Since 1987, they have been creating hotels with an original edge: bright colors, playfulness, and a deep respect for the local neighborhoods, making them the second largest boutique hotel chain in the world (Joie de Vivre, n.d.). JDV Hospitality has been known to differentiate its boutique hotels from other hotel offerings in the area by using technical architecture along with a touch of luxury of modernism all while keeping the personality of the local community. The boutiques hotels were seen as an exclusive high-end travelling experience with the affordable price range.
Originally, Chip took his time to make sure his designs matched the customer lifestyles, such as the normal rock-n-roll artist, so that it could not only generate positive word-of-mouth advertising to boost business but also, he wanted each customer to have the feeling of being in the comfort of their own homes so they could become life-long customers. This unique branding strategy worked so well that JDV Hospitality was also able to keep their traditional adverting cost as low as $50,000 out of their quarter-billion revenue.
Chip even realized by running a business that was driven by employee appreciation it would not only impact their customer experience but also drive employee commitment and loyalty. JDV Hospitality also differentiated its boutique hotels from competitors because unlike most hotels who focused on demographic features, JDV Hospitality used a psychographics of the surrounding population to connected to their customers.
As the business continued to grow over the years, JDV Hospitality experienced some setbacks that required them to demonstrate great strategic flexibility during the .
com crash and post-9/11 industry recession. Chip prided his operations on a strong foundation modeling Maslow’s hierarchy of needs theory, a motivational theory in psychology comprising a five-tier model of human needs that suggested that employees would be more likely to produce better work ethics if their needs were met (Mcleod, 2018). So, when it came down to making sure his employees understood their value to company, he had no issue with making sacrifices in reassuring them of their job security. During this time, Chip personally froze his salary for 3 ½ years, all senior executives took a 10% pay cut and every salaried employee in the company took a 2 ½ year pay freeze to demonstrate strategic flexibility. In turn, this allowed all frontline employees to not only keep their hourly wage positions but also be able to have their paid benefits and yearly wage increases. By demonstrating this great strategic flexibility, he reinforced that the business was centered around their mission statement by keeping their employee satisfaction as the heart of the business operations. According to Human Resource Management, “a mission statement summarizes what the company’s main tasks are today,” (Dessler, 2017, p.71).
Along with the being the epitome of a heart felt successful boutique hotel, JDV carried a philosophy on advertising for its hotels which supported the firm’s strategic aims. Strategic aims are large goals a company looks to achieve through their strategies (Dessler, 2017). JDV’s philosophy on advertising for its hotels is that by providing excellent customer service, with an unforgettable setting will please their customers so much that their word of mouth will be the basis of their advertising. This philosophy has worked perfectly thus far to the point that JDV not only was able to increase their returning customers but also as it was mentioned earlier, they were able to save a vast amount of their revenue. Now, for most businesses in the same industry this is unheard of because most of their funds are spent on traditional advertising cost, unlike JDV who got this strategy right. The word of mouth philosophy supports the firm’s strategic aims because JDV’s focus and mission is in the quality of their service given rather than grand advertising. Based on their success of increased revenue and profitability, it shows their customers are being satisfied which is increasing their loyalty.
Along with JDV’s mission, their firm has to implement HR policies and practices to continue to produce the employee skills and behaviors the company needs to achieve its strategic aims (Dessler, 2017). Out of all of the HRM practices, I would suggest they continue to use employee empowerment, ¬ the disciplinary fairness and justice in the company, service quality enhancement, performance Management, and proper training and development to continue to yield the success they want for remaining in business. I personally feel these HRM practices would help JDV be successful because it will encourage management to have a flexible and caring style in managing their staff, the employees will have a sense of purpose reflected in the department’s work, which will reinforce clear and effective communication for a customer-focused culture.
For example, implementing disciplinary fairness and justice in the company will produce higher morale and that higher morale will produce improved high-quality front-desk service. Now, apart from establishing meaningful customer service values, practicing employee empowerment will ensure employees that management trusts them to make the right decisions in their daily tasks which in turn will bridge any gaps with the hotel’s vision, mission and values with the culture of employee engagement, in order to create effective results. Setting service quality enhancement goals will give clear direction among staff for streamlined procedures resulting in smooth workflow, reduction in overtime work and better deployment of resources. Proper training and development will facilitate new recruits to appreciate, understand and share the culture and norms. Currently, JDV applies annual increases based on employee performance. Performance management encourages managers and employees to have regular ongoing dialogue about goals, expectations, challenges, development needs and accomplishments.