Annex Cloud 26 min

Best Western Rewards


Is Best Western Rewards worth checking in for? The Loyalty Program Slam is unpacking the perks, points, and potential pitfalls of this hotel loyalty program. Buckle up for a bumpy ride or a smooth stay—we'll decide!



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[MUSIC]

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Hey everyone, welcome back to loyalty program slam.

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I'm Amber Collins, senior marketing manager of the

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Artianics Cloud, the comprehensive and

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Azure staff solution for enterprise loyalty management.

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As you know, the loyalty program slam is jammed back with real world commentary

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on some of the world's most beloved loyalty programs.

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So here's how it works.

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Each slammer is going to have about two minutes to take their case on these

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four areas.

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Program to sign, value proposition, engagement and performance.

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Lammers are going to get points for one liner to pumpkin or just generally

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being

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awesome.

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Today's slammer are Alex head of strategy, thought director of product

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solutions and

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at least manager of digital design.

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And together the four of us are going to examine today's program, which is

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Best Western Rewards by Beth Wester.

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And Beth Wester is obviously a hotel chain in hospitality industry.

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They are a global hotel brand.

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They have several actually within their portfolio catering to different budgets

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and

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travel style.

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Beth Wester rewards is a free to join loyalty program.

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They actually launched it in 1988.

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And I think that that is one of the oldest programs that we will talk about.

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So their points never expired.

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They've got 45 hundred participating locations in a hundred countries.

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And that equals out to 25 million members worldwide.

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You would consider their competitors to be Mary up on boy, Hilton Honors,

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Hyatt World, IHG Rewards Club.

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Their program features are named points for every qualified stay.

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You can redeem those for free nights, room upgrades, Best Western merchandise.

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They are in a higher in a tier structure.

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And then they can use some of those perks like a late checkout and room

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upgrades, bonus

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points, all of that.

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They've got a status match and a fast track to accelerate those tier

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qualifications.

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Once you become a frequent traveler, they have a partnership with Triple A for

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additional

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benefits for their members.

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So overall, it seems like a really well-rounded program in hospitality.

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And like I said, one of the oldest ones that we've seen.

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So without further ado, let's get into it.

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This time we will start with Scott.

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What do you think about their program?

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And what's your case for Beth Wester?

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So Best Western to me, I think, as a brand, is a company that identified really

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quickly

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who their target is.

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My interpretation of what they're targeting is it's more of a yes there are

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some individual

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travelers, but it seems more like the budget vacation traveler because the

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entry level

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to move to the immediate next tier of the first tier level is five nights.

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That's five weekdays.

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So family traveling and making a make a journey of it on a budget, they're

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hitting that next

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level with probably their first vacation, their first trip.

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The second level is at seven qualifying nights, so that's just two more nights.

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That's an extra weekend on top of that.

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So you can rapid fire to, you know, like that middle tier level with just a

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single vacation

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for a lot of families.

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And that get a lot of accelerators.

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I see that as being very easy for the average member to kind of get to that

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point.

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From there, it's just this huge, like steep climb as you go from seven to 15

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and then 15

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to 25.

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So it's harder to kind of like make that leap.

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So the business traveler or the, you know, the work day traveler might be

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hitting some

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of those, but the average family, you know, they'll get the free night there or

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two nights,

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you know, as a part of this.

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So again, it's about enabling that target market.

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And if it is what I believe to be that family on that budget vacation, giving

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them that one

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extra night or that, you know, mom and dad away, you know, one night makes it

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very appealing

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to that.

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Overall, I think that they have some pretty cool bonuses like the spend 2000,

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you know,

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spend some points and get 2000 bonus points.

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You're using your points to book and we're just going to give you 2000 more.

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It's huge in that.

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So it's very rewarding.

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It's a very good, extremely good get back in my humble opinion, but they don't

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really

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have a lot of partnerships outside of their credit card.

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So again, if they are focusing on that budget friendly travel demographic, I

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think that

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there's a lot of opportunities for some of those.

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And maybe they're doing that on a per-site basis, like when you check in and

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you've got

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the little pamphlets over there.

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Maybe there are some like individual location partnerships that they're doing,

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but it isn't

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a more of a global thing that they're offering outside of that credit card.

