Ritz carlton hotel business essay

Introduction

The standard “seven day countdown” prior to a resort opening is currently used by The Ritz-Carlton Resort Company as being a state of the art blitzlys, to adapt new staff to the concepts and criteria of motel operations. Yet , pressure from Brian Collins, parner and current key operating officer for An important part of Hospitality Associates, is asking yourself the quality and efficiency of such a regimen procedure. These concerns happen to be primarily concentrated around the beginning of the Buenos aires, DC’s historic Foggy Bottom level Ritz-Carlton lodge.

James McBride has been picked as general manager from the new motel and is a veteran in the Ritz-Carlton hotel business. Utilizing the “seven time countdown”, McBride has effectively opened several Ritz-Carlton hotels worldwide. Whilst any regimen measure can be improved over time through the process of innovation and evaluation, Ritz-Carlton has managed practice of the “seven day countdown” since the 1980’s, with out many improvements.

This constancy of the hotel opening procedure is almost contradictory to the Ritz-Carlton standard, that being to constantly give service and improve on current service practice in order to improve the customer encounter.

The Ritz-Carlton manages managing the modern Washington, POWER hotel investment made by An important part of Hospitality Group. This is by no means an “invest and walk away” situation, Millenium is involved with the “seven day countdown” and inquiries the validity of the usefulness. Issues revolved around two major conflicts: 1 ) ) How would the Ritz-Carlton efficiently implement changes to their procedure, without diminishing operations? 2 . ) What measures of success would Millenium Food constitute due to changes in the “seven day countdown”? Obstacle #1 – “The Seven Time Countdown” may impact assistance measures. Since the 1980’s the Ritz-Carlton Hotel Company has been refining the hotel-opening process.

There is no doubt, that the company continues to be quite effective in the opening of accommodations, as they currently stand among the most high-class hotel businesses on a global standard. However , the implementation of the “seven day countdown” is to some extent contradictory for the very principles that inspire the company’s objective and support granting common sense. In 7 days, Ritz-Carlton management, hotel managers, trainers and newly hired employees need to all come together to reach a level of perception that makes sure that both staff and managers alike take one agreement and are synced in the assistance philosophy of the Ritz-Carlton manufacturer. Based on my evaluation of this case, it is difficult to gain a understanding why this seven day count-down has never been evaluated for total effectiveness.

It can be almost like the notion is definitely, because this procedure has worked efficiently in the past, that there is no cause to change this. However , there is absolutely no definitive evaluate to fully clarify this within a thorough fashion; as stated in the case, “it was difficult to coach new employs to meet the high objectives of The Ritz-Carlton service standards in only 7 days, but that was the way the Ritz-Carlton worked”. What is a lot more striking is that the case says often times; hotel openings hardly approached preparedness status for opening working day following this regimen countdown method. This triggers one to query whether or not seven days is indeed enough time to train and prepare personnel and department teams to get grand beginning. Obstacle #2 – “The Seven Day Countdown” may result in income loss. Collins has a very good point, in questioning the validity from the “seven working day countdown”; after all his organization has made a $700 million investment and wish to see that returns are enhanced. As it stands, following the high-stressed, jam-packed “seven day countdown”, the Ritz-Carlton estimates to spread out the motel with 50 percent occupancy, with the anticipation of reaching 80 percent occupancy in a few months.

Their very own reasoning pertaining to doing so is caused by the fact that “flawless setup is the goal, and then acceleration will come”. The Ritz-Carlton company likewise believes that opening by 50% capacity will help offset turnover costs that are skilled after starting. The Ritz estimates that is takes about several months to succeed in occupancy capability of 80 percent, which is the desired occupancy. Depending on data coming from Exhibit several (Ritz-Carlton, 2001 First 12 months Monthy Budget), in January when guests is 59%, revenue coming from rooms is usually $1. six million, compared to 2 . two million in May when occupancy is 76%. At the front end of starting, the Ritz-Carlton is losing money in the array of $0. 6th million us dollars of uncaptured revenue due to their opening at 50% potential. Despite all their rationale with this, one may issue whether or not this loss is necessary, and could this be augmented by a even more through opening training procedure that exceeds the routine “seven day countdown”.

Recommendations

1 ) Evaluate the success of the “Seven Day Countdown” Despite the pressures from Collins in recommending changes to the “seven time countdown,  The Ritz-Carlton need to first assess the effectiveness from the program they already have in place. Depending on the case analysis, it is not obvious as to what metrics the company uses to determine the accomplishment of a motel opening. These types of analyses certainly would need to be market certain, and adjusted for the economic climate where the Ritz-Carlton real estate is located. Implementation of such a method will assist The Ritz-Carlton in identifying gaps in knowledge with respect to all their business procedures following a grand opening. Income should not be the sole key measure of success. Staff satisfaction and job efficiency should also always be evaluated pursuing the grand opening.

Moreover, an understanding in the volume of several hours spent re-training or correcting mistakes is additionally very vital towards successful operations, since The Ritz-Carlton prides alone on top quality customer service. 2 . Evaluate the performance of the “50% Occupancy by Grand Opening Rationale” The Millenium Hospitality group provides every directly to challenge the “seven working day countdown” opening process, because key elements may stand to impact equally initial and future revenue gains. Despite their devotion to services, The Ritz-Carlton opening for 50% potential may not be completely necessary initially. If the “seven day countdown” is indeed operating at outstanding standards, then simply employees must be well-equipped to do their work functions properly with nominal errors. This kind of embedded “safety net” to shield against turnover, might even be harming core procedures and is a sign of a problematic opening process.

Following a great assessment of the “seven day countdown” all together, The Ritz-Carlton management team, would in that case need to experiment with altering the occupancy proportions at diverse levels to assess profitability. The Ritz-Carlton’s organization values are deeply grounded in service, when profitability is not maintained, growth and company sustainability could be deeply impacted within a negative method. Similar to the earlier recommendation, The Ritz-Carlton would need to evaluate both equally customer satisfaction and employee functionality in before stages of hotel businesses under increased occupancy conditions.

Conclusion

Drawback towards putting into action these suggestions is that they limited only to retail store openings, which means that hotels which can be already functioning do not amount to appropriate designs for these steps. However , The Ritz-Carlton firm operations may benefit from another data analysis of performance or perhaps profit steps following a hotel’s grand beginning. In my opinion, in the event that service is the number one priority for the Ritz-Carlton exec team, after that serious concerns should be offered towards customizing or growing the “seven day countdown”. The process appears very hurried and does not take into account the discrepancies in employee work acclimation.

Based on my personal encounter in starting a new work, it took us a considerable amount of a chance to actually feel cozy in my position, usually including one or two a few months. Certainly in case the Ritz-Carlton will probably continue and improve upon it is service top quality standards, they must spare no expense. In fact their personnel and the support they provide may be the principle focus of the company. As a result, there is always area for improvement and development in the quality level service delivered.

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