Case study 1 PDF

Title Case study 1
Author Rabelle Dalina
Course Hotel management
Institution Capilano University
Pages 4
File Size 47.7 KB
File Type PDF
Total Downloads 99
Total Views 132

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This is a mandatory assignment for Case study 1...


Description

Hotels a) How would a reward programme benefit the individual hotels in terms of increased revenue? In most hotel marketing strategies, customer incentive and loyalty programmes are important and expensive components, but they provide a significant return on the investment made in them. My belief is that customer-centric reward programmes promote and provide the chance for customers who participate in the programme to take use of all the incentives available via the hotel's programme. After enrolling in the programme, visitors are more likely to return to the hotel more than once and to utilise the facilities more often than guests who do not participate in the reward and loyalty programme. As a result, the initiative ultimately results in increased income for both individual hotels. b) Using your own words, describe each of the six (six) levels mentioned in the article. The first tier is comprised of consumer reactions to the programme. It is a review of consumer attitudes about incentive programmes based on concept testing, initial signup rates, and the design of the programme in order to determine whether or not adjustments should be made to the programme. All of the evaluations that analyse distinct parts or programme features may take a variety of forms, including in-depth interviews with important consumers and quantitative surveys. Alteration in consumer attitudes is the second tier. Customer experience and programme evaluation surveys may be used by businesses to monitor the shift in consumer attitudes between before and after a marketing campaign. They may detect customer attitudinal changes by examining whether or not consumers are happy with the programme, as well as behavioural intentions by examining whether or not consumers intend to repeat purchases and whether or not they are likely to suggest the programme. Consumer Behavioral Change is the third tier. Firms will be able to track customer behaviour changes via programme enrollment rates, programme and redemption activities, and money generated from programmes. They can establish a link between programme activity and spending behaviour by constructing predictive models that can forecast the total spending experience. A pre- and post-program test will be conducted to monitor customer spending and determine whether or not their spending has risen over time. Controlled Incrementality Assessment is the fourth level of evaluation. Firms may calculate the extra revenue and profit margins that can be ascribed to a customer loyalty programme.

They will need to undertake a more in-depth investigation, including a comparison of programme members and non-members to determine the income and profit rate. Return on Investment (or ROI) is the fifth tier. This is a return on investment (ROI) assessment used to estimate the whole worth of the program's benefits and costs. Furthermore, since it requires a vast amount of data, such an analysis is only feasible for bigger corporations. Optimization is the sixth tier. In this review, market segmentation, promotional activity, and competition intensity will be used to discover strategic possibilities or situations that may be used to improve the program's optimization. Compile a comparison chart for each of the incentive schemes mentioned below, comparing them to the six (6) levels of Voorhees, McCall, and Carroll's reward programme classification system. AccorHotels is a member of Marriott Bonvoy Wyndham Rewards (was Le Club) The initiative has received positive responses from consumers in Tier 1 - which includes 30 companies and approximately 7000 homes. Worldwide -Owned by the Wyndham Hotel and Resort Corporation Wyndham owns and operates 9,000 hotels across the globe. -More than 5,000 homes in over 100 countries This hotel is geared for business and luxury tourists. Change in consumer attitudes at the second tier The company provides a variety of advantages, including membership, silver elite, gold elite, platinum elite, titanium elite, and ambassador elite statuses -Offers four different levels of service: Blue, gold, platinum, and diamond are some of the colours available. For every dollar spent, points are accrued; points are valid for four years and then expire. There are four membership tiers: Classic, Silver, Gold, and Platinum. - Euro currency is needed for the most advantageous point redemption. Tier 3 is the highest level of difficulty. Increased customer behavioural change - The introduction of four levels for platinum has made it simpler for members to see customer benefits depending on their spending. - The amount of points won is determined by the customer's status levels. The number of points earned indicates the customer's tier level. Tier 4 is the highest level of difficulty. The appraisal of controlled incrementality To assist customers in differentiating between classes, three different class categories have been established: -the luxury class is reserved for the wealthy;-the upper level is targeted at a younger audience;-the select service class is reserved for those seeking low-priced and reasonably priced accommodations. A two-tiered system of properties is in existence: - Upperclass properties are in place to assist the rich class; - Lower-class homes are open to everyone

and it is simpler to get free rooms. -There are two types of properties: Business class and Luxury class. Tier 5 Return on Investment - Partnerships with airlines such as Delta, Emirates, Marriott, American Express, and China Eastern Airlines Hotel partners include Howard Johnson, Super 8, Days Inn, and Travelodge. Airline partners include Club Med, Delta Airlines, and more than a dozen other airlines. Excellent programme, excellent rewards, flexible points, and superb properties make Tier 6 Optimization a must-have. However, points might be retained indefinitely in order to maintain consumer loyalty – Excellent services and excellent homes, however there are too many levels, which some people may find bothersome - Excellent advantages, however there is insufficient support for third-party sites and overseas visitors.

d) Based on the comparison chart provided in task c), what conclusion did you reach? Customers' perceptions of loyalty programmes might vary based on the company's emphasis, and they can be false if you don't have all of the details. These programmes are the cornerstone of a loyal clientele that takes use of the vast majority of the program's advantages on a regular basis. They enable organisations to grow internally while also distinguishing themselves from the competition.

References Benefits and status may be found at all.accor.com (n.d.). Retrieved from https://all.accor.com/loyalty-program/cards-status-benefits/index.en.shtml on October 4, 2021. . Flexibility, as well as Member Benefits Become a member of the Wyndham Rewards loyalty programme and earn points all around the world (n.d.). On October 4, 2021, I was able to access the website https://www.wyndhamhotels.com/en-ca/wyndham-rewards. Genter, J. T., et al (2021, September 28). The prize was given out. Marriott Bonvoy: A Traveler's Guide for Rewards Programs The Points Guy, to be precise. Retrieved from https://thepointsguy.com/guide/award-travelers-guide-to-marriott-bonvoy/ on October 4, 2021. . C. Voorhees, M. McCall, and B. Carroll have published a paper in which they argue that (2014). [Electronic paper] Evaluating the advantages of incentive programmes: A suggested method and a case study from the hospitality sector [recommended approach and case study]. Cornell Hospitality Report, vol. 14, no. 1, pp. 6-12....


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