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So to me, I feel like it is, it's great for that family, as I've mentioned a

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couple times,

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but I feel like that there's a lot of opportunity for them to kind of expand

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beyond what they

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seem to have just pigeonholed themselves into.

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There are a lot of their competition once in that higher level who are doing

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these kinds

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of things that we're going to be recommending.

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And they could be doing that at that same level that they're putting themselves

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into.

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And I feel like they could be giving so much more to those budget family

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travelers that

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it would just explode their use in the marketplace.

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Yeah, I would say that it looks like they're counting on other clubs and

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associations to

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expand the partner ecosystem, like AAA or ARP, which AAA, I believe that you

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pay for

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membership there. ARP is free.

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I mean, we already know that they have already negotiated a bunch of other sort

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of things.

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So is the best Western program bringing you the value of the partnership notes?

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Kind of like they're using, you're using those satellite other memberships to

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say, you

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know, we're a part of it, but also like you could do here.

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I love hospitality and loyalty because there's so many complimentary things

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that go into

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that experience.

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I mean, you are touching so many different products, touching so many different

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services

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that the ecosystem and hospitality is easily a massive part of it.

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So it's got, for your point, like I think hospitality is the easiest place to

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build partnerships.

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And if you're not doing it, you're missing the mark on experiencing the entire

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customer

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journey from planning, booking, coming, arriving, leaving, post.

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Imagine all of those things that you touch, all those services, all the things

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that you

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have. That's what's certain could be negotiating on behalf of their members to

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have this ideal

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path of services through their membership.

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And it's definitely not taking advantage of that spider web effect as much as

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some of

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their competitors exactly like you said Scott.

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So you hit the nail on the head with that one, it's definitely something that's

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new because

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well, they're at least touching me about that's Western and what you think

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about their

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program overall.

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Yeah, I mean, I think that like Scott said, you know, it's easy to move to

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those first couple

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tiers, but then I feel like, you know, once you're an elite member, it takes a

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lot of points

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to get to get the benefits that some other companies have so that that could be

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something

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that they can work on too.

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But you know, they do have their redemption mall.

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So you don't always have to put your points towards stays.

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One thing I thought that was really interesting was that you can share your

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points with all

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the members of your household.

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I don't know how typical that is, but I thought that was really interesting.

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To the point, at least if I take like my own personal example, right, where I

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do a lot

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more of the work travel, but my wife is taking my daughter on like dance trips

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and stuff

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like that.

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And she's more apt to be the one spending those points to take that.

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And now I'm not going on a lot of those trips with them.

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So she needs to be able to like log in and be able to use those points and

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sharing them

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across that or like an in law, you know, sharing them across makes it easier to

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create that

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ecosystem of we're helping you, you know, do more.

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So I think that's what best Western enables is helping people do more, have

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more experience

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is in life to travel.

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Yeah.

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So I think that's great that they give you opportunities to use benefits like

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that.

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You know, in terms of their competitors, just in terms of numbers of hotels.

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So they have what like 4,300 participating hotels versus, you know, Hilton that

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has 7,400

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and Mary App that has 8,700.

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So in terms of just, you know, when you're planning vacation, there might be

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less chance

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that there is a best Western anywhere you want to go.

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So that's something to consider.

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I don't know if they're planning expansion, but that might also be a barrier

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for people

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to sign up for the program.

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But overall, you know, I think they do give people a lot of opportunity to two

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points and

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share points and redeem points and earn extra stays.

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And I think that, you know, they do a good job to the people that want to be

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part of that

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program.

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And I think much of the householding is, you know, that's wonderful.

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But my brings me to the question of, okay, what does the profile look like?

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Then, you know, what do they know about that?

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You know, as I've had it signed up myself, it was a very, very simple sign up

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process that

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didn't ask for much data.

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And so as you redeem these points for different nights, do they know that it's

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the wife that's

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coming instead of the business traveler husband?

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Do they know how to market to the wife and kids?

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Is it rather than the business traveler or, you know, talking about Scott's

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situation?

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Do they know that you have kids when you get there?

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You know, how are the associates gathering more information as you come there?

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Or is it literally just identify yourself, wear your frame, how to climb back

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to you?

