Fairmont Hotels & Resorts Case Study | Free Essay Example

Fairmont Hotels & Resorts Case Study

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Topic: Business & Economics
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Fairmont Hotels & Resorts has its headquarter in Toronto, Canada. It has over 45 hotels with a growing portfolio all over the world. Fairmont is the largest luxury hotel in North America. It has superior services among the most famous destinations of the world. Fairmont has a wide range of clients that include vacationers and business travellers who want convenience. Fairmont has resorts and hotels across the six contents. It has resorts in Nairobi, Kenya, New York, Boston, London, Dubai, Hawaii, Montreal, Singapore, Barbados, China, Bermuda, and Mexico among other countries. In most cases, Fairmont has several hotels and resorts in a single country or continent.

In 2013, Fairmont brand embarked on promoting its brand through trade events and art, especially to attract tourism professionals. The high-end luxury hotels and resorts have become competitive in the recent past. As a result, it has become difficult for many industry players to remain competitive. However, Fairmont Hotels & Resorts opted for “a highly creative marketing campaign that targeted an international B2B audience, and used a trade travel and tourism event as its launching platform” (Bonfanti 1).

Fairmont Hotels & Resorts has expanded its operation worldwide. Therefore, it has enhanced the brand in the international markets by using a creative agency to accomplish the campaign. Fairmont launched a campaign for the Easter in Arabian markets under Arabian Travel Market (ATM) aimed for tourism professionals in the region.

The company created a microsite known as www.fairmontnextchapter.com, specifically for the target audience. They could win a luxury hotel holiday by taking part in the participation. This strategy also aimed at capturing valuable data of customers for business decision-making. Fairmont intends to target consumer markets through its marketing initiative. Another campaign strategy involved the use of arts in order to appeal to highly competitive markets, as well as show the company’s values. Fairmont and its agency have used Su Blackwell in the art promotion.

Fairmont has focused on innovative methods of growing the business, offering best services, and catering for demands of their customers. The firm developed a database with important information about their customers. Fairmont has a global guest database. The company focused on consumer markets of the US and Canada by relying on information from the database. Fairmont developed partnership with firms in the US, which had experiences in the hospitality industry.

Fairmont has based its approach on a targeted portfolio development i.e., the company seeks for property in unique areas of the world. It utilises customers’ profile to develop such portfolio around the world. Such places must have great appeals to customers. Such customers’ profile revealed that many guests at Fairmont preferred travelling to the UK and Mexico. Consequently, the firm introduced the Fairmont Development Team to focus on such areas, make acquisitions, and investments. The company used such information to rationalize its acquisition of the Savoy in the UK. It also used the same method to get Fairmont Heritage Place in Acapulco. Such new investments have continued to define the luxury of Fairmont brand across the world.

Currently, Fairmont Hotels & Resorts has no presence in Miami. However, Fairmont had collaborated with a luxury Mediterranean-style hotel with the state-of-the-art sport facilities, the Turnberry Isle Resort Miami. Turnberry Isle Resort Miami was formerly the Fairmont Turnberry Isle Resort & Club. Now, the two luxury hotels are engaged in court battles about the breakup fees.

Azamara Club Cruises

This is the former Azamara Cruises. Azamara is a part of the Royal Caribbean Cruises Ltd that belongs to the Norwegian-American firm. The cruise line has two ships, which are Azamara Journey and Azamara Quest (Independent Traveler, Inc 1). Azamara is a deluxe cruise line with many amenities, which aim to march competitors.

The company aims for high-end customers, but it evades open competition with some of the luxury cruise lines. Azamara is a small ship that offers comfortable, upscale services, itineraries, and food. Azamara cruise line has a capacity for 694 passengers, who get excellent services like “multiple dining venues, a casino, plentiful balcony cabins, and a quite generously-sized fitness facility” (Independent Traveler, Inc 1). Azamara started as Renaissance Cruises in the 1990s. The company expanded by building identical cruise lines. However, the company collapsed in 2001. Different companies acquired the cruise lines, which included Azamara.

The company has no immediate plans for expansions of its fleets. Azamara Club Cruises main competitors include “Oceania Cruises and other travel agencies, which cater for deluxe cruise lines” (Independent Traveler, Inc 1). Cruise lines categories include bargain, mass market, premium, and luxury. The deluxe group falls between premium and luxury cruises. Therefore, Azamara is a deluxe cruise line. The cruise line destinations include Europe, Caribbean, Mexico, Asia, Panama Canal, Mediterranean, and South America.

Both ships of Azamara are not new ships, but the company management has maintained them accordingly. The parent company has strived to provide modern and new environments in both ships. For instance, in 2012, Quest underwent a major refurbishment that covered furnishings, painting, steam rooms, fitness centres, caviar, and champagne bars among others. The company underwent a major rebranding in 2010. The rebranding efforts also introduced the new President and CEO (Larry Pimentel) to the company. The company also renamed itself to Azamara Club Cruises. It now aims for creating value in premium cruising. It has promotion known as ‘destination immersion’ that has overnight stays across many ports and cities.

