Pacific Coast Hotels
Nate, Bree, Dustin, Kate
MKT 540 – Professor Zafar Iqbal
November 10, 2010
Presentation Overview
? Current Market
? Growth Opportunities for Current Players
? Start-up concept – PCH Hotels
? Predicting Future Impact of PCH
Winter is coming and we are all probably planning
to vacation where the weather is warm…
Majorly Underserved Market: Us!
? Young professionals who like to vacation
? Enough disposable income to travel but not enough to
splurge on luxury stays
? Prefer to travel to resort destinations, especially during
winter months
What are our Current Options?
PRODUCT LEADERSHIP
ACCESS TO HIGH PERFORMANCE
more features
more functionality
latest technology
complexity
LINKED WITH AESTHETICS AND WITH STYLE
PORTRAY SOPHISTICATION
p
r
i
c
e
performance
OPERATIONAL EXCELLENCE
LOWER COSTS
INCREASE CONVENIENCE
OBTAIN RELIABILITY
HAVE EASE OF USE
CUSTOMER INTIMACY
HAVE A HIGH LEVEL OF CUSTOMIZATION
HAVE HIGH LEVEL OF SERVICE
HAVE A COMPLETE SOLUTION
ACCESS TO A WIDE SELECTION
OBTAIN ADVICE & CONSULT
FEEL OF AN “EXPERIENCE
Westin
Motel
6
4
Seasons
Current Market Players
PRODUCT LEADERSHIP
ACCESS TO HIGH PERFORMANCE
more features
more functionality
latest technology
complexity
LINKED WITH AESTHETICS AND WITH STYLE
PORTRAY SOPHISTICATION
p
r
i
c
e
performance
OPERATIONAL EXCELLENCE
LOWER COSTS
INCREASE CONVENIENCE
OBTAIN RELIABILITY
HAVE EASE OF USE
CUSTOMER INTIMACY
HAVE A HIGH LEVEL OF CUSTOMIZATION
HAVE HIGH LEVEL OF SERVICE
HAVE A COMPLETE SOLUTION
ACCESS TO A WIDE SELECTION
OBTAIN ADVICE & CONSULT
FEEL OF AN “EXPERIENCE
Westin
Motel
6
4
Seasons
Our OE Player: Motel 6 (Accor)
Full Motel 6 (Accor) Business Model
Consumer
Focus
Keep
expenses
very low, esp.
extraneous
svcs
Variable
Org
Structures
Home-Like
Comfort
Affordable Convenient
Maximize
Value for Lower
Price than
Competitors
Create a
Comfortable
Environment
Rate of new
hotel openings
(~3/yr)
Corp Expenses
below 7% of
Sales
Employee
Turnover (Metric)
100% Customer
Satisfaction
Vertically
Integrated
by
Acquisitions
Liberated
Manageme
nt Style
Culture of
Empowerm
ent and
Responsibili
ty
Choose
own
investors
Friendly,
knowledge
able
employees
Quality
Controlled
offerings
“Decentraliz
ed
Cohesion”
Strategic
Acquisitions
Electronic
Property
Mgmt
System
Experienced,
Happy Staff
Carefully
selected
extraneous
services
Leadership
Team
Accor
Academy
Occupancy Rate
(75% min.)
Brand
Manageme
nt
Motel 6 (Accor) Business Model
Keep
expenses
very low, esp.
extraneous
svcs
Variable
Org
Structures
Affordable Convenient
Maximize
Value for Lower
Price than
Competitors
Rate of new
hotel openings
(~3/yr)
Corp Expenses
below 7% of
Sales
Vertically
Integrated
by
Acquisitions
Choose
own
investors
“Decentraliz
ed
Cohesion”
Strategic
Acquisitions
Electronic
Property
Mgmt
System
Carefully
selected
extraneous
services
Left Side of Model:
Operationally and
Financially
Convenient for Price-
Sensitive Consumers
Motel 6 (Accor) Business Model
Consumer
Focus
Home-Like
Comfort
Maximize
Value for Lower
Price than
Competitors
Create a
Comfortable
Environment
Employee
Turnover (Metric)
100% Customer
Satisfaction
Liberated
Manageme
nt Style
Culture of
Empowerm
ent and
Responsibili
ty
Friendly,
knowledge
able
employees
Quality
Controlled
offerings
Experienced,
Happy Staff
Leadership
Team
Accor
Academy
Occupancy Rate
(75% min.)
Brand
Manageme
nt
Right Side of Model:
Allow the customer feel
as comfortable as
possible --
“This room feels like
home”
PRODUCT LEADERSHIP
ACCESS TO HIGH PERFORMANCE
more features
more functionality
latest technology
complexity
LINKED WITH AESTHETICS AND WITH STYLE
PORTRAY SOPHISTICATION
p
r
i
c
e
performance
OPERATIONAL EXCELLENCE
LOWER COSTS
INCREASE CONVENIENCE
OBTAIN RELIABILITY
HAVE EASE OF USE
CUSTOMER INTIMACY
HAVE A HIGH LEVEL OF CUSTOMIZATION
HAVE HIGH LEVEL OF SERVICE
HAVE A COMPLETE SOLUTION
ACCESS TO A WIDE SELECTION
OBTAIN ADVICE & CONSULT
FEEL OF AN “EXPERIENCE
Westin
Motel
6
4
Seasons
Our CI Player: Four Seasons
Four Seasons Business Model
Desirable
location
Complete
hospitality
solution
Luxurious
environment
that feels
like an
experience
High Quality
Personalized
service
High Avg.Daily
Rate (ADR)
$200-$270
Occupancy
Rate above
70%
Low
employee
turnover rate
(90%
Focused
and
visionary
leadershi
p
Train,
develop
and
career
counsel
employe
es
Maintain high
standards of
luxury
Guest
satisfaction
and loyalty
among target
clientele
Database
with
guest
preferen
ces
High call to
reservation
conversion
(25%)
Employee to
guest ratio
(1:1)
Provide high
level 24 hr.
customer
service
Quality
control metric
Conduct
internal
and
external
audits of
standards
Strategic,
focused
growth
strategy
- Mid-sized
hotels/resorts
- Exceptional
elegance
7
Culture
Standar
ds
Regional
Mgt.
