Ritz Carlton - Essay Example

Ritz-Carlton was founded over 100 years ago by Cesar Ritz. Upon his death in 1918 his wife continued his legacy (Ritzcarlton, . Since its early years the company realized the importance of customer service. “Customer service is one of the most important parts of your companys overall strategy to conducting business” (Haycox, 2011). One of the reasons the hotel was so successful throughout the 20th century is due to its luxurious setting, valued prices, and tremendous customer service. Ritz-Carlton is a multinational corporation that operates in one of the biggest industries in the world.

The global travel & tourism industry total contribution to GPD in 2011 is estimated at $5,987 billion and is expected by grow to $9,226 billion by the year 2021 (Plunkett Research, 2011). The purpose of this paper is to describe the operating strategies used by Ritz-Carlton to provide great service and achieve high customer retention rates. Due to the intense competition in the industry Ritz-Carlton has been able to differentiate itself by providing many services customers’ desire. The firm has a tremendous website that provides vast information about the company, its locations, and it provides the ability of customers to make reservations online.

One of the most popular services and that the hotel offers to its customer is the inclusion of spas in the room. This feature is very unique in an industry where luxury items are scarce due to the rising operating costs and the cost cutting initiatives of many hotels to raise profit margins. The pricing structure of the hotel is extremely competitive. The company often offers special packages that provide customers with significant price discounts. For example the firm is currently offering an overnight stay for two with breakfast included for only $100 (Ritzcarlton, 2011).

Another strategy that is used by the hotel chain to increase its customer retention rate is the Ritz-Carlton Rewards Program. The program allows the customer to accumulate point with each rental of a room that can be used once to get a free rental or they can be converted into airline miles. As customers continue to use the program they can raise their level of benefits by becoming a silver, gold, or platinum member. The hotel chain uses other strategies to raise its income by including within the infrastructure of the hotels large meeting rooms that can be used for weddings, business meetings, or other celebrations.

The quality of the culinary and food services of the hotel is superb. The employees are well trained to provide excellent customer service. The firm self promotes itself through their own proprietary magazine called The Ritz-Carlton Magazine (Nxbook, 2011). The hotel helps its customers remember their fabulous experience by offering a gift shop of unique items. It also has a corporate gift shop program and special incentives for corporate clients. The firm has a residence and club program that allows people to live on a permanent basis in luxury condominiums.

Ritz-Carlton is a five star hotel that will continue to prosper in the 21st century due to its ability to provide superb customer service. References Haycox, C. (2011). The Importance of Customer Service. Retrieved November 14, 2011 from http://www.businesstoolchest.com/articles/data/20110222190932.shtml Nxbook.com (2011). The Ritz-Carlton Magazine. Retrieved November 14, 2011 from http://www.nxtbook.com/nxtbooks/mcmurry/ritzcarltonmag_2011fall/ Plunkett Research (2011). Airline, Hotel, and Tourism Industry Overview.

Retrieved November 14, 2011 from Plunkett Research database. Ritzcarlton.com (2011). Ritz-Carlton Hotels & Resort: Discover with You. Retrieved November 14, 2011 from http://www.ritzcarlton.com/en/Promotions/Offers/Discover.htm Ritzcarlton.com (2011). Our History. Retrieved November 14, 2011 from http://corporate.ritzcarlton.com/en/About/OurHistory.htm