Factors That Has Helped Four Seasons Hotel Tourism Essay

The chief ground behind the readying of this assignment is to analyze the instance survey about the factors that has helped Four Seasons hotel to win ab initio and understanding and appreciating the different growing schemes that are adopted and implemented by Four Seasons in order to be one of the successful operating company in cordial reception industry. This assignment besides discusses the assorted downswings that the cordial reception industry has faced over the old ages and how Four Seasons dealt with the state of affairs in order to last in the concern. Furthermore, in the assignment, the alone concern theoretical account of Four Seasons hotel is compared and associate to different theories such as value concatenation analysis which shows how Four Seasons hotel is able to pull off their stakeholders outlooks.

In add-on, I have given some recommendations for Four Seasons hotel, to prolong in the hotel concern.

Company Profile:

Four Seasons Hotels and Resorts, the universe ‘s taking operator of luxury hotels with a history crossing four decennaries and a portfolio that extended worldwide. It is one of the universe ‘s biggest and finest ironss of luxury hotels which have developed from one motel started by Isadore crisp 1961 in business district Toronto Canada, to 82 luxury hotel belongingss in 34 states worldwide.

Four Seasons owns its ain hotels, chiefly under the Four Seasons and Regent names, every bit good as some others, including the Ritz-Carlton in Chicago and the Pierre in New York. About half the company ‘s net incomes come from direction fees, and half of it from belongingss it owns straight.

Their extremely admired service quality helped them to go benchmark in luxury hotel market.

The basic operational policy of Four Seasons hotel is “ Treat others as you would wish to be treated ” . Highest quality of service to the clients is acquired by Four Seasons by keeping and bettering their service criterions besides with an advanced attack and uninterrupted development and an oculus for item every individual clip of service.

The company shifted from hotel proprietor to hotel operator in 1990 ‘s the company ‘s 95 % of the portions are owned by Bill Gates the laminitis of Microsoft and Al-Waleed Bin Talal ( Prince of Saudi Arabia every bit ) . Rest of the portions are owned by Isadore crisp CEO and company laminitis.

Constitution of Four Seasons:

Four Seasons Hotel Chain was founded in 1961, by airy Isadore crisp with the gap of 126 suites Inn on the Park in business district Canada. Sharp was a degree holder in architecture and non from a hotel direction background therefore Sharp was wholly new to the Hotel Business. Sharp describes himself ‘a builder ‘ who joined his male parents concern after graduation.

Joining a hotel industry concern was non at all in his head or his purpose boulder clay he was working on a undertaking to construct a motel. He got an exposure with the motel undertaking and he realised about the approaching market of luxury hotels. The demand of individualized service round the clock with the dining economic system made him take a determination to acquire into Hotel concern.

The hotel he opened is named as The Four Seasons motor hotel which he opened with the aid from his brother in jurisprudence. The hotel became celebrated amongst the concern travelers and famous persons as it had a advanced design it was different from other hotels as he built all suites confronting inwards giving a position of interior courtyard and swimming pool alternatively of the outside vicinity.

Growth and enlargement:

With the initial success of his first hotel, the large interruption through which Isadore Sharp was waiting for came in 1970 by opening foremost Four Seasons Hotel in Hyde Park country of London. Relatively the room rates were higher than the rivals in the 270 room hotel but so besides Four Seasons enjoyed 95 % tenancy through out the twelvemonth. The success came with an advanced thought of hotel equipped with latest comfortss unlike old traditional hotels in London.

In 1972, Sharp opened a monolithic 1600 room hotel convention Centre in Toronto, Canada in partnership with Sheraton. It took a long clip to finish the undertaking, about 10 old ages.

In 1980 the economic system was dining and the demand for luxury hotels increased, and therefore Sharp started constructing hotels across the North America, subsequently in about every major US metropolis, besides to take an advantage of existent estate trades.

In three decennaries by 1990, Four Seasons already opened 23 hotels in three states with net net incomes of $ 15 million.

Four Seasons became Global leader in 1992 with acquisition of Regent International hotels. farther strong fiscal base to construct and purchase hotel belongingss worldwide came in 1994 when Saudi Prince Alwaleed Bin Talal bought 25 % of company ‘s portions. They besides signed a contract with Carlson Hospitality to develop and spread out trustee trade name worldwide through set uping direction contracts and franchising understandings.

Initial Success Factors of Four Seasons:

“ To unite best of little hotels with the best of big hotels ”

Isadore Crisp

He came up with the thought of opening the medium sized hotels which was plenty to give a touch of individualized service supplying with a scope of luxury comfortss and services.

