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W HOTELS

service marketing and management final presentation
by

Andrea Mainardi

on 26 December 2013

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Transcript of W HOTELS

S-T-P Model
SEGMENTATION
Targeting
It targets the
sophisticated business traveler
as well as leisure travelers with
high disposable income
willing to pay extra for experience and image.
Positioning
Position themselves as an alternative to the bland, conservative hotels.

Hotel Industry
A Hotel
:
An establishment where you pay to stay on a short-term basis. Provides meals and guest services.

Most, but not all hotels provide
food
. In the United Kingdom, a hotel is required by law to serve food and drinks to all guests within certain stated hours.
Basic Offers :
Room + bed +cupboard + small table +washstand


Modern facilities:
en-suite bathrooms, air conditioner…



Luxury features:

bathrobes, slippers, jacuzzi..

Guest facilities:

swimming, pool gym, restaurants…

Categorized by:
- size
-length of stay
- theme
- target market
- location
- rating
Not all hotels are the same

A Rough Rating Guide

Limited amenities & services, but clean

Good, better equipped

More spacious, color tv, bars or lounge.

More comfortable, excellent cuisine room service and other amenities.

Luxurious premises, widest range of guest facilities

Economy and limited services
Focused or selected service
Full service
Upscale luxury

Smaller independent non-branded hotels.
Typically furnished in a themed, stylish manner.
Upscale facilities of varying size.
Unique or intimate settings with full service accommodations
Example: W Hotel
May be classified as luxury hotels.
Very unlikely to be amongst large hotels.
To capture market share, capture success to establish their own brand.
Historic and Boutique hotels
Types & Styles of hotel
The Library Hotel (New York) Each floor is a different category

The Burj al-Arab Hotel (Dubai) built on artificial island



Other Specialty Hotels
The Luxor (Las Vegas)

The Jail Hotel (Switzerland)

Capsule Hotels (Tokyo)
Cave hotels
The Desert Cave Hotel (South Australia)
Underwater Hotels

Utter Inn (Sweden)

Ice Hotel (Sweden)

Future Outlook
In 2015 reach $480 billion
Demand for rooms to increase
Tourism increasing

Demand accommodation increases
Focus on international markets
Trends
Focus on healthy services
China, Russia and India fastest growing regions in the hotel industry.
With technology improving, potential to grow.
Maximize shares and lower costs
Face challenges need skilled employees, retain loyalty and room vacancy.

Variables
Geographic
W Hotels are located in the hub of capital cities.
Demographic
Age, Income
bEHAVIORAL
How often the product is used (usage rate)

pSYCHOGRAPHIC
Activities, Interests, Opinion,
Attitudes, Values, and
Lifestyles
Strategic Location
Taipei
Atlanta
Austin
San Francisco
Dallas

"Generation X"
Comfortable but cautious about borrowing
Buying habits characterized by their life stages
Embrace technology and multitasking
Mid- High Income
1965–1979
Usage situation (daily use, holiday use, etc.)
Buyer’s status and loyalty to product (nonuser, potential user,first-time users, regular user)
A hip, luxurious hotel first to create a lifestyle brand in the hotel industry
The W promises to
“Wow”
its guests
A place travelers can go to
“Live. Play. Savor. Wish"
The “Whatever/Whenever”™ service:
Differentiation Strategy
Whatever you want. Whenever you want it (as long as it's legal)
Industry Description
W PILLOW MENU
Recharge with the perfect pillow from the W Hotels pillow menu.

Choose between a body pillow, neck roll, firm foam PrimaLoft pillow or 100% goose-down feather pillow.
W "Goodie Box"
Mini Bar
After Party
G
A
P Model

GAP 3 – Performance Gap
“Waxed my car and left it in my garage prior to trip to Chicago. W Hotel valet parked car for me (only time it was out of my sight) and when I got home it dent in the driver side passenger door. Odd dent which could seems to be caused by car getting kicked. No scratches, no rubs, just a dent low on the door.”

“Called about dent and got the run around. They wanted me to call at a later time, had to leave a message, had to report problem to their insurance.... They denied it saying car had prior damage.It did not have prior damage and that's the last time I'll stay at the W Hotel in Chicago.”

