Polands Tourism Industry - Essay Example

Company Overview The Four Seasons Hotels and Resorts was established about four decades ago as a modest motor hotel in downtown Toronto, and has since evolved into the world's leading operator of luxury hotels offering premium accommodation and spa facilities around the world. The properties are situated in the Americas, Asia/Pacific, Europe, the Middle East, and Africa (Four Seasons Online). In addition to managing around 82 hotels and resorts, the company also offers residence clubs and private residences for luxury home ownership. The company's objective is to be recognized as the establishment that manages the finest hotels, resorts and residence clubs wherever they locate (Four Seasons Online). While the business of managing luxury establishments defines the industry the Four Seasons Hotels and Resorts is in, the company identifies its success on "a clear understanding of and belief in what (they) do and when (they) couple this conviction with sound financial planning." (Four Seasons Online) The company also believes that their greatest asset, and the key to their success, is their people, together with a high service level where the exclusive focus is on luxury hospitality (Four Seasons Online). For the 11th consecutive year, the Four Seasons has been named by Fortune Magazine as one of the "100 Best Companies to Work For." (Four Seasons Online) The company's distinguishing edge is therefore a global network that is attuned to the needs of the luxury traveler, and this is cemented in the number of awards granted, including twenty-three AAA Five Diamond Awards for 2009 from the American Automobile Association (Four Seasons Online). In addition to accommodation awards, five Four Seasons Hotels and Resorts were also awarded the prestigious Five Diamond Awards for restaurants (Four Seasons Online). Activities and Service In addition to offering luxury accommodation and spa services, the Four Seasons Hotels and Resorts also provide leisure activities for groups and families to ensure visits to the hotels and spas are not seen as destinations, but as experiences. Many properties offer signature golf courses, ski lessons, water sports, tennis instructions, fishing adventures, cooking classes, fitness facilities, and family activities. This provides each property an opportunity to showcase the uniqueness of each hotel location, whether through outdoor activities or cultural events and provides customers with a form of escape. Business travelers are also provided with high tech business services including dedicated business centers that house high-speed internet access, expert communication support, and in-room convenience from speakerphones to data ports (Four Seasons Online). Other services include wedding arrangements and packages with personalized support, business meeting packages, and ad hoc celebrations and events with catered menus and private dining rooms. The company also offers a Four Seasons Gift Card that can be purchased and personalized for everyday or occasional gift giving. Four Seasons Resort Experience In addition to offering outstanding activities and service as detailed above, a number of Four Seasons Resorts also provide a more inclusive and personal experience for guests. One example is the Four Seasons Tented Camp in the Golden Triangle (where Thailand meets Laos and Burma) that is accessible only by riverboat, and consists of 15 free-standing tented accommodations on elevated ground catering to a maximum of 30 guests (Four Seasons Online). To further allow guests to embrace and understand the resort's environment, the resort also became a founding member of the Golden Triangle Asian Elephant Foundation (GTAEF), which offers guests the opportunity to rescue elephants off the streets of Thailand and provide them with a safe, humane, and natural environment. Since then, the Foundation has successfully rescued 11 elephant babies off Thai city streets (Four Seasons Online). This lodging concept is appropriate for resorts situated in countries that are rich in culture and history and is able to provide an experience that no travel agent is able to offer. Four Seasons Residences The Four Seasons Residences is an extended lifestyle concept of accommodation where the company offers home ownership in resort surroundings or in a vibrant metropolis with the Four Seasons experience of luxury and service (Four Seasons Residences Online). The Residence Clubs provide fractional ownership where the client pays only for the time spent at the fully furnished vacation home which is set within an exclusive Four Seasons Resort. This provides customers with the flexibility to experience different properties. Services include a personal concierge, in-residence dining and housekeeping. Another option is to obtain whole ownership in Private Residences designed and built to the Four Seasons standard and scattered throughout sought-after city and resort locations, which also includes Four Seasons dining, amenities and services (Four Seasons Residences Online). Four Seasons Competitive Strengths According to its 2000 Annual Report (Four Seasons 2000 Annual Report), the company's competitive strengths include the following: (i) Strong Brand Recognition: the properties are widely recognized for the exceptional quality of their guest facilities, service and atmosphere, (ii) Superior Hotel Operating Results: the operating profit margins for its hotels are above the average achieved in the luxury segment of the lodging