The pricing of the Ritz-Carlton is targeted for the upper-class or the upper middle class customers consisting of business executives,corporates or the families. The hotel makes great efforts to offer memorable and unique experience for each guest that enters the Ritz-Carlton. Give them a lifetime memories. The pricing rate ranges from 500$ to 14000$ depending upon the guest and special services. Hotel has the premium-pricing strategy and offers to the high-elite class people. For the customers who do not hesitate to spend some extra money for the special services and for them comfort matters more than the money and thus the company has been on top with their prices.
The mouth-of-word promotional strategy has worked pretty well for the High-end and top notch company that is recognisable for their lavish property and services by having positive customer rating they can get what they want without using too much of mass media channels like radio, TV and still get the same result and being successful as other companies. The promotion of the company is not done to everyone and anyone to keep their brand standards. The Company publicizes more by email promotion and advertising on magazines, Ritz carlton does not merely focus on TV ads. Having their own Rewards program, it is linked up with high-end companies American Express, JP Morgan and Chase, Vosges, Neiman Marcus, IMG academy which helps the customers to get the points after the guest has be enrolled for the rewards program. Enough rewards points can lead the guest to a complimentary night, upgrading of the room. Having this rewards programs, they distinguish them from other hotels.
The definition for “PEST” stands for Political Factors, Economic Factors, Social Factors and Technological Factors. Understanding and having aware of these factors can guide a company when it comes to the time making a business decision. It has different norm when comparing with the SWOT analysis, which also is another analysis that every business should implement. The PEST analysis can make a company predict when it comes to changes in the global market whether it is the potential to become a profitable or unprofitable decision to take on. It helps to weigh the objectives and datas, of a company and encourages strategies in planning to approach a particular market and also staying to withstand in it. Political Factors – The political factors which could affect the Ritz Carlton would be the terrorist activities and other external political changes which could affect a country’s stability. Other examples would be governmental changes, political instability, security crises like terrorist attacks and natural disasters. Another point is that these harmful situations can give hotels and tourism industry a huge blow and damage. Not only it crumbles a country’s income and reputation towards the industry but also it affects the economy of those hotels, companies and businesses which are invested in that particular country. So, a country’s political factors are also as important as a hotel’s.
One major economic difficulty that the Ritz Carlton facing right now is the growth in GDP in China. It makes it difficult for the foreign business to land a foothold for their future business as their GDP are 7.7%, 7.7%, 7.7f %, 7.5f %, 7,5f %. Economical factors are the data and information which are both current and future predicted.
A company need to consider and collect seriously before starting to invest in that relative country, region, state or a organization. Social Factors – a social factor means characteristics of a society that affect its customs, lifestyle and cultural aspects which can lead into a broad sub-branches such as education, language, religion, law, politics, demographics and wealth of a particular society. The Ritz Carlton should always keep an eye on the demographics which means the changes in population growth rate, age factors and its impact on organization. There will also be generation shifts and the change in attitudes which can also be a major concern. Health and education standards are also other factors that could influence the changes. Lastly, the Ritz Carlton should watch out for these main important pieces which are the changes in the latest Social Trends and Social Attitudes. These two major points can have a huge effect on the organization.
Technological factors are the current technologies that can be used and facilitate in an industry, thus also giving a positive impact on a hotel. The Ritz Carlton should implement new technologies in their hotels to stand out from the competitors. It can also be an advantage when a hotel chain has constructed a new set of tech features which can attract a lot of attention for the guests. So any new technology in the market can be a good change the organization, company or a hotel.
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