Customer Profitability Analysis: Luxury Hotel Industry The luxury hotel chain Ritz-Carlton introduced a system called “Mystique” that collects information about its customers from employees and staff at the hotel. The information is used to personalize the services provided to each guest. For example, a bottle of the guest’s favorite type of wine would be placed in the room without the guest having to request it. Similarly, the type of fruit a guest prefers will be waiting in the room on arrival. The information is available throughout the Ritz system so that when the guest checks into any Ritz- Carlton hotel, the special treatment is available. Other hotel chains such as Marriott, Hilton, and Hyatt have similar programs
Required
1. How do these information-gathering programs help the hotels become more competitive? What is the strategic role of these programs?
2. Do you see a role for activity-based accounting for these firms, as it relates to their information gathering and customer service?
3. What ethical issues, if any, do you see in the information-gathering systems?
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