Core Competencies and Competitive Advantage The core competencies represent the personality, ability, knowledge, skills factors of the brand. The Ritz-Carlton emphasizes personalized services and insists on a high staff to guest ratio of 3:1. By providing sufficient resources, the hotel’s management ensures that the staff are not over-strained so that the high level of customer care expected from them is not compromised. Staff are encouraged to interact with guests to get to know each guest’s preferences and needs, and to deliver personalized services. They are also trained to observe and attend to the smallest needs of guests.
Key Success Factors In the luxury hospitality industry, a number of key factors contribute to a brand’s success. Heritage and a sense of history are highly attractive to consumers, as hospitality is such an experience-driven industry. Employee empowerment and service are also key factors that make or break a hospitality brand in the luxury sphere. In addition to service, consumers desire a wide range of luxury-grade amenities, with various options to choose from. The Ritz-Carlton brand is steeped in heritage dating back to the first hotel. Caesar Ritz began defining the brand in 1898 with the first hotel opening in Paris. After this, the brand expanded and franchised in the United States, bringing the services from the European hotels. Employee empowerment is a success factor for the brand on the basis of customer interactions. Employees are empowered to make guests feel comfortable while also spending up to $2000. Employees are then recognized for exemplary services rendered during meetings. Customer service is a top priority of the brand. Each guest is treated with the utmost respect and only addressed by his or her name. Additionally, the brand is known for world-class amenities within its properties.
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Growth Potential and Opportunities Ritz-Carlton’s growth potential and opportunities can be conveyed with the following four initiatives, some of which the brand is already undertaking. Expand Destination Resorts and Private Club Properties Ritz-Carlton is currently working to add more resort and private club properties in targeted areas, recently announcing a focus on Australia and the South Pacific. The projected growth rate of the Australian lodging industry is 7.3% through 2010, and tourism to the South Pacific has seen a significant rise in recent years, with five of Euromonitor’s Top 10 City Destinations within Asia and the Pacific. Create Luxury Retail Developments in Conjunction with Hotels and Resorts The brand has indicated a strong focus on integrated luxury retail within and around its properties in recent reports and statements. With their existing properties, the brand is working to bring luxury retail development to nearby areas. With new and planned hotels and resorts, the brand is collaborating with luxury retail developers to integrate these retail areas into the properties, including a planned luxury shopping center being built in conjunction with the Paradise Valley, Arizona development, as well as a planned collaboration with a property in San Diego with Whole Foods. Increase Private Residences in Targeted Urban Areas With many millennials choosing to raise their families in urban areas as opposed to suburbs, and with many retirees choosing to move back into cities from the suburbs, the need for luxury urban housing is clear. RitzCarlton has announced its intentions to increase the number of private residences within its urban properties in selected areas to address this need. Branded Rentals With vacation home rentals on the rise as opposed to hotel rooms, the brand can create its own line of branded residential rentals in targeted urban areas, as well as resort areas. Having a strong sense of luxury branding and management will prove a competitive advantage over traditional and online booking and rental companies. 18