Structure
w/
corporate
equity
interest
High
Quality
products
-pillows
-beds
Four Seasons Business Model: Luxurious Environment
Luxurious
environment
that feels
like an
experience
Occupancy
Rate above
70%
REVPAR
Top three in
local market
Provide
wide
range of
guest
services
Request
Feedbac
k after
each
hotel
opening
270 core
standard
ops for
each
property
Standard
feel to
each
property:
“beautiful,
personal,
comfortabl
e”
Limited
rooms for
corporate
clients and
travel
agencies
Target
clientele:
Well
educated,
successful,
wealthy
Design
Team:
- Private
spaces
--elegant
architectur
e
Strategic
hotel/resort
locations
- Strength of
local
economy, -
Mkt research,
- Location =
destination
Powerful
brand
name
Focused
and
visionary
leadershi
p
Maintain high
standards of
luxury
Quality
control metric
Conduct
internal
and
external
audits of
standards
Strategic,
focused
growth
strategy
- Mid-sized
hotels/resort
s
- Exceptional
elegance
7
Culture
Standar
ds
Regional
Mgt.
Structure
w/
corporate
equity
interest
High
Quality
products
-pillows
-beds
Four Seasons Business Model: Complete Hospitality
Complete
hospitality
solution
High Avg.Daily
Rate (ADR)
$200-$270
Occupancy Rate
above 70%
Low employee
turnover rate
(90%
Focused
and
visionary
leadership
Train,
develop
and
career
counsel
employee
s
Guest satisfaction
and loyalty
among target
clientele
Database
with guest
preference
s
High call to
reservation
conversion (25%)
Employee to
guest ratio
(1:1)
Provide high level
24 hr. customer
service
Quality control
metric
Conduct
internal
and
external
audits of
standards
Strategic,
focused
growth
strategy
- Mid-sized
hotels/resorts
- Exceptional
elegance
7 Culture
Standards
Regional
Mgt.
Structure
w/
corporate
equity
interest
High
Quality
products
-pillows
-beds
Solution
Four Seasons Business Model: Desirable Location
Desirable
location
High Avg.Daily
Rate (ADR)
$200-$270
Occupancy Rate
above 70%
REVPAR
Top three in local
market
Provide
wide range
of guest
services
Request
Feedback
after each
hotel
opening
270 core
standard
ops for
each
property
Standard
feel to
each
property:
“beautiful,
personal,
comfortable”
Limited
rooms for
corporate
clients and
travel
agencies
Detailed
and
customize
d website
Target
clientele:
Well
educated,
successful,
wealthy
Design
Team:
- Private
spaces
--elegant
architecture
Strategic
hotel/resort
locations
- Strength of local
economy, - Mkt
research,
- Location =
destination
Innovative
technology
info systems
Powerful
brand
name
Knowledg
eable
employee
s with
hospitable
nature
Customer
Satisfaction >90%
Focused
and
visionary
leadership
Train,
develop
and
career
counsel
employee
s
Guest satisfaction
and loyalty
among target
clientele
Database
with guest
preference
s
High call to
reservation
conversion (25%)
Strategic,
focused
growth
strategy
- Mid-sized
hotels/resorts
- Exceptional
elegance
7 Culture
Standards
Regional
Mgt.
Structure
w/
corporate
equity
interest
High
Quality
products
-pillows
-beds
Four Seasons Business Model: HQ Personalized
High Quality
Personalized
service
High Avg.Daily
Rate (ADR)
$200-$270
Occupancy Rate
above 70%
Low employee
turnover rate
(90%
Focused
and
visionary
leadership
Train,
develop
and
career
counsel
employee
s
Guest satisfaction
and loyalty
among target
clientele
Database
with guest
preference
s
High call to
reservation
conversion (25%)
Employee to
guest ratio
(1:1)
Provide high level
24 hr. customer
service
Quality control
metric
Conduct
internal
and
external
audits of
standards
Strategic,
focused
growth
strategy
- Mid-sized
hotels/resorts
- Exceptional
elegance
7 Culture
Standards
Regional
Mgt.
