Executive Summary
The Four Seasons Hotel has been in operation since the 1960s. The business is made up of more than 50 hotels around the globe. These hotels are fondly referred to as “the properties” by the employees and the management team. The hotels have continued to attract global clients given the fact that the services rendered are of international standards. Like other businesses with a desire to survive through the 21st century, The Four Seasons management team has found it important to embrace technology. This report is a case study on how the business has made use of technology to remain one of the most popular hotels around the world. The report will look at the current usage of technology in the hotels, identify weaknesses and strengths and make recommendations on how to make it better in the future.
Background Information
Five decades ago, a motel was constructed by Isadore Sharp who named it “The Four Seasons’ Motor Hotel”. Its strategic location was meant to cater to the accommodation of prominent persons who frequented the nearby Canadian Broadcasting Company for interviews. Isadore surmised that these visitors needed privacy as well as comfort when they were around the broadcasting company (Isadore, 2009). To achieve this, Sharp employed a high-caliber manager to attend to the needs of the visitors, something that has never been done before in the industry.
This was a great achievement by Sharp. Since then, the Four Seasons Motor Hotel has grown significantly. Isadore realized that hotels and resorts of Four Season’s size would do well as opposed to bigger or smaller ones. Four decades later, The Four Seasons is to be found in at least 22 countries. The chain has about 50 hotels in total spread across the globe. The Four Seasons was among the 100 best companies three years in a row (Hallowell & Hansen, 2000).
The Four Seasons Hotel is based in Canada with over 84 properties around the world (Hoper, 2006). The hotel is recognized internationally for its high-quality service and management. The company has also been voted as one of the best 100 companies to work for.
The Four Seasons operates its businesses indirectly by operating properties on behalf of real estate owners. This is a form of contract that allows the company to run its operations without any hindrance. This accounts for about 3 percent of the company’s revenue. A further 5 percent is generated from the properties it manages. Those owning the properties have to meet some obligations which include contributing funds to maintain the properties. The maintenance includes ‘chain-wide’ operations such as marketing which are necessary for the smooth running of the business. The Four Seasons Companies have adopted a strategy that is used to compensate for the expenditure incurred on upkeep. This is by having more employees than many other companies in the industry. Though the profits are reduced, the company has come up with a strategy aimed at promoting its brand as a high-value and high-rated chain of hotels (Hallowell & Hansen, 2000). One way this is achieved is by publishing a magazine that is presented to the guests free of charge. This is a way of promoting the services globally. The Four Seasons also embraces the use of technology which will be discussed later in this report.
The Four Seasons operation’s model is based on quality improvement whereby the company makes sure it addresses the complaints and suggestions from the customers. Another model is based on service and culture. In this case, culture is incorporated in the services offered to ensure that customers from all walks of life are satisfied (Hallowell & Hansen, 2000).
Issue Statement
The Four Seasons Hotels and Resorts have been in business for a long time. It is noted that the level of technology when the chain of hotels was starting was quite different from what it is today. It is also noted that contemporary business organizations have to embrace technology if they are to remain relevant in today’s changing world. The Four Seasons seems to have made steps in embracing technology. The management had introduced a technological strategy which is composed of an internet site, use of emails, online bookings and such others. As one top official commented, the Four Seasons have made efforts to ensure that technology does not get between the business and the clients. I totally agree with the technology strategy in place, but I still feel that it needs to be improved.
This report will look at the use of technology in The Four Seasons. The report will look at the current strategy, identify strengths and weaknesses and make recommendations.
Analysis of the Problem
The Four Seasons Hotels have known the world over for offering high-quality services to all their clients. Responding to a question posed to him, a manager working with the Four Seasons Hotel stated that most of their guests are middle-aged (Hallowell & Hansen, 2000). Such guests lead a demanding lifestyle given that they are professionals who have to accomplish a lot within a limited timeframe. The management is well aware of this fact. It has come up with strategies to meet the needs of such customers.
The visitors are from different parts of the world. This is of course at different times of the year and seasons. The guests are taken care of on a 24-hour basis. The services offered include laundry, room service and so on. The members of staff working in the resorts and the hotels are trained on how to listen and respond to the requests put forth by the clients. They should make sure that they respond appropriately depending on what the client wants.
The Four Seasons Hotel has a rule that governs the delivery of service to the customer. The rule states “Treat others as you would have them treat you” (Isadore, 2009: 9). The service is therefore guest-centered with the intention of meeting the needs of the customers. The management also treats the employees well so that they can effectively handle the clients. Every employee is a customer service agent and there is a need for a customer care department.
Alternatives’ Analysis and Selection Criteria
The managers use different criteria in determining the location of the properties in different parts of the world. For the city hotels, they must meet the standards of a world-class luxury hotel such that those visiting the country will prefer staying at that hotel (Fitzsimmons & Fitzsimmons, 2010). The managers also take into consideration the economic status of the country to safeguard the interests of the company.
