Columbia Hospitality

Overview

Based in Seattle, Columbia Hospitality (Columbia), is a hospitality and brand management company with a diverse portfolio of properties in unique locations. Columbia operates luxury resorts, boutique hotels, vacation rentals, and other accommodations including iconic properties such as the Salish Lodge & Spa at Snoqualmie Falls and Sage Lodge on the banks of the Yellowstone River in Montana.

Founded in 1995 by CEO John Oppenheimer, the company has a history of responding pragmatically to shifting dynamics in the industry. The company aims to capitalize on the growing trend of experience-oriented vacations, similar to Airbnb and VRBO’s short-term rental offerings. The popularity of these new entrants and their ability to swing consumer attitudes toward certain destinations increased competition for bookings. To stand out, Columbia focused on showcasing its high-quality service and exceptional guest experience, leveraging its distinct properties, and are now exploring strategic opportunities as a specialty provider in the market.

And so, Columbia was looking for ways to position its hotels and resorts to compete with the growing P2P sharing sites.

Case Charge

1. How should Columbia Hospitality position its premier hotels and resorts to compete with the rising threat of peer home rentals?

2. What are specific actions that Columbia Hospitality should take to be competitive, or superior, to these relatively new entrants?

3. What additional resources and capabilities does Columbia Hospitality need to “build, borrow or buy” in order to implement your recommendations successfully?

4. Provide a financial analysis of what you expect the impact of your recommendation to be, identifying benefits and incremental costs to provide an impact on profits, or provide a Net Present Value analysis.

5. Provide a high-level implementation plan for your recommendation(s) and identify the significant risks and potential mitigation steps that should be taken.

Recommendation & Impacts

We recommend our initiative of "Columbia Community," where we invite local small businesses to the individual Columbia-owned properties. 

To incentivize hotels to use this recommendation and purchases from these vendors, we want to incorporate the loyalty program used at each property. So, for every variable dollar spent at the partnered shops, a variable amount of points will be added to the loyalty program that the property uses.

Implementation & Risks