Structure
w/
corporate
equity
interest
High
Quality
products
-pillows
-beds
Service
PRODUCT LEADERSHIP
ACCESS TO HIGH PERFORMANCE
more features
more functionality
latest technology
complexity
LINKED WITH AESTHETICS AND WITH STYLE
PORTRAY SOPHISTICATION
p
r
i
c
e
performance
OPERATIONAL EXCELLENCE
LOWER COSTS
INCREASE CONVENIENCE
OBTAIN RELIABILITY
HAVE EASE OF USE
CUSTOMER INTIMACY
HAVE A HIGH LEVEL OF CUSTOMIZATION
HAVE HIGH LEVEL OF SERVICE
HAVE A COMPLETE SOLUTION
ACCESS TO A WIDE SELECTION
OBTAIN ADVICE & CONSULT
FEEL OF AN “EXPERIENCE
Westin
Motel
6
4
Seasons
Our PL Player: Westin
Westin Business Model
High
Performance
Best Locations
Westin Kids
Club
Linked to
Aesthetics
High Level
of Service
Portray
Sophistication
Best Employees Best Amenities
In Prime Locations
(within 2 miles of
city centers)
Customer
Satisfaction
(795 JD Power
Score)
Speed of Check in
(2 minutes)
Dream Westin
Recruit Quality
Employees
Create
Extravagant
Environment
RunConcierge
Sensory
Welcome
Represent
Healthy Lifestyle
Growing
number of
locations
Superfoods
menu
Heavenly Spa
Experience
Engineers
Corporate
Culture
Heavenly
Beds
Great
Location s
Intent to return
(85%)
Smoke Free
Environment
Westin Business Model: High Service Level
Westin Kids
Club
High Level
of Service
Best
Employees
Speed of Check in
(2 minutes)
Dream
Westin
Recruit Quality
Employees
Create
Extravagant
Environment
Represent
Healthy Lifestyle
Superfoods
menu
Heavenly
Spa
Experience
Engineers
Corporate
Culture
Heavenly
Beds
Intent to return
(85%)
Smoke Free
Environment
Westin Business Model: Sophistication
Best Locations
Portray
Sophistication
Best Amenities
In Prime Locations
(within 2 miles of
city centers)
Customer
Satisfaction
(795 JD Power
Score)
Dream
Westin
Create
Extravagant
Environment
RunConcierge
Sensory
Welcome
Represent
Healthy Lifestyle
Superfoods
menu
Heavenly
Spa
Experience
Engineers
Corporate
Culture
Great
Location s
Westin Business Model: High Performance
High
Performance
Best
Employees
Best Amenities
Customer
Satisfaction
(795 JD Power
Score)
Speed of Check in
(2 minutes)
Dream
Westin
Recruit Quality
Employees
Create
Extravagant
Environment
RunConcierge
Sensory
Welcome
Superfoods
menu
Heavenly
Spa
Experience
Engineers
Corporate
Culture
Heavenly
Beds
Great
Location s
Intent to return
(85%)
Smoke Free
Environment
Westin Business Model: Aesthetics
Linked to
Aesthetics
Best
Employees
Best Amenities
Recruit Quality
Employees
Create
Extravagant
Environment
Sensory
Welcome
Represent
Healthy Lifestyle
Growing
number of
locations
Superfoods
menu
Heavenly
Spa
Experience
Engineers
Corporate
Culture
Great
Location s
Intent to return
(85%)
Smoke Free
Environment
Growth Opportunities for Current Players
?Northeast Migration by Four Seasons
NE Attack Move by Four Seasons
The Four Seasons maintains exceptional spa experiences for guests, and also
launched the “Spa Escape Promotion”
• Non-guests can book spa packages at the hotel
• No overnight stay required
• Available in 50 cities on 4 different continents
The Heavenly Spa is an exclusive luxurious escape for Westin guests...
At the Four Seasons Spa, “it’s about your entire experience,
from the moment you arrive to your time in the lounge areas
and treatment rooms to a relaxing departure. In the industry,
this intricately designed process is called a ‘spa journey.’”
Northeast Attack by Four Seasons
Growth Opportunities for Current Players
?Northeast Migration by Four Seasons
?Blocking Strategy and Southwest
Migration by Westin
Westin’s SW Blocking Move
To prevent Four Seasons migrating to PL, Westin
increased the level of customized complete services.
Westin offers complete day
planning service:
•spa days
•day care
•transportation to business
• tickets to events
•guided local tours.
Growth Opportunities for Current Players
?Northeast Migration by Four Seasons
?Blocking Strategy and Southwest Migration
by Westin
?This Battle Leaves an Opening at the NE
Corner of OE and SW Corner of CI
Copyright © 2007 Zafar Iqbal
PRODUCT LEADERSHIP
ACCESS TO HIGH PERFORMANCE
more features
more functionality
latest technology
complexity
LINKED WITH AESTHETICS AND WITH STYLE
PORTRAY SOPHISTICATION
p
r
i
c
e
performance
OPERATIONAL EXCELLENCE
LOWER COSTS
INCREASE CONVENIENCE
OBTAIN RELIABILITY
HAVE EASE OF USE
CUSTOMER INTIMACY
HAVE A HIGH LEVEL OF CUSTOMIZATION
HAVE HIGH LEVEL OF SERVICE
HAVE A COMPLETE SOLUTION
ACCESS TO A WIDE SELECTION
OBTAIN ADVICE & CONSULT
FEEL OF AN “EXPERIENCE
Westin
4
Seasons
CI-PL war
Motel
6
Open
Space
A Battle Ensues…
Introducing Our Concept:
Pacific Coast Hotels
? Clean, Quiet Rooms
? Modern Look
? Provide Only what the Guests Need
? Latest Technology
? Low Price Point
? Location, Location, Location
? Close Proximity to Popular Resort Destinations
? Unique Opportunity in California’s Tourism Spots
? Within One-Day Drive of Each Other
PCH: Target Market
21-40 years old
Young Professionals
Cost-Conscious Couples
Weekend Vacationers
Business Travelers
Operational Efficiencies:
How Will PCH Make It Work?
