Red Carnation Hotels: Company Profile

Red Carnation Hotels has become a well known brand in the industry. Since its genesis in 1950’s, it has successfully entered the various markets like the UK, Switzerland, the USA and the others. The company has successfully ventured into 23 different branches across three continents and is looking forward to expand their business into unexplored markets in Asia and the Latin America. Red Carnation Hotels have successfully recruited more than 25 hundred employees and has successfully established its name in the service industry.

However, red carnation Hotels is looking for further expansion in the future. In the past Red carnation Hotels have been evidently selective about their ventures. They have a policy of pick and choose among the eminent locations around the world. After surveys being conducted huge markets like France, China, Nigeria and Thailand, the company has chosen France as its desired destination for the new venture. In compared to the other markets like China and Thailand, Singapore is a smaller and stronger economy. However, China is a difficult market to invest in because of government rules and regulations in the country. The hotel industry of Thailand is going through a highly competitive phase. France will be a much safer economy to invest for Red Carnation Hotels. As the company has a strong base in the UK, it will be much safer for the company to invest in France. Another important reason is in the fact that France has been a centre of attraction for the tourists. The architectural heritage along with the attractive natural destination has been attracting hundreds and thousands of tourists from across the world.  From the Eiffel Tower to Louvre Museum and from the Palace of Versailles to Cote d’Azur; various destinations of France have tickled the imagination of the international tourists around the world. On the other hand the cities like Lyon, Marseilles, Nantes and Toulouse are known for its work culture and are often named for its future prospects in the sectors of business and service industry. In the last decade Paris also restructured itself in the banking and financial industry and became the fastest growing city in Europe in terms economy.

Red Carnation Hotels should evaluate and understand the market of France properly and should enter the market with multiple ventures in different cities. This report evaluates the prospects of Red Carnation Hotels as a company in the France. The report will ensure the chances of the company to prosper in the French economy in the near future. This research emphasises on the aspects of the French economy and compares it with the nature of the Red Carnation hotels with the help of Porter’s value added chain framework. It is important to discuss the infrastructure, human resource management, technological development, procurement, inbound logistics, operations, outbound logistics, marketing and sales and service of Red Carnation Hotels and the five main cities of France (Paris, Nantes, Marseilles, Toulouse and Lyon).

Expansion Plans of the Company

The situation analysis includes both Macro (PESTLE analysis) and Micro (Porter’s 5 forces) analysis.

The social and environmental aspects of a geographical area play an important role in the advancement of a hotel industry.

The primary target of the hotel industry depends on the economy of the country and one the rules and regulations of the state in order to attract more tourists in the country. However, like many other countries in the world, the emergent terror outfits and insurgencies have created huge outcry among the hoteliers and the people related to tourism. To avoid such situations the company should locate their hotels in the safer zone of the mentioned cities.

The economic factors like taxation, economic growth, inflation, interest rates and the financial situation of a geographical area plays an important role on the hotel industry of that country. A growing economy of a country is evident to the development of the infrastructure and better infrastructure in terms of transportation, communication, accommodation and maintenance ensures better tourist attraction. The luxurious hotels often receive wealthy customers. Hence, better infrastructure is the primary requirement for the hotel industry.

The social factors play a major role in the hotel industry. The hotel rooms are allotted on the basis of single and double customers. The couples are accommodated into special suits. The social status of people is often related to the room they want to rent in a hotel. Therefore, a hotel is constructed by keeping the social classes in mind.

Technology is an inherent requirement in any business sector around the world. The technological advancement in a hotel is required for comfort and accommodation of the customers. The air-conditioners, telephone, lights and others technologies are primary requirements in the hotel industry around the world.

According to a report of the world economic forum environment has become a huge issue in the world. It has affected tourism in the recent decades. The weather reports also plays on the minds of the tourists before visiting a place. The problems like flood, storms and other natural calamities can cause problems for the hotel industry.

The rules and regulations of a firm are determined by the legal aspects of a country. The security laws and the health laws play an important role in the hotel industry. The war prone nations have different legal systems which affects tourism and the hotel industry of that geographical area.

Porter’s 5 forces analysis framework is primarily used to analyse and understand the competition in a specific sector of business in an economy.

