Westin Hotels and Resorts Case Analysis

Westin Hotels and Resorts Case Analysis

1. Linking the case to the HBR article by Pine and Gilmore on the experience economy, what elements of the HBR article are in the Westin case?

The most evident element of the HBR article present in the Westin case is the Progression of Economic Value. Westin started their customer experience transformation by creating new commodities in the forms of beds, baths, and other products designed to take care of a customers physical needs. After Steve Heyer was named CEO in 2004, the company began to develop new goals in improving customer experience. They then began employing many new programs that were designed to not only provide excellent service to customers, but to make them feel special and give them memorable experiences. They also began to train their employees to spot differences in customers through their body language and other tells in order to help customize the experience for each individual.

2. How is the Westin Hotel and Resorts performing in the competitive landscape?

In late 2006, Westin was still leading its competition, but some consumer surveys suggested that they were losing ground. The Westin Hotel and Resorts main competitive advantage was in customer experience. They revolutionized the hotel industry by introducing products and amenities to make each customer’s stay feel like a resort rather than just a room.

3. Why was Westin Hotel and Resorts constantly involved in the service culture

“renewal”? What are the opportunities and threats of such a service strategy?

One of the main reasons for pursuing the “cultural renewal” was the fact that Westin executives saw the product strategy that they had previously employed eventually pricing them out