Strategic Analysis of Four Season Hotel for Hospitality Management

This report provides a strategic analysis of the Four Seasons Hotel, an international luxury hospitality organization. It examines the hotel's overview, including its services, core values, and global expansion strategy. The analysis delves into the current economic and market position of the Four Seasons in Australia, highlighting its use of digital technology and the support from the Australian government due to the tourism sector's GDP growth. A critical evaluation is performed, comparing the Four Seasons with competitors like Ritz Carlton and Hyatt, focusing on pricing strategies and market penetration. The report also touches upon the Hilton Hotel's global expansion and its impact on the hotel segment. References from various sources, including Booking.com, Expedia.com, and TripAdvisor, are provided to support the analysis.

Running head: STRATEGIC ANALYSIS IN HOSPITALITY MANAGEMENT
Strategic Analysis in hospitality management
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1STRATEGIC ANALYSIS IN HOSPITALITY MANAGEMENT
Overview of the firm –Four season
It has been identified that Four Season Hotel is an international luxury hospitality
organization headquartered in Toronto and it operates in more than 100 hotels across the
world. The organization has gained a tremendous popularity due to its unique quality of
services (expedia.com 2019). Particularly, the brand has incorporated its services into digital
platform which certainly helped the organization to gain exposure in the global market. It has
been noted that organization includes a great variety of services like hotels, resorts, private
retreats, residence and events meeting. The major objective of the firm is to expand the
operation across the globe. It has been identified that the core value of the organization is to
honour, respect and reward its employees. It has been noted that organization claims that
unusual personal loyalty and with multiple program in place which allows tits hotel managers
and staffs to work in globally environment. In this context, Salvioni (2016) commented that
Four Season hotel is probability the first organization in the hospitality sector to identify and
understand the significant of digital media to luxury travellers and planning.
Current economic and market position of Four Season in Australia
It has been identified that Four Season hotel is strongly sustained by the support of digital
technology. On the other side, the brand has gained a tremendous back-up from the
government as in Australia, growth of GDP in tourism sector is relatively high. In addition to
this, Goh, Nguyen and Law (2017) mentioned the fact that stability of economic environment
in Australia is another significant reason for the sustainability of businesses. Likewise, when
it comes to gaining competitive advantage, it can be added that uniqueness in the service and
broad profile of services have put the firm a position where it can develop a competitive
edge.
Critical evaluation:

2STRATEGIC ANALYSIS IN HOSPITALITY MANAGEMENT
The position map given in the presentation helps to observe the fact that Four Season
is compared to other hotels it has been identified that Ritz Carlton and Hyatt are going ahead
with respect to customer service because of their pricing strategies. According to Nicolau and
Santa-María (2013), revenue of Hyatt has increased in the four quarter of 2018 as the firm
observed a decrease of 3.89% in spite of the revenue growth by most its competitors Four
Season. However, it can be added that Hotel Four Season is lagging behind with respect to
customer base when they are compared to consumer base that Ritz Carlton has developed in
the United State. This means Hyatt and Ritz Carlton tend to develop their pricing strategies
that are centred on low price. By implementing a low pricing strategy, the firms are able to
penetrate the large market which is highly required for a brand running operation in a
competitive environment (fourseasons.com 2019). On the other side, Four Season Hotel tends
to focus on the high-end consumers; thereby, the pricing strategy of the brand is relatively
high and Four Season is not able to gain required exposure in Asian market. If the operation
of Hotel Hilton is considered, it can be mentioned that Hilton gains exposure because of its
rapid global expansion. A large percentage of Hilton’s consumers belong to United State.
Goh, Nguyen and Law (2017) mentioned that hotel segment tends to account for the
increasing market share which is owing to increase in business travellers globally. It has been
noted that resort segment is predicted to observe the rapid growth rate beings from 2016 to
2022

3STRATEGIC ANALYSIS IN HOSPITALITY MANAGEMENT
References
Booking.com (2019). Booking.com: The largest selection of hotels, homes, and vacation
rentals. [online] Booking.com. Available at: https://www.booking.com/ [Accessed 20 Apr.
2019].
expedia.com (2019). [online] Expedia.com. Available at: https://www.expedia.com/
[Accessed 20 Apr. 2019].
fourseasons.com (2019). Four Seasons Hotels and Resorts | Luxury Hotels | Four Seasons.
[online] Fourseasons.com. Available at: https://www.fourseasons.com/ [Accessed 20 Apr.
2019].
Nicolau, J.L. and Santa-María, M.J., 2013. The effect of innovation on hotel market
value. International Journal of Hospitality Management, 32, pp.71-79.
Goh, E., Nguyen, S. and Law, R., 2017. Marketing private hotel management schools in
Australia. Asia Pacific Journal of Marketing and Logistics, 29(4), pp.880-889.
Salvioni, D., 2016. Hotel Chains and the Sharing Economy in Global
Tourism. SYMPHONYA Emerging Issues in Management, (1).
tripAdvisor.com (2019). TripAdvisor: Read Reviews, Compare Prices & Book. [online]
TripAdvisor. Available at: https://www.tripadvisor.com/ [Accessed 20 Apr. 2019].