Four Seasons Goes to Paris

53 Properties 24 Countries 1 Philosophy

2002 Four seasons hotel & Resorts: the worlds leading operator of luxury hotels

Diversity and Singularity People come first ONE SHOULD TREAT OTHERS THE WAY HE EXPECTS TO BE TREATED = THE GOLDEN RULE

Performance
Generally Operated and not owned midsized luxury hotel and resorts 1996-2000: Revenues increased by 22.6% Operating Margins: 58.8% to 67.9% Revenue per room 32% that US competitor, 27% higher than European competitor 2001 Revenues & earnings had dropped (10307486486) (check out financial statements again, after finance-include ratios, etc..)

Organizational Hierarchy
For each environment: stake holders, managers, employees, and for clients the GOLDEN RULE IS RESPECTED

President RVP(promoted from GM position) (13)

Support System: Regional Human Resources Director Area Director of Finance Regional Marketing Director

Hotel GMs

Hotel Staff

BUSINESS DESIGN MODEL

PLAN

ACT

DO

CHECK

Plan:What?
Golden Rule Global but local: Preserve and adapt locally Managers are world citizens Firms top managers comfortable in international settings Setting clear goals with management standards Enabling services Enhancing services Diversity and Singularity Global Uniforms Standards- to evaluate performance against standards Internal and External Auditors

Do: =How?
GM responsible for supervising day to day operations of a single property rewarded on ability to deliver and maintain the highest and most consistent service standard in most cost effective manner Task force Establishing Four Seasons service standards.
Enabling services are improved untill clients satisfaction is reached: Example of scrambled eggs Vs oeuf brouills Enhancing services: creative differenciation:Example of the Guest Room Evening Service = orientation to detailed attention Intelligent, Anticipatory and Enthusiastic Service No Excuses

= S-E-R-V-C-E

The Seven Four Season SERVICE Culture Standards

SMILE
EVERYONE CLEAN EYE RECOGNITION VOICE

INFORMED

Check: how well?

FBM: Feed Back Management: Strong Allegiance to Firm
Internal employees surveys Feedback on managerial system from employees, through a monthly 30-employee group meeting Managers daily morning meetings

External feed back

Family experience , open interaction treating employee as they are expected to treat clients: Golden rule, importance of the employee. Responsive to media External service quality auditing

Act: constent improvement

Direct response to feedback Constant improvement of service Constant evolution therefore adaptation to the changing expectations of customers

Other Culture habits

Modest, compassion and discipline Very professional, not pretentious, detail oriented Interested in people One firm sentiment Accountability

Facilities
Landmark Excellent Service Luxury/Cultural Design Michelin Star Restaurant Spa

FOUR SEASONS: MASTERS OF LUXURY HOTEL SERVICES FOR THE PAST 30 YEARS
From the ORIGAMI napkins to the PAINT on the WALLS

There is

NO ESCAPE from the SERVICE FACTOR!!!

It is

EVERYWHERE and EVERYTHING!

SUCCESS = SERVICE
DISTINGUISHING EDGE - CONSISTENTLY EXCEPTIONAL SERVICE High quality, truly personalized service. Maximize value of customers time According to Grnroos Service Marketing Triangle this is a value creation service. the distance between the employee and the guest has to be small. THE GOLDEN RULE Treat others the way you want to be treated. Turnover is half of industry average of 55% Very professional, not pretentious Family Happy employee = happy customer (Fortune top 100 best companies to work for in North America) E.g. Each employee has several uniforms for when they get dirtykeeps dignity

PROCESS CONSUMPTION - HIGH-TOUCH SERVICE From the moment of booking ONWARDS SERVICE No PREBUNDLED PRODUCT! Must be FLEXIBLE & EMPATHETIC! E.g. concierge taking guest to hospital and staying overnight Intelligent service able to cope with changing demand anticipate guest needs

