Four Seasons Boston Hotel Boston Hotel Situation Analysis

Four Seasons Boston Hotel Boston Hotel Situation Analysis
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Four Seasons Boston Hotel Boston Hotel Situation Analysis
Executive Summary
Four Seasons Boston Hotel is a luxurious and a five star restaurant located in Boston's Back Bay. The economy of Boston, MA has gained stability despite the multiple recession periods because of the advanced service industry including financial, health care, education and other auxiliary activities. Most recently, Boston has become a technology hub and an innovation city. Boston is also a leisure center with many recreation sites such as museums within the city. For these reasons, Four Seasons Boston Hotel has been receiving an increasing number of visitors who have significantly boosted their revenue collection as well as brand popularity. In addition, statistics shows that the demand hotel’s products and services, especially the lodging facilities has been growing at a compounded rate of 2.7% over the last six years. The hotel occupancy rate has been increasing at a rate of 6.4% with the total income generated increasing from
. Therefore the paper seeks to focus on Four Seasons Boston Hotel’s market analysis. Particularly focusing on situational analysis to assess the hotel’s micro and macro environments aspects with the aid of analysis tool such as PEST and SWOT analysis., Also, the paper analyses Four Seasons Boston Hotels major three competitors Taj Hotel, Park Plaza Hotel and The Ritz Carlson., The paper examines how the hotel has considered its implementation plan by identifying its marketing mix and responsibilities it has undertook to achieve the targets. In addition, the paper examines the hotel’s evaluation measures such as outcome, quality and efficiency measures that enable the hotel to establish whether it is on the right track or not. Indicators such as profit will measure attainment of targets for the hotel.
Environmental Analysis
Both internal and external business environments are critical when assessing a market condition to any business and Four Seasons Boston Hotel Boston Hotel is not an exception, In relation to the external environment covers external factors that influences such as politics, economics, social and technologies (McDonald, Frow and Payne 2011).
Politics
The Labor law in Massachusetts has clauses that protects employees’ contract termination under labor management. The clause prevents the hotel from premature firing of employees arbitrarily (McDonald, Frow and Payne 2011). Also, the labor laws grants employees flexibility that permits them to adjust their work in accordance with the company’s regulations. Additionally, the states laws are stable and this aspect has helped Four Seasons Boston Hotel benefits from the stability of cost and revenue.
Economics
The State of Massachusetts tax burden, 40% of the GDP in 2000, was 3% higher than the national average, which is a massive threat to Four Seasons Boston Hotels Boston Hotel (Kwag, Muller and Upneja 2016). Thus, the company might suffer a huge and extra cost for the high Federal and State Tax. In terms of economic growth, a 2016 research by Alan Clayton-Matthews, a Northeastern University economics professor asserts that Massachusetts economy is steadily growing at an annual rate of 3% and better than the 2.5 national rate, an indication outpacing the national economic growth (Kwag, Muller and Upneja 2016). This imply, the citizens economic growth improves as the incline to have more disposable income to enjoy their life, which is advantageous to Four Seasons Boston Hotels Boston Hotel as a hospitality industry. Additionally, Boston is ranked number one by the U.S Chamber of Commerce Foundation as the digital economy
Social Factors
Boston, Massachusetts has unique culture ranging from typical, visual and performing arts and foods and events. In relation to The Boston community and Massachusetts at large has huge affiliation to sea foods and dairy products, a culture that has seen the Hotel focus in providing these products to the clients to their greatest satisfaction. Concerning events, Boston city holds popular events such as the Boston Marathon, First Night festivals in New Year’s eves and Saint Patrick's Day Parade that is conducted every March and is popular with the city's large Irish population (McDonald, Frow and Payne 2011). These events provides lucrative market to the hotel as it creates peak seasons.
Technology Factors
The hotel will utilize the advanced technology in marketing and improve service quality to outdo the competitors. The hotel has made technological advancement to make the service provision ISO certified by adopting latest technologies such as tech-savvy rooms, whereby, the guest can connect their gadgets such s laptops, and cell phones to the TV via an interactive system called MyAway. Additionally, the hotel has adopted the virtual reality applications that allows clients to have a look of the facilities before bookings, it has achieved this through the use of Conventional virtual tours are simply 360-degree panorama photographs, slideshows or videos (McDonald, Frow and Payne 2011).