France: The Desired Destination for Red Carnation Hotels

The competition in the hotel industry depends on the number of competitors, industry profitability and the ratio of demand and capacity. The decisions taken by the leadership or management of the corporation also plays an important role to compete in the hotel industry. Hotel industry requires constant initiation of innovative ideas. Globally the hotel industry runs two primary features in highly proportionate total costs and fixed costs. The factors like location and quality of service along with the setting of target plays an important role in the competition of this industry. The development of the hotel industry depends on the suitable location in a metropolitan cities or different locations which are close to places of tourist attraction. This industry requires a lot of capital for investment. Financial investments play an important role to compete in this industry.

The new entrants in the hotel industry often initiate offers to attract the customers. It is a matter of huge investment for any new entrant in the market. According to Michael Porter, new entrants have to face a lot of barriers in the hotel industry. Hotel industry is primarily involved with the industry of tourism. The hotel owner invests a lot in implying effective method to earn their investment and profit in the market. The investment of construction, services and accommodation is earned back from the profits. However lack of space and the absence in the right locations becomes a problem for the new entrants.

The requirement of the hotels is primarily about latest technologies, information collection and the skilled and cost effective labour in the industry. The increasing number of websites now offers the options of hotel booking to the tourists. This has increased the bargaining power of the customers of the hotel industry.  The demand of online booking and global information has enhanced the bargaining power of the suppliers. The supply of skilled labour has increased in the recent years especially in the luxury and upscale hotels in the major countries.  The bargaining power of the suppliers have increased because of the growing number of hotels in the urban areas and the tourist destinations.

The corporate structure of the company holding the hotel can be designed from the tax planning angle with a view to being able to sell this development at much reduced rates of stamp duty and legal expenses. The bargaining power of the customers depends upon the location of the hotel and the number of hotels available in the territory. The customer tries to compare and contrast the hotels according to price, comfort and other features and chooses one of them.

PESTLE Analysis – Macro Environment Analysis of France

Porter (1980) stated in his work that the availability of substitute products has the ability to reduce cost and offer better quality of products and services to the customers. In the hotel industry all the major cities in the world have multiple hotels to offer to the customers. However, problems like recession can replace the international tourists with the domestic tourists in a territory. The corporate setting of the organisation holds the tax planning and design of the hotel. The legal expenses and stamp duty of a company played an important role to emulate the role of the leadership in a hotel project. The company have the options to either sell the project before completion or to initiate the hotel project as the as an investment of long term.

Source: (Monczka et al. 2015)

Primary activities are related to all the operations that are the main ingredients of a supply chain operation. Supply chain operation starts with the inbound supply of required materials with the help of logistic companies. Such companies take care of the transportation of goods and materials to the concerned company. Those companies are also responsible for the supply of manufactured materials. According to Porter, value chain analysis is very important for organizations for making future strategies.

Inbound logistics- They use high technology in managing the inbound logistic operation. The transportation of required materials is done with the help of leading logistic companies in the different parts of world. They also make it sure that utmost customer service is maintained, which is never possible without the on time delivery of the required materials. They use technology such as the CRM management to track the stocked materials and analyze the requirements of materials (Wang and Feng 2012). This one strategy helps the hotel in satisfying the needs of customers with on time delivery of fresh foods.

Operations- The delivered materials are manufactured within a large area, which is entirely dedicated for food making process. Many employees of whom some are high rated chefs serve the particular area. They supervise the functioning of highly qualified professionals. Supervision from such experienced bench of chefs helps the hotel innovating with the food processing. The use of modern technology such as fast cooking devices and the expertise of chefs are making things work for the Red Carnation Hotels in their numerous regional branches (Karatepe 2013).

Outbound logistics- Outbound logistics is of no use for serving the foods to the customers inside the hotel. The main purpose of the Red Carnation Hotel is to satisfy its guest those who stay in the hotel.

Porter’s Five Forces Analysis – Competitor Analysis of the Hotel Industry

Marketing and sales- Red Carnation Hotel is connected to useful social media platforms for getting closer to its audience. The use of social media platforms such as Twitter is done for interacting with the customers and knowing their valued feedbacks (Treem and Leonardi 2013). They do so to know the service related problem. They are very specific to service standard, which is why they invest a good sum of amount on the training and development program. They consider their training as second to none in the various small and medium sized hotels across the globe.

Service- They serves the prepared foods to their guests. They believe in delivering a high quality and fresh food to their guests. This is one such point, which they have cared with the use of various technologies and strategies. A high investment on the training and development program is just an example of the level of cares that they put on the service part of their offerings (Salas et al. 2012).

