Introduction
Marriott is a multi-brand company with a Global Portfolio, providing diverse lodging options for various market segments. This report will present an overview of Marriott’s hotel portfolio and operations. Additionally, it will briefly delve into several key marketing strategies implemented by Marriott and assess their effectiveness in establishing them as industry frontrunners. Lastly, the report will pinpoint potential areas for enhancement in their services, products, and marketing approaches.
Marriott International is a global hotel group that offers a variety of brands catering to different market segments. Their range includes 5 star luxury hotels as well as moderately priced lodgings with 3 star ratings.
Marriott offers a variety of brands, including:
- JW Marriott Hotels & Resorts (5 star luxury),
- Marriott Hotels & Resorts (4 Star),
- Renaissance hotels and resorts (4 star)
- Courtyard by Marriott (3 star),
- Residence Inn by Marriott, (long stay lodging)
- Fairfield inns (basic 2 – 3 star lodging)
MARKET SEGMENTS
Recognizing the varying demands of their customers, Marriott responded swiftly by acknowledging the different segments within the hotel industry. In order to accommodate these distinct needs and desires, Marriott identified a range of lodging requirements, spanning from 5-star to 3-star. They then introduced market segments to cater to these diverse preferences. These market segments encompass both leisure and business travelers, who can belong to various demographics, including low-income and high-income households.
This will determine where individuals will stay while on vacation. Those with a higher income are more inclined to choose luxury, 4-5 Star hotel brands, while those with lower incomes prioritize price and opt for more moderate accommodation. It can be argued that Marriott’s segmentation accommodates all demographics with the aforementioned brands. Marriott conducts thorough market research through GSS and the Loyalty Programme (Marriott Rewards) to assess brand awareness, consumer perception of the Brand, and monitor industry and consumer trends.
From these programs, Marriott is able to monitor brand performance compared to the competition and identify additional benefits for customers. One way this information is utilized is through Marriott’s partnership with Hertz Rental Car, which was established in early June 2008. This partnership offers guests the convenience of renting a car at the hotel through various services, such as an on-property concession stand or desk, a direct dial lobby reservation phone, or referrals from the concierge or hotel staff. This service goes beyond expectations to satisfy and surpass customer needs.
There are only a few hotel groups that have implemented a dedicated system on a global scale. Along with this agreement, there are also collaborative marketing initiatives in various areas such as On-Property Presence, Marriott Rewards, E-Commerce, Marriott Vacation Club, and Reservation Call Transfers. (Source: Marriott Global Source Intranet Site, Marketing, International field marketing, hertz rental car partnership, April 26 2007)
CREATING & MANAGING DEMAND
The main goal for Marriott in this sector is to maximize revenue opportunities in each business segment. These segments include business accommodation and catering, such as weddings and large dinners. Marriott seems to be the market leader due to the systems, tools, and inventory strategies implemented on a daily basis to generate, capture, and control demand.
Training is crucial for the revenue discipline in order to ensure that they have the latest knowledge on technical and revenue management functions, such as Revenue Strategy/ Analysis, Business Evaluation, and Inventory Management. Marriott employs trend analysis to improve their decision-making process. An instance of trend analysis includes monitoring local and regional market conditions that may impact demand positively or negatively.
Marriott uses specific distribution and sales channels to drive and capture demand needs, such as during a weekend concert. This increase in demand to the area results in a rate increase to maximize revenue during this period.
- Global Accounts – responsible for the entire portfolio of hotels on a global scale. Account Managers are responsible for driving partnerships and joint initiatives that will give Marriott market share in key business segment and transient, business. Global Sales and Support Services – these provide Marriott with the necessary programmes, products and services that position Marriott within the industry as a leading provider. An example of these are, Hotel booking agent training programmes – Hotel Excellence and Wholesaler Support Desk.
- E-Channels- Develop sales and educational programmes by providing incentives to drive preference for Marriott Brands within phone centre and channel staff. This ensures that the most appropriate and effective e-channel partnerships are in place. Any improvements in the operational or automation processes are given full support and training.
DISTRIBUTION
Marriott employs various marketing strategies across different channels. These strategies aim to attract and engage all types of audiences, while also strengthening the brand’s identity. Some of the methods used by Marriott include Marketing & Planning, Communications, E-commerce, and Marriott Rewards. The main goal of the marketing strategy in each of these segments is to enhance brand visibility and improve customer loyalty. This is achieved through activities such as Public Relations Exercises, integrated communications, and regional and national advertising via mediums like Television, Brochures/print, and Direct Mailing campaigns.
