Wyndham International Case
Wyndham International Case
Is Andrew Jordan (SVP of Marketing) correct – that by ByRequest is targeting the right customers?
The findings do not support the conclusion by Andrew Jordan that ByRequest is targeting the right customers. On page 59, Andrew Jordan notes that ByRequest members spend, on average, 25% more per stay than do non-members. According to Exhibit 2, members actually spent 7.08% less in 2001 on a per stay basis than did non-members.
Jordan notes that ByRequest is targeting the upscale traveler that averages 12-14 stays a year. Exhibit 2 illustrates that in 2001, ByRequest members were staying at Wyndham resorts less than 2 times per year and the number of stays per guest actually decreased continuously as 2001 progressed. In Q4 of 2001, members were only staying 7.09% more often than non-members, in comparison with Q1 of 2001 when members stayed 15.44% more often than non-members. While Andrew Jordan notes brand awareness has increased, there is not sufficient quantitative data to support that conclusion.
According to the data provided, it can be inferred that ByRequest is not effectively targeting the “upscale business traveler averaging 12-14 stays a year”.
ByRequest vs. Points-Based Rewards Programs
Less Costly and Easy Immediate Redemption
ByRequest is cheaper for the company to maintain than typical points-based reward programs. A points-based reward program requires the redemption of points and