1) Dear Owner of Hotel XYZ, After some serious consideration, I think the time has come for our hotel to join a loyalty program. As an independent boutique hotel, we have many more amenities than the Hilton down the street, offering more personalized service, unique rooms and a more comfortable environment. However we still fall short of their highest midweek ADRs, which are driven by a strong business base. The reason for launching this loyalty program is twofold: one reason is to help us compete with large hotel brands that attract repeat guests the most. The second reason is to offer a product that has the ability to compete and promote itself effectively in the market rather than relying on third-party sites like Expedia that cost a lot of money in commissions. This means the hotel will focus on the corporate traveler who spends much more on the hotel and we will receive a much higher ADR than we currently receive from tour operators or third party bookings. However, the main reason we fail to take advantage of the corporate business travelers who visit our area time and time again is that we have nothing that attracts them. These corporate travelers go city to city and stay at big corporate brand hotels, all because they can earn points with their favorite properties' loyalty program. Hilton, for example, has a world-famous loyalty program, HHONORS, which has four tiers, which you access depending on the amount of your stay in a year. These tiers are Blue, Silver, Gold, and Diamond, and each tier offers progressively more benefits such as free WIFI, upgrades, breakfast, and free late checkout. From a profitability perspective, Starwoo's top 2%......middle of paper......click "Choose & Continue" for the various selections and scroll down to "About ship". Next, you can go to www.travelocity.com and click on “Cruises”. Enter the same criteria (except it's 3-6 nights) and choose the same month. Then, click "More Info" for each selection, followed by "Reviews." Case Study Questions and Problems1. Which cruise lines are available and how are they positioned in the market? Explain your answer based on concrete evidence and construct a simple perceptual map based on price and quality.2. What are the main market segments for cruise lines based on your review of the websites? What ships are available within the CarnivalCruise line and how are they targeted to each of these segments?3. What other websites are available to get useful information on how cruise lines and their ships are segmented?