers. The process also needs to be completed by developing a common CRM for all Rosewood Hotels. At checkout, customers should be provided a survey that gathers information about satisfaction, experience, improvements and general travel plans. This qualitative data can then be used to provide personalized deals to customers within the hotels under the Rosewood Banner.
Focusing on lower management would require monetary investment and an increase in marketing cost but it would also increase the bottom line cash flow per guest by increasing the retention probability. We should also hope to negate the monetary investment by increasing the multiple property repeat guest percentage from the lower end of 10% closer to 15%. The common CRM database requires an initial acquisition cost, but will most probably increase nights/stay and stays/guest.