This paper will discuss the pros and cons of the Rosewood Hotels moving from individual brands to a corporate brand. It will look at the history of Rosewood hotels, how they got to where they are, their customer base, and where they want to go. It will look at the concept of customer lifetime value as it relates to the Rosewood Hotel customer, then make a recommendation for or against tying its corporate Rosewood brand to all of its present and future hotels.
Background Rosewood Hotels was established by the Caroline Rose Hunt Trust Estate in 1979. Rosewood launched its first hotel the mansion on turtle Creek, Dallas Texas in 1980. Over the next 25 years rosewood purchased several high-end …show more content…
Unlike the corporate brand model, in which luxury tended to follow a “candid cookie-cutter” approach across properties, Rosewood operated a “collection” of unique properties, each with its own name or brand. (Dev & Strook, 2007). The comparison can be made between Rosewood Hotels and the high-end automaker Duesenberg. Duesenberg made high-end unique one-of-a-kind automobiles. Just like the rich and famous all wanted to be seen in a Duesenberg, they can all want to stay at a Rosewood Hotel. Since the Duesenberg name is no longer protected by copyright, their advertisements could even feature Duesenberg's in the background and make either a direct or subtle comparison to the Rosewood hotels unique, luxurious, one-of-a-kind experience.
A Look at Customer Lifetime Value
Each of Rosewood's hotels has a loyal customer base of approximately 40% that return at least once a year to the individual location, (Dev & Strook, 2007), most likely due to the superior service and perceived customer value they have for that individual hotel. Rosewood's customers likely either vacation or do business in the locations of any of the other Rosewood hotels but are not aware of the relationship between Rosewood and the existing hotels in those locations. If this perceived customer value can be applied to