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Cabo San Viejo Business Case Short Paper

In: Business and Management

Submitted By elih89
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Cabo San Viejo Resort
February 10, 2015 | Advanced Marketing Management |

Executive Summary
The purpose of this paper is to discuss and analyze the opportunity of implementing a rewards loyalty program in the Cabo San Viejo resort and Cabo San Viejo day spas.
Cabo San Viejo
Company Background
Dave and Florence Blumenthal founded Cabo San Viejo Resort in 1977. The resort was built on the site of a former peach orchard in Palm Springs, California. The successful change in Dave’s lifestyle inspired the creation of the resort. They created a place where individuals with an unhealthy lifestyle could go to for the purpose of learning how to live happier and healthier lives. In the late 90’s the company opened several CaboDaySpa’s sites around the country that offered the same services without the overnight facilities.
In 2005 the company operated five properties around the country. One full service destination and four smaller day spas. The resort destination was regarded as one of the best in the world. The resort accommodates 288 people and offers a wide variety of wellness services and sports facilities for customers to enjoy.
Customers
The resorts demographic profile is predominantly composed of middle aged women with an average household income of $150,000. This demographic makes up 70% - 80% of the resorts total customers. Out of the firm’s 3,500 new customers each year, the majority hear about the resort from friends, family, or through direct referrals by travel agents. About a third of the customers returned to the resort within five to six years and about 62% of those returned again within another five to six years. Although 95% of the Cabo San Viejo guests rated their stay favorably, they have very high and growing expectations.
Cabo San Viejo’s SWOT Analysis Strengths | * One of the most prestigious destinations in the world. * Staff is…...

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