? Self Serve Check In/Out
? Vending of Toiletries/Personal Products
? Iron, Dryer, Safe Rentals
? Maid Service every 3 days
? Multi-Functional Empowered Employees
? Outsourced Amenities
? Standardized Rooms
PCH: Guest Delighters
? Free Wi-Fi
? Free Airport Shuttle
? Hi-Tech Experience
? Outsourced Amenities
? Restaurant
? Health Club
? Zip Car
? Bikes
PCH: Critical Success Factors
? Cost Control
? Employee Utilization
? Technology
? Strategic Partnerships
? Provide Just What the Guests Need
? Outcome Focused
? Quality Locations
? Fast Paced yet Controlled Growth
Concept Equation
+
+
+
Spa, reception,
restaurant
Beds
Booking(partially)
Westin
Booking
(eventually),
Technology
Furniture
Go Cars,
Restaurants, local
partnerships
PCH
Internal External
C
o
n
t
r
o
l
l
e
d
N
o
t
C
o
n
t
r
o
l
l
e
d
N
o
t
Integration
Modularity
Comparison
? Westin – Completely
Integrated
? PCH – Very Modular
PCH: Adjacency Screen
Resources
? Increasing Asset Base and increasing ROI
? Improving Credit Market
? Motivated, flexible employees
? Strong partnerships
Activities
? 3 year project cycle
? Innovatively outsource most functions/services
? Identical operational and accounting models to other properties
Values
? Will increase convenience and flexibility to customers
? Target resort locations with lack of low-cost options
Lake Tahoe
Napa Valley
San Francisco
San Diego
Palm Springs
L.A.
Laguna Beach
Phase 1
Santa Barbara
Malibu.
San Luis Obispo
PCH: Adjacency Move
Add locations along pacific
coast
Less than a half day drive
between most locations
Presence in more desired
resort destinations
Phase 2
Maintain High
Standards
Low Price Point
Clean, Modern,
Quiet Room
Increased
Utilization of
Assets
Occupancy:
>75%
Utilizing
partnersh
ips for
guest
amenities
Efficiencie
s from
cross
functional
employees
Streamlining
of Frills
Automat
ed Check
In/Out
Price:
10% lower than
nearest direct
competitor
Desirable
Location
Web
Based
Custome
r
Services
&
Booking
Toiletry
Vending
Customer
Service
Inquiries per
visit: 50%
through
PCH
website
Using
“Modern”
Designers
for rooms
and lobby
Build
loyal
customer
base
Strategic
Partnerships
Self
Service
Model
Highly
Skilled and
Motivated
Employees
Strong
Brand
Identit
y
Low Cost
Amenitie
s
Multi
Functional
Website and
Smart
Phone
Application
Desirable
Location
Maintain High
Standards
Low Price Point
Increased
Utilization of
Assets
Occupancy:
>75%
Utilizing
partnershi
ps for
guest
amenities
Efficiencies
from cross
functional
employees
Streamlining
of Frills
Automat
ed Check
In/Out
Price:
10% lower than
nearest direct
competitor
Web
Based
Custome
r
Services
&
Booking
Toiletry
Vending
Customer
Service
Inquiries per
visit: 50%
through
PCH
website
Using
“Modern”
Designers
for rooms
and lobby
Build loyal
customer
base
Strategic
Partnerships
Self
Service
Model
Highly
Skilled and
Motivated
Employees
Strong
Brand
Identity
Low Cost
Amenities
Multi
Functional
Website and
Smart Phone
Application
Desirable
Location
Maintain High
Standards
Clean, Modern,
Quiet Room
Increased
Utilization of
Assets
Occupancy:
>75%
Utilizing
partnersh
ips for
guest
amenities
Web
Based
Custome
r
Services
&
Booking
Customer
Service
Inquiries per
visit: 75%
Utilizing
partnersh
ips for
guest
amenities
Desirable
Location
Convenient and
Popular Locations
Using
“Modern”
Designers
for rooms
and lobby
Build
loyal
customer
base
Strategic
Partnerships
Highly
Skilled and
Motivated
Employees
Strong
Brand
Identit
y
Low Cost
Amenitie
s
Desirable
Location
Strengths
•Untapped Niche Market
•Modular Business Model
•Cost Control
•Location
•Price Point
•Cheap Chic
Weaknesses
•New Business
•Lack of Brand Awareness
•Room Size
•Regional Player
Opportunities
•New Markets-Scalable
•CI Customer Appeal
•Strategic Partnerships
•Change the market
Threats
•Economy
•New Market Entrants
•Saturation of Total Market
•Union Employees
PCH: SWOT Analysis
Predicting Future Impact of PCH:
Price-Performance Graph
Copyright © 2007 Zafar Iqbal
PRODUCT LEADERSHIP
ACCESS TO HIGH PERFORMANCE
more features
more functionality
latest technology
complexity
LINKED WITH AESTHETICS AND WITH STYLE
PORTRAY SOPHISTICATION
p
r
i
c
e
performance
OPERATIONAL EXCELLENCE
LOWER COSTS
INCREASE CONVENIENCE
OBTAIN RELIABILITY
HAVE EASE OF USE
CUSTOMER INTIMACY
HAVE A HIGH LEVEL OF CUSTOMIZATION
HAVE HIGH LEVEL OF SERVICE
HAVE A COMPLETE SOLUTION
ACCESS TO A WIDE SELECTION
OBTAIN ADVICE & CONSULT
FEEL OF AN “EXPERIENCE
Westin
Motel
6
4
Seasons
PCH
Pacific Coast Hotels
Questions?
doc_379711900.pptx
Nate, Bree, Dustin, Kate
MKT 540 – Professor Zafar Iqbal
November 10, 2010
Presentation Overview
? Current Market
? Growth Opportunities for Current Players
? Start-up concept – PCH Hotels
? Predicting Future Impact of PCH
Winter is coming and we are all probably planning
to vacation where the weather is warm…
Majorly Underserved Market: Us!
