What methods are available to the Four Seasons Hotel to ensure customer loyalty?

Topics: Brand, Marketing, Loyalty program Pages: 17 (4820 words) Published: September 26, 2013


Course Title:Independent research study
Faculty:Mr. Sleeman
Assessment Title:
What methods are available to the Four Seasons Hotel to ensure customer loyalty?

Due Date:Word Count:4129
Due Time:16:00

Statement of Authorship
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Table of Contents
I. Client Brief……………………………………………………………………………. II. Background………………………………………………………………………….. III. Aims and Objectives………………………………………………………………… IV. Research Design……………………………………………………………………… V. Data Presentation and Data Analysis…………………………………………………

4.1 Background……………………………………………………………………
4.2 The consumer profile………………………………………………………….
4.3 Costs and consumer satisfaction……………………………………………… VI. Conclusion and recommendations…………………………………………………….. VII. References……………………………………………………………………………..

List of Figures
Figure 1 – Tourism Forecast to 2010……………………………………………………

I. Client Brief
The Four Seasons Hotel currently provides upscale services to the consumer demographic which maintains higher disposable income levels. This posh consumer looks toward the Four Seasons, which has a relatively positive brand image in its marketplace, for providing superior accommodations at the aesthetic level and also as far as how the brand links image with the self-concept of travelling consumers.

The Four Seasons does not currently utilise any form of loyalty programme, with the brand considering points-based programmes as “declasse and unimportant to the hotels’ money-is-no-object clientelle” (Johnson, 2005; Binkley, 2005). In the past, this type of belief has driven a very solid profit model as consumers return to enjoy the modern and upscale accommodations offered by this pricey, yet consumer-focused hotel chain. However, the problem in this situation is that today’s consumer, even the one with more disposable resources, is becoming more value-focused. There is a shifting trend in this demographic target group where value and cost savings are becoming acceptable and common beliefs, in a variety of different product and service varieties. This shifting trend maintains the ability to erode customer loyalty from the Four Seasons if the business is not able to project a sense of value to even the more upscale consumer. Failure to adopt a loyalty programme could spell financial problems for the hotel chain as consumers respond, in a difficult economy, with changing social values which lead to less loyalty toward a specific brand. Therefore, the problem with Four Seasons is a leadership focus on traditional marketing objectives which are likely not as effective for today’s value-focused consumer in building loyalty.

II. Background
The achievement of brand loyalty, in the hospitality industry, especially noticeable in the hotel industry, is what drives the highest marketing return on investment (Ricca, 2009). Brand loyalty can best be defined as the achievement of such a powerful consumer sentiment about the product’s brand or service elements that they begin to demand this particular brand over all other competitors in their similar marketplace....

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Barskey, J. and Nash, L. (2007). Staff problems can ruin guest loyalty. Hotel and Motel Management, London. 14(3), pp.267-280.
Barsky, J. and Nash, L. (2006). Low-tech services and products help drive guest loyalty. Hotel and Motel Management, Duluth. 221(17), pp.8-10. Accessed 29 Sept 2009 from www.proquest.com.
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