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And so then, at least to the question of, if that's all you know about me, how

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can you

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personalize it?

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But if you are able to share the points in this householding structure, it's

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like you

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have the opportunity to know more about what the household looks like, about

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what you're

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traveling, and it's like, but I don't think that they're asking for it.

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Or maybe they're not, I'm going to be there asking for it in different touch

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points, you

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know, when you actually come there, you know, when the associate checks you in

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and there's

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a, there's on their POS screen, it says, you know, there's a check box that

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says, has kids,

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check the has kids box.

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Now you've got that data in the profile.

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Now you know what's the market to next.

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Those of you who have questions that come into my mind, when you talk about

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that householding

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in those profiles, and the fact that you can do that.

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So that in minds and everything else that you have, Alex, what do you think

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about Best Western?

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Yeah, I think that they clearly understand their consumer.

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So they have 54 million members globally under kind of a lot of news strategies

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and approaches

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that they were building out, you know, to kind of launch into 2022 and 2023.

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You know, that the CEO was quoted in saying that, you know, he had a 10% lift

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in revenue

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from Best Western members in North America.

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That's huge.

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And on top of that, I think similar to what Scott was seeing and I agree with

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is that they

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can tell that the consumer is likely budget family.

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They do have other products within their portfolio that are more premier, but I

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think what's

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also happening based on the way that they offer, you know, hey, if you redeem,

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we give you

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bonus points.

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That's very budget in terms of in terms of the way the campaign's working.

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But they also offer status match, which I think is interesting.

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So if dad is traveling a lot or mom is traveling a lot for work, then wants to

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do something with

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the kids and maybe she's staying at it.

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Maybe here she is staying at another, another product or another brand.

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This is a great one to say, well, I'm going to get my status match from Hilton

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or Marriott

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with Best Western so that I get a higher, you know, level.

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And then I do all of my budget travel here because I can earn fast for Dean

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fast and it's,

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you know, that it gives you some really great benefits.

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So I think that makes a lot of sense.

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Also points don't expire.

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So very much as a leisure traveler, whereas both Hilton and Marriott, they

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expire after 24

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months of inactivity.

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So I think they really know their consumer.

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I think they've created some really smart design elements to engage that group.

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And I think it's a great play if you are a business traveler, but, you know,

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want to do something

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with family and maybe one of their resorts or, you know, want to be a little

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bit more

12:18

budget conscious if you're going to Anaheim or Disney World or, you know,

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wherever.

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I think it makes a lot of sense and it's actually reminding you a lot of

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American Airlines.

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American Airlines is now they put all of this effort and value into their

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program.

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They're the most valuable program against all of the other guys.

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And it's funny where I'm like, well, I'm almost tempted to go there because the

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program

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has these nice little bells and whistles.

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And the final thing I'll say is that Best Western got a number two in Newsweek

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for Best

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Loyalty Program from 2023.

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So it's clearly a strong program.

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It's clearly working, but I think they very did a very good job keying in on

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their core

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customer and developing really smart elements that they're positioning on the

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website and

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within the app that make me want to kind of say, oh, I'm not as well status

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match and I'm

13:03

not as well, you know, maybe stay here a couple of times if I'm on a family

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trip.

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Yeah, I think that there's a lot to be said about the straight forwardness of

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the program.

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And the extension of it towards like, at least we'll say the reduction mall.

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For me, it's still like, yes, it's great straight forward, but for me, it's

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still like, okay,

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how are we positioning the value problem?

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Because look how much we have to do to get that information about the program.

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That's like, you know, that was a week of the research.

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And like it's a delicate, like it's great that it's straightforward.

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But let's get into the scoring, right?

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And let's talk about it.

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Let's talk about the value proposition and the positioning of that value

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proposition.

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And you know, I know what my score is, is it, but let's hear from Scott.

13:47

Value profit gave it a five.

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So a lot of the things that we mentioned, the value to a member is extremely

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high, right?

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Like you're, like Alex mentioned, they've done the research, they know who

14:00

their core demo is.

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And they figured out that five to seven nights is like the magic numbers.

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Maybe they can stretch just a little bit more, an extra weekend or something

14:12

like that,

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in order to get you into that thing, into that next tier level.

