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Cabo San Viejo: Rewarding Loyalty

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9-506-060 MARCH 10, 2006 YOUNGME MOON GAIL J. MCGOVERN Cabo San Viejo: Rewarding Loyalty Cabo San Viejo seeks to help people unlock their hidden potential so they become healthy, happy, fully selfactualized individuals. — The Cabo San Viejo Mission Statement It was early February 2005, and Tina Reynolds, VP of Sales at Cabo San Viejo Health Resort, was strolling the grounds of the company’s flagship Palm Springs, California location. Everywhere she went, she saw happy customers heading to tennis matches, returning from spa treatments, enjoying gourmet meals, and sunning themselves by the pool. Since its inception in 1977, Cabo San Viejo had grown into one of the nation’s first and leading health and wellness brands, …show more content…

The Aquatic Center offered four Watsu pools, a cross-training pool, and aquatic therapy pools. The golf performance area featured strength-training equipment, computerized swing-analysis technology, a driving range, and a nine-hole golf course. In keeping with its mission statement, Cabo San Viejo provided guests with a full range of wellness services [Exhibit 1], including more than 60 daily fitness classes and activities; wellness lectures; consultations and workshops in stress management, disease prevention, and weight loss; healthy cooking classes; nutritional consultations; consultations with alternative medicine providers (herbalists, naturopathic doctors, healing touch practitioners, acupuncturists, etc.); spiritual awareness classes and programs; and an elaborate menu of spa treatments. So extensive were these offerings, in fact, that at any given time the resort maintained a staff-to-guest ration of 3.2:1. As Reynolds explained, “Our primary value proposition is the concept of wellness. Everyone has a personal interpretation of what this means. For some, it’s about being pampered, for others it’s about the health and wellness side. So we have to offer it all.” Cruz agreed: Cabo San Viejo is not about a lunch that we serve. It’s not about a piece of gym equipment. It’s about the way you feel about your life and what you do to reconnect with it in some meaningful way. And that means taking responsibility for your own well-being. What we want to

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