Cabo San Viejo: Rewarding Loyalty Essay

8699 Words Sep 13th, 2012 35 Pages
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,
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So we had to evolve what we did, and this evolution has made us what we are today.”
Cabo San Viejo still battled perceptions that it was little more than a fat farm. “Despite all we’ve done, it’s tough to break free of the stigma,” said Melanie Cruz, Managing Director of the Palm
Springs property.

Properties and Offerings
In 2005, Cabo San Viejo operated five properties: One full-service, overnight destination resort
(Palm Springs, CA) and four smaller, CaboDaySpas (Miami, Hilton Head, SC, Aspen, CO, and on
Nantucket Island in Massachusetts). The destination resort was widely regarded as among the best in the world, having been featured in publications such as Conde Nast Traveler, Travel+Leisure, Smart
Money, Spa Finder, Departures, Gourmet, and the Mobile Traveler Guide. Although the CaboDaySpas lacked the distinguished history of the Palm Springs property, they, too, were well regarded.
Located on 150 acres in the foothills of the San Bernardino Mountains, Cabo San Viejo’s Palm
Springs location accommodated a maximum of 288 guests in adobe cottages set on beautifully landscaped grounds. Over the years, facilities had expanded to include an air-conditioned, 100,000square-foot spa complex; a 4,200-square-foot golf performance area; and a 13,000-square-foot Aquatic
Center. The spa complex offered six gymnasiums, weight training rooms, squash and racquetball courts, a meditation area, skin care and

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