FOUR SEASONS HOTEL

Four Seasons Hotel and Resorts, Inc

Four Seasons Hotel and Resorts, Inc

Introduction

This report has been received from the primary use of secondary sources, in addition to telephone contact with representatives of the hotel. Secondary sources included research from the Internet, books, industry, communications, marketing company, trade and general business magazines and newspapers, among others. After all sources of relevant data and information was extracted in the annexes of the report. After analysis of individual and group discussions, the following report was developed. The mandate of this report is to provide a macro study of the luxury hotel industry and especially the prospects for the development of Four Seasons Hotel and Resorts, Inc

Issue / Problem

Due to changes in environmental, social and economic situations around the world, such as floods, terrorism and a weakening economy, the existing business model and strategy for the FSH is not able to respond to requests and actively adapt to external conditions. As a result, the company is experiencing a drop in share price and reducing its earnings from quarter to quarter. Thus, the restriction of its current strategy prohibits companies from operating at a level that is profitable enough to satisfy their shareholders during this period of volatile. In such volatile times, FSH needs to compete more aggressively than ever before in order to return to the unquestionable dominance of the industry.

Industry and Competitive Analysis

General Environment

With annual sales approaching $ 65 billion in average daily hotel industry holds more than 2.6 million visitors in 3 million of available rooms (and more) in more than 44,000 hotels worldwide. Growth at an annual rate of about 2-3%, the industry is divided into four levels, consisting of budget / economy, mid-scale, first class and luxury. Although there are countless hotels around the world, the big players in the industry 10.12 parent companies, which operate a chain of hotels, often with brands that are distributed across four levels. In addition to the international players, each tier contains an abundance of small hotels, which competes in the appropriate level.

In the luxury level, many of the players do not actually own hotels themselves, but instead manage the work of business, similar to FSH. In the luxury segment, the competition for the acquisition of new management agreements is very high, as the hotel owners make their choices based on quality and value management services company, and most importantly, his trademark. In addition, guests who choose to stay in luxury hotels are generally not very sensitive to price, and therefore it is important to the hotel to distinguish itself among its competitors by providing value added services and the maintenance inviolate, reputable brand name and image.

To remain profitable, hotels need to work about 65-70% of capacity. Due to seasonality, economic and political events, some hotels are finding it difficult to maintain profitable levels of employment and began offering services on several levels within the value chain in the industry, from online reservations to provide food on flights through alliances with ...