Strengthens Brand Content Strategy with Magazine Redesign - Case Study Example

Industry Organizational Report Name Institution Tutor Date Introduction Tourism is Australia’s largest export earner amongst services, accounting for 2.6% of total national GDP, at $34 billion (Tourism Australia 2010). Accommodation is on its part a great contributor to tourism’s value chain, as the tourists have to stay somewhere for the duration of their visit (TAA 2012). The industry’s hotels employ large numbers of workers, both skilled and unskilled, in addition to buying local supplies hence raising community incomes (PWC 2009). One successful hotel entity in Australia is the Four Seasons Hotel Sydney, which is part of an international luxury hotel chain based in Canada (Sharpe 2013). The Four Seasons Hotel Sydney has effectively managed the different challenges that face the hotel industry in Australia, as well as elsewhere in the world. This paper discusses the significance and issues surrounding the hotel industry in Australia, with special reference to Four Seasons Hotel, Sydney. Four Seasons Hotel Sydney’s Services The Hotel, in the Sydney Central Business District, is located close to the city’s active business and shopping centres, and overlooks the Sydney Harbour, making it quite attractive (Four Seasons Hotel 2016). It provides customers with luxury rooms and suites and a holistic spa, named The Endota, in which Mineral Mud Cocoon, Aromatic Oil Exfoliation and Australian Desert Salt treatments are offered (Sharpe 2013). It is also the home to the biggest outdoor heated pool in Sydney (Atkinson 2010). In addition, there is a fitness centre where visitors are enabled to keep exercise (Four Seasons Hotel 2016). There is also an artisan bar which serves an in-house beer, and also a restaurant on its ground floor (Sharpe 2013). The Hotel is marketed as the best five-star luxury accommodation in Sydney, where customers are able to stay in luxurious rooms or suites overlooking the city skyline. Business services are also offered, so that a visitor can for instance take care of his business from a 24-hour internet area that offers wireless connection and free printing within the hotel’s Executive Club, which has further luxury of a spectacular view of the city and Walsh Bay (Four Seasons Hotel 2016). The Marketing Approach The hotel targets high-end customers who are willing to spend more for a premium service. Its marketing strategy to reach such clientele notably includes the printing of a modern, high impact promotional magazine, the Four Seasons Magazine. This is distributed in mobile, digital and print versions that deeply explore issues relating to culture, science, travel, luxury and technology. It has destination and topic-specific blogs that support it, so that the online reading experience is customized depending on the type of reader. Luxury brand advertisers are invited to market their products in it, and the print version is especially printed in 5 languages and circulated across 200 countries (Carr 2012). In recognition of the fact that luxury travelers also tend to be tech-savvy, the internet has especially been granted a major role in reaching the hotel’s customers. While many high-end hotel brands usually play safe, four Seasons has taken up digital marketing fully. Its website was relaunched in 2012, providing TripAdvisor reviews, destination guides and advice by staff all over the company’s 92 businesses globally (Camillo 2015). A content channel, which features the magazine for instance, is used in ensuring that the Four Seasons brand always remains relevant to the target audience (Carr 2012). The hotel, through its marketing strategy has focused a lot on an electronic control of its brand, mainly based on mobile, social media and digital avenues. This is a shift from the typical travel agency or word of mouth recommendation but rather about checking some TripAdvisor commentary or reviews (Rooney 2012). Role of Employees and Legal Obligations According to Daft (2008), the hotel’s employees are guided by a hotel philosophy which requires every member to treat the customer as they would want to be treated themselves. This is achieved through a pro-employee culture where each individual is highly respected. Through showing respect and consideration to employees, managers create workers who handle customers the same way. Kotler et al. (2015) adds that the hotel employs only trainable employees who are compatible with its culture, then instills a sense of pride in them, and motivates them highly through recognition and rewards. Legal obligations however remain. There is for instance business structure, where registrations have to be regularly updated for instance the business name and annual financial returns. Taxation requirements and contracts relating to financial commitments have to be considered too. Intellectual property is also an important aspect that has to be respected and updated periodically. There are further employer obligations, for instance where employees have to be selected in line with selection criteria and job descriptions. All employment-related agreements also have to be written, and induction and safety trainings provided upon selection. Employee dismissals must be procedural, especially to ensure that they are not in breach of the Anti-Discrimination Act (1991) (Queensland Government 2015). The Hotel’s Triple Bottom-Line Sustainability has increasingly become a defining feature in the hotel industry (Lockyer 2013). According to Four Seasons Hotel (2016), the company has a sustainability support policy, in which it seeks to involve every guest and employee in a shared goal of the earth’s protection and preservation. This is considered important because sustainable tourism is the only way to ensure protection of business in future hence continuity of business. There are for instance a number of “green” programs which take place at the hotel, in the form of gardens, meeting packages and awards. TAA (2013) adds that in relation to the environment, Four Seasons is subjected to the Australian carbon tax introduced in July 2012, and as a result has resorted to the seeking of energy efficiency. On ethics, Four Seasons has an openly declared commitment to ensuring that its business is conducted in a way that are in line with all legal requirements, and