Customer Profitability Analysis; Luxury Hotel Industry The luxury hotel chain Ritz-Carltonintroduced a system called “Mystique” that collects information about its customers from employeesand staff at the hotel. The information is used to personalize the services provided to each guest. Forexample, a bottle of the guest’s favorite type of wine would be placed in the room without the guesthaving to request it. Similarly, the type of fruit a guest prefers will be waiting in the room on arrival.The information is available throughout the Ritz system so that when the guest checks into any RitzCarlton hotel, the special treatment is available. Other hotel chains such as Marriott, Hilton, and Hyatthave similar programs.Required1. How do these information-gathering programs help the hotels become more competitive? What is thestrategic role of these programs?2. Do you see a role for activity-based costing for these firms, as it relates to their information gatheringand customer service?3. What ethical issues, if any, do you see in the information-gathering systems?
Customer Profitability Analysis; Luxury Hotel Industry The luxury hotel chain Ritz-Carlton
introduced a system called “Mystique” that collects information about its customers from employees
and staff at the hotel. The information is used to personalize the services provided to each guest. For
example, a bottle of the guest’s favorite type of wine would be placed in the room without the guest
having to request it. Similarly, the type of fruit a guest prefers will be waiting in the room on arrival.
The information is available throughout the Ritz system so that when the guest checks into any RitzCarlton hotel, the special treatment is available. Other hotel chains such as Marriott, Hilton, and Hyatt
have similar programs.
Required
1. How do these information-gathering programs help the hotels become more competitive? What is the
strategic role of these programs?
2. Do you see a role for activity-based costing for these firms, as it relates to their information gathering
and customer service?
3. What ethical issues, if any, do you see in the information-gathering systems?
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