The Ritz Carlton Success Analysis

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Summary of The Ritz-Carlton The Ritz-Carlton is one of the most prestigious and well known hotels. Not only is The Ritz-Carlton a five-star hotel, but it has received numerous awards, including the Malcom Baldrige National Quality Award two times which no other hotel has done. The Ritz-Carlton strives to distinguish itself by providing the best customer experience possible with exceptional service. The Ritz-Carlton was established in 1983 and to date has 91 hotels in 30 countries with more than 35,000 employees (www.ritzcarlton.com). Besides the hotels that The Ritz-Carlton is well known for it has the following brand extensions; spa development, golf, The Ritz-Carlton destination club, The Ritz-Carlton residences, and a leadership center. …show more content…

It is imperative to the success of The Ritz-Carlton that they have selected the right location, provided the customer with the product that they desire and have the right employees to successful provide the service to its customers. Success of The Ritz-Carlton The Ritz-Carlton has had much success and there are many factors that contribute to the success. The first factor of success that comes to mind is the customer service at The Ritz-Carlton. The Gold Standards are the foundation of The Ritz-Carlton and are the values and philosophy by which it operates. The Gold Standards consist of the credo, motto, the three steps of service, and service values. Having a high level of elegance and prestige is the second factor of success at The Ritz Carlton. The motto of The Ritz-Carlton is, “We are Ladies and Gentleman serving Ladies and Gentlemen.” The Ritz-Carlton tries to appeal to customers who desire an experience of luxury when …show more content…

The first obstacle that The Ritz-Carlton has is their pricing. Being a high end luxury hotel, the price targets at higher income levels. At The Ritz-Carlton Boston room rates range from $355 for a basic room up to $6,000 per night for a presidential suite (Nayer, n.d.). At these rates the target demographic is primarily upper class. The next vulnerability for The Ritz-Carlton is the competition in the hotel industry. The hotel industry is very competitive and there are numerous options for customer to choose from. Hotel chains are always attempting to provide the lowest price, best service, or best customer stay. In direct completion with The Ritz-Carlton is the Four Seasons, as lower priced hotels are really not in competition (www.galup.com). The third vulnerability for The Ritz-Carlton is the economy in general, which is something that it has very little control over. When the economy is down, individuals are less likely to take vacations or splurge on luxuries such as staying at The Ritz-Carlton. Tough economic times will greatly impact luxury spending and even costs for the hotel to

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