Infrastructure- Red Carnation Hotel has limited but all luxury hotels in some attractive centres such as UK, South Africa, Ireland etc. The hotel at some places is built like a boutique hotel. They are always in search of attractive properties. Locations in fact have high importance for them. The selection of location for their new hotel is sufficient evidence of their thoughtful infrastructure planning (Yang, Wong and Wang 2012).

Human Resource Management- Human resource management is very streamlined, which is highly focused on quality bench of skills. They are an active group of professionals who keep an utmost care of skill development. This is for such reason they invest a good sum of amount on developing professionalism in their employees (Jiang et al. 2012).  

Technology Development- Technology is another asset, which is helping them in their purpose as well. The company had a challenge to secure its entire data on its network. Nevertheless, the Hotel has found its solutions in the WatchGuard products. The product is supporting the requirement of the hotel by providing the company flexible and robust network (Schegg and Stangl 2017).

Procurement- The procurement process is influenced by the use of technology. Red Carnation Hotel is now no longer relying on the traditional system of booking the required materials. They now prefer some of the available online platform for the entire involved activities of procurement. It gives them a wide range of suppliers, which is useful to avail a varied range of options for the required materials. Managing the food menu in the highly volatile market of required materials such as the dairy products the meat products is challenging. However, the use of online mode of procurement has helped the Red Carnation Hotel in facing the challenges effectively (Marinagi, Trivellas and Sakas 2014).

Value Chain Analysis of Red Carnation Hotels

Innovation- They are innovative with their procurement method, skills development, technological advancements etc. The hotel is among those few hotels that use online mode of procurement. It does so to answer the challenge of maintaining the menu for a long time. Menu management is challenging because the prices of products vary frequently such as the prices of meat and dairy products. They invest high on the training and development program. This is an indicative hint towards their innovative thinking that they do not want to leave any excuses alive for their service failure. Technology has influenced their operations as well. The use of WatchGuard products to make the network robust and make it free from any data theft does enhance their level of innovation (Schegg and Stangl 2017).

Selection of locations- They are very choosy with selection of location. They do not select any location for their new hotel chain. They rather select attractive places for their every new hotel. This is because every time they want to come up with luxury hotels.

Use of social platforms- They use social platforms such as Twitter to interact with their customers and know their requirements. The use of social media platform helps the company to know the feedbacks of the customers. This helps them act according to the feedbacks received.

Online procurement mode- Red Carnation Hotel uses the online mode of procurement to answer the challenges of price volatility of required materials. The online mode of procurement helps to connect with a wide range of suppliers from where it manages its requirements of materials accordingly. The prices of raw materials for dairy and meat products in particular are a challenge to the various hotels across the globe. However, Red Carnation Hotel has effectively managed the challenge, which is also helping them to maintain their service standard (Fernandes and Vieira 2015).

Rewards & Recognitions- Red carnation Hotel has received several accolades for its remarkable services. The recent of which includes the Silver Award 2017 for Best Hotel Chain. They have also being admired by The Sunday Times in the year 2016 where the hotel was recognized as the third most high rated hotels in the list of top 100 hotels (Brotherton 2012).

Global Expansion- They have been quite limited with their expansion in the global country. They have not yet touched some potential market at the global platform such as France, which would be very easy for entry for the Red Carnation. The business would also be highly successful; however, they have been restricted with the choice of location.

Inbound Logistics

Limited market share- The share of the Red Carnation Hotel is limited in the market. This is because it has to face stiff competition from some renowned hotel groups in UK such as Hyatt, Wyndham, Starwood, Marriott and Edition Hotels.

Increasing tourism industry in UK- An increasing numbers of tourists is an opportunity for the hotel group. An increased tourism fall would enhance the hospitality and accommodation sector. This would benefit the business of the Red Carnation Hotel.

Industry Growth- The spending on the travel would increase in the next 5-8 years. An improved economic condition would facilitate the spending. This would help the business of Red carnation Hotel.

Entry to a New Market- The hotel group has been very limited with their expansion into a new market. They look for attractive locations, which are a good thing, as infrastructure also matters; however, they are least capable in identifying the potential market for their business. For example, France is a potential market with some attractive locations such as Paris, Nantes, Lyon and Marseilles (Denton, Forsyth and MacLennan 2017).