E-Commerce Marriott has emerged as the frontrunner in online sales, generating a remarkable 25% of the total revenue (reference). In response to intense competition from third-party internet channels like Expedia and Laterooms, Marriott developed its own online reservation system. The rapid growth of these internet platforms has significantly impacted hotel room bookings, affecting the demand for hotel accommodations. Additionally, these third-party channels negotiate lower rates and impose commission fees on hotels for every booked room, ultimately impacting the hotels’ bottom line profits.
Marriott established Marriott.com and Marriott.co.uk to provide more comprehensive hotel information than what is typically available on other websites. Marriott developed an engaging and user-friendly interactive site that features rich visual content. Additionally, Marriott incorporated a straightforward yet efficient online booking tool in their webpages. This tool enables customers to not only reserve hotel rooms but also explore various rates, room types, and packages.
This information is obtained from the revenue function of each hotel, which loads rates, packages, etc. As a result, customers are able to choose from a wider range of products, potentially making this the differentiating factor needed to become market leaders. Marriott’s Global websites are designed to cater to customers in their respective languages, providing culturally relevant information and content specific to each country.
Over the years, hotel groups like Hilton and Intercontinental have imitated this format. However, Marriott stands out by consistently enhancing, evaluating, and overseeing their internet pages through on-property contacts and a dedicated marketing team. This team investigates competitors and conducts research initiatives to ensure that the brand stays attuned to customer feedback. As a result, Marriott’s web pages remain at the forefront of technology. Additionally, each Marriott brand generates marketing materials specifically tailored for respective business and leisure markets. These materials are incorporated into promotional content like brochures and flyers.
All brands utilize the GSS (Guest Satisfaction Surveys) program to recognize and evaluate important factors that contribute to guest satisfaction and loyalty. This helps them to comprehend and address areas where competitors surpass them or introduce a service that the competition lacks. This data empowers Marriott to stay current and fulfill customer needs and expectations. AREAS FOR IMPROVEMENT This section provides a brief overview and analysis of a key area that has the potential to enhance customer experience in terms of both service and product. This report will identify: Which product/service can be enhanced?
The text will explore the reasons for selecting this specific area and propose measures to enhance its effectiveness. The problem lies in the fact that, unless one is in London and can secure endorsements from celebrity chefs, hotels generally struggle to attract non-resident customers who visit the hotel solely for the dining experience. Even restaurants with food accolades find it difficult to compete with stand-alone restaurants in terms of business volume.
PERCEPTION – THE ISSUE
Unfortunately, opting for a hotel restaurant that is not the one you are staying at does not leave a positive impression and is usually not the preferred option when reserving a meal. To enhance its reputation, the restaurant can present itself as an autonomous food and beverage establishment by promoting its own webpage, contact details, and separate listings to set it apart from the hotel.
The main objective is to educate individuals about the perception of the restaurant, emphasizing its independence from being a hotel restaurant. The emphasis is on showcasing the food’s exceptional quality, highlighting its modernity and carefully curated menus with a diverse and exciting range of dishes. The goal is to stimulate and encourage fresh ideas, shifting customers’ perception away from outdated menu items commonly associated with the seventies, like prawn cocktail and black forest gateau. When dining at our hotel restaurant, many people are pleasantly surprised by the outstanding food.
IMPROVEMENTS
The restaurant should analyze its competitors to understand why they are so popular and what they do differently or could improve. It is important to identify the target demographic and develop a marketing strategy accordingly. Marketing strategies vary depending on the market segment being targeted. This could include young single individuals with higher disposable income who value trendy dining experiences, families who prioritize price and food quality, or mature customers willing to pay premium prices for exceptional products and expensive wines.
Extensive market research should be conducted to establish the reasons why hotel restaurants are not a preferred option when making dinner reservations. This analysis will enable the restaurant to determine the appropriate cuisine, pricing, and target audience – essentially, where the highest demand lies. By doing so, the restaurant can maximize its return on investment and ultimately boost profitability.
A direct marketing campaign focused on the target audience or market segment can be established to capture the identified market segment. Additionally, the restaurant should prioritize recruiting suitable staff members who will receive comprehensive training in service and delivery. By doing so, they can develop interpersonal skills and a natural ability to provide excellent service, which is crucial as customers may form opinions about the restaurant based on their interactions with staff.
The restaurant can gain a competitive advantage by establishing a positive interaction that leads to a great reputation for service delivery. Additionally, implementing a loyalty scheme would allow the restaurant to collect valuable data on their target audience, which can be used not only for the restaurant but also for any special offers related to the hotel. By offering incentives through this scheme, the restaurant can encourage guests to keep coming back. However, it is important for these incentives to align with the preferences of the market segment.
