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Factors That Has Helped Four Conditions Hotel Tourism Essay

The major reason behind the prep of this task is to analyse the case study about the factors that has helped Four Conditions hotel to achieve success in the beginning and understanding and appreciating the different expansion strategies that are adopted and carried out by Four Periods to become one of the successful operating company in hospitality industry. This assignment also discusses the various downturns that the hospitality industry has encountered over the years and how Four Seasons handled the situation in order to survive available. Additionally, in the assignment, the unique business design of Four Periods hotel is compared and relate with different theories such as value chain analysis which ultimately shows how Four Months hotel is able to deal with their stakeholders expectations.

In addition, I've given some tips for Four Periods hotel, to maintain in the hotel business.

Company Account:

Four Seasons Hotels and Resorts, the world's leading operator of luxury hotels with a brief history spanning four years and a collection that lengthened worldwide. It is one of the world's biggest and finest chains of luxury hotels which have developed from one motel began by Isadore well-defined 1961 in downtown Toronto Canada, to 82 luxury hotel properties in 34 countries worldwide.

Four Seasons owns its hotels, principally under the Four Seasons and Regent labels, as well as some others, like the Ritz-Carlton in Chicago and the Pierre in New York. About half the company's earnings result from management fees, and half of it from properties it possesses directly.

Their highly popular service quality helped them to become benchmark in luxury hotel market.

The basic functional insurance plan of Four Months hotel is "Treat others as you want to be treated". Finest quality of service to the clients is attained by Four Conditions by retaining and increasing their service standards also with an ground breaking approach and constant development and an eyes for detail each and every time of service.

The company shifted from hotel owner to hotel operator in 1990's the business's 95% of the shares are possessed by Expenses Gates the founder of Microsoft and Al-Waleed Bin Talal (Prince of Saudi Arabia similarly). Remaining shares are held by Isadore distinct CEO and company founder.

Establishment of Four Seasons:

Four Seasons Hotel String was founded in 1961, by visionary Isadore pointed with the starting of 126 rooms Inn on the Recreation area in downtown Canada. Sharp was a degree holder in architecture and not from a hotel management qualifications thus Sharp was totally new to the Hotel Business. Sharp identifies himself 'a constructor' who joined his fathers business after graduation.

Joining a hotel industry business had not been at all in his mind or his goal till he was working on a task to build a motel. He got an subjection with the motel task and he realised about the approaching market of luxury hotels. The need of personalised service at any hour with the booming current economic climate made him take a decision to get into Hotel business.

The hotel he exposed is known as as The Four Times motor hotel which he opened up with the assistance from his sibling in legislation. The hotel became famous among the business tourists and superstars as it had a progressive design it was not the same as other hotels as he built all rooms facing inwards providing a view of interior courtyard and pool instead of the outside neighbourhood.

Growth and growth:

With the initial success of his first hotel, the top break by which Isadore Sharp was looking forward to came in 1970 by beginning first Four Seasons Hotel in Hyde Area part of London. Comparatively the room rates were greater than the competition in the 270 room hotel but then also Four Months savored 95% occupancy through the year. The success came with an innovative idea of hotel equipped with latest amenities unlike old traditional hotels in London.

In 1972, Clear opened an enormous 1600 room hotel convention centre in Toronto, Canada together with Sheraton. It needed quite a while to complete the job, almost 10 years.

In 1980 the economy was flourishing and the demand for luxury hotels increased, and so Sharp began building hotels across the North America, later in nearly every major US city, also to adopt an benefit of real estate offers.

In three years by 1990, Four Months already opened 23 hotels in three countries with net revenue of $15 million.

Four Seasons became Global head in 1992 with acquisition of Regent International hotels. further strong financial platform to build and purchase hotel properties worldwide came in 1994 when Saudi Prince Alwaleed Bin Talal bought 25% of company's stocks. They also authorized a agreement with Carlson Hospitality to build up and develop regent brand worldwide through creating management contracts and franchising contracts.

Initial Success Factors of Four Seasons:

"To combine best of small hotels with the best of large hotels"

Isadore Sharp

He developed the thought of opening the medium sized hotels that was enough to give some personalised service providing with a range of luxury amenities and services.