Increasing competition- Red Carnation Hotel is operating in the luxury hotel format. The format has numerous others rivals, which are even bigger than the Red Carnation. The rising competition with the different hotel is a threat to the company. They have limited expansion in the market, which is why it is important that they maintain a healthy business in the country (Thomas 2013).

Terrorism- This has perhaps become one of the weirdest threats for the hotel groups. Red Carnation Hotel is not any different. Terror attacks can significantly hamper the business of the hotel for a significant time span.

Macroeconomic condition- The slowing down of the economy can influence the business of the Red Carnation Hotel. Such as the slowing down of the economy of the United Kingdom is a threat to the business of the Red carnation Hotel (Karanikolos et al. 2013).

This chapter vividly compares twelve different aspects of four different economies; France, Nigeria, China and Thailand.

Created by: Author

France is one of the oldest nation states located in the Western Europe. The cities of medieval period, Mediterranean beaches and alpine villages are the greatest tourist attraction of France. France is gifted with tourist attractions like Paris, Toulouse, Nantes, Cannes, Versailles, Rouen and others (Blomfield 2013). These cities are ideal because of the presence of a variety of architecture. Medieval, Impressionist, Gothic, Baroque, Romanesque, Neoclassical, Rococo and other type of architectural buildings, monuments and palaces are present in various parts of France (Boutinot et al. 2015). Millions of tourists flock to France every year for various cultural festivals, tourist attractions and for the solace of history. Paris is a city with the largest number of hotels in the world and has been historically famous because of its hotels, pubs and restaurants.

Outbound Logistics

Nigeria is a developing country situated in the Central Africa (Joseph 2014). China is a huge economy with a long history and civilization whereas Thailand is a massive tourist destination because of food and culture.  The hotel industry in France is well developed in compared to Nigeria and Thailand. Whereas China is a huge country with strict economic policies for foreign investment, hence it is not suitable for the foreign investors in the hotel industry (Feng et al. 2014).

France is divided into 13 different territories along with important cities and historical attractions. The Mediterranean beaches in the south of France in the provinces of Occitanie and Provence Alves- Cote d’ Azur has been world famous. France has a population of about 65 million people. Paris has a population of more than 22 million according to the survey of 2013 (Elgie, Grossman, E. and Mazur 2016). The tourist destinations like Corsica and Nantes has a low population whereas cities like Lyon and Marseilles are highly populated. Hence, the cities like Paris and Marseilles are more suitable for hotel industry in France in compared to other cities. As cheap and skilled labour will be available in these cities, Red Carnation should look for setting up hotels in these industries.

The eastern regions of China are highly populated in compared to its western frontiers. Hence, there is no parity in the population of China (Feng et al. 2014).  In the last few years China has been developing in a record growth rate and hotel industry has not been a part of it. On the other hand Nigeria and Thailand have low concentration of population. Skilled labour in these countries is much less available in these countries unlike France (Riley 2014).

According to hospitalitynet.org (2016), the initial reports of the performance of the hotel industry in France has been positive. Especially in Paris all types of hotels including Luxury palaces, upscale and midscale hotels along with the smaller motels and lodges have done extremely well. In places like Paris and Corsica the hotel business has been booming since decades. It is necessary to state that the competition among the hotels is very high but all choices are available. Nigeria is weaker in terms of variety of hotels it offers, China offer similar range of hotels only in fewer cities whereas Thailand does not have so many varieties of cities like France.  

According to veileinfotorisme.fr (2015), France produces more than 9.5 percent of their annual GDP from the tourism business. Hotel industry is one of the most important aspects of tourism business. This report also stated that 4.1 percent of the employment is created directly by the tourism industry in France (entreprises.gouv.fr 2014). A government report stated that the capital of 157 billion Euros is consumed in the French tourism industry.

Marketing and Sales

There is an enormous competition between the the luxury and upscale hotels in France. Healthy competition is good for the French hotel industry (Kontogeorgopoulos Churyen and Duangsaeng 2014). However Nigeria, China and Thailand do not receive as many tourists as France if compared to the territorial size of the country and the population.  The contribution of the tourism industry in the GDP of these respective countries is much lower than France (Riley 2014).

France is a transparent nation in compared to many other EU nations. It maintains a healthy and standard policy in terms of hotel and tourism industry (Turner 2015). However, there have been reports that the French government has often introduced extra taxation like VAT over the goods and products of the hotel industry (Turner 2015). In compared to China and Nigeria, the economic policies and the contractual obligations are simpler than France. However, Thai tourism has also initiated a transparent system.