Location and Community Analysis
The communities in Boston show preferences for different cultural food. The hotel will offer various types of meals and styles that reflect the cultures of the people living in Boston. To adequately meet the requirements of the different cultures, the hotel will draw employees from different cultures that can specialize on meal preparation for different cultures (Kwag, Muller and Upneja 2016).
Primary Competitor Analysis
Identified primary competitors to business are Taj Hotel, Park Plaza Hotel and The Ritz Carlson. The three hotels enjoy a variety of strengths ranging from the organization, cleanliness, quality sun bed towels and variety of food for clients (Kwag, Muller and Upneja 2016). Fours Season Boston has gone beyond matching these strengths by employing qualified, disciplined and diversified labor force who are guided by the quality assurance to the clients. Cleanliness has been given priority in the hotel (Kwag, Muller and Upneja 2016). Modern facilities that apply the latest technology such as hair dryers, coffee makers and showers will be equipped in the hotel. It was noted that entertainment is a weakness for the three hotels and clients do not stay in the hotel at night. The hotel would make entertainment a winning strategy (Kwag, Muller and Upneja 2016). Life music, fiction movies, music and other arts will be employed to entertain the customers during at both nights and daytime.
Market Potential Analysis
Boston city has a rich history, amenities, convention centers, and ease of accessibility which makes it a leisure travel center. It is also a center for innovation and life sciences. These attributes are wooing many people in the town which offers an opportunity to Fours Season Boston Hotel to reap from growing demand for lodgings (Kwag, Muller and Upneja 2016). Therefore, the hotel will enjoy a good customer base and develop and long customer relations for years to come.
Services Analysis
Analysis of the service delivery on the hotels major rivals namely Taj Hotel, Park Plaza Hotel and The Ritz Carlson shows some notable gaps in ensuring customer satisfaction. Visiting the websites of these competitors reading customer reviews, it came to the realization that service reliability, speed, cultural sensitivity and level of quality was not to the expectation of the customers (Kwag, Muller and Upneja 2016). The Four Seasons Boston Hotel has countered these gaps by automating many of its services epically in guest rooms to improve customer’s satisfaction, delivery speed and efficiency. Additionally, the hotel has invested in its employees through a strong performance appraisal that includes, training, good working conditions and reasonable remunerations packages as a bid to motivate their performance (McDonald, Frow and Payne 2011). The hotel has also ensured that there is a constant supply of raw materials so that the services are there all through. For example, water supply will be a priority to ensure that everything runs smoothly. Power shortages were also noted as a constraint to service delivery, and an automatic generator was installed to cushion against power shortages (Kwag, Muller and Upneja 2016).
Marketing Position and Plan Analysis
Four Seasons Boston Hotel has placed itself in outstanding market position as it enjoys a stronger competitive advantage against its competitors in terms of quality and pricing. Four Seasons Boston Hotels’ prices are affordable and reasonable since it employs a cost-leadership as a business-level strategy (Morritt and Weinstein 2012). Cost leadership strategy enables the hotel to compete with its rivals on the basis of prices as prices as since it has managed to lower its cost of production. Additionally, Four Seasons Boston Hotels has dominated the market to its quality provision of products and services (Morritt and Weinstein 2012). Quality is one of the three core competencies of Four Seasons Boston Hotel, and it is the hotel mission to be the offering quality products and services to its customers. In relation to market planning, the hotel has plans to use a marketing expertise to design promotional activities that target the needs and attitudes of the clients in a bid to improve customer satisfaction. .
SWOT Analysis
Strengths
Four Seasons Boston Hotels Boston has outstanding strengths which has enabled it to feature among the top luxury hotels globally. First, the hotel major strength us its 55 years’ experience in the hospitality industry, an aspect that that has boosted their goodwill, general reputation as well as brand both locally and globally (Kwag, Muller and Upneja 2016). Second, Four Seasons Boston Hotel is perceived as a leader in the luxury hotel market due to its high-ending lifestyle and the local culture concepts. Lastly, Four Seasons Boston Hotel is well positioned among top travel and luxurious agencies as one of the top luxury brands and these has seen it benefiting from clients recommendations who are associated with celebrity guest thus boosting the hotel brand (McDonald, Frow and Payne 2011).
Weaknesses
As much as Four Seasons Boston appears to stand out among its major competitors, it also possess some weaknesses that limits its operations. One of the weakness is that Four Seasons Boston Hotels’ hotels, restaurants and events are perceived as highly expensive by the local customers. The perception has made the locals to suggest that the facilities only favors celebrities and the rich. Second, the companyâ€&tr...