We have seen that a Harrods Hotel would be a very credible and possible brand extension.
Future will tell us if the Harrods management team will make the dream come true.
If they do, I hope they will have the chance to discover our blog...
mardi 6 décembre 2011
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We have seen that a Harrods Hotel would be a very credible and possible brand extension.
Future will tell us if the Harrods management team will make the dream come true.
If they do, I hope they will have the chance to discover our blog...
We have seen that a Harrods Hotel would be a very credible and possible brand extension.
Future will tell us if the Harrods management team will make the dream come true.
If they do, I hope they will have the chance to discover our blog...
Harrods Hotel - How to do it?
We have seen that a Harrods Hotel would apparently be a good brand extension.
The last & main question remianing is :
HOW TO DO IT ?
In our opinion 2 elements are essential.
- Firstly, as seen previously, the hotel must reflects harrods identity
They should create a very cosy atmosphere. Use the talent of an interior designer as Jacques Garcia who did the Hotel Costes in Paris.
(Hotel Costes - Paris)
 |
COMFY |
 |
ELEGANT |
 |
Antique inspiration / Gold / A bit kitsh |
 |
COMFY |
- Secondly, they should make it small in order to decrease the risks and keep it exclusive.
"To fit the firm's luxurious image, Bulgari says that its hotels must be as upmarket as it is possible to be. Because small is considered more exclusive, Armani and Bulgari plan to launch mostly smallish five-star hotels." (2004)
Moreover, by keeping it small, it would limit the financial risks and it would facilitate exceptional service quality.
the Importance of Sustainability
The last course was dedicated to sustainable luxury.
As stated in the WWF " Deeper Luxury report" (2007)
The Harrods Hotel will need to tale care of those issues and even go beyond expectations...
Indeed the objective is to do more, while many resorts and hotels are currently touting green initiatives like recycling, laundering, and energy-efficient lighting, others are taking their commitment to the longevity of our planet a bit further.
“Sustainability isn’t just about recycling,” said Isla Palenque’s architect, Randall Johnson of 4240 Architecture. “It’s a whole life cycle that includes the inhabitants: the people who live and work there.”
(Johnson R., 2010)
As stated in the WWF " Deeper Luxury report" (2007)
"Many luxury consumers are part of an affluent, global élite that is increasingly well educated and concerned about social and environmental issues. These consumers use luxury products as a symbol of success. The definition of success – and the way it is perceived by others – is changing. Many successful people now want the brands they use to reflect their concerns and aspirations for a better world. This is true not only in Western luxury markets, but, increasingly, amongst the affluent middle classes of Asia, Latin America and Eastern Europe."
Nevertheless, they established a ranking evaluating the environmental and social performances of ten major luxury brand. Results demonstrated that luxury brands were not performing very well compared to other sectors.
"After a £200 million refurbishment project, the Savoy Hotel opened on Sunday with £2.4 million worth of green technology, which could reduce the hotel’s energy bills by up to 50 per cent and reward it with the title of London’s most environmentally responsible luxury hotel, according to management."
(Ward M., 2010)
In the last five years, lot has been done by luxury brand to improve their performances. Even if some initiatives looks more as PR than real ecologic conscience.
Louis Vuitton has installed three bee hives on the roof of its headquarters in Paris in 2009.
True social conscience or Public relation ?
In any case, three bee hives seems a bit small for the most famous luxury brand...
Nevertheless, the hospitality industry has always been one of the precursor in sustainable luxury.
In London, the historic Savoy Hotel has reopened after three years of renovation, claiming to be the most eco-friendly luxury hotel in the city."After a £200 million refurbishment project, the Savoy Hotel opened on Sunday with £2.4 million worth of green technology, which could reduce the hotel’s energy bills by up to 50 per cent and reward it with the title of London’s most environmentally responsible luxury hotel, according to management."
(Ward M., 2010)
 |
| The Savoy's new high-tech efficiency boilers help to reduce the hotel's energy consumption by 40% |
The Harrods Hotel will need to tale care of those issues and even go beyond expectations...
Indeed the objective is to do more, while many resorts and hotels are currently touting green initiatives like recycling, laundering, and energy-efficient lighting, others are taking their commitment to the longevity of our planet a bit further.
(Johnson R., 2010)
Hotel Brand Extension -> A trend in images
Many fashion brand are extending in the hotel business...
ARMANI HOTEL DUBAI:
BULGARI RESORT BALI:
MAISON MOSCHINO MILAN:
MISSONI HOTEL EDINBURGH:
RALPH LAUREN – ROUND HILL HOTEL, JAMAICA
What is the common points of all those "Fashion" hotels ?
Obviously they REFLECT the brand DNA of the brand extended.
ARMANI HOTEL DUBAI:
BULGARI RESORT BALI:
MAISON MOSCHINO MILAN:
MISSONI HOTEL EDINBURGH:
PALAZZO VERSACE GOLD COAST AUSTRALIA
RALPH LAUREN – ROUND HILL HOTEL, JAMAICA
What is the common points of all those "Fashion" hotels ?
Obviously they REFLECT the brand DNA of the brand extended.
the 5 stars bar ***** is raising!
From Paris to London all the great palace are going under refurbishment in order to cope with the opening of new competitors raising the competition.