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And then you're getting all these other benefits, regardless of the credit card

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The status matching, the, whatever, the value to the member is, they get there,

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they're getting those free nights.

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So they're getting those extra experiences almost right away, just for doing a

14:31

normal family trip.

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We saved up for this family trip, where this is budget friendly, and

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then we're also getting this thing, whereas it's much harder with a lot of

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their competitors.

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So the value to the member, I think, is extremely high.

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We'll get into engagement and program design elements, which are not a five to

14:49

me,

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but the actual value of the program as it is, I think is pretty high.

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Now that is a high accolade.

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That is actually the first five that Scott has ever given on this program.

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So congratulations, plus Western.

15:01

Oh, no, maybe you'll get a hat.

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So at least talk to me about program value proposition for you.

15:06

I agree with a lot of what Scott said.

15:08

I gave them a four though, just because you need a lot of points to redeem for

15:13

less benefits at the elite tiers than other programs.

15:17

I just felt that once you hit the elite tiers, it's harder to earn those

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benefits.

15:23

So that's why I knocked them down one point.

15:26

Yeah, it makes me wonder how many members are in the elite tier.

15:29

And then if it's a small percentage, it might not be worth it for them to

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really invest in making it easier for them to continue the game.

15:37

Because at what point are these elite members now a liability?

15:41

So all the points that they have are the hoarding, how often are they visiting?

15:44

How often are they getting rid of that point liability, which might be

15:48

part of the reason why they slow down the earning once you get to that tier?

15:51

All very interesting questions.

15:52

So Alex, what do you think about the value drop?

15:54

Yeah, I gave it a four.

15:57

I think from an entry level member with only a couple tiers,

16:00

it's definitely a five like Scott's saying because it's, you know,

16:03

all of these goodies and it's not that hard to move up.

16:05

I did notice like Elise said, it is a little bit higher to do the

16:08

redemptions where you'd expect that, okay, well, I'll get bonus points when I'm

16:11

in a

16:11

higher tier.

16:12

So I'll be able to redeem faster.

16:14

But the bonuses on the higher tier are not competitive with Hilton and

16:17

Marriott.

16:18

Marriott gives way more.

16:19

And again, I think this is why because they do that status match that's like

16:22

instant,

16:23

I think that's why they had to pull the lower tiers down because they're seeing

16:26

business travelers match, move up, but they can't give as much value back

16:31

because

16:31

you didn't really earn it.

16:32

You just took the status because of a match.

16:34

So I think that's the trick there is that if you're really, you know, a best

16:39

Western,

16:40

you know, die hard and you're naturally moving up, I don't think it's as

16:44

valuable as other

16:45

programs.

16:46

If you're just leisure budget family, really good program.

16:50

If you can leverage the status match, that's a really nice hack.

16:53

So I think there's, that's why I gave it a four.

16:56

Fair enough.

16:57

Very good site there.

16:58

Something to definitely think about when we talk about program design.

17:03

So got what do you think about the program design also gave it a four in that

17:08

one because

17:09

I feel like again, it's pretty clear like what you need to get the chart is

17:14

easy to follow.

17:16

I think that there are some opportunities within the design through

17:20

partnerships and

17:21

through just other experiences, you know, on site.

17:25

I think that the program design is, and we'll talk about this in engagement

17:29

elements.

17:30

It's missing non transactional non state based things.

17:34

So I think it's an overall for me, but I think that the best Western from like

17:39

the 80s and

17:40

90s when you know, traveling as a kid is like a budget friendly, you know,

17:44

place to stay.

17:46

There's that mentality is caring over for a lot of people that I talk to about

17:50

this.

17:51

So again, it's colored by my own experiences, but when I talk to them about

17:55

them, they're

17:56

not like super excited to stay at a best Western.

17:59

You know, you know, it's going to be good, but you're not excited to do it.

18:04

So I think that the program design could include more of these engagement

18:07

elements to show

18:08

some of the rebranding that they did over the last few years and to showcase

18:12

some of the

18:13

things that they are offering and kind of take people out of this, you know,

18:17

childhood

18:18

experience mentality to do that.

18:21

So I think that that hurdle is something that they are continuing to fight with

18:25

in my experience.

18:26

You know, that's a really interesting point as well.