Runing concern from Customer ‘s Position:

The most effectual initial scheme for Sharp was to look at the concern from client ‘s point of position. He was a advanced mind to carry through clients demands in footings of luxury. Example When Four Seasons came into being the tendency was to utilize flimsy towels in bathroom, he replaced that we 100 % cotton towels which worked truly good. With experience of opening the first hotel, Sharp realised clients are ready to pass for one thing that ‘s service. And as Four seasons most guest were concern travelers and with the experience he came to a decision that for them Service means luxury.

Luxury Redefined:

Keeping high quality service can besides be a trade name if delivered invariably harmonizing to Sharp. This thought provided him with the initial success in medium sized luxury hotels which gives committedness of supplying homelike amenitiess and individualized service. Thus luxury was redefined as Service and non as decor and architecture. Quality of service comes before the hotel decor and architecture for the clients. As most of the clients for Four Seasons were concern travelers Sharp commented

“ They are largely executives, frequently under force per unit area contending jet slowdown, emphasis and the clock. We decided to redefine luxury as service. ”

Therefore the key towards Customer satisfaction was achieved by Sharp and he knew what the clients wanted “ odd service quality ” will give them competitory border. Although Four Seasons charge 20 % excess room rate than the closest rivals but still they were successful of keeping high tenancy rates. Further Sharp wanted the highest individualized service quality for the guest which was possible merely if employees are motivated and happy they will present it. Thus employee motive, common regard and empowerment played a critical function in accomplishing client satisfaction. And therefore he introduced the aureate regulation.

Aureate regulation:

Crisp refer to his first concern regulation as Golden regulation ‘treat your clients as you want to be treated ‘ . This became the operational policy for Four Seasons. Every employee is a member of client service and in charge of it.

And he believed employees are the most of import portion of Four Seasons hotel because there is really limited clip in which service brush takes topographic point unlike other industries. And the employee has to give his best to keep proper service criterions therefore batch of testing and interviews are done to guarantee the right campaigner is selected for right occupation.


Innovation contributed a batch in the initial success of Four Seasons. Most of the epicurean comfortss and services like Shampoo in the shower, bathrobes, 24 hr room service, two- line phone in invitee room, pressing Fe, 24 hr secretarial service, large good illuminated desk were the First to be introduced by Sharp and Four Seasons. The Custom made mattresses is now became the criterion of luxury hotels which was Sharp ‘s front-runner.

Vision of Isadore Sharp: Provide each and every thing in the invitee room that will do the client happy.

Growth Strategies adopted by four seasons:

Initial success for Four Seasons did construct a platform for them to turn universe broad. It created a web of mid sized luxury hotel in about all cardinal fiscal metropoliss all over the universe.

During this procedure Four Seasons adopted many different growing schemes as follows:

Brand name is competitory advantage:

The biggest plus for Four Seasons group was their trade name name which was non responsible for their initial success but besides a portion of their planetary enlargement scheme.

The nucleus concern scheme for four seasons was

“ to continuously better their market place and profitableness to guarantee the competitory advantage while obtaining new direction contracts worldwide. ”

Strategic relationship with investors:

With the aid of strategic relationships with many little private establishments earlier helped them to spread out their chances worldwide. Prince Alwaleed bin Talal bought 25 % of company portions and with his major investings in Four Seasons which helped them to come in in new markets every bit good the ownership was non of Four seasons so it served their primary aim of being a direction company.

From Hotel proprietor to Hotel operators:

Their alone concern development theoretical account stated they wanted to be a hotel concatenation operator than hotel concatenation proprietor. It has ownership of merely three hotels out of their 60 three hotels.

Under this alone concern theoretical account Four seasons hotel does n’t hold a load of ownership, the major capital is brought by the spouses with whom Four Seasons developed strategic relationships.

There is broad scope of direction fees ( basal fee, incentive fee, gross revenues and marketing charge and reserve charge ) for supplying these services to the proprietor.

How Four Seasons responded to economic downswings?

Four Seasons faced economic downswings in different old ages in four decennaries 1970, 1980, 1990, 2000 in the undermentioned old ages 74, 81, 91, 2001. And all of them made a important impact on Four seasons scheme.

The hotel concern during the clip of recession were chiefly affected by

Increased involvement rates and

Decrease in market monetary values

With the increased airfares and the increased tenancy rates the touristry was severely affected. Executives of the company were going less and the leisure installations were decreased for the executives which affected the hotel and touristry market.

Furthermore increased terrorist act affected hotel and touristry market.

