Priority Club Rewards System - Essay Example

? Table of Contents Table of Contents Summary 2 Introduction 3 Framework 3 Priority Club Rewards System 4 Priority Club Rewards in Hotels 5 Strategic Objectives of Priority Club Rewards 6 Deployment of Information System 9 Enterprise Systems 11 Critical Assessment 11 Benefits of Priority Club Reward System 12 Recommendations 13 Conclusion 14 Summary Information System is a well-known and popular automation system that helps an organization in performing the day to day operations. These systems are used in almost all types of organization and industries. The priority club rewards system is one of the most prominent and popular hotel loyalty system that provides numerous services to the customers. This system is used by International Hotels Group (IHG) and other hotels like Holiday Inn and Crown Plaza. The main problem of these hotels is the inability to attract more customers. The priority club rewards system resolves these problems by providing the customers with reward points every time they stay in these hotels. These reward points are given to the members of the priority club. The customers can avail the membership and can make use of these points to purchase, travel or stay in these hotels. The benefits of the priority club reward system helps the hotels to earn more profit and increase their revenue. The customers are also benefited as they get to redeem their points in any of the offered methods. Introduction An information system generally manages information pertaining to the organization in which it is installed. This ensures that the employees and customers are always intimated regarding the operations in the organization. Implementing an information system requires certain predefined tasks that determine the requirements of the organization. The information system must be implemented in such a way that it incorporates the requirements of the concerned organization. The system must be designed and developed according to the company’s nature and type. This paper analyses the Priority Club Rewards system used in the Intercontinental Hotels Group (IHG). Framework Framework of Rewards System An organization generally follows a framework which proposes the order of the operations. In case of a loyalty programme, the service and information provided to the user forms the basis of the system’s success. The information provided to the user must convey the intended information in an effective manner. This will enable the user to understand the rewards system in a better way. This in turn will increase the revenue of the IHGs and the associated hotels. The rewards system includes components which are easy to understand and implement. Since information system aims at satisfying the user, the rewards system is composed of modules and operations that ease the process of this programme. The services provided to the customers include reward point information, information pertaining to the hotels, updating points each time the customer makes use of any service and providing membership options. Each of these services is designed to suit the requirements of the customer. These services are beneficial to the customer as well as to the hotel groups. Though this framework seems to be simple and satisfying, it lacks certain basic features. The information system must be accessible by the user so that he can get the information about every hotel and its services. This will also enable him to get an idea about the priority rewards system. The membership details must be made available to the customer and this will make the selection of membership an easier task. If the services provided by this system are revived, the user will get more benefited. This in turn will increase the numbers of customers. Priority Club Rewards System Priority Club Rewards system is the information system used by the Intercontinental Hotels Group. It is a hotel loyalty programme which enables the customers to experience world class facilities and enjoy the benefits of club rewards. The aim of this programme is to provide the customers with reward points each time they stay at an international hotel. This system aims at easing the process of booking hotel rooms, arranging for accommodations and checking the hotel rates. This system is implemented by IHG and other international hotels. (Wills, 1992). Reward system is one of the common systems used in the international hotels. Reward system is generally an information system that is used for allotting the reward points for the customers. This is updated each time a customer makes a booking. Priority Club Rewards is one of the most popular reward systems as it connects the International Hotels Group and other international hotels. (Oz, 2009). Any information system must help the organization to keep in touch with the customers and must ensure that its operations are updates each time a modification is made and this system certainly achieves that. Most of the international hotels implement this system in order to serve their customers in a better way. The major advantage of priority club rewards is that the customers can enroll themselves in this system. (Brinjolfsson, 1996). This system is absolutely free and the customers need not pay even a single pie from their pocket. This is one of the main reasons why priority rewards system is the most sought after hotel loyalty program. (Rai, 2002). When compared to the other loyalty programs, priority club rewards is the one that provides the customer with an extensive range of benefits and redeemable options. Most of the rewards systems incorporate certain strategies that pressurize the customers to make use of the available offers within a stipulated time. This is one of the greatest drawbacks and this leads to a situation where customers stop using these programs. (Gualberto, 2007). Priority club rewards is an exception, as the company does not impose a limit on the reward points. When compared to the other reward systems, this offers a higher range of rewards points and this enables the customers to have a hassle free experience Priority Club Rewards in Hotels The international hotels generally use these kinds of loyalty programs to maintain a good customer base. This will help them to keep in touch with the customers and the customers will also make it a point to visit these hotels each time they visit that particular country. (McKinney & Yoon, 2002). The priority club rewards system is found to be successful in bringing more customers to the IHGs and other hotels like Holiday Inn and Crown Plaza. (Pitt, 1995). The priority system incorporates unique strategies and these strategies are informed to the hotel well in advance. Such strategies are a two way process as it must be beneficial to the hoteliers and also to the priority club rewards company. The rewards system predefines the number of customers to be enrolled in their system. (Mason, 1973). The next major criterion is that the members of priority club members must be treated in a special manner based on their level of membership. The level of membership is classified into three types namely, club, gold and platinum. The reward points also differ depending on the membership level. (Waarden, 2005) Strategic Objectives of Priority Club Rewards The main aim of a hotel loyalty program is to increase the customer base and to maintain a good relationship with the customers. The objectives of a hotel loyalty program generally differ based