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Wednesday, February 25, 2015

Hospitality Innovation at Starwood

We worked with groups in the hospitality industry to brainstorm the future of business mobility.    So the industry has always fascinated me.

Now in McKinsey:  " ... Redefining service innovation at Starwood. The head of the hotel company’s loyalty program, Mark Vondrasek, describes its approach to technology, guest loyalty, and disruptive new competitors .. " .  

Notably also, learnings in loyalty:       "  ... Guest loyalty has always been important to Starwood, but a few years back we began to get far more granular in how we approached it as we studied the profitability of our guests in side-by-side comparisons. We found, for example, that the top 2 percent generated 30 percent of our organization’s profits—an incredibly high concentration. We also learned that the “platinum” members of our loyalty program—Starwood Preferred Guest (SPG)—are many, many times more profitable than guests who aren’t SPG members. Analyzing the data was eye opening, and really pushed us to reexamine how we think about loyalty and benefits.   ... " 

More granularity loyalty should be better analyzed in retail as well.

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