Situation
A case analysis on the Shangri-La Hotels: The world’s number 1 group in the Hotel industry and hospitality services.
Introduction
Shangri-la, a luxurious Asian-based hotel and resorts group recognized in Hong Kong was first established in 1971. The first among the hotels in this chain; The Shangri-La Hotel Singapore became the Flagship hotel. Giovanni Angelini is the CEO and Managing Director of this hotel group was recognized as the “2006 Corporate Hotelier of the World” (Shangri-La’s Giovanni Angelini named 2006 corporate hotelier of the world, 2006, para.1) by the worldwide magazine called the HOTELS. This group of hotels is rated among the 5-star deluxe groups of hotels. The hotel has a facility of more than 500 rooms. This runs city hotels as well as catering services. The adherence to high-quality service with a sharp focus and application of the latest business trends thereby attaining ample customer satisfaction made this group of hotels a big success.
This concept of Hotels originated from the Kuok Family of Malaysia and has now been established as a world-class brand in 5-star hotel groups. “The company, part of Malaysia’s Kuok Group, operates 45 hotels throughout Asia. In 2005, the company also began a drive into the European and North American markets, including the launch of construction on its first European hotel, in London, expected to be completed in 2009. The company also has opened its first hotel in the Middle East, in Dubai, and in the Maldives. Mainland China, however, forms the heart of the company’s empire, with more than 20 hotels in operation, and at least 15 more expected to open before 2010.” (Shangri-La Asia ltd, 2004, para.1). The group has also created a mark in organizing Gust-Loyalty Program. This program is organized and established in the name called The Golden Circle.
The Golden Circle is a new and vibrant award-winning concept focused on offering world-class hospitality services. According to the press release, “Established in 1997, Shangri-La Hotels and Resorts’ Golden Circle is the group’s frequent guest recognition program. Golden Circle rewards members with a generous array of benefits and personalized amenities, including private check-in and check-out service, free spouse stays, and free local calls and calling card access.” (Golden circle – Shangri-La’s award-winning guest recognition program, 2004, para.1).
The promptness and foresight of the promoters of this group and the master brains behind the application of the latest business trends have supported the hotel group to come to the level of top competitors in this industry.
Key players in the case study and their roles
This case study is mainly focused on highlighting the latest concepts in the Hotel industry. It is done by focusing on the Shangri-La group- The top competitor offering 5-star services in the hotel and resorts chain. They also expand their business to vibrant sectors of this business by the application of innovative ideas. This concept of Hotels is in fact a big turning point in the history of hotel industries. This report also tries to focus on the level of customer satisfaction and its positive impacts in this industry. So, a greater level of concentration is given to the customer side to understand how they accept the latest concepts and how new concepts could be made acceptable for them.
The key players and the master brains behind the success of this great venture is a group of professionals having high exposure around the globe with more than two decades of experience in the hospitality management field. They include:
“Mr. Rao, Madhu – Managing Director and Chief Executive Officer Mr. Rao has more than 20 years’ experience with Shangri-La. He joined Shangri-La Hotels and Resorts in 1988 as a group financial controller. Named chief financial officer in 1997, he also serves as an executive director and chief financial officer of the holding company, Shangri-La Asia Limited.
Named chief financial officer in 1997, he also serves as an executive director and chief financial officer of the holding company, Shangri-La Asia Limited.
Mr. Dogan, Greg – Chief Operating Officer
Before assuming his present position, Mr. Dogan was vice president and general manager of Makati Shangri-La, Manila. Prior to joining Shangri-La in 1997, Mr. Dogan held managerial positions at luxury hotels in Spain, Dubai and China.
Mr. Rao, Anand – Chief Information Officer
Mr. Rao has been chief information officer at Shangri-La Hotels and Resorts since 1989, except for a few years as chief executive officer of Kerry Technology Limited, the Kuok Group’s IT investment arm.” (Managing success, 2010, para.4).
The appropriate instance for the case data
A keen study of the achievements of this hotel group and its history and origin gives us an idea that it is a fast grown and in fact a widely expanding concept in the hotel industry. The organizers of this group were able to achieve this in a very short time by timely and trendy approach to the business. “Shangri-La Hotels and Resorts, Asia Pacific’s leading luxury hotel group, has been named Best Business Hotel Chain in Asia Pacific for the ninth consecutive year at this year’s prestigious Business Traveler Reader Awards (UK) in London.” (Shangri-La hotels and reports named best business hotel in Asia Pacific for Ninth consecutive year, 2004).
For more details about the various achievements and stages of development of this hospitality group refer the table listed below:
“The Company Milestones is listed as follows:
- 1971 – Shangri-La Hotel, Singapore opens
- 1979 – Shangri-La’s first resort opens – now Shangri-La’s Rasa Sayang Resort and Spa
- 1984 – First hotel in China opens, in Hangzhou
- 1989 – First Traders Hotel opens in Beijing
- 1991 – Island Shangri-La unveils 16-storey “Great Motherland of China” mural (named largest Chinese landscape painting by Guinness World Records)
- 1993 – Shangri-La goes public
- 1996 – “Shangri-La Care” customer service philosophy introduced
- 1997 – Golden Circle guest loyalty programme introduced
- 2003 – Shangri-La enters Australia market, Shangri-La enters in the Middle East market
- 2004 – Shangri-La Academy opens near Beijing, Shangri-La’s Western expansion announced with scheduled 2008 opening of Shangri-La Hotel, Vancouver
- 2005 – First CHI, The Spa opens, in Bangkok , Tower 2 of Pudong Shangri-La opens, creating the largest luxury hotel in China and amongst the Shangri-La group
- 2006 – Shangri-La purchases historic palace in Paris – Shangri-La Hotel, Paris to be first luxury hotel in the city fully owned and operated by an Asian hotel group , “New generation” Traders Hotel opens in Kuala Lumpur
- 2007 – Shangri-La Spa Academy opens in Manila, Golden Circle membership tops one million
- 2008 – Shangri-La Hotel, Vancouver – first Shangri-La hotel opens in North America
- 2009 – Shangri-La becomes the first international hotel group to offer every guest free internet access
Conclusion
This case study on Shangri-La Group of Hotels helped to identify the latest trends and the biggest competitors in the luxury hotel sectors. It also reveals the fact that, the application of latest trends in business focusing on customer satisfaction and timely actions will definitely bring out the best results in the industry.” (Company milestones, 2010, para.1)
Reference
Company milestones. (2010). Shangri-La Hotels and Resorts. Web.
Golden circle – Shangri-La’s award-winning guest recognition program. (2004). Shangri-La. Web.
Managing success. (2010). Shangri-La Hotels and Resorts. Web.
Shangri-La Asia ltd. (2004). Funding Universe. Web.
Shangri-La’s Giovanni Angelini named 2006 corporate hotelier of the world. (2006). ASIATraveltips.com. Web.
Shangri-La hotels and reports named best business hotel in Asia Pacific for Ninth consecutive year. (2004). Shangri-La. 2010. Web.