on the type of hotel and the kind of program. This is the deciding factor which decides the level of loyalty program. The objectives of the company are also equally important. (Butscher, 2002). The first and the initial step in this process is the identification of the requirements. Once the requirements are analyzed, the type of program is selected. The objectives of the loyalty program are defined well in advance, so that the needs of the hotel can be analyzed. This helps the hotel executives to have an idea about the policies and strategies of the program. If the objectives are not satisfactory, they can modify the implementation procedure to make sure that it yields more benefits. The main aim of any hotel loyalty program is to increase the revenue of the particular hotel. This is done to increase their yearly turnover and profit. (Butscher, 2002). The revenue gets increased gradually and this helps in the growth and development of the hotel. Priority club rewards is one of the most sought after hotel loyalty programs as it has increased the revenue of many international hotels and has paved the way for improvement. This is one of the major reasons why most of the hotels continue to opt for priority club rewards system. The main objective of priority club rewards is the ability to increase the revenue within a short period of time. It attracts more number of customers and promotes the priority reward system. (Barua, 1995). This is considered as one of the main objective of this hotel loyalty program. The next objective is to enable the customers to make use of almost all the services provided by these hotels. Though the customers are made to spend a ransom amount on these hotels, the loyalty program provides several benefits which depending on the level of their membership. These are considered as the important objectives of the priority club rewards system. Priority club rewards is also considered as an effective marketing strategy, as it increases the numbers of customers. Information system is an essential component of an organization. This helps the organization to have a control over the recent changes and modification in the operations of an organization. (Daft, 2009). The main aim of implementing an information system is to enable the employees to have an access to the information pertaining to each department in an organization. Information system is a centralized system which stores the basic information of all the departments, database and other important details about the organization. This information system is set up in most of the organizations to enable the employees to access the information. (Stahl, 2008). They need not refer to each department to get information; instead they can make use of this system. The higher officials can also make use of this system to verify the operations of every department. As this is a centralized system, the information is updated each time a department makes a change in their database. Due to this factor, the time wasted on searching for an update is reduced. The situation is same for any type of organization and each organization implements the system according to their needs. In a hotel and chain of hotels, the situation is entirely different. The hotel loyalty programs provide a complete outlook on the hotel, the facilities the hotel offers and the services provided by the hotel. This makes the process of finding a hotel an easier job. Apart from this, it provides the customer with rewards points each time they use a particular service of a hotel. (Curtis, 2008). This system easily fits within the organization, as the procedures and operations are quite simple. The hotel loyalty programs are implemented in an easier manner, as the process of implementation does not require any special feature. But priority club rewards system is used only in the international group of hotels. Since it is a well known and costlier system too, hotel groups like IHG and hotels like Crown Plaza and Holiday Inn. These hotels are popular ones and they are always filled with customers. This is the most important criteria, as the success of any reward system depends on the type of organization in which it is used. The popularity of the hotels minimizes the work of meeting people and promoting their offers. The advantages of the hotel loyalty program include lower costs, increase in demand, decision making process, better service and technical improvements. The priority club reward system improves each aspect of the hotel in which it is implemented. The marketing costs are considerably less when compared to the other marketing methods. As they approach the customers directly, the process of marketing is also made easier. (Alter, 1999). It also increases the demand for a particular hotel. If a customer is completely satisfied with the services and facilities of a hotel, they might turn into regular customers. This will eventually increases the revenue of the hotel. The customers tend to report on the services they are comfortable with and they might also suggest some improvements. The hotel must concentrate on including and incorporating all these suggestions, as this helps them to develop at a faster pace. Deployment of Information System Information system is considered as the best solution for an organization’s problem. Any organization can make use of information system to tackle and resolve their problems pertaining to the organization’s operations or performance. The organization can certainly achieve its goals and objectives by means of information system. The information system eases the process of goal attainment. (Henver, 2004). The information system works in almost all sorts of operations and performs data processing, report generation and management, decision making and strategic planning. (Lang, 2009). Apart from all these primary operations, office automation, information management and process control are also possible. The information system is designed and developed in such a way that the company’s objectives are fulfilled. (Stahl, 2008). The major task of an information system is to enable the organization to carry out the intended processes in a hassle free and efficient manner. Though this can be done with a normal automation system, the efficiency is completely different. The system also assures development and improvement of the organization. This has been the greatest advantage of an information system. Any organization that implements an information system aims at developing their firm in an easy way. But this is possible only if the company includes the essential features and the required components. Through the deployment of information system, a company can be sure of achieving its business objective and goals. (Ratzan, 2004). The benefits of information system are the major criteria which helps an organization to improve its operations and capabilities. The ability to improve is also considered when analyzing the implementation of information system. The requirements of the company play a major role in the implementation of the information system. Each of its operations undergoes an analysis which helps the organization to improve their operations. Integration of systems is also an important aspect of an information system. System integration is carried out to simplify the process of combining the operations of two or more systems. (Lucey, 2004). This also ensures that the operations are carried out in a significantly simultaneous