18:29

The program started in 1988.

18:30

That's two generations.

18:32

So the kids that were going to the beach have vacation with the parents at West

18:34

Western

18:35

or now parents themselves and creating these memories.

18:38

And you're right, if you know, those childhood memories, you know, they do need

18:43

to be rebranded.

18:44

This is a really old program.

18:45

This is a really established brand.

18:47

It could have the potential to be generational and it makes you wonder with the

18:51

householding

18:51

stuff.

18:52

Then the points can be generational.

18:53

You know, if they don't expire and then it's like, you know, let your kid use

18:56

them, let's

18:57

blah, blah, blah, blah.

18:58

So that's a really, really interesting question about, you know, that

19:02

generational effect and

19:03

this program.

19:04

And but it also brings me back to what do you know about people?

19:07

If you have them in a program, if you have them in your program, when years,

19:11

what do you

19:12

know about them?

19:13

How are you using that information?

19:14

So at least what do you think about the programs you're buying?

19:17

I give them four.

19:19

And I just, I think a cool aspect of it that I'm not sure that other people are

19:23

doing is

19:24

the elite status matching.

19:26

It's well designed.

19:27

All right, Alex, what do you think about programs?

19:29

Yeah, I'm going to join the four club here.

19:33

I give it a four.

19:34

Again, I feel like there's these major course segments and it's hard to design

19:38

the program

19:39

perfectly for both.

19:40

But I do think that overarching, give it a four, love the status match,

19:44

interesting, you

19:45

know, concept of no expiry on the points, the different promos they have, the

19:49

benefits

19:49

on the card.

19:50

So I think it's a pretty solid design.

19:52

And like Scott was mentioning, I wish they had some more interaction based on

19:56

more emotional

19:57

connection because there's so many families, you know, why isn't there a

20:00

connection to social,

20:02

why isn't there benefits for sharing, you know, family photos, kind of that

20:05

excitement

20:06

and more emotional connection with the consumer, I think is missing.

20:09

Overall, very solid program.

20:11

Yeah, they're also pet friendly as well.

20:13

So that's more emotion.

20:14

People love pets.

20:15

People love pets.

20:16

Well, and collect, you know, collect the pets birthday, collect more info,

20:19

right?

20:19

Like, there's more celebratory things to think about as a family that they're

20:23

just, you

20:24

know, that they're not doing.

20:25

And again, partnerships, I think they're missing that too outside of the card.

20:28

Looking at the redemption mall and stuff like that, like, that's not

20:31

necessarily a true

20:31

partnership, right?

20:33

And it's not even really well positioned.

20:35

So that, you know, that's what, that's what I was saying earlier about, like,

20:37

these are

20:38

great benefits.

20:39

But I'm not sure that they are positioning them front and center.

20:42

So let's get into their engagement and how they are using their programs to

20:47

engage people,

20:48

how they're getting people to hide up.

20:50

Let's talk about it.

20:51

Scott, what do you feel about the program engagement?

20:53

We gave it a two.

20:54

I really thought about just giving it a one, but the engagement elements of,

20:58

like, status

20:59

matching and, you know, some of, you know, those lower level stuff brought it

21:04

up to

21:05

it too.

21:06

As I mentioned, there's no, we don't have any, like, take a picture of your

21:10

room, take a

21:11

picture of the pool, take a picture of the restaurant, you know, like, you know

21:14

, share

21:15

your family vacation photos, even if it's not at a on property, you know, like,

21:20

enabled

21:21

through this, you know, there's no talking about, they're not engaging really

21:26

with the

21:26

member.

21:27

They're providing opportunities to earn and they're providing opportunities to

21:31

have

21:32

more memories, but they're not doing anything about it.

21:34

And not really, like, grabbing onto that whole demographic that say, we are

21:40

enabling more

21:41

memories.

21:42

Yeah, that's a great kind of like.

21:43

Let's just do it.

21:44

Let's talk about it more and, you know, get more people to use us to do more

21:49

memories.

21:50

Yeah, they'll ask you things like, are you traveling for business or pleasure?

21:54

You know, they, I'm looking at the profile.

21:55

They have some, you know, interest and stuff, but there's no social will be

21:59

there.

21:59

There's no social connection and experiential.

