Wyndham Case Study
Wyndham Case Study
1. There were a variety of differences between members and nonmembers of ByRequest (see Figure 1 for data): a. non-members stayed 26.6% longer per stay (3.71 to 2.93 nights) b. non-members spent 7% more per stay ($359.08 to $336.02) c. non-members stayed 13% more nights per year (4.35 to 3.8 nights) d. members had 11% more stays per year (1.29 to 1.16 stays) e. members contributed 5% more revenue per year ($427.60 to $416.70) Andrew Jordan’s claim that ByRequest members stay for shorter lengths of time is accurate; members stay 2.93 nights per stay compared to 3.71 nights for non-members. Jordan’s claim that members spend 25% more per stay is not true based on the data in Exhibit 12. The data shows that non-members actually spend 7% more per stay ($359.80 to $336.02). There is no data to disprove or support the claim that members stay at Wyndham 20% more.
2. Advantages of ByRequest compared to points based programs: f. Personalization: guests get proper reading materials, later checkouts, and guaranteed room availability (pg. 10) g. Guests get what they want when they stay at Wyndham by allowing managers to access their profile and preferences (pg. 10) h. Wyndham does not have to worry about redeeming points or conflicting blackout dates. Points create liabilities that cost money and Wyndham does not include them (pg. 12) i. Guests get perks, like registration free check-in, free room upgrades, and free telecom services (pg 10) j. Takes at least 11.5 years for points based systems to provide a free 3-day vacation (Figure 2). ByRequest focuses on customization.
3. Benefits to the target market:
k. High level of personalization and customization
l. Complementary amenities such as Internet, automatic upgrades, snacks/drinks, newspaper m. Centralized IT infrastructure facilitated for convenient access n. Managers were given authority to enhance guest experience Cost to the target market:
a. Customers miss out on rewards from points based systems b. Guests need significant time and effort to complete online profile Value to target market: Based on Exhibit 6 (pg 27), ByRequest creates a strong customer value proposition. Wyndham focuses on the most desirable attributes that customers want. ByRequest allows customers to personalize their experience by sharing their preferences on their ByRequest profile (Exhibit 8 pg 31). This provides a point of differentiation while other point-based systems may take significant time to provide valuable benefits. Figure 1 (refers to Exhibit 12 on page 41)
University/College: University of Arkansas System
Type of paper: Thesis/Dissertation Chapter
Date: 14 November 2016
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