INTERNATIONAL hotel

INTERNATIONAL MINDSET

GLOBAL BUT LOCAL

Our strength is our diversity and our singularity Corinthios (President Europe, Middle East & Africa) LOCAL APPROACH - DIVERSITY! each hotel is tailor made adapted to its national environment David Crowl, VP sales & marketing Europe, Middle East, and Africa e.g. more restaurants in Asian hotels When waking up in Instanbul hotel you know you are in Turkey SINGULARITY the process for opening and operating a hotel is the same everywhere. Standards are universal e.g. clean room, good breakfast.but done with own style 7 SERVICE CULTURE STANDARDS KEEPING SERVICE INTERNATIONAL!!! Standards create a strong foundation but yet can be locally flexible e.g. do not leave coffee pot on table in France as perceived as lack of service Expected of ALL staff ALL over the world at ALL times Standards are MINIMUM expectations GO BEYOND a standard if possible

Moment of truth Functional quality Relational quality Moment of opportunity

Influence mood through music, flowers, friendliness, (decoration - feng shui servicescape)
The 7 criteria of good perceived service quality pg. 89

Relationship quality pg. 91

EXPECTATIONS!! When you are the best hotel in the world, how do you measure yourself when the only challenge is you? Essentially, the continual striving to surpass inevitably makes you better, which is why Four Seasons George V remains one in a million" Gallivanter's Guide, UK, March, 2009

Each Hotel Is Tailor made with the following in Mind:

Staff :
Benefits , Work Hours, Direct , , employee training, Line, Open Door

Customer: Service , Value, Location,

Happy People

Government /Unions

Rooms

Press:Open Communication

Human Resources
Who We Are: Experiences of Exceptional Quality Superior Properties Instilled Ethic of personal service What We believe: Greatest Asset: PEOPLE Satisfying guests depends on the united efforts

Premier Luxury Hospitality Company

Goals, Beliefs, Principles

How we behave: Seek to deal with others as we would have them deal with us How we succeed: Clear understanding Conviction in what we do

Fair and reasonable profit

Golden Rule: One should treat others as they wish to be treated

ENTRY STRATEGY IN THE FRENCH MARKET

LOCAL APROACH GLOBAL MANAGEMENT SERIOUS SERVICE DEDICATION

KEY LOCATION: PARISIAN LANDMARK

GEORGES V
Heritage of the 8th arrondissement of Paris in the heart of the luxury: architecture art, shoppingParisian Culture

Sticking to the standard opening strategy of the hotel: Global buT local: to an extreme sensitive adaptation. Preserve the soul of the Georges V although rebuild for the international traveler

THE PLAN

Preserve:
French style in design and cuisine
Renovations, decoration House-keeping French chef: culinary coup detat = very new to the four Seasons management choice policy but respectfull to the customers expectations of a

serious french chef, serious food !

Adapt to the worker unions, and work week standards:

39 hours, other industries 35h/week, which makes it a chalenge and a competitive attraction for employees
The standard work week in the hotel industry in france is actually up to

REBUILD: French manager whom embodies the Four Seasons culture and standards
Serious about golden rule Resulting in better reception from the environment and work-force

American style of management

The employee of the year TASK-FORCE AMAZING COMUNICATION!
Direcrt line= 30 employee group meeting. Manageers daily morning meetings Familly experience 3 times a year, hotel opening doors to the employees and their family Unexpectedly open and responsive to the press

Generally speaking the american style of management can be perceived as a bit imposing; Allthough it is balanced with smooth adaptation to french workers

And the PDCA: design management style of the company is responsive to feed back and openied to managerial improvements

Do the Lessons from Four Seasons Going to Paris apply to Luxury Service Firms Entering Markets Other than France ?

YES
All countries in all service industries: RETAIL INDUSTRY SPA INDUSTRY FASHION INDUSTRY SERVICE INDUSTRY REAL ESTATE SERVICE IS ABOUT PERSONALITY THEREFORE CULTURE AND NEEDS TO BE APROCHED LOCALY