22:03

You are, this is literally, literally an experience, you know, some brands are

22:06

just products, but

22:07

this is the next experience.

22:09

And today, Dan, you really have to, you know, get people to really buy in and

22:16

really, you

22:17

know, really see themselves in that experience and in that status and why I

22:22

want to be a member

22:23

and I think that they, you know, this is just a great industry to do that with.

22:26

I think of them.

22:28

I think of them, sorry, Alex, is they almost view themselves as the place to

22:32

stay while

22:33

you're on the experience?

22:35

You know, drop your luggage here while you're on the experience.

22:37

Yeah, go out and have the experience.

22:39

Where they should be including themselves in the overall experience.

22:43

I agree.

22:44

I agree.

22:45

Very good point there.

22:46

Alex, what do you think about the engagement?

22:47

Yeah, no, I mean, I like the riffing off.

22:50

Yeah, like even be able to like, there's like a connection or a partnership to

22:54

be able to

22:55

like get access to digital photos or print your photos from it like right away.

22:59

If you're a member, like, I use a lot of fun on site experiential things they

23:02

could be

23:02

doing for the families.

23:03

If they, because they clearly know that that's where their demographic is, at

23:06

least in North

23:07

America, I have state and best Westerns in Europe and they are a little bit

23:11

more elevated

23:12

and it's a different experience.

23:13

So I will say again, they just, they have such a wide range of portfolio and

23:18

product.

23:19

But I would say overall an engagement, I would, I would, I'd still give it a

23:22

four.

23:23

I think based on the data, the large increase in, in revenue that they've been

23:27

seeing and

23:28

the new engagement factors that they have, the differentiation with status

23:31

match points

23:32

and expire, like they are really trying to get this consumer to play and the

23:37

three free nights

23:38

if you take their card.

23:39

So I would say it is fairly engaging and again, 54 million worldwide.

23:44

I mean, clearly people are participating.

23:47

So that's a four.

23:48

So at least what do you think about the program engagement?

23:51

I'm right in between Scott and Alex.

23:54

I gave it a three.

23:55

I do think, you know, there is a lot of opportunity for them to create more

23:59

experiential, you know,

24:01

engagement, but you know, they do have the redemption mall and transfer to

24:04

household members and

24:06

they do have ways for, for their members to engage with the program itself.

24:12

It's, you know, but in terms of the experiential options, there's a lot of room

24:17

for growth there.

24:18

We'll take it.

24:19

We'll take it.

24:20

Two, three, four.

24:21

Okay.

24:22

Scott, how do you feel about the program performance?

24:24

I gave it a four for all of the reasons that Alex gave for engagement.

24:29

All of those I lumped into performance.

24:32

So that's why I think as a four, it's performing well.

24:36

It's getting that extra little stretch in my opinion.

24:39

It's got the members.

24:40

It's got, you know, people, it's making the numbers.

24:44

It's changing the minds of people.

24:47

So that to me is a performance.

24:49

I feel like it could be engaging, I mean, defining engagement may be a little

24:54

bit different,

24:55

but performance is a four for every reason that Alex mentioned.

24:59

So Alex, how to use that performance?

25:02

Yeah, I mean, between a four and a five, I mean, I would say a four.

25:07

I don't have all the details, but I would say four based on what I'm seeing.

25:10

And it is hard because I think, you know, engagement and performance kind of go

25:13

hand in hand.

25:14

It's like, are you engaged and are you doing something different that the

25:18

leadership is talking about?

25:19

Now that they are and they have made, you know, some improvements to the

25:23

program,

25:23

it just feels like it is clicking and working.

25:26

So yeah, four.

25:27

So Alex, at least what do you think about the performance?

25:30

I also get it for and pretty much for everything that everyone's been talking

25:35

about.

25:36

So I'm not going to, I'm not going to repeat it all, but yeah, I give it a four

25:40

All right, so this has definitely been a very interesting slam today.

25:43

You're coming in at 3.75, Alicia coming in at 3.75 overall and Alex, you're

25:48

four.

25:48

Those just been really, you know, for our tie numbers, it gives a average total

25:53

3.8,

25:55

which is very praiseworthy. So that's left.

25:58

And you are doing really well, but there's Jeff.