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These excerpts taken from the WYN 10-K filed Feb 27, 2009. Loyalty
Programs
The Wyndham Rewards program, which was introduced in 2003, has
grown steadily to become the lodging industry’s largest
loyalty program as measured by the number of participating
hotels. As of December 31, 2008, there were over 6,000
hotels participating in the program. With over 40 other partners
participating in the program, Wyndham Rewards offers its members
several options to accumulate points. Members, for example, may
accumulate points by staying in hotels franchised under one of
our brands or by purchasing everyday products and services from
the various businesses that participate in the program. When
staying at hotels franchised under one of our brands, Wyndham
Rewards members may elect to earn airline miles or rail points
instead of Wyndham Rewards points. Businesses where points can
be earned generally pay a fee to participate in the program;
such fees are then used to support the program’s marketing
and operating expenses. Wyndham Rewards members have over 400
options to redeem their points. Members, for example, may redeem
their points for hotel stays, airline tickets, resort vacations,
electronics, sporting goods, movie and theme park tickets, and
gift certificates. As of December 31, 2008, Wyndham Rewards
had more than 7.6 million active members, which we define
as any customer who has enrolled, earned or redeemed in the
Wyndham Rewards program over the past 18 months, and the
program added approximately 320,000 members per month in 2008.
Loyalty
Programs
The Company operates a number of loyalty programs including
Wyndham Rewards, RCI Elite Rewards and other programs. Wyndham
Rewards members primarily accumulate points by staying in hotels
franchised under one of the Company’s lodging brands.
Wyndham Rewards and RCI Elite Rewards members accumulate points
by purchasing everyday products and services from the various
businesses that participate in the program.
Members may redeem their points for hotel stays, airline
tickets, rental cars, resort vacations, electronics, sporting
goods, movie and theme park tickets, gift certificates, vacation
ownership maintenance fees and annual membership dues and
exchange fees for transactions. The points cannot be redeemed
for cash. The Company earns revenue from these programs
(i) when a member stays at a participating hotel, from a
fee charged by the Company to the franchisee, which is based
upon a percentage of room revenue generated from such stay or
(ii) based upon a percentage of the members’ spending
on the credit cards and such revenue is paid to the Company by a
third-party issuing bank. The Company also incurs costs to
support these programs, which primarily relate to marketing
expenses to promote the programs, costs to administer the
programs and costs of members’ redemptions.
As members earn points through the Company’s loyalty
programs, the Company records a liability of the estimated
future redemption costs, which is calculated based on (i) a
cost per point and (ii) an estimated redemption rate of the
overall points earned, which is determined through historical
experience, current trends and the use of an actuarial analysis.
Revenues relating to the Company’s loyalty programs are
recorded in other revenue in the Consolidated and Combined
Statements of Operations and amounted to $94 million,
$87 million and $73 million while total expenses
amounted to $81 million, $71 million and
$59 million in 2008, 2007 and 2006, respectively. The
points liability as of December 31, 2008 and 2007 amounted
to $50 million and $48 million, respectively, and is
included in accrued expenses and other current liabilities and
other non-current liabilities in the Consolidated Balance Sheets.
This excerpt taken from the WYN 10-K filed Feb 29, 2008. Loyalty
Programs
The Company operates a number of loyalty programs including
TripRewards, RCI Elite Rewards and other programs. TripRewards
and RCI Elite Rewards members accumulate points by purchasing
everyday products and services from the various businesses that
participate in the program. TripRewards members primarily
accumulate points by staying in hotels franchised under one of
the Company’s lodging brands.
Members may redeem their points for hotel stays, airline
tickets, rental cars, resort vacation, electronics, sporting
goods, movie and theme park tickets and gift certificates. The
points cannot be redeemed for cash. The Company earns revenue
from these programs (i) when a member stays at a
participating hotel, from a fee charged by the Company to the
franchisee, which is based upon a percentage of room revenue
generated from such stay or (ii) based upon a percentage of
the members’ spending on the credit cards and such revenue
is paid to the Company by a third-party issuing bank. The
Company also incurs costs to support these programs, which
primarily relate to marketing expenses to promote the programs,
costs to administer the programs and costs of members’
redemptions.
