S
Yield & Revenue Management
Research ProjectTHE BVLGARI HOTEL VS THE RITZ CARLTON
LONDON
Denny Setiawan 305450Niranjan Prasaad 306416
BVLGARI HOTELS LONDONLocation – 171 Knightsbridge , UK
85 Rooms & Suites3 lane Swimming Pool1 Restaurant & BarBest Spa in London47 seat CinemaBall RoomCigar Shop
BVLGARI HOTELS LONDON – SWOT ANALYSIS
STRENGTHS:
Centrally Located Strong Brand Presence Great Workforce Exquisite Spa Modern Style
WEAKNESSES:
Striving to penetrate the emerging economy and increase no. of properties
Slow Renovation – loss of revenue
Perceived as Expensive Inability to adapt & react to
changing situations
OPPORTUNITIES:
Capacity to increase sales by concentrating on distribution channels.
Potential to open more properties for the high-end society of London
Diversify portfolio to serve multiple seg.
Take advantage of the Technological Revolution
THREATS:
Intense Competition Inflation leading to increase
in the cost of operations.
THE RITZ CARLTON LONDON Location – 150 Piccadilly London 133 Rooms & Suites Most beautiful Ballroom in Europe 3 Restaurants – Palm court, Ritz Restaurant, Rivoli Bar/Private Dining
Casino Spa & SaloonMusic RoomSwimming Pool
THE RITZ CARLTON LONDON – SWOT ANALYSIS
STRENGTHS
Top Notch Service from Ladies & Gentlemen
Located in the Heart of London
Variety of rooms attracting wide market segment
Strong Brand Image Aspirational Brand Loyalty Excellent Reward Programs
WEAKNESS
Only 1 Restaurant Serves proper four Course Meals
Continuous Decline In The Bottom line
Current Economic conditions In London
OPPORTUNITY
Potential to increase wider clientele through Corporate Tie-Ups, Packages & Promotions.
Attract FIT and B2B customers More concentration on
Sustainability and Go Green philosophy
Capacity to increase number of Weddings & Events organized
THREAT
Current Economic conditions In London
Intense Competition - Uncertain Decline in the
Tourism Industry – Natural disasters & Terrorism
Major Competitors – Hyatt, Hilton, Four Seasons & Starwood
PEST ANALYSIS OF THE WORLD’S CITY - LONDON
POLITICAL FACTOR’S: Government considers Tourism as a “Big Ticket” for the future
and implements good policies & incentives for its growth. Established regional Growth Fund through which 236,000 net
jobs can be generated by 2015. Substantially reduced Interest Rates to increase cash flow
and slump unemployment. Relations with other countries to increase global tourism and
create new markets. ECONOMIC FACTOR’S: London – center for business & financial developments. Recession – Impacting spending power of people. Headquarter of the worlds largest banks – Financial advantage Largest economy in the world located at a central time zone
connecting Asian &American markets.
PEST ANALYSIS OF THE WORLD’S CITY - LONDON
SOCIAL FACTOR’S: Fast rate of growth in population – 8.3 million High crime rate calling for high security. Exceptionally high living costs – People prefer services, low on
cost and high on value. Highest percentage of Immigrants who are now residents. Hub for organizing events – social, sports, cultural, fashion,
concerts, etc.
TECHNOLOGICAL FACTOR’S: Advancement in Technology – Hospitality must take advantage to
improve & speed up service – Centralized supply chain management system.
UK is ranked on the top for Technological Advancement. Maintain database of customers (preferences) & advertising.