The four challenges of the French hotel industry are:

• Primary challenge is to compete with a huge number of luxury hotels.
• To find the right location to set up hotels.
• The high taxation on French hotel industry.
• The high number of terrorist attacks around the country

The caution of terrorism, problems of location, taxation is also a huge problem in the China, Nigeria and Thailand also (Baker 2014).

The French economy is a developed economy hence, the payment capacity of the hotels is higher in compared to other countries (Baum 2015). The customers pay much higher prices in compared to Nigeria, Thailand or China. The salary of the employees is also generally higher than the other countries (Baum 2015 ).

The communication system in France is better than Thailand or Nigeria (Ghimire 2013). However, China has been able to achieve a lot in the last few decades in terms of communication and transportation (Tingfang et al. 2017).

Frank is the standard national currency of France whereas Euro is also used in the country as France has been a founding member of EU (Baum 2015). The countries like Nigeria and Thailand have weaker currency like Naira and Baht. Yuan is stronger in compared to Naira and Baht. The French economy has been historically stronger than many other countries; hence the hotel industry in France will be more fruitful than others.

As the hotel industry is humongous contributor of the GDP in the country, it has been taken very seriously as a productive sector. As France is a part of EU it has not created its own foreign policies as such hence, it depends on EU. The 9.7 percent of contribution to the French GDP proves its metal in compared to China, Nigeria and Thailand (Ghimire 2013). In these countries the tourism sector is much smaller in compared to France (Net 2016).

Service

France offers easy access to the the people of the countries from the European Union. Other than that France has good relations with many countries like the USA, the tourism relation is stronger in compared to China, Nigeria and Thailand (Puetter 2016).  As almost all the countries of Europe believe in open economic policy, it can be understood that it is a much more easily accessible system in compared to China, Thailand and Nigeria.

Roman Catholicism is the major religion in France. About 63 percent of the entire population is Roman Catholics in France whereas according to later reports 7.5 percent of the population are Muslim and the rest are unaffiliated and other religions (Globalreligiousfutures.org 2017). French cuisine, architecture and hospitality are famous in the world since centuries. The urban culture of pubs, restaurants, literary societies and opera houses are the symbolic identities of France.

Despite the fact that Chinese culture is old world charm and has become popular because of street foods, nature parks and historical museums, it has still to reach the elegance that France has (Zhao and Timothy 2015). Nigeria has been colonised countries, which is Christianised and Islamised for centuries (Globalreligiousfutures.org 2017). Thailand is monarchy and yet to showcase their authentic culture as a mark of their tourism industry. Hence, it is still to come out of the colonial hangover and present their culture to the tourists. The display of culture plays a huge role in attracting the tourists.  

Source: (Taylor 2012)

Ansoff Matrix is a very important framework, which helps in making strategies after the expansion of the market has been considered. It contains four quadrants of which each quadrant tells about the current stage of the company. Red Carnation Hotel is the market development quadrant now because it is considering its expansion in France. The expansion of the hotel in France would be highly beneficial because the tourism sector in France is at high growth. The company has its restricted operations in some parts of world. It has remained very selective while choosing the destination for a new hotel set up. This is indeed a good approach, as infrastructure also matters. However, they have failed in analyzing the potential market, which could have grown the business for the company.

Risk: The external environment in France may be challenging for the Red Carnation Hotel; however, that should not be a high constraint for a European Company. The Red Carnation Hotel is required to be careful while operating in France. This is because the suggested places in France have numerous other Hotels that have established market in the country. The Red Carnation Hotel has to face the competition with such giants; however, it can do a significant business if it considers some cost effective hotels as well. They are known for offering luxury hotels, which is a good strategy. They just need to enhance their appealing nature by enhancing their business expertise, which is only possible if they change their infrastructure related strategies (Batten and Karlsson 2012).

Conclusion

This chapter would justify the reasons of choosing this market. This chapter would discuss the details of the hotel industry and market of France.

6.1 Entry mode

The entry mode of Red Carnation hotels is luxury hotel business.

France is an open economy in terms of foreign investment except two specific areas where foreign investment is not accepted by the French government.

• Red Carnation hotel has been successful in UK as luxury hotel chain. Hence, it should try to invest in France as a luxury hotel as both France and UK are countries of Europe and both have a strong economy. The cost of living is similar in both the markets.
• Red Carnation hotels can tie up with great travel agencies like Cyclomundo and Atout France.
• Red Carnation hotels should select perfect locations like Paris in the middle France,  in Nantes of the West, in Provence of Alves Cote d’ Azur in the south and Lyon in the east. All these centres are either business centres or great tourist destination.
• Other than these cities, the island of Corsica is also a very important tourist destination in France.  

