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Introduction
Marriotts marketing efforts reflect the global nature of the hospitality industry and are
positioned to drive customer share and revenue for hotels around the world.Through integrated
sales, marketing, public relations, social media, and advertising plans, Marriott can activate the
companys profound knowledge of travelers needs through all customer contact points,
delivering the right message to the right customer at the right time.
Presenting your lodging facility in the best possible light is the job of everyone who
works at the
hotel. Financial costs must be borne by the owner of the property. Management and the
maintenance staff are responsible for the physical appearance of both the inside and outside of
the hotel. Interior decorators play a role in furnishing the guest rooms and making them warm
and appealing. Having great people who check in guests, clean the rooms and take care of the
landscaping duties are all very important. Overseeing it all is the General Manager.
Hotel analysis
Marriott International, Inc is a worldwide operator and franchisor of a broad portfolio of hotels
and related lodging facilities. Founded by J. WILLARD MARRIOTT, the company is now led
by son J.W. (Bill) Marriott, Jr. Today, Marriott International has about 3,150 lodging properties
located in the United States and 68 other countries and territories.
Marriott International operates and franchise hotels under the Marriott, JW Marriott, The RitzCarlton, Renaissance, Residence Inn, Courtyard, TownePlace Suites, Fairfield Inn, SpringHill
Suites and Bulgari brand names.
Marriott's operations are grouped into the following five business segments:
Full-service lodging
Select-service lodging
Timeshare
Synthetic fuel
HISTORY
Marriott was founded by J. Willard Marriott in 1927 when he and his wife opened a root
beer stand in Washington D.C.As a Mormon missionary in the sweltering, humid
summers in Washington D.C, Marriott was convinced that what the city needed was a
such a place to get a cool drink. They later expanded their enterprises into a chain of
restaurants and hotels.
Fuller is the current President and Managing Director of International Lodging for
Marriott International.
Marriott International was formed in 1992 when Marriott Corporation split into two
companies, Marriott International and Host Marriott Corporation.
In 2002 Marriott International began a major restructuring by spinning off many Senior
Living Services Communities (which is now part of Sunrise Senior Living) and Marriott
Distribution Services, so that it could focus on hotel ownership and management. The
changes were completed in 2003.
In April 1995, Marriott International acquired a 49% interest in the Ritz-Carlton Hotel
Company LLC. Marriott International believed that it could increase sales and profit
margins at the Ritz, a troubled chain with a significant number of properties either losing
money or barely breaking even. The cost of Marriott's initial investment was estimated to
be about $200 million in cash and assumed debt. The next year, Marriott spent $331
million to take over the Ritz-Carlton Atlanta and buy a majority interest in two properties
owned by William Johnson, a real estate developer who had purchased the Ritz-Carlton
Boston in 1983 and expanded his Ritz holdings over the next twenty years.
The Ritz began expansion into the lucrative timeshare market among other new initiatives
made financially possible by the deep pockets of Marriott, which also lent its own inhouse expertise in certain areas. There were other benefits for Ritz-Carlton flowing from
its relationship with Marriott, such as being able to take advantage of the parent
company's reservation system and buying power. The partnership was solidified in 1998
when Marriott boosted its interest in Ritz-Carlton to 99 percent. By 1999 revenues from
the 35 hotels it operated around the world totaled about $1.4 billion.
Marriott International owned Ramada International Hotels & Resorts until its sale on
September 15, 2004 to Cendant. It is the first hotel chain to serve food that is completely
free of trans fats at all of its North American properties.
In 2005, Marriott International and Marriott Vacation Club International comprised two
of the 53 entities that contributed the maximum of $250,000 to the second inauguration
of President George W. Bush.
On July 19, 2006, Marriott announced that all lodging buildings they operate in the
United States and Canada would become non-smoking beginning September 2006. "The
new policy includes all guest rooms, restaurants, lounges, meeting rooms, public space
and employee work areas.
On November 11, 2010, Announced plans to add over 600 hotel properties by 2015, the
bulk of the additions will be in the emerging markets of India, where it plans to have 100
hotel properties and other countries include China and Southeast Asia.
On January 21, 2011, Marriott said that pornography would not be included in the
entertainment offered at new hotels, which will use an internet-based video on demand
system.
MARRIOTT CULTURE
"Culture is the life-thread and glue that links our past, present, and future."
Marriott's reputation for superior customer service rises out of a long tradition that started
with J. Willard Marriott's simple goal for Hot Shoppes to provide "Good Food and Good
Service at a Fair Price"
-"Do Whatever it Takes to Take Care of the Customer"
-Pay extraordinary attention to detail
The company actively supports the community and encourages associate volunteerism
through a variety of organizations
VALUING DIVERSITY
Since its founding in 1927, Marriott has valued diversity and inclusion of all associates. This
legacy is now a fundamental operating principle and business imperative.