As members earn points through the Company’s loyalty
programs, the Company records a liability of the estimated
future redemption costs, which is calculated based on (i) a
cost per point and (ii) an estimated redemption rate of the
overall points earned, which is determined through historical
experience, current trends and the use of an independent
third-party valuation firm. Revenues relating to the
Company’s loyalty programs are recorded in other revenue in
the Consolidated and Combined Statements of Income and amounted
to $87 million, $73 million and $57 million while
total expenses amounted to $71 million, $59 million
and $49 million in 2007, 2006 and 2005, respectively. The
points liability as of December 31, 2007 and 2006 amounted
to $48 million and $43 million, respectively, and is
included in accrued expenses and other current liabilities and
other non-current liabilities in the Consolidated Balance Sheets.
This excerpt taken from the WYN 10-K filed Mar 7, 2007. Loyalty
Programs
The Company operates the TripRewards and RCI Elite Rewards
loyalty programs. Members of both programs accumulate points by
purchasing everyday products and services from the various
businesses that participate in the program. TripRewards members
also accumulate points by staying in hotels franchised under one
of the Company’s lodging brands (excluding Wyndham Hotels
and Resorts).
Table of Contents
Members may redeem their points for hotel stays, airline
tickets, rental cars, resort vacation, electronics, sporting
goods, movie and theme park tickets and gift certificates. The
points cannot be redeemed for cash. The Company earns revenue
from the TripRewards program when a member stays at a
participating hotel, from a fee charged by the Company to the
franchisee, which is based upon a percentage of room revenue
generated from such stay. This fee is incremental to the
standard franchise, marketing and reservation fees charged by
the Company. The Company earns revenue from the RCI Elite
Rewards program based upon a percentage of the members’
spending on the credit cards and such revenue is paid to the
Company by a third-party issuing bank. The Company also incurs
costs to support these programs, which primarily relate to
marketing expenses to promote the programs, costs to administer
the programs and costs of members’ redemptions.
As members earn points through the Company’s loyalty
programs, the Company records a liability of the estimated
future redemption costs, which is calculated based on (i) a
cost per point and (ii) an estimated redemption rate of the
overall points earned, which is determined through historical
experience, current trends and the use of an independent
third-party valuation firm. Revenues relating to the loyalty
programs are recorded in other revenue in the Consolidated and
Combined Statements of Income and amounted to $71 million,
$56 million and $23 million while total expenses
amounted to $56 million, $49 million and
$23 million in 2006, 2005 and 2004, respectively. The
points liability as of December 31, 2006 and 2005 amounted
to $43 million and $39 million, respectively, and is
included in accrued expenses and other current liabilities and
other non-current liabilities in the Consolidated and Combined
Balance Sheets.
This excerpt taken from the WYN 8-K filed Jul 19, 2006. Loyalty Programs The TripRewards program, which was introduced in 2003, has grown steadily to become, we believe, the lodging industry’s largest loyalty program as measured by the number of participating hotels. There are currently approximately 6,000 hotels that participate in the program. With more than 30 businesses offering to participants TripRewards points for purchases, the program offers its members numerous options to accumulate points. Members, for example, may accumulate points by staying in hotels franchised under one of our worldwide brands, renting Avis® and Budget® cars and purchasing everyday products and services from the various businesses that participate in the program. When staying at hotels franchised under one of our brands, TripRewards members may elect to earn airline miles or rail points instead of TripReward points. Businesses where points can be earned generally pay a fee to participate in the program; such fees are then used to support
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Table of Contentsthe program’s marketing and operating expenses. TripRewards members have more than 270 options to redeem their points. Members, for example, may redeem their points for hotel stays, airline tickets, resort vacations, electronics, sporting goods, movie and theme park tickets, and gift certificates. As of March 31, 2006, TripRewards had more than 4.3 million active members, which we define as any customer who has enrolled in the TripRewards program or earned or redeemed points in the program over the past 18 months, and the program added an average of more than 200,000 active members per month in 2005. With the acquisition of Wyndham Hotels and Resorts, we acquired the Wyndham ByRequest Program, a guest recognition program that provides returning guests with personalized accommodations. | EXCERPTS ON THIS PAGE:
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