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Balancing act

But cutting back is a balancing act, says Cooper, who is proud of the way he has steered the brand since he made the switch from Marriott International in February 2001. "The reality is even though travel is constrained and people are travelling less than they were last year, expectations haven't changed. You have to be very careful; it's a balancing act," he says.

When Cooper joined the Ritz-Carlton he was conscious he didn't need to change the brand, which was particularly popular with men "in grey suits". "Nothing was broken - my job was not to mess it up," he says laughing. "I think the most important change we've made - right or wrong - is we've tried to make the brand more casually elegant. I always went in and said ‘I am not going to make any changes on the basis that it is operating superbly, with a terrific positioning', however after a couple of years it began to look and feel [that] our traditional positioning was not sustainable over the long term."

So out went the dark wood, the velvet curtains and the cookie-cutter interiors, and in came the contemporary, classic and luxurious interiors. Out went the automated wake-up calls and check-in desks in the lobbies, and in came the personal, discreet service, which the Ritz-Carlton is now synonymous with. One of the most important aspects of the reinvention of the brand was the switch from the dated advertising scheme to a new hugely successful marketing campaign, which focused on selling ‘the Ritz-Carlton lifestyle'.

So dramatic was the change that Joseph Michello, author of best-seller ‘The Starbucks Experience,' last year released a book about the Ritz-Carlton service culture; ‘The New Gold Standard: 5 Leadership Principles for Creating a Legendary Customer Experience Courtesy of The Ritz-Carlton Hotel Company'.

"Twenty five years ago, if a brand wanted to grow it was perceived to be a plus if the hotels resembled each other because you were trying to grow a brand. Today in our business it is absolutely the opposite - nobody wants to stay in a hotel that looks like one they have already stayed in," says Cooper.

"We are never informal but we are less formal and we are also trying to be a bit more responsive to the individual because today it's a very eclectic crowd in a hotel. Five years ago they were all grey haired guys in suits, now you never know who you are going to get [staying at the hotel]."

In addition to changing the face of the brand, Cooper has also grown the number of hotels to 73 hotels in more than 25 countries. In January, the Ritz-Carlton took over Cairo's old Nile Hilton, which it plans to spend two years refurbishing before opening in late 2011. In addition it will also open its second Dubai hotel up at the end of the year, a 340-room hotel in the heart of the financial district, Dubai International Financial Centre. There are also other hotels slated to open in the next few years in Abu Dhabi, Toronto, Los Angeles and Mexico City.

Cooper will add an additional six Ritz-Carltons to the chain's portfolio this year and four next year. Although two of the group's hotels (The Lodge at Rancho Mirage in Palm Springs and The Molasses Reef, a Ritz-Carlton Reserve in West Caicos) have been delayed as both were financially backed by the bankrupt firm, Lehman Brothers, Cooper is optimistic it won't be long before they too are open.

"Rancho is one of them and I think that will start up relatively soon," he says. "Lehman has already offset the loan... to a Scandinavian bank. Suddenly this Scandinavian bank says we own your hotel... anything is better than Lehman," he laughs.

"I think that will start up relatively soon, although there's not a rush to increase supply right now - people are trying to find the right balance between when do we start the work again and when do you want to bring it on because we'd like to bring it on when things are a little better."

Optimism for Middle East tourism

The effects of the downturn on tourism in the Middle East and North Africa regions were not felt until the later part of 2008, according to research. And while Cooper remains concerned for Dubai's tourism industry, he remains optimistic about the rest of the region.

"This region is probably one of the more resilient if it wants to be. Obviously Dubai is the most impacted in the region. Egypt is not doing badly, if you look at some of the more business focused [markets like] Qatar and Bahrain, they aren't doing too badly. You have to look at the source markets for Dubai... the UK and Germany are tough markets right now, so it's hardly surprising. I am not a big believer in bouncing back right now... if the UK is not going to bounce back, Dubai won't bounce back."

It may be quieter but that doesn't mean the staff have nothing to do.

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