Marriott Forecasting

Bethesda, Maryland is the headquarters of Marriott International Incorporate. This unique organization transpired from a root beer stand in 1927 into a world-renowned hospitality hotel chain in 1957. Information provided will focus on the evolution of the root beer stand into the Marriott International Incorporate vast hospitality empire. Today, the Marriott hospitality industry has 5,756 hotels with 30 brands in 118 countries with 1.1 million rooms. Additionally, the Marriott generated $14 billion in revenue during 2016 and had over 85 million combined loyalty members between the Marriott and Starwood Preferred Guest reward programs. Furthermore, Marriott partnered with Universal Music Group to bring their rewards member’s additional

Daily Rent $17,674.02 $20,893.50 $21,837.20 $22,712.40 $23,426.36 $22,562.10 $21,701.16 $22,929.48 $22,342.32 $29,268.96 $22,150.34 $16,210.84 $21,975.72 Appendix B – Majestic Hotels, Inc. Room Rate

Marriott is renowned for its elegant and comfortable hotels and resorts. The company caters to a targeted customer base, ranging from the frequent corporate business traveler to the family enjoying their occasional weekend get-away. Marriott has continued its rise in the lodging, contract services, and restaurant industries. The company continuously strives to meet the needs and wants of its customers while strategically maneuvering the rigors of today’s competitive and ever-evolving market of glamorous destinations and convenient services. In order to remain relevant in a highly-competitive environment, Marriott must strike that successful balance of minimizing costs, and gaining and effectively

As we discussed in class, every business is faced with these issues and they are important to managers making strategic decisions. One of the first things learned about business is that if there is no demand for a good or service, the firm that provides it will not continue to exist. Over time the hotel industry has continued to change with market conditions and make itself attractive to business

Since its foundation in 1927 Marriott Corporation grew into one of the leading lodging and food services in the US. With three major business lines: lodging, contract services and related business, Marriott has the intention to remain a premier growth company. To achieve this goal the corporation’s strategy is to develop aggressively appropriate opportunities within their business lines. Marriott would like to be the preferred employer, the preferred provider and the most profitable company in each of the operating areas. The financial strategy includes four key elements:

Based on the numbers, it appears that the accounting department rejected both offers because the rate fell short of the total cost per room per day for the hotel. Assuming an occupancy rate of 40% and Master-Budget Capacity Utilization costing, the budgeted total room

Receptionist and manager have a very consistent goal is to try to make the room completely full occupancy and maximum the profit. This is can be explained by Rational model theory (McDonald, 2013)- “Decision maker has only one objective”. When the big size room available again, the receptionist decided not mention waiting list customers because the system shows there is not a suitable size room for them like the first time they came to asked. This is can also be explained by several factors need to be conquer during the cognitive proceeding. For example, older decisions are more limited than younger ones and humans retain few details in a short –term memory (McDonald, 2013). Different decision maker have different intelligence (McDonald, 2013). Receptionist’s purpose is allocating the rooms for different customer based on the scarcity resources to maximum the profit. She thought there might be another suitable customer will come to purchase the big size room and this can be maximise the profit for the organization. However, The manager is more philosophical and experienced than the receptionist, so he decided to give the big room to the 5 customers by the medium room price. In the real world, there is sacrifice resource so people cannot satisfy all

Marriott International envisions itself to be the world’s lodging leader. Its mission is to provide the best possible lodging services experience to customers who vary in backgrounds, language, tradition, religion and cultures all around the world. Marriot is committed to environmental preservation through using environment-friendly technology and engages in social responsibility and community engagement.  We value our shareholder’s so we will only take steps that will ensure our growth. Most importantly, through our “spirit to serve”, we emphasize the importance of Marriott’s people and recognize the value they bring to the organization’s growth and success. It aims to increase revenues by 9% every year, to increase

Having been in the hospitality business for more than 25 years, the Kimpton Hotels Corporation is a national and global company, which had been widely recognized all over as an industry leader in the boutique brand hotel with a tradition of innovative hospitality. According to the Kimpton Hotel Corporation, “Our mission is to be the best-loved hotel and restaurant company by our employees, guests, owners, and communities and to genuinely support our co-workers, provide heartfelt care and comfort for our guests, and deliver superior financial returns to our investors.” Being immensely focused on this mission, the hotel’s primary goal is to be the most preferred boutique hotel brand in the industry.

The Marriott Corporation, an American firm, was founded in 1927 by J.Willard Marriot.The company began as a small beer stand and soon began to sell food and provided lodging that expanded rapidly. With the help of his wife Alice, the family owned business had 45 restaurants in nine states by 1940 and grew into one of the leading service companies. The Company has three major lines of business: lodging, contract service and restaurants.

Ferguson, M. E., Crystal, C. R., Higbie, J., & Kapoor, R. (2007). A Comparison of Unconstraining Methods to Improve Revenue Management Systems (ed. 3).

While, Marriott International Inc. has hotels in nearly 90 countries, and 19 different brands; As well as a reward program with nearly 55 million members all over the world, and is still expanding. In Marriott International’s 2015 annual report, is a message to the shareholders. In its message the company’s future growth is stressed. In fact, Starwood Hotels & Resorts Worldwide are acquisitions of Marriott International and are currently being incorporated. Additionally, Hotels in Africa, Asia, Europe, and the U.S. are currently under new development or renovation; although, 77% of Marriott International’s rooms were in North America at the end of 2015 (as can be seen in figure 2 on page 7). Also, the company expressed its concerns on environmental sustainability, and its goals to become more environmentally conscientious. Furthermore, technological improvements thru ought the many hotels, and reward’s program were discussed. Such as virtual reality room service, improved Wi-Fi, mobile check in, and Apple Pay. This message gave shareholders information on the company’s financial standing, and ultimately a guide on how the company plans to boost revenue by appealing to customer wants and needs.

One of the most important parts of this financial plan is that rates be increased on weekends. In the information, it also stated that most customers visited on the weekends. If the prices were increased over the weekends, even if not by much, the hotel could make more revenues.

The organization has explicitly kept this advantageous environment over other organizations by improving its service capacity. Additionally, the organization ensures that it stays ahead of its rivals by engaging in research and development that focuses on luxury products and markets analysis. The Ritz-Carlton hotel uses data from its research to predict the future of the industry; therefore able to dictate what and how the market will trend in the foreseeable future. Another factor that keeps the organization’s advantage over its rivals is that while rivals tend to become a hotel brand in the industry, Ritz-Carlton has rather position itself to be a leader and lifestyle brand that constantly develop new properties and ensure that customers live the culture of the hotel. The final factor that has kept the advantage of the organization intact is the culture of trust that exists between the management and employees. The leadership of the hotel lives and communicates the organization’s value to its employees who in turn satisfy customers in a way that they often anticipate a return visit. These are some of the reasons that the Ritz-Carlton hotel continued advantageous environment over its rivals has persisted in the hotel and resort industry (Reiss,

Competitive Analysis – During the competitive analysis the business analyst will analyze the hotel market and performance of all the hotels within a 50 to 100-mile range of the Golden Dragon Hotel, to study and set room prices during the various seasons in the year. This will allow the Golden Dragon Hotel to not only be priced with other hotels competitively, but to also know the pulse of the market so that they neither drop prices when not necessary nor have prices too high when competitors are cheap. The hotel will be able to look at operating the hotel so that it is profitable year-round instead of imply during one season.