Research Paper: Sands Rewards Club on Venetian

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SAMPLE EXCERPT:

[. . .] Figure

1

Loyalty Program Types

Berman, B 2006, 'Developing an Effective Customer Loyalty Program', California Management Review, 49, 1, p. 125, Business Source Premier, EBSCOhost, viewed 20 December 2011.

The results of the primary research associated with this work should then reflect a high correlation between percentages of individuals who are repeat guests of the Venetian Macau Hotel (VMH) as well as other hotels in the Sands Rewards Program. The research indicated that 40% of those members who stayed were repeat guests of VSH while 56% were repeat guests of VSH and other hotels in the program within two years of their current stay.

The issue of data collection and rewards programs comes into play in regards to non-member data, as only those non-member guests who were repeat guests at VMH could be identified (n 734), while those who were repeat guests of other Sands hotels was unknown, due to non-integrated database systems. Yet, when one looks at the data from just the repetition of guests nonmembers at the VMH 19% and that of members 40% there is a comparable and stark difference that lends one to think that membership can make a serious difference on customer loyalty.

The membership consumer behaviors data is then seen to be a crucial aspect of data associated with marketing to both members and non-members and is an obvious key to creating a higher level of customer membership and customer loyalty. According to Srivastava, Shervani, & Fahey "Customer loyalty has been universally recognized as a valuable asset in competitive markets" (1998 in Sahoo,2011, p. 57) What this translates to is customer repeat business and more importantly as Sahoo goes on to point out that profitable customer business repetition is essential (2011, p. 57). This might lead some to believe that the active loyalty program member is therefore of greatest value to the hotel and/or industry and to limit marketing to others excluding trying to obtain larger numbers of members. Looking at the overall number of guests negates this assumption as members (regardless of activity level) constituted only 23.5% of guests during the period while 76.5% was made up of non-members. Again of those non-members who were repeat guests of VMH (19%) while members (40%) were repeat customers of the VMH. Data regarding member repetition in all possible Sands Loyalty hotels (56%) had to be excluded regardless of interest as a comparison was not possible between the non-member and member groups on this statistic.

Chapter 2

The influence of loyalty program membership on customer purchase behavior (Barsky, 2011). Sahoo (2011) found that the loyalty of customers can be recognized as the dominant factor in a business organization's success. Additionally, it was found in the literature that there are several strategies most commonly used by hotel managers in order to gain a competitive advantage; and one of them is to develop customer loyalty by providing unique benefits to customers.

Hence, the VIP and membership system of the hotel can help to provide some special benefit member guests which influence greater spending. Therefore it was concluded that the hotel can maintain the existing loyal VIP guest and attract more potential VIP by varying their loyalty system and keeping it up-to-date (Dreze & Nunes, 2009, "Hotels.com Expands," 2011). To further illustrate the point one can look at Berman's (2005, p. 129) list of potential benefits to a customer loyalty program (see figure 2).

Figure

2

Potential Benefits of a Loyalty Program

Berman, B 2006, 'Developing an Effective Customer Loyalty Program', California Management Review, 49, 1, p. 129, Business Source Premier, EBSCOhost, viewed 20 December 2011.

The Sands Rewards Program clearly implements several of the factors Berman indicates which is clearly reflected in the data associated with this work. This is especially true with regard to points 1, 2 and 4. The data indicates that the dollar sales among member users with regard to member and non-member purchases is higher for members than non-members, in the period studied. The answer to survey question #9 demonstrated that the average dollar amount of hotel related purchases including; room rate, charges to room from hotel stores, fees and charges for added convenience services, charges to room for hotel restaurants was higher by at least 20% for members and non-members on a per day ratio. Ease of use was not a factor as rewards card are not the sole indicator of room charges. In other words the hotel guest must use the card key for the room to charge anything to the account, and the rewards card is also requested by in-hotel and affiliate member employees that allow charges to rooms for services and products. The number for members also included reward points reimbursement at the 1 point per dollar rate associated with the Sands Rewards Program (see appendix 1 & 3). What this indicates is that per day of stay members are spending 20% more than non-members on in-hotel purchases. Out of hotel purchases or affiliates that do not allow room charges were not included as these were not calculable for non-member study participants.

Though this study does not discuss or review the participant perceptions of either brand or hotel the work implies that customer loyalty and the likelihood of customer focusing more of his or her allotted travel budget on in-hotel purchasing may be greater if he or she perceives the reward program as an added benefit for such purchases and becomes a member. Reward services and discounts demonstrate a significant cost savings that may also allow the member to simply have more expendable cash for hotel related purchases (see appendix 3). These particular issues are worth a closer look in expanded research on the topic.

Chapter 3

The final chapter of this work will focus on key theme 3 The relationship between membership purchase discounts and/or privileges and purchasing behavior (Bareham, 2004; Osman, Hemmington, & Bowie, 2009; Sahoo, 2011). Though Noone, & Mount (2008) indicate that there is a factor associated with price that reaches a threshold and is not mitigated by membership in rewards programs or other discounts and/or on quality and satisfaction with services. In other words it is also important to balance price and make sure that it is competitive and reflective of regional pricing for services. Though membership in loyalty programs clearly indicate the utilization of brand loyalty and other factors positively associate with repetition of guest stays and purchasing/profit improvements customer loyalty does know bounds and price point will if it becomes too high partly negate the benefits of membership programs. Mattila (2006) indicates that there are certain types of brand loyalty that are important to this research as each indicates a different customer connection to the services provided by the hotel.

Calculative commitment refers to a customer's need or desire to maintain a relationship in face of high switching costs. As such, reward programmes can be viewed as reflecting a calculative commitment (Mattila, 2006). Affective commitment, on the other hand, reflects a customer's emotional attachment to the service provider or brand. Affective commitment has been shown to be an important predictor of behavioural loyalty. For example, Mattila (2006) found that customers with high affective commitment to a brand were more likely to consider that brand as their first choice and promote the brand among their friends and colleagues. Affective commitment also resulted in a bigger share of the customer's wallet, as indicated by a higher percentage of room-nights allocated to the preferred brand. (Mattila, 2006 in Noone & Mount, 2008, p. 359)

This would indicate that the types of purchases associated with this research may come from different motivation centers with regard to guest loyalty. Though customer membership in a loyalty program represents a calculative commitment the program and the hotel must also provide services that create affective commitment, making the customer feel as if they are valued and that the privileges of membership are of good value.

To discover the relationship between membership purchase discounts or privileges at the Venetian Macao Hotel this work looked at the purchasing behaviors of members and non-members with regard to a programming package that was available and marketed for the two-week period. The work included all those individuals who booked the package with their reservation and all those that did so after checking in or at some point during their stay at the hotel.

The results of this inquiry indicate that indeed members were twice as likely as non-members to book this package, at any point in planning or arrival to travel location. This could in part be to the marketing of the package to members, though it is not a member exclusive package. It may also have to do with the fact that employees are trained while selling package products to attempt to achieve greater membership by stressing the membership discounts associated with the package and attempting to help the guest sign up… [END OF PREVIEW]

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Sands Rewards Club on Venetian.  (2011, December 21).  Retrieved March 23, 2019, from https://www.essaytown.com/subjects/paper/sands-rewards-club-venetian/8937963

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"Sands Rewards Club on Venetian."  Essaytown.com.  December 21, 2011.  Accessed March 23, 2019.
https://www.essaytown.com/subjects/paper/sands-rewards-club-venetian/8937963.