Hôtel “De l'étoile” - a hotel in crisis?

Overview

Class Central Tips

In this case study based exercise, you will apply the knowledge you have gained about distribution, revenue and demand management to a ‘real’ world case – Hotel “De l'étoile” - a prestigious upmarket internationally branded property in Paris that to the outside world seems to be doing well but is in fact unprofitable for its owner. Actual data of the distribution performance, revenue management tactics, financial situation will be provided by the hotel partner. In addition detailed information about the hotel’s competitive environment will be provided by several industry partners. Video interviews with senior managers from the property will be used to supplement written material to create a more real world experience. As the new Director of Business Development hired to help the hotel decide how to proceed, you will evaluate the hotel’s current policies and performance, making recommendations for improvements and and plan how best to implement them.

Syllabus

Situational analysis

In the module we will examine the very interesting case of Hotel de l’Etoile, a family owned, internationally branded, 300-bedroom hotel in the heart of Paris France. Although outwardly very successful, the property is struggling with profitability - something that owner Greg Sayer feels might be connected with its distribution, revenue management and demand management strategy....More information will be released progressively as you complete the assignments. Please, see the "Resources" tab of the videos unlocked after you will have done our peer assessment.

Questionning the brand?

Having completed your analysis, you should make a clear recommendation as to what the owners should do with regard to the brand in order to improve performance.

Recommendations to the board Family

Having completed your analysis and had feedback from your peers, it’s now time to make your recommendation as to what the hotel should actually do.

Implementation of the strategy

Assuming that the board approves your recommendation, and having had feedback from your peer, you next need to assess the operational implications of implementing your strategy.