CAse Questions

Of the major engagement programs, which ones should be selected as attributes for evaluation? Are some engagement programs more weighted than others? If so, how should proportions be allocated when calculating the weighted average to determine the overall engagement score?

          Things like the NPS are heavily favored towards bigger hotels, as not as many people are able to stay at smaller hotels, therefore lessening the chance that someone would recommend it. With a bigger hotel, it is inevitable that more people would recommend it to someone else. Proportions to the NPS Score should be enacted as well as the Events on Property (smaller hotels may not have the funding to host large parties like that). The scores for both of these engagement programs should be based upon the capacity of the hotel at the time that the program takes place.

 

What are the direct benefits for the LHW hotels? Do these benefits outweigh the cost?

          The benefits of being a part of LHW include: increasing each hotel's presence in their own feeder market, helping a hotel find their feeder market, and advertising towards feeder markets. Each director of business performance uses LHW's relationships to increase the popularity of every Hotel in each of their feeder markets respectively, so that these smaller independent luxury hotels can get booked before a place like the Ritz Carlton does. These benefits would eventually outweigh the costs as over time each hotel would be making much more with LHW’s advertising skills put to use 

 

What are some incentives that LHW can provide to member hotels? Why would the hotels have incentive to participate?

          The main incentive is obviously increased profit. With more money coming in because of the relationships that LHW has, the hotels can spend more money upgrading amenities, advertisements, and other things that would draw more people to the hotel

 

Due to differences in size, property type, etc., hotels are likely to adjust attribute proportions according to what is more or less important for them. Since it would not be feasible for every hotel to have its own unique attribute combination, categories will be created. How would this be factored into HES more specifically?

          These categories could be implemented based on hotel capacity done in brackets. For example, one category could apply to hotels with 50-100 rooms, and another category could apply to hotels with 1000-1250 rooms. 

From the perspective of LHW, what are the short-term and long-term results of implementing HES? How long will it take for results to show?​
          Short term results of applying HES include high motivation by all hotels to meet the engagement programs, but not a huge increase in profits. The increase in profits would be seen after a long time of participating in the engagement programs, something that many hotel owners aren’t patient enough to wait out. The time it takes for a hotel to increase their profits varies based on the size. Bigger hotels will profit faster and smaller hotels will take longer to see results. 

 

How long will HES remain effective? Will there be a cap on its effectiveness?

          HES will remain effective until many groups of people are not seeing results. Hotels can only rely on LHW to take them so far, after they start seeing a profit cap, they look for lucrative merging with other companies. HES would also dissolve if enough people were a part of LHW but weren’t following any of the engagement programs.

 

For LHW member hotels that are not motivated to participate in HES even with incentives, should LHW set quarterly or annual target scores for HES? How will this affect the relationship between LHW hotels and its members? 

          Setting consistent annual target scores can often make hotel owners mad, especially ones with smaller hotels as they would often get mad about how they aren’t performing how they should be. Instead, all hotels should move at their own pace and if profits are rising at regular checks then they can keep doing what they are doing. This would eventually worsen the relationship between hotels and LHW like a continually angry child and his or her parents

 

Should HES be optional for member hotels that are performing well? Should HES be different depending on each individual hotel's performance?

          No, HES should be mandatory for all members of LHW. Without this being standard it would create unfair precedents for fledgling hotels and would lessen their participation in HES, therefore lessening their potential profits. Making HES mandatory provides a solid baseline for being an actual member of Leading Hotels of the World and strengthens LHW’s image on a global scale

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