Running business from Customer's Perspective:

The most effective initial technique for Sharp was to look at the business from customer's viewpoint. He was a impressive thinker to fulfil customers needs in terms of luxury. Example When Four Seasons came into existence the craze was to use flimsy towels in bathroom, he substituted that people 100% cotton towels which performed really well. With experience of opening the first hotel, Sharp realised customers will be ready to spend for one thing that's service. So when Four seasons most guest were business travellers and with the knowledge he came to a bottom line that on their behalf Service means luxury.

Luxury Redefined:

Maintaining high quality service can also be a brand if sent constantly regarding to Sharp. This notion provided him with the initial success in mid-sized luxury hotels which gives determination of providing homelike comforts and personalised service. Thus luxury was redefined as Service rather than as design and architecture. Quality of service comes before the hotel design and structures for the clients. As the majority of the customers for Four Months were business travellers Sharp commented

"They are mostly professionals, often under great pressure fighting plane lag, stress and the clock. We made a decision to redefine luxury as service. "

Thus the key towards Customer satisfaction was achieved by Sharp and he understood what the customers desired "unmatched service quality" gives them competitive edge. Although Four Seasons charge 20% extra room rate than the closest opponents but still they were successful of retaining high occupancy rates. Further Clear wanted the best personalised service quality for the visitor that was possible only if employees are encouraged and happy they'll deliver it. Thus employee motivation, mutual admiration and empowerment enjoyed a vital role in attaining customer satisfaction. And therefore he released the golden rule.

Golden rule:

Sharp refer to his first business guideline as Golden guideline 'treat your customers as you want to be treated'. This became the operational policy for Four Months. Every worker is an associate of customer support and responsible for it.

And he believed employees are the most crucial part of Four Months hotel because there is very limited time in which service face takes place unlike other companies. And the employee has to give his best to maintain proper service specifications thus whole lot of screening process and interviews are done to guarantee the right prospect is preferred for right job.


Innovation contributed a great deal in the original success of Four Periods. Most of the luxurious amenities and services like Hair shampoo in the shower, bathrobes, 24 hour room service, two- brand phone in visitor room, pressing iron, 24 hour secretarial service, big well lit workplace were the first ever to be unveiled by Clear and Four Periods. The Custom made mattresses is now became the standard of luxury hotels that was Sharp's favourite.

Vision of Isadore Clear: Provide every single part of the guest room that can make the client happy.

Growth Strategies followed by four conditions:

Initial success for Four Times performed built a program to allow them to grow world wide. It created a network of middle measured luxury hotel in virtually all key financial locations all around the globe.

During this process Four Seasons implemented many different progress strategies as follows:

Brand name is competitive advantages:

The biggest asset for Four Conditions group was their brand which was not in charge of their preliminary success but also a part of their global expansion strategy.

The central business technique for four months was

"to continuously enhance their market position and success to ensure the competitive edge while obtaining new management deals worldwide. "

Strategic romance with shareholders:

With the assistance of strategic human relationships numerous small private companies earlier helped these to increase their opportunities worldwide. Prince Alwaleed bin Talal bought 25% of company shares and with his major ventures in Four Times which helped them to type in new market segments as well the ownership was not of Four seasons so it offered their primary goal to be a management company.

From Hotel owner to Hotel providers:

Their unique business development model stated they wished to be considered a hotel string operator than hotel chain owner. It offers possession of only three hotels out of the sixty three hotels.

Under this original business design Four conditions hotel doesn't have an encumbrance of possession, the major capital is helped bring by the associates with whom Four Times developed strategic relationships.

There is wide range of management fees (bottom part fee, incentive charge, sales and marketing charge and reservation demand) for providing these services to the dog owner.

How Four Months responded to economic downturns?

Four Seasons faced economic downturns in various years in four decades 1970, 1980, 1990, 2000 in the following years 74, 81, 91, 2001. And most of them made a substantial impact on Four periods strategy.

The hotel business before downturn were mainly affected by

Increased interest levels and

Decrease in market prices

With the increased airfares and the increased occupancy rates the tourism was terribly affected. Executives of the business were visiting less and the leisure facilities were decreased for the executives which damaged the hotel and tourism market.

