Marriott Essay

Marriott pricing structure closely linked with distribution. Marriott follow a ethical price tactics it is guideline it’s called Look No Further Best Price Guarantee Marriott ensure that all the employees has follow this and guest get best price in any of the Marriott booking channels. Price integrity/parity one of strategy for Marriott guaranty best available rate of booking through any Marriott web site or any Marriott branded website, direct in the hotel .more or less customers get not only internet rate but also available room rate any online or offline Marriott booking channel. So Marriott provide same rate or better than the travel agencies rate .Marriott pricing system change to fixed rate to dynamic price. As a international operator and franchisor major problem Marriott do pricing strategy day by day basis because most the franchisor show to move to the low price category to gain more

The hotel industry is a labor-intensive service industry dependent on the availability of high-quality employees to deliver, operate and manage tourism for its survival and competitive advantage (Amoah & Baum, 1997). The tourism industry is one of the most essential area in coming years. It has the opportunity for a rapid growth. The needs of the hotels are also increasing and it has the potential to provide employment to many people around the world. It is also observed and researched the there is a need of qualified and educated staff. They should be more skill full and aware of new trends and demands of the industry. They should have sufficient knowledge to satisfy the needs of

Marketing Mix includes four basic marketing strategies which is called Product, Pricing, Promotions and Placement , The add on three marketing mix will be People , Process and Physical Evidence. They are combine and called the 7Ps which is under the elements of Service Marketing Mix. Working professionals or businesses use these fundamentals to communicate with and reach their planned target market. Marketers manage decisions about each of the 7P's base their decisions on the individuals they want to win board and make into customers. Marketers must first clearly identify each target market before they can build up marketing strategies.

. Hospitality is one of the largest growing industries in the world. Past two decade word has witnessed booming growth of hospitality industry. Three are different category of service offers to different Clients like luxury to budget etc. This sector play very important role in countries GDP growth and employment growth. There are lot issues facing this industry these are different sustainable issues like social, economical and environmental issues which increase coast .another one is increasing operating cost and labor cost problem one of the major problem facing nowadays because shortage of skilled labors, highest staff turnover etc. another problem is increasing competition many companies force to cut down their prices

Weaknesses – Changing targeted guests is the biggest weakness and affecting the company in my opinion. 2006 has seen complaints from frequent business guests as the hotel targeted the vacation traveller. Even though the window of opportunity was there due to the travel industry being sluggish those guests that were frequent guests have now gone to another company. Furthermore, the challenges from leading companies have more rooms and properties in the U.S with a great reputation.

The hotel industry is a very hard industry to enter into, due to one of the biggest obstacles, which is brand recognition. Right now there are a few large hotel chains that make a large footprint in the market. It is hard for a new entrant to come into the industry and compete with these large hotel chains without bringing something new to the table. Many large chains in the industry dominate the industry due to economies of scale due to franchising.

As per Ian Ruskin Brown and Greg Clark “ Marketing mix is the term used explaining the different elements comprising the offer that the different companies makes to their customers”. (Brown and Clarke, 2000:44). E.Jerome McCarthy in early 1960s came up with the four Ps in the marketing mix. According to him these 4ps are “ Product, price, place and promotion”.( McCarthy and Shapiro 1975: 35). Refer Appendix I for the pictorial representation. But the view of Richard Sandhusen is that the four marketing mixes should be ‘price, product, promotion and distribution’ (Sadhusen, 2000:319). According to Steven Stralser ‘in order to create a marketing strategy and plan that touch all the areas of marketing to position a product, maximise revenue etc a few more components have to be considered which are, Marketing segmentation, Marketing Strategy, Marketing research , Pricing, placement and value chain.’(Stralser,

The net-loss of the company is $15.7 million and four senior vice presidents were brought in to present the effects of the last five years. Kelly Elizabeth who is very knowledgeable in the marketing field was bought in to try and solve and help with a profitable year from 2004. Part of the core problem I believe is not distinguishing what type of hotel/s the company is targeting to its audience as it has changed through the years between the pleasure/vacation traveler and the business traveler. As a frequent guest to hotels trying to mix the two is not going to work and even though objectives were met the daily average rate objective was not met. Furthermore, in 2006 the frequent business traveler complained about the hotel system at Astor Lodges & Suites. Other key factors that are also a problem is either being a limited service hotel or a full service which Astor Lodges differs. Also, what locations are beneficial and hotel segments are helping with profits within the company.