Since 2003, our Committee for Excellence has promoted the recruitment, retention, and
advancement of women and minority employees, and initiated efforts to develop an increasingly
diverse owner, guest, and supplier base. In 2005, the J. W. Marriott Diversity Excellence Award
was created to recognize a business unit or department for promoting diversity and building an
inclusive environment.
Their 10-member Board of Directors includes three minorities, including two women. Our
Regional Diversity and Inclusion Councils ensure that our diversity strategy is implemented in
local markets with strategic partnerships, targeted recruitment campaigns, diversity
communications, and other outreach to associates.
DISTRIBUTION
Agoda.com, an online travel company specializing in discounted hotel bookings in Asia, is in
partnership with Marriott International Inc., the internationally renowned hotel and Resort
Company with 3,100 properties worldwide. The partnership allows distribution of Marriotts
branded, world-class hotels via Agoda's websites.
Promotion
There are a lot of ways to promote a hotel. Nowadays one of the most important ways to promote
a brand, in this case a hotel, is on the internet. Marriott has a extensive and clarifying internet
site. It has a lot of information for the customers and you can also book online. But of course
there are lots of other ways to promote a hotel.
First of all we want to say that we think that the Marriott most of all wants to re-attract the
customers they already ''have''. Of course they also want to attract new customers, but we expect
that the Marriott in their promotion campaigns most of all wants to attract the customers they
already have. That has consequences for their promotion campaigns. You can also see this on the
internet site. For example the site says "Live it up this summer. Stay the weekend, pay with your
Visa card and get a $25 Visa gift card". Marriott also sends regular customers letters and e-mails
with special offers.
We haven't found any ways how the Marriott tries to attract new customers but we guess that
they try to do that with banners on internet sites and folders at Tourist Information Offices.
Product
The core product of the Marriott are their hotels, or better specified, their rooms. Marriott has
different kind of hotels, they have the following brands:
Each brand has its own style or theme. For example: Residence Inn hotels and what mostly
attracts attention is that they have a really cousy lobby. It was a quite and cousy place with
comfortable couches. That's why I think Residence Inn's target group is elder people because it's
a calm place to stay.
All of the brands have the same concept, but they are specified to places and target group. We
think that that is what the Marriott makes so strong. They have one concept, but they found a
way to make that concept work in different places and for different people. That way they can
attract a lot of customers.
Price
Every Marriott brand has a different price. That's because the different brands want to attract
different people. For example they can ask a high price from business people because their
rooms are mostly paid by the company they work for. So business people don't really care about
the price. But on the other way families want to pay as less as possible because they already have
a lot of costs. The price also depends on the fact if the brand has more facilities like
"Renaissance Glendale Hotel & Spa".
Most of the customers are satisfied about this because Marriott is a big company and they give
value for money. They actually leave up to their promises.
CHALLENGES
In April 2009, the Marriotts credit rating had lowered by Standard and Poor Ratings Service.
The downgrade in Marriotts credit rating makes it difficult and expensive for the company to
access again in the credit market. Eventually, there would be an increase of capital cost of
Marriotts; if its credit rating continues to fall down. More important to know is the threats that
the company would be going to experience with its operating margin that dropped to 6.1
percent from 9.1 percent in 2008; this only indicates that Marriott has not been able to manage
well its cost structure. Subsequently, declining operating margins have great impact on the profit
making process of the business. And, even until these days, Marriott reportedly declined its net
income to US$157 in the second quarter of June this year; from
previous year. Moreover, Chief Executive J. W. Marriott stated that the other Marriott chain of
hotels outside the United States are continually benefiting from the strong global demand of the
customers.
But still, the domestic market in the US territories is as not as active as the other
branches in other countries. Equally important is the major concern of the hotel industry towards
US airlines, which are cutting routes as their way of fuel cost cutting for their own survival.
There are many hotel executives in the United States who are hoping for the reduction of fuel
prices so that business travel and hotel industry can boom again in the domestic market.
SWOT ANALYSIS
Strengths
Global leader Marriott International Inc is the leader in the global hotels market, with a near
5% value share in 2007 and a large geographic presence.
Unhampered by hotel ownership the company owns less than 1% of its hotel portfolio and is
thus less vulnerable to real estate price fluctuations than rivals. Moreover, its emphasis on
franchising facilitates the rapid expansion of its portfolio.