? Young professionals who like to vacation
? Enough disposable income to travel but not enough to
splurge on luxury stays
? Prefer to travel to resort destinations, especially during
winter months
What are our Current Options?
PRODUCT LEADERSHIP
ACCESS TO HIGH PERFORMANCE
more features
more functionality
latest technology
complexity
LINKED WITH AESTHETICS AND WITH STYLE
PORTRAY SOPHISTICATION
p
r
i
c
e
performance
OPERATIONAL EXCELLENCE
LOWER COSTS
INCREASE CONVENIENCE
OBTAIN RELIABILITY
HAVE EASE OF USE
CUSTOMER INTIMACY
HAVE A HIGH LEVEL OF CUSTOMIZATION
HAVE HIGH LEVEL OF SERVICE
HAVE A COMPLETE SOLUTION
ACCESS TO A WIDE SELECTION
OBTAIN ADVICE & CONSULT
FEEL OF AN “EXPERIENCE
Westin
Motel
6
4
Seasons
Current Market Players
PRODUCT LEADERSHIP
ACCESS TO HIGH PERFORMANCE
more features
more functionality
latest technology
complexity
LINKED WITH AESTHETICS AND WITH STYLE
PORTRAY SOPHISTICATION
p
r
i
c
e
performance
OPERATIONAL EXCELLENCE
LOWER COSTS
INCREASE CONVENIENCE
OBTAIN RELIABILITY
HAVE EASE OF USE
CUSTOMER INTIMACY
HAVE A HIGH LEVEL OF CUSTOMIZATION
HAVE HIGH LEVEL OF SERVICE
HAVE A COMPLETE SOLUTION
ACCESS TO A WIDE SELECTION
OBTAIN ADVICE & CONSULT
FEEL OF AN “EXPERIENCE
Westin
Motel
6
4
Seasons
Our OE Player: Motel 6 (Accor)
Full Motel 6 (Accor) Business Model
Consumer
Focus
Keep
expenses
very low, esp.
extraneous
svcs
Variable
Org
Structures
Home-Like
Comfort
Affordable Convenient
Maximize
Value for Lower
Price than
Competitors
Create a
Comfortable
Environment
Rate of new
hotel openings
(~3/yr)
Corp Expenses
below 7% of
Sales
Employee
Turnover (Metric)
100% Customer
Satisfaction
Vertically
Integrated
by
Acquisitions
Liberated
Manageme
nt Style
Culture of
Empowerm
ent and
Responsibili
ty
Choose
own
investors
Friendly,
knowledge
able
employees
Quality
Controlled
offerings
“Decentraliz
ed
Cohesion”
Strategic
Acquisitions
Electronic
Property
Mgmt
System
Experienced,
Happy Staff
Carefully
selected
extraneous
services
Leadership
Team
Accor
Academy
Occupancy Rate
(75% min.)
Brand
Manageme
nt
Motel 6 (Accor) Business Model
Keep
expenses
very low, esp.
extraneous
svcs
Variable
Org
Structures
Affordable Convenient
Maximize
Value for Lower
Price than
Competitors
Rate of new
hotel openings
(~3/yr)
Corp Expenses
below 7% of
Sales
Vertically
Integrated
by
Acquisitions
Choose
own
investors
“Decentraliz
ed
Cohesion”
Strategic
Acquisitions
Electronic
Property
Mgmt
System
Carefully
selected
extraneous
services
Left Side of Model:
Operationally and
Financially
Convenient for Price-
Sensitive Consumers
Motel 6 (Accor) Business Model
Consumer
Focus
Home-Like
Comfort
Maximize
Value for Lower
Price than
Competitors
Create a
Comfortable
Environment
Employee
Turnover (Metric)
100% Customer
Satisfaction
Liberated
Manageme
nt Style
Culture of
Empowerm
ent and
Responsibili
ty
Friendly,
knowledge
able
employees
Quality
Controlled
offerings
Experienced,
Happy Staff
Leadership
Team
Accor
Academy
Occupancy Rate
(75% min.)
Brand
Manageme
nt
Right Side of Model:
Allow the customer feel
as comfortable as
possible --
“This room feels like
home”
PRODUCT LEADERSHIP
ACCESS TO HIGH PERFORMANCE
more features
more functionality
latest technology
complexity
LINKED WITH AESTHETICS AND WITH STYLE
PORTRAY SOPHISTICATION
p
r
i
c
e
performance
OPERATIONAL EXCELLENCE
LOWER COSTS
INCREASE CONVENIENCE
OBTAIN RELIABILITY
HAVE EASE OF USE
CUSTOMER INTIMACY
HAVE A HIGH LEVEL OF CUSTOMIZATION
HAVE HIGH LEVEL OF SERVICE
HAVE A COMPLETE SOLUTION
ACCESS TO A WIDE SELECTION
OBTAIN ADVICE & CONSULT
FEEL OF AN “EXPERIENCE
Westin
Motel
6
4
Seasons
Our CI Player: Four Seasons
Four Seasons Business Model
Desirable
location
Complete
hospitality
solution
Luxurious
environment
that feels
like an
experience
High Quality
Personalized
service
High Avg.Daily
Rate (ADR)
$200-$270
Occupancy
Rate above
70%
Low
employee
turnover rate
(90%
Focused
and
visionary
leadershi
p
Train,
develop
and
career
counsel
employe
es
Maintain high
standards of
luxury
Guest
satisfaction
and loyalty
among target
clientele
Database
with
guest
preferen
ces
High call to
reservation
conversion
(25%)
Employee to
guest ratio
(1:1)
Provide high
level 24 hr.
customer
service
Quality
control metric
Conduct
internal
and
external
audits of
standards
Strategic,
focused
growth
strategy
- Mid-sized
hotels/resorts
- Exceptional
elegance
7
Culture
Standar
ds
Regional
Mgt.
