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Ritz-Carlton Case

In: Business and Management

Submitted By mkobayashi06
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Course – MKTG 6300 Fall 2007
Service Marketing

Student Name:
Maria E. Kobayashi

Individual Case Analysis

Individual Case Summary: Ritz – Carlton Hotels

1. Key issues
Ritz – Carlton (RC) wants to be perceived as the premier luxury hotel, with differentiated and personalized service, high levels of guest retention and guest recovery rates, and low levels of service defect incidence. The group wants to achieve this goal by optimizing the balance between human relationships and the systems. Nevertheless, the systems and databases RC had in place at the time of the case do not deliver the level of information needed to reach their objective. Moreover, they do not allow for smooth interaction with the RC team, who are able to gather highly valuable information regarding customers’ preferences, dislikes, or potential problems experimented by the guests.
2. Recommendations
First of all, the Encore system should be modified to include real-time updating of customers’ preferences and of potential problems the guests might have experimented during their stay. This should be standardized across all RC properties. Guest categorization should also be standardized and input into the system. This system should be available in a user-friendly way to any member of the RC staff in convenient locations. It should also include a common defect reporting module with the functionality to cross data between different locations. After all these processes are finished, the group’s two systems (Encore and COVIA) should be integrated to have a seamless database worldwide to help provide the same high-level experience to a guest regardless of his or her destination.
3. Rationale
RC value proposition is based on delivering a smooth, high-level customer service, based upon effective guest experience (as opposed to intuitive guesses of preferences). Having adequate information across the different properties will help maintain the levels of service and retain its customers. Furthermore, as growth possibilities are located outside the U.S., having a common worldwide system would provide a better service for the guest and strengthen the brand as well.
4. Next steps
RC should begin processing all the data that is manually collected through the Guest Preference Pads and the Guest Incident Action Reports, since those forms are already standard. After doing so, it should work on a common format for its databases and categories.

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