Focused pipeline development Marriott International is pursuing a growth strategy to further
consolidate its presence in foreign markets and capitalise on the booming travel and tourism
industries of emerging markets, which should continue to serve its business well in terms of
revenue over the forecast period. Unfortunately, the global economic downturn is hindering
expansion plans, particularly as consumer confidence softens and demand for travel
accommodation falls.
Strong internet presence Marriott International's website guarantees the best rates available,
Recomandations
You can undertake big projects or concentrate on small details to make your property more
welcoming. The possibilities are almost unlimited. Following is a list of 15 simple and not so
simple ways to get travelers to want to stay at your hotel.
1. Renovate the Building
A hotel that has been neglected over the years and is showing its age is not very appealing to
guests. A substantial investment may be required to do a complete renovation. If you have the
finances to spruce up the property, you can dramatically improve the appearance and add new
amenities that guests desire most.
2. Evaluating Management
Managers get paid more because they have more responsibility than the employees they
supervise. Having a manager that does not have the skills, enthusiasm and drive to produce
positive results is a manager that should be replaced.
3. Evaluating Other Employees
Professional attitudes and pleasing personalities are two of the most important qualities that a
manager should seek when hiring new employees. Employees should possess the skills or be
able to learn all aspects of their job. While they are doing their job, they should also maintain a
friendly disposition and always be willing to stop what they are doing to assist a guest in need.
Both new employees and those that have been part of the staff for years need to be evaluated
periodically. Those that are underperforming should be warned first, and then, if they do not raise
their game, be replaced.
4. Empowering Employees to Make Decisions
Is there anything worse than having to tell a guest that you can not help them and that you will
have to call the General Manager to resolve their problem? Any issues that may arise during a
guests stay should be able to be handled by the front desk and the hotel staff. Part of that process
is having a well-trained staff. Empowering employees to make immediate decisions and then
take action will quickly resolve most problems to the satisfaction of your guests.
professionally. As long as you treat people with respect, they will usually not make a scene. Your
mother would be proud to know that you are behaving in a civilized way and minding the good
manners she taught you.
9. Do Daily Inspections of the Guest Rooms
A dirty and stained mattress or paint peeling off the walls is a definite turnoff to any guest
staying at your hotel. Inspect rooms daily and make sure everything is clean and in good order.
10. Make Every Guest Room Comfortable and Inviting
When an individual is traveling on business, their room becomes very important. There should
be a nice work area and, of course, a big, flat-screen TV to keep them entertained. Wireless
Internet connectivity is almost a must. A coffee pot and other amenities like an upgraded shower
head or a mini-fridge and microwave will be appreciated by all guests.
11. Eliminate Unpleasant Odors and Freshen the Air
Old hotels may have a musty smell in the rooms and in the hallways. Keeping carpets clean and
adding a little carpet freshening powder will keep guests from being offended by lingering
smells. Air fresheners are available in many pleasing scents and should be strategically placed
throughout the interior space of the property.
12. Brand your property Through Multiple Channels on the Internet
Internet marketing is a great asset for branding and promoting your hotel. Establish a presence
with your website. Add a blog. Participate in social media sites. Use a targeted email campaign to
reach out to prior guests and invite them to come back and visit again. You can offer special
rates, discounted tickets to area attractions or anything else to encourage people to stay at your
hotel.
13. Integrate Both Internet and Traditional Marketing Strategies
While Internet marketing is fantastic, do not forget about traditional marketing and advertising
methods. Every hotel should have a prominent sign that attracts attention. Depending on your
budget, you can advertise on television and radio, place an ad in a magazine or newspaper and
even hold special events that will bring in the crowd.
14. Promote your Hotels Green Programs and Policies
Travelers are more concerned than ever with protecting the environment. Companies that
practice and promote themselves as being green have an advantage over their competition that
has not kept up with the populations changing views.
While the best way to be environmentally friendly is to start with the design and construction of
a new property, existing hotels can also do a lot to become greener. Replacing inefficient air
conditioners and other energy-hogging appliances with new, high-efficiency products can require
a large outlay of cash. However, the monthly savings in electrical costs and the goodwill that you
build in the community and with guests will pay you back handsomely in the long run.
Less expensive but equally important ways of going green might include a recycling program for
both employees and staff, saving paper by storing and viewing data in digital form, and
encouraging guests who are staying for more than one night to have their sheets changed and
washed less frequently than everyday.
Post any certifications or awards that your hotel has received for achieving green status. These
can include national, state and local recognition of your hotels environmentally sound policies
and practices.
15. Make Everybody Happy!
Everything that you can do to make your guests and employees happy will make your hotel a
more desirable place to stay or work. Happy guests will want to write positive reviews and tell
their friends about their experience. Happy employees will work harder to improve the hotel and
also promote their hotel among their family, friends and acquaintances.
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