The Marriott Corporation was found by J. Willard Marriott in 1927. What started out as a small stand where J. Willard and his wife sold root beer is now one of the biggest, most successful hotel and lodging chains in the world. (Blogs.marriott.com, 2017) The Corporation’s headquarters are located in Washington D.C. in the US. The hotel chain is active in over 122 countries and has a portfolio of 6000 plus properties. The corporation owns over 30 hotel and lodging companies. They have a loyalty system that goes from silver to platinum that costumers can use to pay less for future bookings and can be used with associated companies. (www.marriott.com, 2017)

The marketing mix is a combination of 4 P’s (product, price, place and promotion) that should be used in conjunction with each other to ensure a competitive edge over other companies. ‘The marketing mix is designed to produce mutually satisfying exchanges with a target market’.

A lot of business travellers want to stay in well known hotels like Mariott or Hilton. Only 16% want to stay in individual hotels. So for the industry it is important to have a very good reputation. Of course the people try to get the best price for a room and most hotels have company rates which are below the normal rack rate. Also important for a booking is the location of the hotel and the bonus programs. For 26% of the guests Airline milage is important. So the hotels have to work with airline companies and they want special conditons as well.

Within the luxury tier, many of the players do not actually own the hotels themselves, but instead manage the operation of the business, similar to that of FSH. In the luxury segment, competition for acquiring new management agreements becomes very high as hotel owners make their choices based on the quality and value of a company's management service and most importantly, its brand name. Moreover, guests who choose to stay in luxury hotels are commonly not very price sensitive, and thus it is essential that a hotel distinguish itself amongst its competition by providing value added services as well as maintaining an untarnished, reputable brand name and image.

competitors are another important threat, because hospitality industry operate in highly competitive environment. According Porter competetion mainly based on Five Forces which control the market these are 1) Threat New Entrees; hospitality is most attractive industry which attracts lot of investors. which may affect the profitability in the case of courtyard they differentiate their product as established brand loyalty and make high initial cost for new investment create high barrier for new entry.2) Threat of Substitute the Product; there is no substitute of luxury hotel brand and in house activities and one day travels moderate 3) Bargaining power of Suppliers; mainly with Airline and Food Suppliers and Travel Agencies, low bargaining power 4) Bargaining power of Customers : in this scenario this brand concern about the price sensitivity and quality seeking and also well informed and display brand loyalty , high bargaining power .5) rivalry among the competitors ; in this case Marriott operates in oligopolistic competitive market. Oligopoly is small number of firms they controls the supply of specific goods in order do that they control the market pricing .it can be perfect they produce identical product or in perfect produce different name but the similar product . Main

Having just analyzed the general environment surrounding the upscale and luxury hotel industry, the next step in determining whether such an industry is attractive or not is to conduct an in depth external analysis of the threats and opportunities facing the industry. Thanks to the help of Michael Porter and his Five Forces Model, this analysis is not nearly as difficult or as time consuming as it may seem. According to Porter, there are five forces which determine the competitive intensity and therefore attractiveness of a market. These forces include the threat of entry, the threat of rivalry, the threat of substitutes, the threat of buyers,

Recently interest in marketing area increase tremendously and this interest has deeply happened because ‘marketing’ term became popular and development rapidly (Esteban et al., 2002). In this review the focus is on two areas of marketing which are market orientation and relationship marketing. Market orientation is a mean for constructing relationship and communication knowledge with customers in terms of satisfying customers and make them loyal (Balarabe, Gambo kk, 2014). On the other hand there is another strategy, which is customer relationship that consider about relationship between customers and organizations in log-term (Tareg, 2012). In case of hotel industry marketing tool can be useful and relevant to attract tourists to a destination (ibid). This review, firstly the definition and various aspects of the theories will be considered. Secondly a discussion about applying these theories in hotel industry and how they work and finally conclusion.