Rewarding Loyalty

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Cabo San Viejo guests are looking for wellness vacation and will spare no expense to get just that. Hailing from all over the world, over 70% of guests are women with household incomes greater than $150K. Located in the majestic San Bernardino Mountains, guests experience spa and wellness services, outdoor activities, pampering, and tranquility. With accommodations and services averaging over $600 a day, the expectations of Cabo San Viejo guests have increased over time. To keep them satisfied, Cabo San Viejo has a well trained staff who believes in the product and more importantly in providing the guest with a memorable experience. However, with increasing competition from other resorts, day spas and even cruises, Cabo San Viejo is left wondering is this enough? How healthy is it? If the firm were to adopt a rewards program, what should be its strategic objective? Cabo San Viejo has built a solid reputation and overall is a healthy company who could potentially position itself to be a major player amongst premier vacation/fitness resorts. Cabo San Viejo lacks an elaborate customer identification program but has pulse on the needs of their guests because of the personal relationships built with them over time. For future sustainability and growth however, Cabo San Viejo will need to invest in a more sophisticated way to assess customer behavior proactively. Since a client database can be costly, Cabo San Viejo should look at implementing a rewards program from a short and long term perspective. Short-term, Cabo San Viejo should have access to the services each repeat guest took part in during their stay as well as any comments or surveys received from the guests. This information should be shared with all staff members particularly the reservation staff who will use that information to customize conversations with guests when booking their next visit. The reservation staff will alert key staff members of that guests profile so when the guest arrives...
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