Structure
w/
corporate
equity
interest
High
Quality
products
-pillows
-beds
Four Seasons Business Model: Luxurious Environment
Luxurious
environment
that feels
like an
experience
Occupancy
Rate above
70%
REVPAR
Top three in
local market
Provide
wide
range of
guest
services
Request
Feedbac
k after
each
hotel
opening
270 core
standard
ops for
each
property
Standard
feel to
each
property:
“beautiful,
personal,
comfortabl
e”
Limited
rooms for
corporate
clients and
travel
agencies
Target
clientele:
Well
educated,
successful,
wealthy
Design
Team:
- Private
spaces
--elegant
architectur
e
Strategic
hotel/resort
locations
- Strength of
local
economy, -
Mkt research,
- Location =
destination
Powerful
brand
name
Focused
and
visionary
leadershi
p
Maintain high
standards of
luxury
Quality
control metric
Conduct
internal
and
external
audits of
standards
Strategic,
focused
growth
strategy
- Mid-sized
hotels/resort
s
- Exceptional
elegance
7
Culture
Standar
ds
Regional
Mgt.
Structure
w/
corporate
equity
interest
High
Quality
products
-pillows
-beds
Four Seasons Business Model: Complete Hospitality
Complete
hospitality
solution
High Avg.Daily
Rate (ADR)
$200-$270
Occupancy Rate
above 70%
Low employee
turnover rate
(90%
Focused
and
visionary
leadership
Train,
develop
and
career
counsel
employee
s
Guest satisfaction
and loyalty
among target
clientele
Database
with guest
preference
s
High call to
reservation
conversion (25%)
Employee to
guest ratio
(1:1)
Provide high level
24 hr. customer
service
Quality control
metric
Conduct
internal
and
external
audits of
standards
Strategic,
focused
growth
strategy
- Mid-sized
hotels/resorts
- Exceptional
elegance
7 Culture
Standards
Regional
Mgt.
Structure
w/
corporate
equity
interest
High
Quality
products
-pillows
-beds
Solution
Four Seasons Business Model: Desirable Location
Desirable
location
High Avg.Daily
Rate (ADR)
$200-$270
Occupancy Rate
above 70%
REVPAR
Top three in local
market
Provide
wide range
of guest
services
Request
Feedback
after each
hotel
opening
270 core
standard
ops for
each
property
Standard
feel to
each
property:
“beautiful,
personal,
comfortable”
Limited
rooms for
corporate
clients and
travel
agencies
Detailed
and
customize
d website
Target
clientele:
Well
educated,
successful,
wealthy
Design
Team:
- Private
spaces
--elegant
architecture
Strategic
hotel/resort
locations
- Strength of local
economy, - Mkt
research,
- Location =
destination
Innovative
technology
info systems
Powerful
brand
name
Knowledg
eable
employee
s with
hospitable
nature
Customer
Satisfaction >90%
Focused
and
visionary
leadership
Train,
develop
and
career
counsel
employee
s
Guest satisfaction
and loyalty
among target
clientele
Database
with guest
preference
s
High call to
reservation
conversion (25%)
Strategic,
focused
growth
strategy
- Mid-sized
hotels/resorts
- Exceptional
elegance
7 Culture
Standards
Regional
Mgt.
Structure
w/
corporate
equity
interest
High
Quality
products
-pillows
-beds
Four Seasons Business Model: HQ Personalized
High Quality
Personalized
service
High Avg.Daily
Rate (ADR)
$200-$270
Occupancy Rate
above 70%
Low employee
turnover rate
(90%
Focused
and
visionary
leadership
Train,
develop
and
career
counsel
employee
s
Guest satisfaction
and loyalty
among target
clientele
Database
with guest
preference
s
High call to
reservation
conversion (25%)
Employee to
guest ratio
(1:1)
Provide high level
24 hr. customer
service
Quality control
metric
Conduct
internal
and
external
audits of
standards
Strategic,
focused
growth
strategy
- Mid-sized
hotels/resorts
- Exceptional
elegance
7 Culture
Standards
Regional
Mgt.
