Wyndham Essay

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It is important to distinguish the target customer for both ByRequest members and nonmembers. Wyndham’s overall customer targets were, “business and leisure travelers in the upscale and high-upscale segments of the market” (Pg. 1) The ByRequest target customer was the business traveler who, “on average, takes 12-14 trips a year” (Pg. 13). Therefore, while Wyndham and ByRequest both targeted the upscale business traveler, ByRequest specifically included only those business travelers with high frequency of travel. Information in the case pertaining to nonmember behavior can be attributed to the table in Exhibit 12 titled “ByRequest Member versus Nonmember Comparisons: 2001” (Pg. 41). In 2001, the average number of stays for nonmember’s was 1.16 versus member’s stays of 1.29 (Reference Appendix 1 for explanation of this and subsequent calculations). Therefore, the two groups exhibited similar behavior in reference to average number of stays. In addition, average stay length for nonmembers was 3.76 compared to 2.94 for members. As well, nonmembers tended to stay almost a full day longer than members. In the case, Andrew Jordan asserted that, “ByRequest members spend 25% more on a per-stay basis than nonmembers, they stay about 20% more Wyndham, and their average length of stay is shorter” (Pg. 13). The ‘average length of stay is shorter’ metric is consistent with the 2001 data mentioned above. Consider now the “members spend 25% more on a per-stay basis than nonmembers” fact. Based on the 2001 ByRequest Member versus Nonmember Comparisons table in Exhibit 12, one can calculate the average daily revenue per occupied nights (total revenue produced divided by total nights – Appendix 1). On average, members spent $114 while non-members spent $96. This indicates that in 2001 members spent 19% more on a per-stay basis than nonmembers, which is fairly consistent with

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