Fairway Hotel: Customer Lifetime Value through a Loyalty Programme?

Description

Fairway Hotel: Customer Lifetime Value through a Loyalty Programme?: 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?

Teaching objectives

The objectives of this case are:

• To provide a platform for examining issues related to customer relationship management, customer loyalty, service excellence, customer centricity, retention of clients, building brand equity and customer lifetime value
• To enable students to learn and apply principles for managing and building these within an organisation