industry, (iii) Global Presence: with a global portfolio around the world and a fully integrated global reservation and sales office system that provides international sales coverage for all properties, (iv) Management Focus: 90% of the company's 2000 earnings are derived from its management business allowing the company to participate in the profits of the hotels, (v) Strategic Relationship: this is an important source of financing for future development opportunities to expand the Four Seasons' management operations, (vi) Strong Competitive Position: the company believes that its position is strengthened by the competitors' lacking in time and capital resources required to establish a luxury brand name and to obtain management contracts for luxury properties in strategic markets worldwide. Poland's Tourism Industry In 2007, the GDP of Poland grew an estimated 6.5%, based primarily on rising private consumption, a jump in corporate investment, and EU funds inflow. While unemployment is falling (12.8% in 2007), tightening labour markets, rising global energy and food prices pose a risk to consumer price stability (Poland: The World Fact Book). Euromonitor (Travel and Tourism in Poland) reports that in 2006, Poland experienced a dynamic growth in most sectors of the tourism industry, with most of the interest centered around the cities such as Krakow, Warsaw or Wroclaw and its natural features, including the Baltic Sea, Masuria Lakes and Tatra Mountains. While most incoming tourists consists of both business and leisure travelers from Europe (like the Dutch, Germans and British) and the United States, Euromonitor also reports that these two groups of travelers visit for different purposes. Although business tourism is growing due to the closer integration of the Polish economy into the EU, leisure tourism happens mainly because of visits to the larger polish cities for special purposes such as spa and wellness or medical treatments. Another development that is spurring the tourism industry is the growth of low-cost air carriers which encourages neighbouring tourists to visit Poland for 3-4 day excursions (Travel and Tourism in Poland). In 2012, Poland and Ukraine will jointly host the football European Championship and Poland is planning for the needs of thousands of visitors from all over Europe to Warsaw (Poland2012 Online). This third largest sports competition in the world will create an impact in the development and infrastructure of hotels, foodservice and transportation. Reuters predicts that more than PLN 5 billion will be invested in the hotel industry from 2008 to 2012, and that the number of tourists visiting Poland will grow from 15.7 million in 2006 to about 19 million in 2012-2013 (Reuters Online). Proposal for Poland's Domestic Market Positioning The number of luxury hotels and resorts throughout Poland has increased from 2004 onwards when Poland became the member of EU in May 2004 (Poland Online). Some examples of other luxury global hotels include Le Meridian, The Hilton, Hyatt Regency, Sofitel, The Radisson, and the Holiday Inn. Most of these hotels are situated in the city centers like Warsaw and Krakow and cater mostly to business travelers. The majority of the luxury resorts, however, are located in the areas unique for their natural healing environments usually bordering national parks and reserves and are therefore better geared towards health, medical and wellness propositions (Poland Online). These establishments are mostly dominated by independent boutique owners that offer unique packages and do not cater to the needs of business travelers. Staying focused on The Four Seasons' competitive strengths, the company has the opportunity to tap into Poland's hotel industry by utilizing its strong brand recognition for guest service, facilities and atmosphere by positioning itself as a health and wellness resort that offers globally recognized service levels. This places the company over the competitors as the other boutique resorts lack the time and capital resources to establish the necessary credibility in the luxury resorts market. The fully integrated global reservation and sales office system is also crucial in creating awareness and enhancing the brand presence in Poland. While brand recognition is crucial in penetrating the lodging industry in this market, the company also needs a competitive edge that allows it to stand out from the other health and wellness resorts and spas. The all-inclusive concept that is practiced by the Four Seasons Tented Camp in the Golden Triangle can be modified to suit what Poland has to offer in terms of the local culture and historical significance of its people. Works Cited Four Seasons 2000 Annual Report. Four Seasons Online. 21 November 2008. http://www.fourseasons.com/pdfs/press/annual_reports/FS00.pdf Four Seasons Online. 21 November 2008. http://wwwfourseasons.com/ Four Seasons Residences Online. 21 November 2008. http://residences.fourseasons.com/residence_clubs.html Poland Online. 21 November 2008. http://www.poland.gov.pl/Poland's,way,to,UE,458.html Poland: The World Fact Book. CIA Online. 21 November 2008. https://www.cia.gov/library/publications/the-world-factbook/geos/pl.html Poland2012 Online. 21 November 2008. http://www.poland2012.net/ Reuters Online. 21 November 2008. http://www.reuters.com/article/pressRelease/idUS150221+12-Mar- 2008+BW20080312 Travel and Tourism in Poland. Euromonitor Online.21 November 2008. http://www.euromonitor.com/Travel_And_Tourism_in_Poland Read More