WYNDHAM INTERNATIONAL: FOSTERING HIGH-TOUCH WITH HIGH-TECH
WYNDHAM INTERNATIONAL: FOSTERING HIGH-TOUCH WITH
HIGH-TECH
Summary
The Harvard Business Review case study on Wyndham International discusses the inception of the hotel company, its initial exponential growth followed by a rapid decline in 1999 due to various external and internal factors. The organization restructuring and changes in management introduced several guest loyalty programs, ByRequest in particular, to allow Wyndham International to reestablish its brand. This paper discusses the strategies followed by Wyndham International and identifies role of Information Resources (IR) in implementing the ByRequest program. In the final analysis, the paper identifies issues with customer signup and integration the various IR systems for the ByRequest program, limiting Wyndham in achieving its business goal in a more robust nature.
Wyndham’s Business
Wyndham International, a company in lodging industry, enjoyed significant tax benefits in the initial years under the REIT status and expanded continuously. Wyndham managed and owned most of its hotel properties, while in lodging industry hotel management and ownership were normally separated.
But policy changes in 1999 resulted in a drop of 80% of Wyndham’s stock price, forcing the company to sell most of its low-end properties and focus on business and leisure travellers in the upscale segment of the market.
Opportunities and Threats
With changes in government policies, Wyndham faced serious threats of financial debt. Low customer recognition was also hurting its market share. Fierce competition and commoditized service made it difficult to bring in profit. Nevertheless, there was an opportunity as well, that if the company could successfully differentiate itself from competitors, it would harness more profit.
Business Strategies and Objectives
In order to navigate through the competition, Wyndham changed its management team and came up with new customer loyalty program, ByRequest,
HIGH-TECH
Summary
The Harvard Business Review case study on Wyndham International discusses the inception of the hotel company, its initial exponential growth followed by a rapid decline in 1999 due to various external and internal factors. The organization restructuring and changes in management introduced several guest loyalty programs, ByRequest in particular, to allow Wyndham International to reestablish its brand. This paper discusses the strategies followed by Wyndham International and identifies role of Information Resources (IR) in implementing the ByRequest program. In the final analysis, the paper identifies issues with customer signup and integration the various IR systems for the ByRequest program, limiting Wyndham in achieving its business goal in a more robust nature.
Wyndham’s Business
Wyndham International, a company in lodging industry, enjoyed significant tax benefits in the initial years under the REIT status and expanded continuously. Wyndham managed and owned most of its hotel properties, while in lodging industry hotel management and ownership were normally separated.
But policy changes in 1999 resulted in a drop of 80% of Wyndham’s stock price, forcing the company to sell most of its low-end properties and focus on business and leisure travellers in the upscale segment of the market.
Opportunities and Threats
With changes in government policies, Wyndham faced serious threats of financial debt. Low customer recognition was also hurting its market share. Fierce competition and commoditized service made it difficult to bring in profit. Nevertheless, there was an opportunity as well, that if the company could successfully differentiate itself from competitors, it would harness more profit.
Business Strategies and Objectives
In order to navigate through the competition, Wyndham changed its management team and came up with new customer loyalty program, ByRequest,
References: 1. Lynda M. Applegaet, Gabriele Piccoli (2002, December). Wyndham International: Fostering High Touch with High Tech. hbr.org. Retrieved from: http://hbr.org/product/Wyndham-International--Fo/an/803092-PDF-ENG 2. Rajasekaran, A. (2011, December). Wyndham hotels it. Slideshare.com. Retrieved from: http://www.slideshare.net/AvinashRajasekaran/wyndham-hotels-it