GAP 3 – Performance Gap
Evaluation:
A key part of a luxury hotel’s service standard is its duty to insure that the property of its customers isn’t damaged or harmed in any way.
Damaging a client’s car is an extremely serious service standard violation.
GAP 4 – Communication Gap
Customer complaint: Bungled Reservation

“I prepaid for a room for a guest at my wedding so that the room charge would go to me, but the incidentals would be paid by the guest. W Hotel assured me that it wouldn't be a problem.”

“They
charged me for everything,
leaving me in the awkward position of having to explain the mix-up to a wedding guest. On top of that, it took no less than 1 online booking, 3 phone calls and actually stopping by the lobby of the hotel to get them to confirm the reservation was correct.”

“Despite the note they found on the reservation telling the clerk to split the room and incidental charges (which they located in their system) they still screwed it up.”

GAP 4 – Communication Gap
Evaluation:
Despite re-assuring the client that everything will be done as requested,
the staff at W Hotel did not fulfill their promise
, putting the customer in an unpleasant situation and forcing the customer to pay extra both of which are very serious service quality violations for a luxury hotel branch.
Not delivering to service standards

Customer complaint:
W Hotel in Chicago valet will dent your car
Not delivering to service standards

Whether or not the valet was tipped, the
customer is always right.
W Hotel lost a customer with this case.
W Hotel
must insure that the valets they hire are
qualified and responsible.

Not matching performance to promises
Not matching performance to promises


Perhaps it would have been wiser to simply tell the customer that fulfilling his request was not possible; however it would still have shown poor service quality for a luxury hotel branch.

The violation was committed either due to staff negligence or disorganization which means the company must improve its staff training standards to avoid such problems in the future.
hONESTY iS THE bEST Policy
W Hotels has redefined the luxury and design-led lifestyle hotel experience.
ROOMs Available @ W Taipei
FABULOUS ROOM
COOL CORNER ROOM
EXTREME WOW SUITE
FANTASTIC SUITE
W Hotels
(stylish boutique full-service urban hotels and resorts)
Modern, sophisticated design
Custom-made furnishings and accessories
Fully-wired rooms with the most advanced tech.
High-quality signature restaurants and bars

Inaugurated in
December 1998
with the opening of the
W New York.

Features
BODY TREATMENTS

Designer Detox
Tummy Tuck
Nip/Tuck
AWAY® Body Treatment
BLISS® SPA
WOOBAR
Nightlife, redefined.
Energetic DJs
A modern bistro featuring sensational buffets as well as international delights.
W Hotel Introduction
Group 2
Gap 1: Knowledge GAP
In the Luxury Hotel industry, managers, must know and clearly understand what their guests expect from their stay including all:



Gap 1: kNOWLEDGE gAP
Gap 2:
Service Design and Standard Gap
Reliability:
Trip Advisor 2013 Traveler's Choice Award(Luxury, Top Hotels, Best Service)

Intangible components
(Availability of additional services, ease of check-in and check-out procedures)
Tangibles
(the room, amenities, lobby features)
Typically they exceed customers expectation because they have a strong understanding of those expectations.
W Hotel has very high reviews in terms of service quality making it one of the best luxury hotels in Taipei.

Work hard to create and maintain a culture of service quality
Extensive database of customers expectation
Feedback from employees and customers
Continual improvement
Strong Relationship Marketing

How do they exceed and understand customers expectations?
Tangibles: Common theme of spare, minimalist modern decor and hip, informal names for categories of rooms and public areas
Assurance:
The W promises to “Wow” its guests
Empathy & Responsiveness:
Professional, efficient, extremely nice and helpful staff.
Good service design
Presence of customer driven standards
Appropriate physical evidence and servicescape

Thank You !
W Taipei
As of February 2013, W operates over 50 hotels in 24 countries.
Service Marketing & Management
Prof. Sun , Sam Chia-Chi
What do you think differentiates W Hotel from other boutique hotels?
Business travelers between 25-49 with incomes exceeding US $100,000.
Full transcript