Structure
w/
corporate
equity
interest
High
Quality
products
-pillows
-beds
Service
PRODUCT LEADERSHIP
ACCESS TO HIGH PERFORMANCE
more features
more functionality
latest technology
complexity
LINKED WITH AESTHETICS AND WITH STYLE
PORTRAY SOPHISTICATION
p
r
i
c
e
performance
OPERATIONAL EXCELLENCE
LOWER COSTS
INCREASE CONVENIENCE
OBTAIN RELIABILITY
HAVE EASE OF USE
CUSTOMER INTIMACY
HAVE A HIGH LEVEL OF CUSTOMIZATION
HAVE HIGH LEVEL OF SERVICE
HAVE A COMPLETE SOLUTION
ACCESS TO A WIDE SELECTION
OBTAIN ADVICE & CONSULT
FEEL OF AN “EXPERIENCE
Westin
Motel
6
4
Seasons
Our PL Player: Westin
Westin Business Model
High
Performance
Best Locations
Westin Kids
Club
Linked to
Aesthetics
High Level
of Service
Portray
Sophistication
Best Employees Best Amenities
In Prime Locations
(within 2 miles of
city centers)
Customer
Satisfaction
(795 JD Power
Score)
Speed of Check in
(2 minutes)
Dream Westin
Recruit Quality
Employees
Create
Extravagant
Environment
RunConcierge
Sensory
Welcome
Represent
Healthy Lifestyle
Growing
number of
locations
Superfoods
menu
Heavenly Spa
Experience
Engineers
Corporate
Culture
Heavenly
Beds
Great
Location s
Intent to return
(85%)
Smoke Free
Environment
Westin Business Model: High Service Level
Westin Kids
Club
High Level
of Service
Best
Employees
Speed of Check in
(2 minutes)
Dream
Westin
Recruit Quality
Employees
Create
Extravagant
Environment
Represent
Healthy Lifestyle
Superfoods
menu
Heavenly
Spa
Experience
Engineers
Corporate
Culture
Heavenly
Beds
Intent to return
(85%)
Smoke Free
Environment
Westin Business Model: Sophistication
Best Locations
Portray
Sophistication
Best Amenities
In Prime Locations
(within 2 miles of
city centers)
Customer
Satisfaction
(795 JD Power
Score)
Dream
Westin
Create
Extravagant
Environment
RunConcierge
Sensory
Welcome
Represent
Healthy Lifestyle
Superfoods
menu
Heavenly
Spa
Experience
Engineers
Corporate
Culture
Great
Location s
Westin Business Model: High Performance
High
Performance
Best
Employees
Best Amenities
Customer
Satisfaction
(795 JD Power
Score)
Speed of Check in
(2 minutes)
Dream
Westin
Recruit Quality
Employees
Create
Extravagant
Environment
RunConcierge
Sensory
Welcome
Superfoods
menu
Heavenly
Spa
Experience
Engineers
Corporate
Culture
Heavenly
Beds
Great
Location s
Intent to return
(85%)
Smoke Free
Environment
Westin Business Model: Aesthetics
Linked to
Aesthetics
Best
Employees
Best Amenities
Recruit Quality
Employees
Create
Extravagant
Environment
Sensory
Welcome
Represent
Healthy Lifestyle
Growing
number of
locations
Superfoods
menu
Heavenly
Spa
Experience
Engineers
Corporate
Culture
Great
Location s
Intent to return
(85%)
Smoke Free
Environment
Growth Opportunities for Current Players
?Northeast Migration by Four Seasons
NE Attack Move by Four Seasons
The Four Seasons maintains exceptional spa experiences for guests, and also
launched the “Spa Escape Promotion”
• Non-guests can book spa packages at the hotel
• No overnight stay required
• Available in 50 cities on 4 different continents
The Heavenly Spa is an exclusive luxurious escape for Westin guests...
At the Four Seasons Spa, “it’s about your entire experience,
from the moment you arrive to your time in the lounge areas
and treatment rooms to a relaxing departure. In the industry,
this intricately designed process is called a ‘spa journey.’”
Northeast Attack by Four Seasons
Growth Opportunities for Current Players
?Northeast Migration by Four Seasons
?Blocking Strategy and Southwest
Migration by Westin
Westin’s SW Blocking Move
To prevent Four Seasons migrating to PL, Westin
increased the level of customized complete services.
Westin offers complete day
planning service:
•spa days
•day care
•transportation to business
• tickets to events
•guided local tours.
Growth Opportunities for Current Players
?Northeast Migration by Four Seasons
?Blocking Strategy and Southwest Migration
by Westin
?This Battle Leaves an Opening at the NE
Corner of OE and SW Corner of CI
Copyright © 2007 Zafar Iqbal
PRODUCT LEADERSHIP
ACCESS TO HIGH PERFORMANCE
more features
more functionality
latest technology
complexity
LINKED WITH AESTHETICS AND WITH STYLE
PORTRAY SOPHISTICATION
p
r
i
c
e
performance
OPERATIONAL EXCELLENCE
LOWER COSTS
INCREASE CONVENIENCE
OBTAIN RELIABILITY
HAVE EASE OF USE
CUSTOMER INTIMACY
HAVE A HIGH LEVEL OF CUSTOMIZATION
HAVE HIGH LEVEL OF SERVICE
HAVE A COMPLETE SOLUTION
ACCESS TO A WIDE SELECTION
OBTAIN ADVICE & CONSULT
FEEL OF AN “EXPERIENCE
Westin
4
Seasons
CI-PL war
Motel
6
Open
Space
A Battle Ensues…
Introducing Our Concept:
Pacific Coast Hotels
? Clean, Quiet Rooms
? Modern Look
? Provide Only what the Guests Need
? Latest Technology
? Low Price Point
? Location, Location, Location
? Close Proximity to Popular Resort Destinations
? Unique Opportunity in California’s Tourism Spots
? Within One-Day Drive of Each Other
PCH: Target Market
21-40 years old
Young Professionals
Cost-Conscious Couples
Weekend Vacationers
Business Travelers
Operational Efficiencies:
How Will PCH Make It Work?
