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The Ritz-Carton Hotel Company

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Pedro Hecksher

on 22 April 2014

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Transcript of The Ritz-Carton Hotel Company

Problem Description
Solution 2
James McBride: General Manager at the new Ritz-Carlton hotel in Washington D.C

Has a very successful career in the hotel management business.

Proven veteran of the luxury hotel chain’s across the world.

Previous assignment: GM of a 248 room Ritz-Carlton in Kuala Lumpur that opened in 1998.

Cesar Ritz founded the first hotel in 1898 in Paris.

During the great recession and after the two world wars, many hotels had closed.

In 1983, Johnson Company bought the rights to The Ritz-Carlton name.

In 1997, Marriott International purchased The Ritz-Carlton.

By 2000 The Ritz-Carlton became primarily a hotel management company.
Already have a successful Seven Day Countdown.

Collins questions if the program is long enough.

McBride now questions his current program.
Changing training program:

Allow for spontaneity employees with customers.

New hires would be better prepared for workload.

Less stressful on new hires.

Allow more time for new hires to adapt to the company culture.
Group 5
The Ritz-Carton Hotel Company
The Dilemma
Should he try changing the Seven Day Countdown Process, which is world wide practice for the company?

Maybe the training should be longer, but what would that mean for The Ritz-Carlton?
Solution 1
It has proven to work on other situations.

A longer orientation would cost more.

First few months serve as additional training due to lower occupancies.

Only real benefit is to open at higher occupancies, would require more money spent on other areas (for example, marketing).
Court guests in a variety of ways.

The company uses Malcolm Baldrige National Quality Award criterias to all hotels around the world.

Respect and high quality of human resources.

Market Customization.

Seven Day Countdown
Under pressure, GM McBride is reexamining the “Seven Day Countdown”, which is a hallmark for the Ritz-Carlton hotel opening process.

Changes made by McBride can severely affect the relationship with Millennium Partners but the Ritz-Carlton Brand.

The Ritz-Carlton in Lumpur was awarded:
“Best Hotel in Asia-Pacific by the Business Traveler Asia/Pacific magazine.“Best Business Hotel in Malaysia” by Business Asia and Bloomberg Television.
James is consider a Hotel Guru and an entrepreneur.

He is known to bring excellence to the hotels he manages.

Ritz-Carlton has already signed 5 contracts to manage hotels for Millennium Partners.
The upscale developers also made deals with the Ritz-Carlton competitors- The Four Seasons.

Brian Collins is a manager for hotels for Millennium Partners. He has his own views for what is luxury service and how the GM should approach the new-hotel opening.

Full transcript