Tourism Industry Overview Paper

2161 Words9 Pages
In recent years, a few large national hotel chains such as Marriott, Best Western, and Hilton have dominated the hotel industry. Travelers are familiar with establishments that exemplify dependability and quality at reasonable rates. Many hotels recognize the importance of brand loyalty to guests. In doing so, they have expanded their lodging options that are under one corporate name which includes a variety of hotels from limited service, affordable type hotels, and luxury inns. To help understand the tourism industry and the impact it has on the economy, this paper will cover a brief history with an overview, a SWOTT analysis of the Marriott Hotel, defining and addressing the impact of the real GDP, unemployment rate, inflation rate,…show more content…
Marriott is ranked the lodging industry's most admired company and one of the best places to work for by FORTUNE(R). The company has been recognized by the U.S. Environmental Protection Agency (EPA) with the 2007 Sustained Excellence Award and Partner of the Year since 2004. While Marriott’s hotels outside the US continue to do well, business conditions for the hotels within the US are deteriorating (Reuters, 2008). This will be their weakness for 2008 if the economy continues to decline. Their net income in the first quarter of 2008 dropped to $157 million from $207 million last year (Reuters, 2008). This has affected them to be one of the worst performers in the investment grade credit derivative index. Furthermore, the bank is already recommending them to "sell" bonds, noting the company may need to sell new debt, which will push its bond spreads wider. As long as the oil and gas prices increase, it does not appear to be a promising future for Marriott. Marriott’s opportunities include partnerships with other large companies to come up with new hotel concepts. In 2007 they “announced their partnerships with Nickelodeon and Miller Global Properties, LLC, to develop a new lodging resort brand and concept for travelers seeking fun and adventure, ‘Nickelodeon by Marriott’” (Marriott International, INC, 2008). In the same year, they also “announced a partnership with the pioneer of the lifestyle boutique hotel, Ian Schrager, to create
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