Fairmont Chateau Lake Louise (CLL) is unable to translate its world's most spectacular natural surrounding into profits. The many issues facing CLL today include the declining Asian tour group market, due to the 1997 Asian economic crisis, the concentrated, summer and winter, seasonal demand, and the emergence of Internet, which empowers customers to make short-term decisions. The analysis below will present several key elements that will potential increases CCL's long-term profitability regardless of its highly volatile business cycle.
A SWOT analysis (see Appendix: A-Market Segmentation SWOT) was performed on the market and aimed to identify CLL's potential market opportunities.
One of the major strengths of CLL is its image/positioning. CLL is regarded as a luxury resort, situated in the world's most mesmerizing wild life/natural settings, in the Canadian Rocky Mountains, overlooking one of the most photographed panoramic sceneries in the world. Furthermore, CLL's second reputation is as a world-class destination for skiers.
CLL's local competition is essential fixed due to national parks new development prohibitions. Therefore, based on CLL's strengths, a potential marketing strategy might be developed that will have positive implications for CLL's future and its long-term viability as a flagship Fairmont property.
The 1997 Asian economic crisis might further weaken CLL's tour group market, which unfortunately is the most important source of generating revenue/customers. CLL currently lacks appealing amenities such as a spa, internet in guest rooms and a functioning outdoor swimming pool, all of which can be regarded as marketing tools used for attracting additional customers/revenue. Additionally, CLL has worn down rooms that are in great need of renovation. Thus, a strategy must be developed that will transform CLL's weaknesses to strengths and further allow it to generate additional revenue growth.
Last year approximately four million people...