For an international hotel chain

Engagement Description:

For an international hotel chain, The Leading Niche^® conducted an assessment to determine whether or not its laundering services should be outsourced or housed within the organization.

Approach:

The Leading Niche^® used an innovative approach to:

• Launch and manage an interview program, which included interviewing senior management, corporate and property staff, customers, competitors and industry experts

• Conduct a laundering capacity assessment

• Analyse capacity scenarios to assess break-even points and build a model to determine the NPV (net present value) of various revenue and cost scenarios

• Develop a framework for the client to use in the future to determine which services should be in-house versus outsourced

Results:

The Leading Niche^® solved a decade long debate for the Board of Directors of this client. We recommended that the chain should stick to ‘what it knows best’, providing high-quality hotel services for its customers not cleaning linen, or the back-end of the customer delivery process. At the end of the day, customers did not care where laundering was completed. Customers cared about market facing aspects, such as the aesthetics of their rooms and lobbies—those things that contributed to their overall experience.