There were drastic stairss taken by different hotel operators by cutting labor cost, take downing monetary values purchase Four seasons believed that the industry is traveling to return to normal shortly and Isadore Sharp adopted precisely the other manner. He took the challenge during the clip of recession and saw the chance to develop the hotels. He told his executives about his ideas that “ when our rivals are take downing criterions we will raise ours ”

The different actions taken by Four Seasons as an reply to economic downswings are:

Four Seasons followed their words to look after their employees:

During the clip of recession most of the hotel operators cut down their labour cost but Four Seasons tackled the state of affairs the other manner, they responded by cutting the overhead costs but non the labor costs. They aimed for maximising labor ‘s value alternatively of take downing labour cost.

Sharp explained this scheme to his executives,

“ And we besides know that what we must make to run into that end, is to take down costs and raise service and merchandise quality. But cutting costs and raise service and merchandise quality. But cutting costs by cutting labor, if carried excessively far, lowers quality. The lone manner these apparently conflicting purposes can be reconciled is by responsible employees committed to working smarter. Alternatively of minimising labor ‘s cost we should maximise labor ‘s value: by converting our employees that our purpose virtues committedness. ”

Four seasons offered Flexible Contracts to the employees instead than occupation cut, in which employees will be called on responsibility as per the demand of the concern which replaced working four yearss a hebdomad alternatively of five yearss a hebdomad. It was in the understanding of the employees and all the employees were in favor of the determination furthermore the wages and the fillips of the directors was besides affected. This all resulted in sharing a common policy in heading towards company ‘s ends.

Bettering the merchandises:

Most of the hotel operators paused the building or running of a hotel for a impermanent period but the belongings concern is truly high during the clip of recession because the belongingss are sold out on lower rates therefore Four Seasons tackled the state of affairs by redevelopment and renovation to better the merchandises. Isadore Sharp believed that supplying quality service to the invitee are a necessity and non a service by itself. And if the hotel wants to prolong in the market the new tendencies in the hotel industries should be followed to maintain up with the market. Therefore to suit these alterations and supply clients with quality service. During recession the room tenancy is the lowest therefore the incommodiousness caused to the invitees are really less and therefore the invitees get a royal out of the universe service. They followed this scheme during recession period which gave them a steady growing over the decennary.

Ad costs:

Most of the rivals of Four Seasons hotel kept cutting their advertisement and selling costs, but Four Seasons did n’t cut their advertisement and selling budget to keep the trade name acknowledgment as they had a really good acknowledgment in the Hospitality industry. It is easy to keep the impulse instead than re-start it. This scheme helped them to derive a competitory border over their rivals in keeping their trade name acknowledgment.

Property market:

During recession the supply in the market for the land was than the demand on low monetary values. Four seasons took the advantage of low monetary values of the land and they picked the premium locations which would hold been hard to purchase them in normal times. Thus this scheme paid off to Four Seasons during the clip of recession and they came with the finest of the hotels in top locations after recession.

How four seasons managed assorted stakeholder outlooks?

Stakeholder: Person, group, or organisation that has direct or indirect interest in organisation because it can impact or be affected by the organisation ‘s actions, aims, and policies. ( World Wide Web. businessdictionary.com )

There are three most of import facets of pull offing stakeholder outlooks:

Know your stakeholders

Know what precisely they except from you

Make them accountable for worlds of undertaking by doing them cognizant of hazards and effects.

( Harmonizing to Dr. James Brown, president of the undertaking direction company Seba Solutions ) .

Different interest holders of Four Seasons hotel are

Stakeholders play a critical function for a company to last therefore the company or administration demands to implement a scheme for pull offing their stakeholder outlooks.

Therefore Four seasons implemented following scheme for pull offing their stakeholder outlooks:


Pull offing the stakeholder ‘s outlook is a measure by measure procedure:

After designation of stakeholders, the 2nd measure is to place their demands.

Needs and outlooks of the stakeholders of Four seasons can be described as follows:

Owners: Tax returns on investing by net income

Management: Management fees on the footing of gross gross.

Employees: Authorization, Career chances and occupation security.

Customers: High quality service and luxury.

Society: Corporate societal duty.

Their scheme to pull off stakeholder outlooks can be summarised with relation to value concatenation analysis every bit good


Value concatenation analysis is a construct to make competitory advantage and prolonging superior public presentation.

Owner: Expectation of the proprietors are truly high on returns in footings of net income because they are the 1 who made the capital investing in the undertakings.

