Wyndham hotels it


Published on

Published in: Travel, Business
  • Be the first to comment

  • Be the first to like this

No Downloads
Total views
On SlideShare
From Embeds
Number of Embeds
Embeds 0
No embeds

No notes for slide

Wyndham hotels it

  2. 2. Case details 1981 – Tranmel Crow Company founded Wyndham hotels 1982 – First Wyndham hotel was opened to guests in Dallas 1985 – 14 upscale properties 1996 – Grew steadily to 66 resorts and hotels 1997 – acquired Patriot American Hospitality Inc. for $1.1 Billion, started an aggressive acquisition campaign focusing on small companies 1997 – Interstate Hotels Corp. was acquired adding 217 hotels to Wyndham brand 1999 – Dropped REIT status and converted to Wyndham International Corporation Restructuring plans – Non strategic assets were sold and focused on premier brand full service hotels and resorts.
  3. 3. SWOT Analysis Strengths  First company to use the PMS (Property Management System) in a centralized environment  Initiatives like „Room that performs‟ and „Women on their way‟ were innovative ideas  Keen understanding of customers and taking steps to implement their requirements  Wyndham ByRequest Program which was a guest recognition program radically improved the Brand Image and service quality
  4. 4. SWOT Analysis Weakness  Negative net income from 1998 to 2001  Low brand recognition of Wyndham name among business and leisure travelers (did not appear in the top 20 most recognizable brands to business travellers) Opportunities  Creation of large database by the guest recognition program- ByRequest  Wyndham‟s IT infrastructure that was in-sourced after the arrival of Mark Hedley (Technology Officer) in May, 2000
  5. 5. SWOT Analysis Threats/ Challenges  While it is easy to generate databases but it is difficult to make use of them  Low Brand recognition was a major challenge particularly because Wyndham operated in the High Segment  Comparison sites such as priceline.com that treated hotels within the same industry as interchangeable, contributed to brand erosion  ByRequest guest recognition could only be implemented when the customer produced/remembered the member number  The impact of the ByRequest program was still very small and contributed only around $60 million in revenue in 2001
  6. 6. Competitive Strategies Wyndham differentiating strategy was its novel guest recognition program- ByRequest By this they defined the Brand Wyndham as a hotel chain that provided personalized service ByRequest was more than just a software- ByRequest managers were given considerable latitude in decision making and how they satisfied the needs of consumers
  7. 7. IT infrastructure Outsourced IT infrastructure to a subsidiary of TCC 2002 – Property Management System (PMS), call accounting, revenue management and POS systems were installed Rooms that perform – first brand offering high speed internet and cordless phones in every room First chain to enable online reservations and access to guest loyalty programs Women on their way program
  8. 8. Strategic Implication Centralization and standardization were the keys to the IT deployments Core set of technology people working in a single place than having people in remote locations Commoditization of Hotel industry by services like Priceline.com Lack of differentiation in brands Primary elements of decision making – place, previous experience, price and reputation Wyndham needed a guest recognition program that defines the brand
  9. 9. Wyndham ByRequest Program was built on centralized IT infrastructure Data warehouse store guest profiles and guest stay information from PMS Software can be accessed via any web browser
  10. 10. Wyndham ByRequest Traveler or agent makes reservation using distribution channels – website, call centre, global distribution systems Reservation is recorded in the inventory and available rooms is updated Nightly batch process downloads reservation information to the ByRequest application. Profiles of arriving members are extracted and made available to ByRequest managers ByRequest managers retrieve arrival reports and prepare guestrooms according to members Managers had considerable latitude in their decision making to satisfy needs of members. Also in charge of training staff and instilling importance of the programs Managers had to sign up new members Once a month the managers meet in video conference and recorded question and answer sessions for further use
  11. 11. Strategic impact Focused on driving shareholder value and developing greater brand equity Execution was done brand wide for standardization Centralization was also achieved This was a system that defined the brand of Wyndham Differentiates Wyndham from other brands and in turn moves against commoditization Co creation of services by including the customer in the process
  12. 12. Organizational Impact Won CIO 100 award two years in a row for ByRequest Hospitality Technology Lodging Award and InformationWeek 500 award for IT initiatives In 2001, won Hospitality Sales and Marketing Association International‟s “Best of Show” award for success of integrated marketing and advertising campaign $60 million in revenue and expected to grow Over 600,000 members and expected to grow
  13. 13. Key Learnings IT can be used as a means of key differentiating strategy in a services organization If software database across different centers (geographies) are used extensively, then it makes sense to centralize the databases
  14. 14. THANKYOU