Furthermore increased terrorism afflicted hotel and tourism market.

There were severe steps taken by different hotel operators by reducing labour cost, decreasing prices buy Four months believed that the industry will go back to normal soon and Isadore Sharp adopted the other way. He had taken the challenge during the time of recession and found the possibility to develop the hotels. He told his executives about his thoughts that "when our rivals are lowering specifications we will raise ours"

The different activities used by Four Months as a remedy to economical downturns are:

Four Seasons adopted their words to look after their employees:

During enough time of recession the majority of the hotel operators cut down their labour cost but Four Periods tackled the situation the other way, they responded by cutting the over head costs but not the labour costs. They aimed for maximizing labour's value rather than decreasing labour cost.

Sharp explained this plan to his professionals,

"And we also know that what we should do to meet that goal, is to lower costs and increase service and product quality. But chopping costs and increase service and product quality. But trimming costs by reducing labour, if taken too far, decreases quality. The only path these seemingly conflicting seeks can be reconciled is by in charge employees focused on working smarter. Rather than reducing labour's cost we ought to optimize labour's value: by convincing our employees our purpose merits determination. "

Four months offered Flexible Contracts to the employees somewhat than job chop, in which employees will be called working as per the demand of the business enterprise which substituted working four days and nights a week rather than five days a week. It was in the contract of the employees and all the employees were in favour of your choice furthermore the wages and the add-ons of the professionals was also infected. This all resulted in sharing one common policy in heading towards company's goals.

Improving the merchandise:

Most of the hotel providers paused the development or running of any hotel for a non permanent period however the property business is really high during the time of tough economy because the properties can be purchased out on lower rates thus Four Periods tackled the problem by reconstruction and refurbishment to increase the products. Isadore Sharp presumed that providing quality service to the guest are a necessity and not a service by itself. Of course, if the hotel wants to sustain in the market the new tendencies in the hotel establishments should be implemented to maintain with the marketplace. Thus to accommodate these changes and offer customers with quality service. During recession the area occupancy is the cheapest thus the hassle induced to the guests are extremely less and thus the friends get a royal out of the world service. They followed this plan during recession period which offered them a steady growth within the decade.

Advertising costs:

Most of the rivals of Four Months hotel kept slicing their advertising and marketing costs, but Four Periods didn't slice their marketing and advertising budget to keep up the brand recognition as they had a good acknowledgement in the Hospitality industry. It is easy to keep the momentum alternatively than restart it. This plan helped them to gain a competitive advantage over their opponents in keeping their brand recognition.

Property market:

During recession the supply in the market for the land was than the demand on low prices. Four periods took the good thing about low prices of the land and they picked the prime locations which would have been difficult to buy them in normal times. Thus this plan paid off to Four Conditions during the time of recession and they came with the best possible of the hotels in top locations after downturn.

How four times supervised various stakeholder targets?

Stakeholder: Person, group, or firm that has direct or indirect stake in business because it make a difference or be affected by the organization's activities, objectives, and plans. (www. businessdictionary. com)

There are three most significant aspects of controlling stakeholder objectives:

Know your stakeholders

Know just what they except for from you

Make them accountable for realities of task by making them aware of risks and effects.

(According to Dr. Wayne Brown, chief executive of the job management company Seba Solutions).

Different stake holders of Four Seasons hotel are

Stakeholders play a vital role for a firm to endure thus the business or organisation must implement a technique for managing their stakeholder expectations.

Thus Four times implemented following technique for controlling their stakeholder anticipations:


Managing the stakeholder's expectation is a step by step process:

After identification of stakeholders, the second step is to recognize their needs.

Needs and expectations of the stakeholders of Four months can be described as follows:

Owners: Profits on investment by profit

Management: Management fees on the basis of gross revenue.

Employees: Empowerment, Profession opportunities and job security.

Customers: High quality service and luxury.

Society: Corporate social responsibility.

Their technique to manage stakeholder goals can be summarised with regards to value chain evaluation as well


Value chain analysis is an idea to generate competitive advantage and sustaining superior performance.

Owner: Expectation of the owners are really high on profits in conditions of profit because they're the one who made the capital investment in the tasks.

