Fairway Hotel: Customer lifetime value through a loyalty programme?

Author :

Dr Nathalie Chinje & Stephanie Townsend

Pages :

29

Product Type :

Case

Reference # :

WBS-2015-12

Teaching Note :

not available

Institute:

Wits Business School - University of the Witwatersrand

Setting:

South Africa

Year:

2015

Keywords:

Marketing, Marketing Strategy

Summary/Abstract:

In July 2015, Stefanie Pietzsch, guest relations and marketing manager of The Fairway Hotel, Spa & Golf Resort, a Johannesburg-based luxury city resort owned by property developer Guvon Investments, considered introducing a loyalty programme to reward her loyal guests. In recent years, hotels in Johannesburg had experienced the effects of slow economic conditions with an overall drop in room occupancy, which had resulted in increased competition. Pietzsch preferred a loyalty programme to be implemented at hotel rather than group level, but how prepared were both the Guvon Group and The Fairway for such a programme, and would a loyalty programme be an appropriate customer acquisition and retention strategy for the hotel?