Case | HBS Case Collection | April 2011 (Revised June 2011)

The Eleganzia Group

by Elie Ofek, Elena Corsi, Bharat Sajnani, Sorina Casian-Botez and Francesco Tronci

Abstract

Eleganzia Group management faces tough decisions heading into the summer of 2010. With tourism on the decline due to the global economic recession, General Manager Giannuzzi must decide how to set prices at the Forte Village Resort, the Group's most well-known property. His management team is further divided on whether the pricing model at the resort should change to being all-inclusive (as opposed to one where guests are charged for each additional activity or dining option on a pay-as-you-go basis), and whether to convert a large number of the 4-star rooms into 5-star suites. Recently acquired properties, such as the Castel Monastero in Tuscany and the Maddalena Hotel & Yacht Club in north Sardinia, pose a branding challenge. Can all the properties, including the Forte Village, be successfully brought under one umbrella brand, namely, Eleganzia? Moreover, what should the character of each these new properties be?

Keywords: pricing; Pricing strategy; Customer Management; branding; Customer Relationship Management; Price; Luxury; Business Strategy; Brands and Branding; Accommodations Industry; Travel Industry; Italy;

Citation:

Ofek, Elie, Elena Corsi, Bharat Sajnani, Sorina Casian-Botez, and Francesco Tronci. "The Eleganzia Group." Harvard Business School Case 511-115, April 2011. (Revised June 2011.)