Technology plays an important role in every sector of business operations. Operation costs are reduced if technology is incorporated in most sectors of the business. Most people are now buying and selling products and services via the internet (Fitzsimmons & Fitzsimmons, 2010). Millions of internet surfers can obtain information instantly without queuing. Bidding can be done online in today’s business transactions. This is effective since the figures are not disclosed to rival bidders and at the end of the day, auctioneers are able to sell at a much higher price.
As far as The Four Seasons Hotel is concerned, the customer can access a lot of details concerning the hotel from the internet. According to Fitzsimmons & Fitzsimmons (2010), most services have been taken up by technology where the customer has the freedom of choosing what they want. This is for example booking for accommodation online via the hotel’s website and the use of interactive voice response service (IVRS).
The Four Season has incorporated technology in the provision of its services so as to reach potential customers from different parts of the world. The company has a website which contains all the details needed by the customers. The website provides information on all properties operated by The Four Seasons all over the world.
The features of the website include a colorful welcome note on the home page and photos of rooms and restaurants from around the world. This is rarely visible in other hotel chains (Hallowell & Hansen, 2000). Through the internet, the customer can take a guided tour of an entire property. This being the case, it is more likely that the customer will accept the offer and make a reservation in the hotel.
Another significant achievement by The Four Seasons management team which is discernible on the website is the ordered arrangement of what is on offer. Different customers have different needs which range from meetings, weddings, retreats and so on. For example, a customer interested in holding a wedding will seek information touching on services such as catering and banquet spacing for the entire wedding. This ordered arrangement has been effective in attracting customers since they have no need for information from other sources. Additionally, the customer is able to view pictures of the kind of rooms that are available.
The use of the website has reduced operational costs. For example, Fitzsimmons & Fitzsimmons (2010) explains in their book that it is cheaper to make reservations online than through the telephone. A call will for example cost seven dollars as opposed to the 10 cents that online reservations will cost. To this end, The Four Seasons has implemented a strategy that will see it improve the standards of its operations.
For those customers who would like to directly contact the service providers, a toll-free telephone number is provided on the website. This has played a significant role in increasing accessibility to customers leading to high profits. This strategy has replaced unnecessary and unproductive activities such as face-to-face customer service which is slow and costly.
Although technology is used to effectively achieve the goals of the business, it has many limitations that hinder the growth of the business. One of the limitations is the use of a single technology to reach the customers. To this end, The Four Seasons may be disadvantaged if all reservations are made online. Some of the potential clients may not be able to use the technology. The language barrier is another factor that might lock out potential customers. This is given the fact that the hotel draws clients from all parts of the world.
Another limitation is the fact that employees may need to be trained on how to use new technology introduced by the company. This may increase operation costs on the part of the company.
Recommendations and the Way Forward
To effectively operate its businesses, The Four Seasons should not rely on a single technology such as online booking. On the contrary, the managers should endeavor to combine different technologies to improve customer satisfaction. This is especially so given the fact that the hotel caters to customers from all walks of life. Not all people can access the website for various reasons. This may include a lack of technological know-how, language barrier among other factors. This is the reason why the company should reconsider the complete phasing out of bookings through the phone.
Action and Implementation Plan
The Four Seasons can make use of different portals other than the single official website. For example, the company may consider the use of other online media to sell its brand. This is for example the use of online facilities such as YouTube to promote its operations. The Four Seasons can also make use of indoor advertisements to be displayed on their webinars in the industry (Hallowell & Hansen, 2000). The Four Seasons may also consider automating its operations. This will help in further bringing down the operation costs.
Another problem noted in this case study arises from the use of only four types of telephone services in the guest rooms. These include fax and ordinary telephones. Customers are not able to make conference calls, an important aspect of businesses today. To counter this, the company should provide facilities for conference calls especially for business-oriented guests who need to be in constant touch with their clients. Other programs such as Skype and video conferencing will enable the guests to communicate with other people from all over the world in the comfort of their hotel room. This mode of communication is cheaper and more efficient than mailing letters and placing calls over the landline. Such services will increase customer satisfaction and create loyalty which is good for such a business on the part of The Four Seasons.
All in all, it is important to note that The Four Seasons has achieved a lot by incorporating technology in business operations. This has improved its ability to compete with others in the industry. However, there is a need to continue improving the technology to keep it up-to-date. If this does not happen, the hotel may lose customers to other hotels with up-to-date facilities.
References
Fitzsimmons, J. A., & Fitzsimmons, M. J. (2010). Service management: Operations, strategy, information technology. 7th ed. New York: McGraw-Hill.
Hallowell, R., & Hansen, A. (2000). The Four Seasons Hotel and Resort. Boston: Harvard Business School Publication.
Hoper, L. (2006). Travel and leisure. New York: Viking Penguin Publishers.
Isadore, S. (2009). The story of business philosophy. Canada: Penguin Publishers.