The CEO, Larry Pimentel has ensured a continued growth of the cruise line since he joined the firm. In fact, the Cruise Critic believes that the cruise line has improved in areas of “dining, service, decor, shore excursions, and value for money” (Independent Traveler, Inc 1). Azamara is inclusive than other non-luxury cruise lines because it has complimentary services that include “wines, lunch, dinner, specialty coffee, soda, and bottled water” (Independent Traveler, Inc 1).

All services are parts of the cruise fares. At the start of spring 2013, the company planned to provide “new inclusive services, which would include free selected wines, spirits, and beers at the opening hours of all its bars” (Independent Traveler, Inc 1). It also has a programme that will provide 52 Destination Events to all passengers.

Azamara main passengers are mainly older, but active citizens who want port-intensive itineraries. This group prefers marquee cities and unconventional places. Azamara gets its passengers throughout the world. These passengers are mainly from the UK, New Zealand, North America, and Australia. The company has outstanding services include dining. Both lines have four restaurants. Passengers who want to dine in the restaurants pay a fee of $25 so that they can dine at Prime C and Aqualina. Suite cabins are free. The small ranges of the ships allow them to harbour in most ports and close to cities than other huge lines. The company has a presence in Miami, Florida.

McDonald’s Restaurants

Most people know Miami for the sun, sea, and salsa. However, Miami has also gained recognition for its polished restaurants. One such restaurant is McDonald’s, which also has other restaurants around the world. Miami receives over 12 million every year. This makes the place a ready market for chefs and restaurants. Changes in the weather patterns have influences on the restaurant business in Miami because reservations are difficult to get during peak seasons of October and March.

The McDonald’s Corporation has its headquarters in Oak Brook, Illinois. McDonald’s Corporation consists of properties, franchises, affiliates, and restaurants. These are the main sources of revenues for the company. McDonald’s owns about 15 percent of all restaurants under its name. Others are mainly franchises and joint ventures.

McDonald’s has a different approach to restaurants and fast-food business. The company draws franchise and marketing fees from franchises and joint ventures. It also collects rents. All these collections are percentages of sales. The company has different approaches in different markets. For instance, in the UK and Ireland, McDonald’s owns most restaurants unlike in the US where majorities of its restaurants are franchises. The company has training institutions for its franchisees. The company uses approved third party to supply foods and other materials to all its franchises globally.

McDonald’s restaurants are in 119 countries. The company serves more than 68 million consumers each day. It employs more than 1.7 million persons in its 34,000 restaurants. In addition, McDonald’s also has other brands like Piles Café. McDonald’s expansion across the globe has become synonymous with the term globalisation in which many have referred to as ‘McDonaldization’ of society. McDonald’s has strengthened its main brand by buying other restaurants from the 1990s. In the recent times, McDonald’s has divested some of the chains it had shares in like Chipotle. McDonald’s has redesigned its restaurants under ‘Forever Young’ slogan.

The company targets 14,000 restaurants for redesigning at a cost of $1 billion by the year 2015 (Horovitz 1). The company has promoted its restaurants through extensive advertisements all over the world. The company promotional campaigns involve the use of traditional media, billboards, sponsorships, signage, and through social media. The company has more than 23 different advertisement slogans for the US markets alone. Currently, McDonald’s runs promotions for Happy Meals and McDonald’s collector for its new menu items, which the company considers as a fun way to connect with consumers.

McDonald’s has several outlets in Miami. These outlets are in specific streets, high-end places, and most accessible areas. The choices of places are strategic for McDonald’s business objectives. The company has changed its target consumers over time. For instance, in the 1980s, McDonald’s appealed to senior citizens through its advertisement.

In the 1990s, the company changed its focus to young urban professionals. Today, McDonald’s has created promotional campaigns that target kids. Such advertisements have brought controversies and lawsuits (Angelo and American Hotel & Lodging Educational Institute 7). Therefore, McDonald’s target markets are people of all ages. The brand has saturated the market. The market knows the brand, and McDonald’s no longer focuses on a single demographic or a specific target market in order to create a niche.

Works Cited

Angelo, Rocco and American Hotel & Lodging Educational Institute. Hospitality Today (AHLEI) 7th ed. East Lansing, MI: Educational Institute, 2012. Print.

Bonfanti, Paola. Campaign of the Month: Fairmont Hotels got the art factor in its latest campaign. 2013.

Horovitz, Bruce. McDonald’s revamps store to look more upscale. 2011.

Independent Traveler, Inc. Azamara Club Cruises. 2013.