Question
To boost room sales after the recent Covid lockdown, the Tweedledee-Dum Hotel is looking to implement a targeted promotional campaign. The campaign would offer exclusive
To boost room sales after the recent Covid lockdown, the Tweedledee-Dum Hotel is looking to implement a targeted promotional campaign. The campaign would offer exclusive bonuses (e.g., complementary local winery tours) to specific segments of guests who can be expected to spend a large amount of money purchasing various services in the Hotel.
To determine the appropriate segment to target, the hotel marketing manager, Felicity, proposes that the first step will be to look at the guest database, which was linked to the hotel's loyalty reward card (established 20 years ago). The database includes past guests' contact information and extensive information about their past stays in the hotel. Loyalty card members consented to have their data collected when they first signed up for the membership card by agreeing to the term and conditions via a prefilled check box. Felicity believes that carefully analyzing this database will allow the hotel to identify the most profitable guest segments, spending patterns, and even specific bonuses they may appreciate.
The marketing director, James, likes the idea. However, he is also keen to mitigate the possible downside of the promotion campaign. He thinks that they should also analyse whether there are specific guest segments that incur higher than average nuisance claims (e.g., broken glassware). Further, he also thinks it would be a good idea to pull some data from accommodation review websites to determine whether specific guest segments frequently leave poor reviews on the hotel. He believes both guest segments should be excluded from the current promotion campaign to safeguard the hotel's business reputation.
a) Explain one ethical issue the Tweedledee-Dum management should consider before adopting Felicity's suggestion
b) Advise Tweedledee-Dum management on mitigating the ethical issue that might stem from adapting Felicity's suggestion in (a). In your answer, specify your recommendation and explain how Tweedledee-Dum management should implement it.
c) Explain one additional ethical issue that Tweedledee-Dum's management should consider before adopting James' suggestion
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