In paris, the 7 most famous Palaces. From the Four Seasons George V to the Crillon are all going under major refurbishment. Only in Paris, 4 new Palaces, under the direction of Asian groups well reputated for their service quality, will open soon.
London is also experiencing the same trend. The refurbished Savoy Hotel re-opened less than on year ago.
"In less than two months, the Savoy will be open for business after a near three-year closure for a £220 million ($385m) revamp. MacDonald can't wait. His team has already taken reservations for the £10,000-a-night royal suite, the first time that the hotel, which has been host to Sir Winston Churchill, Marilyn Monroe and The Beatles, has had a suite of such sumptuous extravagance.
Soon after the return of the Savoy, which is managed by the Fairmont chain, London will welcome back the Four Seasons on Park Lane. That has been closed for the past two years while it undergoes an estimated £100 million rebuilding but is due to reopen in December.
Next year sees the opening of 45 Park Lane, a new hotel from the group that owns the nearby Dorchester, and the Corinthia, an international chain that is making its British debut. The chic W chain is also entering London next year, with a property on Leicester Square.
Further out, Bulgari will open a luxury hotel amid the boutiques of Knightsbridge while Shangri-La, one of the biggest hotel brands in Asia, is opening its first London property in the new Shard skyscraper.Claridge's and the Berkeley both have expansion plans, while Waldorf Astoria is also making a splash in the capital, with the launch this November of a property in the grounds of Syon Park in west London. All have been emboldened by the strong performance of London's most exclusive hotels during the economic downturn."
(Goodman M., 2010)
(Goodman M., 2010)
So even if the market trend of the London hospitality business is good. A Harrods Hotel will need to offer a class A, service and experience.
Nevertheless, Harrods Hotel would position itself as a boutique hotel, therefore it is not directly competing with the big palace.
The best way to compete is to be different. As Apple does it for example.
lundi 5 décembre 2011
External factors of success
Secondly external factors :
- Steady growth of the hospitality industry in London is planned.
London hotel occupancies rate have been creeping up since early 2000, reaching 82% in 2010. We can imagine that this trend will remain steady with the Olympics coming for example. 
|
Luxury is stable in the old continents, but emerging markets are boosting results. 5 to 6 percent annual growth is planned through 2014 (BAIN) in the luxury industry ! |
 |
Internal factors of success
Different elements could make the Harrods Hotel a big success.
Firstly internal factors :
Firstly internal factors :
Harrods world famous name - Clients would be proud to go to the Harrods hotel especially tourists   |
 |
 Very convenient for people who intend to shop at Harrods. The goods could even be displayed in their room. The Ritz fine jewelry is for example a very convenient shop for the impulsive wealthy buyers of the Ritz. |
 Harrods heritage - In terms of style and decoration it would be easy to create a Harrods Hotel that fits the brand As an example, they even succeed to do it with a box of bitter mints.  |
An option that has already been considered !
Here is a little article we could read in Vogue a bit more than one year ago...
So our idea is apparently not so "Innovative"...
Nevertheless, it confirms us that its is a very credible opportunity as seen previoulsy.
SERVICE IS KEY!
During the managing course we focused a lot on the IMPORTANCE of service.
We saw it in the theory but the speeches of two successful entrepreneurs in the luxury food industry illustrated it in real.
Jennifer from the Pure Package
And Kate from Rare
insisted on the two main elements of their success.
Firstly, the quality of their product.
And secondly, the quality of their service.
The product is of course indispensable but not sufficient today.
It is the service that makes the difference.
Clients of the pure package could probably found good quality food in an organic store, they could also find as tasty food in a restaurant.
It is by its service (personalized meal and home deliveries) that the Pure Package differentiated themselves and conquered a new market.
Kate from Rare explained that every actors of the company need to understand the importance of Service. Obviously waiters for example must be impeccable. But Kate herself is there to answer the request of Rare clients. As a result, clients where delighted and where thanking her in person.
We saw it in the theory but the speeches of two successful entrepreneurs in the luxury food industry illustrated it in real.
Jennifer from the Pure Package
And Kate from Rare
insisted on the two main elements of their success.
Firstly, the quality of their product.
And secondly, the quality of their service.
The product is of course indispensable but not sufficient today.
It is the service that makes the difference.
Clients of the pure package could probably found good quality food in an organic store, they could also find as tasty food in a restaurant.
It is by its service (personalized meal and home deliveries) that the Pure Package differentiated themselves and conquered a new market.
Kate from Rare explained that every actors of the company need to understand the importance of Service. Obviously waiters for example must be impeccable. But Kate herself is there to answer the request of Rare clients. As a result, clients where delighted and where thanking her in person.
Here are a few quotes to remember :
"Be everywhere, do everything, and never fail to astonish the customer."
Macy's Motto
"Here is a simple but powerful rule: always give people more than what they expect to get."
Macy's Motto
"Here is a simple but powerful rule: always give people more than what they expect to get."
Nelson Boswell
"Care more than others think wise. Risk more than others think safe. Dream more than others think practical. Expect more than others think possible."
Howard Schultz, CEO Starbucks Coffee
"Care more than others think wise. Risk more than others think safe. Dream more than others think practical. Expect more than others think possible."
Howard Schultz, CEO Starbucks Coffee
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