Four P’s:

Product: Apart from a wide range of products, the Red Carnation Hotel would also offer some other services to leverage on the achieved opportunities and to earn a maximize success. The hotel would offer the room service for 24 hours. This is necessary because it would attract those tourists also who love spending outside until late night. The hotel would also accommodate the foreign exchange counter, which is indeed a very good move, as guests would feel a hassle free service at the hotel site. People come from various parts of world, which makes this necessary for them to have the currencies of the visiting place. The initiative would certainly boost the tourist fall because they would no longer need to bother for the currencies. The hotel would also accommodate facilities for money transfer such as courier service and western union money transfer. This is really helpful in case of emergency needs of money. Wi-Fi services would also be included, which is necessary for attracting the youth visitors. Fitness Centre would also be planned after few times once the business ticks in the selected areas in France. This would include facilities for the physically challenged groups as well. This is indeed necessary to attract those travellers also who rarely visit to places because of physically challenged people at their homes (Niewiadomski 2014).

Place: The selected places for the business expansion in France are Nantes, Paris, Lyon and Marseilles. Paris and Lyon are chosen because these two locations have high attractions rate of tourists. Lyon is close to Paris, which is why the Red Carnation Hotel would get the benefit of being close to Paris. Both Paris and Lyon is the business hub in France. This would be beneficial for the Red carnation Hotel because it would also get business travellers. Nantes has comparatively a very lesser numbers of hotels, which would provide a good option to the Red Carnation Hotel to expand its business in the selected city (Xiao, O’Neill and Mattila 2012).

Promotion: This is a very important segment of the marketing plan. This would help the Red Carnation Hotel in publicising its presence in France. Travel agencies in France would be approached. This would help to reach to the target customers. The local travel companies know very well the needs of tourists in the selected places. The information that the travel agencies have would help in improving the services even further. Online promotion would also be used, as this is one of the most trusted modes of publicity. Public Relation Events would also be used, as this would provide chances to interact to the targeted audiences. This is indeed a good source for interacting to the media (Bowie, Buttle and Brookes 2016).                                       

Price: The prices for different products would be as follows (Pan, Chenguang Wu and Song 2012):

• For 1 room for 2 adults- €202
• For 2 rooms for 2 adults- €270
• For 2 rooms for 2 adults and 1 children of above 5 years of age- €330
• For 2 rooms for 2 adults and 2 children of above 5 years of age- €390

This is just a general indication; however, the pricing would include various other parameters as well such as rooms for big groups. Nevertheless, Red carnation Hotel would offer the unique pricing for every offer.

The evaluation of the French hotel market is essential for the investment in the hotel industry of France.

France has a huge hotel and tourism industry. Hence, there is a huge competition among the hotels to acquire the skilled labour in this sector. As the skilled labour is available in the country it is not cheap. However, the skilled labour can perform much better than the unskilled labour and is more productive in comparison. Hence, finally it is cost effective.  

There are many forms of risks in France

• The safety and security is an important issue in France.  Safety and security in France has been a huge issue after the Paris attacks in 2016 (Molina-Azorín et al.2015). Therefore, Red Carnation hotels should implement better security systems and security personals in order to protect the customers.
• Red Carnation hotels should present its uniqueness in the French market. This company is known for great customer service and employee relation (Rauch et al.2015). The French market is so diverse that it will be impossible to do well without presenting the uniqueness.
• The company should choose the right locations to set up hotels in the cities otherwise they will face problems in accommodating the tourists in the hotels (Rauch et al.2015).

9.0 Conclusion and Recommendation

As a company Red Carnation hotel has been successful in entering different markets like South Africa, United States, Switzerland and the United Kingdom. Red Carnation hotels are equipped enough to build luxury hotels in market like France. France is an ideal market for new hotels as it has a great culture, cuisine, architecture and fantastic tourist destination. French hotel industry contributes much more than Nigeria, China or Thailand.

Red Carnation hotels should not leave their identity as a luxury hotel and should continue their investment in the training and skill development programs. They should invests in the cities like Nantes, Marseilles, Paris and Lyon, which are economically stronger and has tourist and business propositions.

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