OTA’S FOR BOTH THE HOTELS Booking.com Ebookers.com Hotels.com Expedia.com Toptable.co.uk Easytobook.com Trivago.ch Hotelclub.com Kiwicollection.com Lastminute.com Grandluxuryhotels.c
om
Venere.com Kayak.com Travelocity.com Getaroom.com Priceline.com Orbitz.com Cheaptickets.com Hrs.com Agoda.com Hotelplanner.com Fivestaralliance.co
m
Hoteltravel.com Wego.com Myboutique.com Hotelscombined.com Hotels.uk.com Novelahotels.com A-london.eu Alpharooms.com Galahotels.com Traveltura.com Letsbookhotels.com Lhw.com
MARKET ANALYSISBVLGARI HOTELS & RESORTS LONDON
TARGET MARKET Business travellers, Corporates, Leisure travellers from Upper & Upper middle class society
RATE STRUCTUREBest Available Rate & Breakfast
Inclusive
PRICING STRATEGYSkimming
POSITIONINGLuxury Hospitality Market
THE RITZ CARLTON LONDON
TARGET MARKET Business travellers, Corporates, Leisure travellers from Upper /Upper middle & Middle class
society
RATE STRUCTUREBest Available Rate, Breakfast Inclusive, Putting on the Ritz
Rate, Ritz Romance Rate, Experience William Kent Rate,
Suite Dreams Rate, Suite Delight Rate
PRICING STRATEGYSkimming & Penetration
POSITIONINGLuxury Hospitality Market
(Wider)
WHAT’S HAPPENING IN LONDON ?30th Jan 2014 – THE VAULT Festival (6 weeks) Urban
food, Dancing, Drinks, Cultural Shocks
11th Feb 2014 – TAILOR SWIFT Concert
14th Feb 2014 – Valentines Day
20th Feb 2014 – VIVALDI - Candle light concert
5th April 2014 – Prince IGOR Opera
10th Apr 2014 – The Royal Ballet, Winters Tale at Royal Opera House
Rates Fluctuate on these dates increasing the revenue of the hotels.
Bvlgari London Daily Room Rates
£300.0£500.0£700.0£900.0
£1,100.0
Bvlgari - Deluxe RoomHotel WebsiteBooking.comExpedia.com
£0.0
£500.0
£1,000.0
£1,500.0
£2,000.0
£2,500.0 Bvlgari-Suite Room Deluxe 1 King
Hotel WebsiteBooking.comExpedia.com
The Ritz London Daily Room Rates
£100.0
£200.0
£300.0
£400.0
£500.0
£600.0 The Ritz London-Deluxe King
Hotel WebsiteBooking.comExpedia.com
£200.0£700.0
£1,200.0£1,700.0£2,200.0£2,700.0
The Ritz London-Deluxe Suits
Hotel WebsiteBooking.comExpedia.com
Bvlgari London Daily Rates For 11th Of April
400
500
600
700Bvlgari-Deluxe Room
Hotel WebsiteBooking.comExpedia.com
£400.0£450.0£500.0£550.0£600.0
Bvlgari - Suite Room
Hotel WebsiteBooking.comExpedia.com
The Ritz Carlton Daily Rates For 11th Of April
£200.0
£700.0
£1,200.0
£1,700.0The Ritz- Deluxe Suit
Hotel websiteBooking.comExpedia.com
£200.0
£400.0
£600.0
£800.0
The Ritz Deluxe King
Hotel WebsiteBooking.comExpedia.com
MEAN ABSOLUTE DEVIATION (MAD) FOR THE RATES OF EACH HOTEL
Hotel Bvlgari Deluxe Del. Suite The Ritz Del The Ritz Suite
MAD 23.84 41.78 77.95 210.22 2.09 12.84 50.93 58.78
Average 545.35 627 573.51 2087.83 556.13 423.8 1381.38 1030.88
MAD as %
4.37% 6.66% 13.59% 10.07% 0.38% 3.03% 3.69% 5.70%
RECOMMENDATIONSLargely present in a number of OTA’S but has to be coupled with similarities in the rates so that there is no loss of revenue.
BVLGARI LONDON: Must increase no. of rooms & room types – Cover a
wider market Speedy Renovations & Specialty Cuisine Restaurants. Promotions to increase Wedding & Events Revenue
RITZ CARLTON LONDON: Focus on Currency Exchange Rates to Expand Foreign
Markets Specialty Cuisine Restaurants to cater to growing
demand.
REFERENCES http://www.mbaskool.com/brandguide/tourism-and-
hospitality/2173-ritz-carlton.html http://www.mbaskool.com/brandguide/lifestyle-and-retail/
3405-bulgari.html https://en.wikipedia.org/wiki/Ritz-Carlton_Hotel_Company https://en.wikipedia.org/wiki/Bulgari http://www.docstoc.com/docs/50540615/Marriott-
International-Inc-(MAR)---Financial-and-Strategic-SWOT-Analysis-Review
http://writepass.com/journal/2012/12/strategic-analysis-swot-pestel-porter-of-premier-inn-whitbread-plc/
http://www.bulgarihotels.com
https://www.yourreservation.net
Top Related