Assume the role of Nancy. Write a message to Elite status members notifying them of changes to the rewards program. You can assume that the changes will take place three months from now.
Nancy Jeffreys, director of marketing. just met with Andrea Garco, the general manager. Nancy showed Andrea how several of the Prestigio's marketing programs and campaigns did not veem to be paying off. Regarding the rewards program she commented, "1 think we should lower rewards for seweral reasons, Dunng the past two years since introducing the program. we ve tracked the behavior of our guests. I compared guests who've been coming hete for at least the past four years. After staring the rewards program these guests did stay more days each year, probably because they could use their rewards points. Howevec, altogether ther paid for fewer nights. 1 estimate that we lose nealy $14,000 per year giving these guest5 peiks that dont justify the expense. Also, our rewards program is currently fat more generows than any of our local or national conpetisors. We should fall in line with their rewards programs to ensure we're maximizing revenue: Andrea considered Nancys reasoning failly compelling and thorough. She asked, What do you recommendr Nancy responded, 7 defintely think we need to increase the rumber of get a free night, in the past, it would have required about three nights. Alto, the current poscy is that rewords points never expire. I think we should change the policy so that rewards points expire in two years in the absence of purchase acivity at the Prestigia. aliance, and idon' think we'te see any returns: Andrea agreed that these changes made sense. She asked Nancy whether guests in the rewards program should be notified of all these changes and how they should be notifed. Nancy stated, 7 think we should be open about this and tell all our guests about these changes. Every major hotel chain has made similar changes recently, so we'te in tine with industry changes. It's true that roost mojor hotel chains have not gone out of their way to tell guests that reward points are no langer as valuable. but I think we're more likely to garner dissetisfaction from guests when they find out we tried to sneak these changes theough wihout telling them: Andree said, "Okay, let's move forward with these changes. One more question. We ve got regular members and Eke status members. We ve traditionsliy oven Elite status members free Wi.Fi access, free access to the Prestige Lounge (a club on the second foor whth free snacks, drixks, and other amenities), and free in-room snacks. Do you think this makes sense? Nancy replod, Tim glad you brought this up. We ve done some onalysis on this and paid attention to whot some other hotel chains sre doing We recommend now praviding fiese services and amenties at 50 peccent dacouints" "Great," said Andrea. "By the way, do you think there's arything positive we can include in the message?" "Definitely," said Nancy. "We could point out many of the improvements in our business lounge, which has new computer terminals, free Wifi, a mini-bos, and other sarvices, Also, we could mention many of our August specials, including weekend getaways for rooms at just $119 per night: "Thanks for all yout analysis of the rewards programs and the changes we need to make" sad Andrea. "Go ahead and contact our rewards members as soon as youre teady
