Rosewood hotels and Resorts- Branding to Increase Customer Profitability and Lifetime Value

2. ROSEWOOD is a private 5 Star hotel management company with
luxury iconic hotels Headquartered in Dallas, Texas .
Operated as a “collection” of individually branded unique hotels &
resorts.
Has global reputation with iconic luxury hotels.
John Scott - CEO & President
Robert Boulogne - Vice president of sales and marketing
It has 12 hotels worldwide with capacity of 1513 rooms .
Room tariffs rate ranging from $120 to $9000
 ROSEWOOD is a private 5 Star hotel management company with
luxury iconic hotels Headquartered in Dallas, Texas .
 Operated as a “collection” of individually branded unique hotels &
resorts.
 Robert Boulogne - Vice president of sales and marketing
 It has 12 hotels worldwide with capacity of 1513 rooms.
 Has global reputation with iconic luxury hotels
 John Scott - CEO & President
 Room tariffs rate ranging from $120 to $9000

3. Rosewood Hotels & Resorts:
Branding to Increase Customer
Profitability and Lifetime Value
Harvard Business Review
Case Analysis
What makes Rosewood different?

6. Factors:
Affecting the
brand

7. Competition

8. Competing with known chains and individually branded
properties like :
ØFour season with 58 properties .
ØRitz-Carlton -52 properties .
ØFairmont -48 properties .
ØOrient express .
ØRocco forte .
ØAuberge .
ØDorchester .

10. Agent’s perception

11. o Rosewood is a collection of brands. It is not a brand.
o Guests book the hotel and not the brand.
o Brand is not as important as the hotels & resorts.
o The brand is not as strong as it was in its past.
o Known only by individual hotels & resorts.
o Clients don’t come asking for Rosewood as a Brand.
o Clients know Rosewood only because we educate them
on it.
o We have to drive understanding of Rosewood.
Once they understand what Rosewood is, it does
mean something.

12. Guest’s perception

13. • The Brand Rosewood doesn’t signify anything.
• Guests have used various properties but couldn’t realise
that all of them were a part of the same group.
• Even after staying at the property, guests don’t tend to
know the name Rosewood
• Rosewood as a brand doesn’t encourage them to try
different properties.
• No one knows about it until their travel agent mentions it.

14. Employee’s perception

15. • It’s a brand of dilemma – there are only few
business opportunities.
• No great opportunities to attract employees.
• Secret club is only known to a few guests who
have been its loyal members and who are a part
of the industry.
• Very low awareness about the brand Rosewood.
Only past guests know about its existence.

19. Concerns
The company, which had been manually collecting guest data from its 12
separate hotel management systems, had just switched to automated data-
gathering through its central reservation system (CRS) and was faced with the
following shortcomings :
 Preliminary results from an analysis of consolidated guest data revealed that,
although some properties enjoyed return visits of up to 40% of guests, only 5%
of Rosewood guests had stayed in more than one of Rosewood’s properties.
 While the proportion of repeat guests at a single property could reach 40%, the
individual brand or collection hotel brands typically had 5% to 10% multi-
property cross-selling rates while corporate-branded hotels enjoyed 10% to
15% cross- property usage rates.
 Rosewood was at the low end of the scale and management felt there was an
opportunity for increasing cross-property usage.

20. To encourage guests to use more than one
Rosewood hotel, two possible approaches were
considered :
Frequent-stay program
Corporate branding approach
Solutions

21. This type of program had been successful only for
large multi segment operators with broad
geographic distribution, where guests could easily
redeem their reward, however few luxury hotels
had adopted them.
Loyalty through these type of program was
fostered by offerings such as—flexible check in,
check out time personalised services, freedom to
request a specific room and capacity of employees
to solve the most unusual problems.
Frequent Stay program issue

25. Increasing Cross Properties Usage from 5% to 10%
Increasing Connection between Rosewood properties
Creating Brand Equity and Create Rosewood Junkies

32. Summarising
And
Concluding

33. • Customers are unaware of the Rosewood brand
• Lack of focus on attracting new customers
• Individualised hotel properties, not connected through the
brand
• Company has 12 hotel properties from just 1. However,
• Brand has not been advertised
• Rosewood brand is not advertised with the hotel properties
• Need to market the brand in such as way that distinctiveness of
the individual property is not lost
• Rosewood branding, take it from the Phone Greeting to the logo
on the amenities, is hidden under the unique theme of the
individual hotel. Due to which, guests are not able to connect
hotels to the Rosewood brand. In fact, for customers Rosewood
brand does not exist.
• Only customers are those who value the uniqueness of the
luxury hotels. There is a huge untapped customer market.
Hence, repeat customers are also a few, 5%.
Major Issues

34.  Adopt Corporate Branding
 Don’t dilute individual brand persona
 Subtly add Rosewood to it
 Strengthen Rosewood’s Brand Equity
 Get internal teams confidence
 Show them a bigger picture
 Incentivise trade and ask them to push a brand
 PR can do wonders
 Build a Rosewood membership plan
 Tie up with travel agencies and tour operators
 As per the CLTV calculations, NPV with new brand strategy is
higher than the one with the current approach. It also results in
increase in CLTV per customer, profit and overall revenue. Hence,
the new brand strategy should be implemented immediately.
 Rosewood name should be attached to every property in the front.
Recommendations

35. Thank You!!
–Simran Jha