The different facets of value concatenation used by four season hotels are like Infrastructure of the hotel, the most advanced thought of the initial scheme was to come up with medium sized hotels, and it worked truly good. It was made possible and successful by Isadore Sharp who was the degree holder in architecture and he knew the latest designs of edifices and hotels like edifice suites confronting inwards to avoid position of vicinity made important part to it. These advanced designs truly helped Four Seasons to come up with the highest tenancy among the travelers. Therefore they were successful in pull offing proprietors outlooks by giving returns on their investings in less clip.

Management: To guarantee a good gross gross it is critical to acquire higher tenancy with good mean room rate throughout the twelvemonth.

Gross saless and Marketing and engineering come into image from Value concatenation analysis. The selling scheme for Four season hotel is to aim the luxury section of the market. 69 % of their concern comes from concern travelers and groups. So about all of their advertisement and selling programmes were designed to heighten the consciousness of luxury service provided by Four seasons hotel. Technology played a critical portion in accomplishing their end by freshly designed web site and superior reserve system. They gained an advantage over other hotels by Global reserve system which gave an option to the invitees to be comfy with their ain local linguistic communication in North America, Asia and European Network.

Example: There are so many hotels in Hyde Park country but over 30 old ages Four Seasons has gained and enjoyed the highest tenancy in the country with their scheme.

Employees: Employees expect Common regard and Empowerment from Four season hotel.

Employees are the most of import stakeholders of the administration, if they are happy to work for the administration the whole concern rhythm can run swimmingly, If Employees are happy so the clients are happy with their service it leads to word of mouth promotion and the administration gets a repetition concern.

Employees deserve a common regard from the direction. Human Resource Management from value concatenation ensures that employees should acquire what they deserve and expect. And most significantly the Golden Rule of Four Seasons is ‘treat others as you would wish to be treated ‘ besides they believe that if employees are happy so merely they can do clients happy.

Four Seasons has maintained authorising their employees, and the best result and consequences can be obtained from their employees by authorising them.

I ‘m certain we ‘ve all read studies on the productiveness additions achieved by authorising employees. And we all know the workplace has to alter to achieve this. And in a study of 264 large company president, 62 per centum agreed that “ one of the most of import concern issues confronting them ” was “ edifice and maintaining a qualified work force. ”

-Isadore Crisp

d. ) Customers:

The outlook of the clients is really high as Four Seasons marks luxury section of market. Service factor from Value Chain is sagely utilized by Four Seasons to pull off outlooks of luxury for the clients.

They redefined luxury as service. Four Seasons gained a competitory border by provided high criterion of service with individualized touch. Customers got what they expected from Four Seasons. And they are really successful in doing clients happy.

E. ) Society:

As Society expects some corporate societal duty ( CRS ) from all the hotels and administration, their outlook for four seasons towards society is truly high as good. CSR includes encouraging activities for development of society and avoiding patterns which causes injury to the environment.

Four Seasons explain how they help and take inaugural towards community by assorted preparation and mentoring programmes for immature people and assisting whoever in demand in their website www.fourseasons.com.

Examples: They donate organic nutrient to local husbandmans to feed their animate beings ( Costa Rica ) and besides supplying shelter cantonments to Urban Elephants ( Golden Triangle, Thailand ) , Raising important financess for malignant neoplastic disease research and consciousness programmes.


Four Seasons has a strong portfolio in the Hotel Industry but to prolong they should concentrate on few things which are as follows:

Four Seasons should concentrate on edifice more trade names and concentrate on all the classs like upper-scale, in-between and budget hotels. Unlike Accor group of hotel they have segmented their hotels and created a trade name concentrating the demands of its clients such as Etap, Ibis, Novotel, Sofitel etc.

To vie with other taking trade names Four Seasons should come up with more hotels all over the universe for more trade name acknowledgment and for clients to hold a gustatory sensation of their service.

Furthermore Four Seasons should go on the effectual direction of the hotel the manner they are making it to prolong in the market.


With the base of the instance survey and research on Four seasons hotel, Canadian based concern has an first-class trade name acknowledgment all over the universe. The company is traveling in front with excellence along with strong fiscal and operational direction. Different advanced thoughts of Four Seasons hotel helped them turn in this cordial reception concern over the old ages moreover during the clip of recession Four Seasons hotel did truly good, therefore it says Fours Seasons Hotel has turned economic down turn to a competitory advantage over their rivals by coming up with different belongingss with premier location after recession ( they responded really good to economic downswing ) . They took the down bend as an chance to spread out and therefore they are accomplishing excellence in their concern.