Premium Essay

Wyndham's Byrequest Program - Value Proposition

In: Business and Management

Submitted By hbbreez
Words 742
Pages 3
The theory of Value Proposition indicates that a target market's valuation of a product can be derived by analyzing the benefits of that product to the target market and weighing the costs of choosing that product. To examine the benefits, one must review both the points of parity, features of a product that are the same as the competition or next best alternative, and the points of difference, features of a product that are superior to the next best alternative (Mgmt 205 Course Reader, pg 17 "Customer Value Propositions in Business Markets). For this analysis of Wyndham International Corporation's ByRequest value proposition, it can be argued that Marriott Hotels and Resorts and it's Marriott Rewards points program is the next best alternative to a potential Wyndham guest due to statistics that indicate that Marriott Hotels and Resorts had the highest occupancy rates in the surveyed years 1997-2001 (Case Exhibit 5) and had the highest percentage of people with incomes exceeding $50,000 per year who preferred the Marriott brand over hotel/motel brands in 2000 and 2002 (Case Exhibit 6). Also, the target market can be defined as "the average upscale traveler who, on average, takes 12 to 14 trips a year", corporate travelers in particular (Case Page 13), as it is the business traveler who usually is the primary decision maker for business trips (Case Exhibit 6). The point of parity between Wyndham's ByRequest program and the Marriott Rewards program is that both reward guests for their frequent reservations and brand loyalty with a free membership and perks such as frequent flyer miles and special offers. However, it is the points of difference between the ByRequest program and the Marriott Rewards program that really adds significant benefit to Wyndham's value proposition. Where Marriott Rewards program offers points to guests which can be accumulated to be...

Similar Documents

Premium Essay

Wyndham Takeaways

...Hotels Marriott Starwood Hotels Sheraton Westin Four Points In summary, Wyndham is much small (in terms of numbers of hotels and numbers of rooms) than their competition in this market segment. They have a problem overcoming this disadvantage. What is the Basis of Competition in the Hotel Industry? Start to generate general list and then focus on Wyndham’s segment (what is this and how might it differ from other segments?) See pg. 7 Wyndham targeted the upscale and luxury traveler—frequent business traveler 12-14 trips per year (pg 13) See Exhibit 6 (pg. 27 & pg 26)) Critical Factors for this market segment Clean rooms Service Safe Location Previous experience Value for price Reputation of chain Room price lower How does Wyndham intend to compete? What are Wyndham’s major problems? Low brand recognition among business and leisure travelers (pg 7) Wyndham’s name did not appear in the list of the top 20 most recognizable brands to business travelers. Issue of hotel rooms as a commodity Offer a similar product making their value propositions indistinguishable and leading to within-segment competition increasingly based on PRICE To be successful a firm must develop inimitable and sustainable differentiators and know their customers intimately Thus, Wyndham must: “Build a RECOGNIZED BRAND, CHANGE THE RULES OF ENGAGEMENT, AND CARVE A PROFITABLE NICHE THAT WE CAN DEFEND? What are rules of......

Words: 741 - Pages: 3