Luxury hotel free essay sample

Luxury hotels are always attracted by the rich and upper classes. These luxury hotels can distinguish the rich and the poor in a high level, and it is difficult to change these hotels to glocalization. One of the dilemmas facing the Alegre Hotel in Palma Cay is whether to glocalize and gradually become a unified campaign. This dilemma is the focus of Macro Bertini and John T. Gourville’s case study, ‘Time for A Unified Campaign’ (2011). ‘Time for A Unified Campaign’ concerns a luxury hotel in Palma Cay and the COO of Alegre Hotels, Fernando Ruiz. Alegre Hotels are a hotel chain that have gorgeous hotels around the world. Recently, Alegre hotel is facing a problem that the booking market in Palma Cay is extremely different in high and low season and there is a coming crisis to the traditional promotion. Beatriz Soto, the manager of Alegre hotel, wants to use $700,000 to change the present booking problem by cutting the price for the travel agencies and online portal. We will write a custom essay sample on Luxury hotel or any similar topic specifically for you Do Not WasteYour Time HIRE WRITER Only 13.90 / page Besides, she claims that if they keep the traditional operation, the hotel may face the unrecoverable problem which is falling in business. On the other hand, Ana Montoya, the chief marketing officer of the company, is against Beatriz’s requirement for two reasons. She maintains that the hotel is an urban hotel and it would be undermine the hotel if they change to globalization by reducing the price in Alegre. In addition, she argues that the hotel managers chose their work because it provides unique property. Thus, Alegre hotel’s manager input will lose if they change strategy. Fernando now needs to make a decision to approve Beatriz or Ana. In other words, Fernando should consider the long-term strategy is whether to keep the traditional hotel operation in high-level or provide money to adapt to the local environment situation in Palma Cay. Two experts have given advice about this dilemma, Raul Gonzalez who is the CEO of a hotel, and Kevin Lane Keller who is a professor of marketing. Both of them recognize that Fernando should find ways to develop and help the problem of Alegre properties to use brand advantage to benefit the whole entire portfolio, and find ways to communicate and encourage customers. However, the viewpoint of the two experts is totally different. While Gonzalez asserts that Fernando should use bottom up strategy which is glocalize from individual to unify the campaign in Alegre, Keller claims that Fernando should use top down strategy which is to keep original structure of Alegre and focus on customers and the hotel managers. Gonzalez states that provide a large number of money is not only can solve the present booking problem, but also is investment for Alegre and benefit to the hotel brand. He suggests that Alegre should follow the airline model which is to cutting the price and keep a strong relation with travel agencies and online portals to encourage customers booking earlier. Meanwhile, he also gives a recommendation that the hotel can use video or brochures to promote Palma Cay. In contrast, Keller highlights that Fernando’s aim is to focus on the customers and managers. He recommends that Fernando ought to develop a campaign that individual hotels can adapt to. In addition, Keller assets that Fernando need to protect the autonomy of the hotel managers because they can focus on those travel agencies to promote the advantage of the Alegre hotel. I concur with the position of Gonzalez that Fernando should invest the money to Alegre to globalize and become a unified campaign. Gonzalez argues that Alegre needed to be invested so that the brand of the hotel would earn benefits. Gonzalez give a recommendation for reducing the inventory pressure and breaking the dependence on intermediaries is that Alegre can use airline model to encourage booking desire of customers and find out the way communicate with customers directly to control the brand. In my opinion, not only customers are important, but also the quality and characteristics of the hotel are critical. Every Alegre hotel should has its own special features so that customers can remember and become target member of the hotel. Fernando should invest money on the key local characteristics on Alegre would make hotel attractive and customers become active. Besides, Fernando could provide some rewards on booking customers to make Alegre hotel more attractive.