The different aspects of value chain used by four season hotels are like Infrastructure of the hotel, the most progressive idea of the initial strategy was to come up with medium sized hotels, and it did the trick really well. It had been permitted and successful by Isadore Sharp who was the degree holder in structures and he realized the latest designs of buildings and hotels like building rooms facing inwards to avoid view of neighbourhood made significant contribution to it. These ground breaking designs really helped Four Times to create the highest occupancy one of the travellers. Thus they were successful in taking care of owners expectations giving returns on their investments in less time.

Management: To make sure a good gross income it is vital to get higher occupancy with good average room rate throughout the year.

Sales and Marketing and technology come into picture from Value chain analysis. The online marketing strategy for Four season hotel is to focus on the luxury segment of the marketplace. 69% of their business originates from business holidaymakers and groups. So almost all of their marketing and advertising programmes were made to enhance the knowing of luxury service provided by Four months hotel. Technology played out a vital part in achieving their goal by newly designed website and superior booking system. They gained an edge over other hotels by Global booking system which offered an option to the guests to be comfortable with their own local vocabulary in North America, Asia and Western european Network.

Example: There are so many hotels in Hyde Park area but over 30 years Four Seasons has gained and loved the highest occupancy in the region with their strategy.

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

Employees are the most important stakeholders of the organisation, if they're happy to improve the organisation the whole business pattern can run easily, If Employees are happy then your customers are pleased with their service it leads to person to person promotion and the company gets a repeat business.

Employees are worthy of a mutual value from the management. Human Source Management from value string ensures that employees should get what they are worthy of and expect. And most significantly the Golden Rule of Four Seasons is 'treat others as you want to be treated' also they believe if employees are happy then only they can make customers happy.

Four Seasons has maintained empowering their workers, and the best final result and results can be obtained from their employees by empowering them.

I'm sure we've all read studies on the productivity gains achieved by empowering employees. And we all know the workplace has to change to realize this. And in a study of 264 big company chairman, 62 percent arranged that "one of the most important business issues facing them" was "building and keeping a professional workforce. "

-Isadore Sharp

d. ) Customers:

The expectation of the clients is high as Four Periods targets luxury section of market. Service factor from Value String is wisely utilized by Four Seasons to manage targets of luxury for the clients.

They redefined luxury as service. Four Months gained a competitive border by provided high standard of service with personalised touch. Customers acquired what they expected from Four Months. And they are incredibly successful to make customers happy.

E. ) Culture:

As Society desires some corporate social responsibility(CRS) from all the hotels and company, their expectation for four conditions towards society is actually high as well. CSR includes pushing activities for development of contemporary society and avoiding tactics which causes trouble for the surroundings.

Four Seasons make clear the way they help and take effort towards community by various training and mentoring programmes for young people and helping whoever in need in their website www. fourseasons. com.

Example: They donate organic food to local farmers to supply their family pets (Costa Rica) and also providing shelter camps to Urban Elephants(Golden Triangle, Thailand), Increasing significant funds for malignancy research and understanding programmes.


Four Conditions has a strong collection in the Hotel Industry but to support they should give attention to few things that are as follows:

Four Months should concentrate on building more brands and give attention to all the categories like upper-scale, middle and budget hotels. Unlike Accor group of hotel they have got segmented their hotels and created a brand centering the needs of its customers such as Etap, Ibis, Novotel, Sofitel etc.

To compete with other leading brands Four Seasons should produce more hotels around the globe for further brand recognition and then for customers to have a taste of their service.

Furthermore Four Conditions should continue the effective management of the hotel just how they are doing it to sustain in the market.


With the bottom of the case study and research on Four periods hotel, Canadian based business has a fantastic brand recognition all around the globe. The business is moving forward with excellence along with strong financial and operational management. Different innovative ideas of Four Conditions hotel helped them increase in this hospitality business through the years furthermore before recession Four Periods hotel did effectively, thus it says Fours Periods Hotel has changed economic down consider a competitive edge over their rivals by discovering different properties with perfect location after recession (they responded very well to financial downturn). They had taken the down turn as an opportunity to expand and so they are obtaining excellence in their business.

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