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2. Skogland, Iselin and Siguew, Are Your Satisfied Customers Loyal?, Cornell Hotel and Restaurant Administration Quarterly, August 2004. p.222
3. Ganesh, Arnold, and Reynolds, Understanding the Customer Base.
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- 4. Aaronson, Jack, Loyalty Doesn’t Come From a Program. http://www.clickz.com/experts , May 2005
- 5. Skogland, Iselin and Siguew, ibid., p.221 The Hospitality and Lodging Industry in the United States is booming with strong growth in overall revenues and average price per room. Notwithstanding external factors such as international terrorism and the rapid rise in fuel costs, most industry forecasts predict continued growth in revenue.
- Recent studies show however, that the industry suffers from a considerable loss in revenue and profits because of ineffective differentiation of service offerings and branding. This trend is recent because historically hotel customers have demonstrated brand loyalty.
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Private label drinking water has been proven to be a powerful, cost effective method of promoting quality brand images and differentiating service offerings.
Opportunity Lost.
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The Hospitality and Lodging Industry plays a major role in the U.S. economy with business travelers alone accounting for $40 to $50 billion in annual revenue. A recent study however, by a recognized research firm, concludes that up to $20 billion in additional revenue is lost because frequent travelers are not loyal to specific hotel brands.1
This revenue deficit represents an opportunity lost for profitability and continued cash flow for the industry.