manner. This in turn minimizes the time required to process several operations. As the system is integrated, the complexity of completing a task and transferring it into another system is eradicated. The process of interchanging the information and checking for the update is also removed. The information system helps the organization to make decisions in a jiffy. (Oz, 2009). The information pertaining to a decision is analyzed well in advance and the changes are also updated. Once the task of decision arrives, the system undergoes a thorough analysis and the decision is made according to the current scenario. Since the decision is made only after segregating and analyzing the possibilities, the chances of failure are considerably less. (Davis, 1985). As decision making is an important part of any organization, the assistance of a system becomes mandatory. In each of these aspects, the intervention of the information system is essential and this decreases the probability of problems. Hence these are the ways by which an organization can achieve its business objectives through the deployment of information system. Enterprise Systems Apart from Information system, enterprise resource systems, SCM, CRM and other similar systems are also implemented in an organization. All these systems lend a helping hand to the organization and they are used for the betterment and improvement of the organization. These systems are otherwise known as enterprise systems and these systems have become essential. Enterprise systems provide several benefits to the organization as it directly aims at satisfying the customers using the proposed strategies. (Walsham, 1995). The operational efficiency of the organization gets increased and these systems are built with tools that analyze the performance of the organization. This in turn increases the business value of the organization. (Lorenzo, et al., 2009). The Supply Chain Management (SCM) systems are also a part of the enterprise systems and this system is entitled to manage the supply and distribution of products. The procurement of raw materials, manufacturing operations and distribution of goods are all taken care of by these systems. Critical Assessment The priority club rewards system is popular among the most famous and reputed hotels. When considering the facilities and services provided by the rewards system, the chances of increase in the number of members are more. As the rewards system aims at providing the customers with more and more beneficial offers, the company also has a fair chance of development. The reward system is definitely a success and this clearly evident from the hotel groups which implement them. The customers contribute to the success of the system by enrolling themselves in such schemes. Each of their offers attracts the customers and this increases their popularity. The system is efficient in each of its aspects and the major aim of the system is to improve the revenue of the hotels and to attract the customers in large numbers. The services provided by the reward system are commendable and the benefits are also more. The system gives way for other options like purchase, online transactions and redeemable offers. The reward system has more advantages than disadvantages. The priority club reward system must include certain features like online points redemption and purchase. This would enable the customers to redeem their points online. The system can be modified to suit the needs of the customers; the process can be made more customers friendly. In certain cases, the non-members are deprived of their chances. This can be avoided if the members make a booking of their rooms and other facilities and services in advance. Benefits of Priority Club Reward System The priority club reward system provides several benefits to the customers, hoteliers and to the company. This system provides the customers with several benefits and in turn increases the numbers of customers. Each customer is entitled to earn certain points which can be redeemed in the future. (Argyris, 2002). Most of the reward systems impose a certain period of time within which the points must be redeemed. But the situation is entirely different in priority club rewards system. The priority club reward system provides the customers with an option where the expiry date is not given for the points. These points can be used for any of the purposes like purchase, online transactions, hotel services and other facilities. The points can also be transferred during the membership period. (Gualberto, 2007). The priority club rewards system permits the customer to purchase the points if the customer requires. The points can also be used in any of the hotels and restaurants and they can also transfer the points whenever they require. This system offers the customer with several options using which the customers can experience a series of benefits. The members and customers are allowed to collect their points in any of the domestic and international offices. The points can be used to purchase any type of goods and merchandise. (Goodhue, 1995). The major advantage is that the membership is completely free and the customers can become a part of this priority club rewards system whenever they wish. In certain cases, the customers are provided with bonus points and this can also be redeemed when they use the original points. Priority club reward system is considered as one of the most flexible hotel loyalty programs. (Benbaat, 1987). Hotel stay is not the only way to gain points and this provides them with wider options. The points can be combined with cash to make a purchase or for a hotel stay. Due to the increase in the demand and the members, the membership implementation is made possible through online registration. (Baskerville, 1998). The reward system members are given the first priority when compared to the normal customers. The check in and checkout times are also modified to suit the customer’s needs. If need be, these time durations are extended depending on the member’s stay. Recommendations The priority club rewards system can be improved by incorporating certain strategies. This would help the IHGs and other international hotels to maintain the customer base in a much efficient manner. 1. The priority club rewards system can be extended to other prominent and famous hotels too. This will enable them to attract more customers and this in turn will improve this loyalty programme. 2. To increase the revenue of the hotels, the loyalty programme can be modified to suit the requirements of the hotels. 3. The customers must be given an option to upgrade and accumulate their points whenever required. 4. The services provided by the loyalty programme must be based on the transactions of the customer. 5. The points should be provided depending on one’s transaction and this will ensure that the customer whose transaction is of higher value receives more points. Conclusion Priority club rewards system is a well known hotel loyalty system. This provides the customers with wider options and helps them to procure the points based on their usage. The points system helps the customer to spend less cash and redeem the points whenever necessary. The paper describes the benefits of the priority club rewards system and exhibits the importance of an information system. The advantages and benefits of the information system are also highlighted. 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