also upholds the greatest ethical standards. There are policies against even practices such as corruption and bribery. It also has a strict Code of Business Conduct and Ethics which outlines the employer’s expectations upon everyone on behalf of the company. There is encouragement of open communication relating to ethics, and there are procedures established for giving anonymous or confidential reports relating to anything that might occur during operations (Four Seasons Hotel 2016). Trends in the Australian Hotel Industry There has been a reduction in the number of hotels in the past over one decade, as the industry consolidates, and income growth in the past two decades has been minimal, suggesting that it is a matured industry (PWC 2009). While there were declines of revenue and weak conditions before 2010 and 2011 due to lesser demand from the tourist and corporate market segments, this has considerably changed, but hotels have had to compete strongly with other kinds of accommodation within the last six years, especially serviced apartments. In spite of everything, hotels mostly remain profitable, mainly because of a rise in international visitors especially from the Asia-Pacific region, and also a continuous growth in local business travel (IbisWorld 2016). While there has generally been a moderation of the industry globally, in Australia performance has remained strong. The Australian Dollar has been experiencing depreciation, which together with a drop in oil prices, have encouraged tourism. There has been a growth in domestic overnight travels attributed to visits to relatives and friends, and also corporate travel (Deloitte 2015). However, barriers to entry remain. According to IbisWorld (2016), these are medium, mainly because it is possible to lease establishments, hence a more affordable and faster way of entry without having to build new structures. Regulatory hurdles are also few, even though there are many licenses and training requirements relating to the hospitality sector. Current Challenges and Future Opportunities Barriers to development include high cost of land. Competition with other land uses, for instance office, residential and others, which are generally easier to finance and produce greater development returns, worsens everything. Debt financing is also harder as it requires valuations, yet for a hotel, these are extremely sensitive to changes in future supply. Construction costs are also on the rise, due to high construction material and labourer demand. Further, compliance with the Australian Building Code implies that hotels have to contain additional safety and amenity features, not necessary for instance in a residential structure. On operational barriers, hotels have higher fixed costs, as most do not change relative to supply or demand, and tend to be generally higher than other kinds of property development (TAA 2012). In spite of the difficulties, future projections are positive. It is expected that the industry’s revenue will maintain a growth of at least 3.1% since 2015 annually up to 2017 (IbisWorld 2016). Australian hotel-room demand will be on the rise, at a double rate of the supply up to 2017 (Kelly 2014). The number of room nights bought is expected to also increase by 2.5% annually, and also an expansion in hotel investment property count, as seventy-five medium-term projects are ongoing (Deloitte 2015). The national rates of rooms will on their part rise by 3.5% annually and the revenue per available room (RevPAR) by 4.5% annually (Kelly 2014). From the discussion, the future is promising, with the opportunity for greater profitability within the hotel industry. This is because there will definitely be an increase in travel locally, which is likely to boost revenues. There is also an opportunity for customer acquisition due to word-of-mouth advertising. If they could be encouraged to talk more about the hotel to their colleagues, business associates or family members, for instance through some incentive, they will improve business, in addition to digital marketing. There is a further opportunity in the strengthening of competencies within the industry. This will help to deal with respective competitors by building the hotel’s core competitive advantage. In addition, hotels with financial capability have the opportunity of expanding further. There can be more brand marketing, accompanied by expansion of facilities, amenities and locations of business across major cities in the case of five star hotels such as Four Seasons. Conclusion The hotel industry in Australia contributes a lot to the economy, mainly through stimulating employment and economic activity. As a five-star hotel, Four Seasons Sydney has managed to pursue its target market through a high end magazine, and unusual focus on digital marketing. It has also adhered to legal requirements, ethical concerns and creation of a good employee culture that has ensured its success. The hotel industry has in the past been faced with challenges. However, it has remained resilient, and in spite of current barriers, has a positive promise for the future. It is therefore up to the hotel-owners to find the best way of exploiting the growing potential of their business in future, even in the midst of challenges that are beyond the industry’s control. Reference List Atkinson, L (2010) Frommer's Australia. John Wiley, Hoboken Camillo, A (2015) Handbook of research on Global Hospitality and Tourism Management. Business Science Reference, Hershey Carr, T (2012) Four Seasons Strengthens Brand Content Strategy with Magazine Redesign. Accessed on 20 May 2016 from Daft, R (2008) Management. Thomson Southwestern, Ohio Deloitte, (2015) Tourism and HotelMarket Outlook 2015, Australia. Deloitte Touche, UK Four Seasons Hotel (2016) Four Seasons Hotel Sydney. Accessed on 20 May 2016 from IbisWorld (2016) Hotels and Resorts in Australia: Market Research Report. Accessed on 20 May 2016 from 1 Kotler, P, Burton, S, Deans, K and Armstrong, G (2015). Marketing. Pearson Higher Education AU, Sydney Kelly, M (2014) No End in Sight to Australia's Hot Hotel Market. Accessed on 19 May 2016 from Lockyer, T (2013) The International Hotel Industry: Sustainable Management. Routledge, London PricewaterhouseCoopers (2009) Australian Hotels. 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