? Self Serve Check In/Out
? Vending of Toiletries/Personal Products
? Iron, Dryer, Safe Rentals
? Maid Service every 3 days
? Multi-Functional Empowered Employees
? Outsourced Amenities
? Standardized Rooms
PCH: Guest Delighters
? Free Wi-Fi
? Free Airport Shuttle
? Hi-Tech Experience
? Outsourced Amenities
? Restaurant
? Health Club
? Zip Car
? Bikes
PCH: Critical Success Factors
? Cost Control
? Employee Utilization
? Technology
? Strategic Partnerships
? Provide Just What the Guests Need
? Outcome Focused
? Quality Locations
? Fast Paced yet Controlled Growth
Concept Equation
+
+
+
Spa, reception,
restaurant
Beds
Booking(partially)
Westin
Booking
(eventually),
Technology
Furniture
Go Cars,
Restaurants, local
partnerships
PCH
Internal External
C
o
n
t
r
o
l
l
e
d
N
o
t
C
o
n
t
r
o
l
l
e
d
N
o
t
Integration
Modularity
Comparison
? Westin – Completely
Integrated
? PCH – Very Modular
PCH: Adjacency Screen
Resources
? Increasing Asset Base and increasing ROI
? Improving Credit Market
? Motivated, flexible employees
? Strong partnerships
Activities
? 3 year project cycle
? Innovatively outsource most functions/services
? Identical operational and accounting models to other properties
Values
? Will increase convenience and flexibility to customers
? Target resort locations with lack of low-cost options
Lake Tahoe
Napa Valley
San Francisco
San Diego
Palm Springs
L.A.
Laguna Beach
Phase 1
Santa Barbara
Malibu.
San Luis Obispo
PCH: Adjacency Move
Add locations along pacific
coast
Less than a half day drive
between most locations
Presence in more desired
resort destinations
Phase 2
Maintain High
Standards
Low Price Point
Clean, Modern,
Quiet Room
Increased
Utilization of
Assets
Occupancy:
>75%
Utilizing
partnersh
ips for
guest
amenities
Efficiencie
s from
cross
functional
employees
Streamlining
of Frills
Automat
ed Check
In/Out
Price:
10% lower than
nearest direct
competitor
Desirable
Location
Web
Based
Custome
r
Services
&
Booking
Toiletry
Vending
Customer
Service
Inquiries per
visit: 50%
through
PCH
website
Using
“Modern”
Designers
for rooms
and lobby
Build
loyal
customer
base
Strategic
Partnerships
Self
Service
Model
Highly
Skilled and
Motivated
Employees
Strong
Brand
Identit
y
Low Cost
Amenitie
s
Multi
Functional
Website and
Smart
Phone
Application
Desirable
Location
Maintain High
Standards
Low Price Point
Increased
Utilization of
Assets
Occupancy:
>75%
Utilizing
partnershi
ps for
guest
amenities
Efficiencies
from cross
functional
employees
Streamlining
of Frills
Automat
ed Check
In/Out
Price:
10% lower than
nearest direct
competitor
Web
Based
Custome
r
Services
&
Booking
Toiletry
Vending
Customer
Service
Inquiries per
visit: 50%
through
PCH
website
Using
“Modern”
Designers
for rooms
and lobby
Build loyal
customer
base
Strategic
Partnerships
Self
Service
Model
Highly
Skilled and
Motivated
Employees
Strong
Brand
Identity
Low Cost
Amenities
Multi
Functional
Website and
Smart Phone
Application
Desirable
Location
Maintain High
Standards
Clean, Modern,
Quiet Room
Increased
Utilization of
Assets
Occupancy:
>75%
Utilizing
partnersh
ips for
guest
amenities
Web
Based
Custome
r
Services
&
Booking
Customer
Service
Inquiries per
visit: 75%
Utilizing
partnersh
ips for
guest
amenities
Desirable
Location
Convenient and
Popular Locations
Using
“Modern”
Designers
for rooms
and lobby
Build
loyal
customer
base
Strategic
Partnerships
Highly
Skilled and
Motivated
Employees
Strong
Brand
Identit
y
Low Cost
Amenitie
s
Desirable
Location
Strengths
•Untapped Niche Market
•Modular Business Model
•Cost Control
•Location
•Price Point
•Cheap Chic
Weaknesses
•New Business
•Lack of Brand Awareness
•Room Size
•Regional Player
Opportunities
•New Markets-Scalable
•CI Customer Appeal
•Strategic Partnerships
•Change the market
Threats
•Economy
•New Market Entrants
•Saturation of Total Market
•Union Employees
PCH: SWOT Analysis
Predicting Future Impact of PCH:
Price-Performance Graph
Copyright © 2007 Zafar Iqbal
PRODUCT LEADERSHIP
ACCESS TO HIGH PERFORMANCE
more features
more functionality
latest technology
complexity
LINKED WITH AESTHETICS AND WITH STYLE
PORTRAY SOPHISTICATION
p
r
i
c
e
performance
OPERATIONAL EXCELLENCE
LOWER COSTS
INCREASE CONVENIENCE
OBTAIN RELIABILITY
HAVE EASE OF USE
CUSTOMER INTIMACY
HAVE A HIGH LEVEL OF CUSTOMIZATION
HAVE HIGH LEVEL OF SERVICE
HAVE A COMPLETE SOLUTION
ACCESS TO A WIDE SELECTION
OBTAIN ADVICE & CONSULT
FEEL OF AN “EXPERIENCE
Westin
Motel
6
4
Seasons
PCH
Pacific Coast Hotels
Questions?
doc_379711900.pptx