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The Individual Research on the Success of Marriott International


Secundino Garcia
Central Michigan University
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Abstract

A business research paper that focuses on Marriott International, a global hospitality and lodging

company. This paper will illustrate the customer service values and the concept that Marriott has

place before its hotels around the globe, its employees and its customers. It also outlines the success

of the company as well as the history of Marriott International and its years of influence towards

other organizations.
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Table of Contents
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Research Question: As a leading international company in hospitality, hotel service and lodging,
how has Marriott impacted the world with leading innovation of luxury and service, while also
maintaining its brand dedicated to changing the world through its customers and clients for over
90 years?

The Individual Research on the Success of Marriott International

As a hotel and lodging company dedicated to providing inspiring service and high standards

of quality, Marriott International has become a leader in delivering the best service in hospitality

for over 90 years. From their proven innovation in expanding their brand all over to globe, to

creating new ways to reach their consumers expectations, Marriott continues to drive towards

success as a global mentor in the world of hospitality.

More often, Marriott is visually and statistically compared to that of the service and quality

from other major hotel chains, Marriott is aware of the competition, which is why the research

provided will outline Marriott’s mission to continuously be unique in the eyes of their

consumers, while also evolve with the changing environment of the world around Marriott, this

includes but not limited to innovative technology, environmental protection, growing population,

political and economic climate, etc.

The purpose of this research paper is to overlook three key focus areas of study, these area’s

contributing to the research involves financial and economic success in recent years, community

perspective and customer service on a global scale, and innovation in hospitality.

Review of the Literature


The most recent financial success of Marriott International includes more recent

economic success in the stock exchange and potential investments Marriott has made from the

profit that they make, this generally involves Marriott giving back to the communities that they

reside in as well as continuously improve their hospitality experience globally. Which leads to
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the research of Marriott’s innovative hospitality, in this aspect it is important to observe how

Marriott has acclimated to the changing world we live in, in its 90-year history, Marriott

continues to appeal to newer generations while also keeping up with new technology which can

be directed towards their marketing strategy and to give back to their customers with high quality

hospitality experiences while also competing with the other major hotel chains.

Technological Potential. From research conducted by Anca Madar’s (Quality - a

competitive advantage on the hotel services market, 2017), he compares the quality of

management between Marriott International and that of Radisson Blue. His research covers the

technological aspect of Marriott’s innovative planning, this involved “Marriott International has

tested the world’s first “Volume Program”, created by LEED (Leadership in Energy and

Environmental Design)” (Madar, 2017, p. 4). Which meant according to Madar (2017) in 2005

Marriott became a green hotel that provides numerous opportunities to protect the environment

while also participating in the growth of local economies because of their involvement with

environmental protection.

Social Media Integration. This is just one of the most recent examples displayed by

Marriott which defines their efforts in becoming acclimated with a changing world. However,

Marriott is taking initiative in another area as well, this involves Marriott integrating with a new

generation through the means of social media. David Pollitt from Human Resource International

Digest outlines the progress Marriott has obtained to become more connected with the Millennial

generation by incorporating social media to personally connect with a younger generation

(Pollitt, 2011). Because of this they are reaching a larger audience and a more diverse

demographic.
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Marriott is passionate about the diversity through two major factors as part of their core

values, the first would be corporate diversity, this allows Marriott to provide an inclusive

environment for all their employees and creates a suitable and efficient working environment

through unity (“Diversity & Inclusion,” n.d.). And the other involves global diversity where it is

important for Marriott to connect with local communities to provide reliable opportunities that

foster an efficient and long-living partnership globally (“Diversity & Inclusion,” n.d.).

Implementation of Service. Marriott is well known for their system of core values and

expectations, they benefit not only their customers but their employees as well, Marriott

understands how much effort is required to provide the best service possible and they are divided

into the four main principles that go in to promoting the brand of Marriott International, to the

development of financial strategies that benefit all who walk through the doors of any Marriott

hotel.

As it is listed on the website (Find Your World, n.d.) the four main principles correlate

with the idea that Marriott is not just a hotel company, they are a hospitality success, to start

Marriott begins with understanding the basic values, which honors their recognition or

outstanding service and derives corporate commitment to providing the best experience possible

(Find Your World, n.d.).

The next core values include the business aspect, which according to the website “offers

the advantages of a strong balance sheet, sound management and a record of industry leadership.

Our business model, brands, senior leaders, and a deeply-ingrained service culture have firmly

established Marriott as a leading performer”. They take initiative when integrating with other

communities and businesses that represent Marriott (Find Your World, n.d.)
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As the world leader in hospitality, and hotel and lodging they inspire to give every

consumer the best experience at any Marriott hotel. The next principle involves caring about

their customers and are going to greater distance in hospitality innovation to provide them with

the best service possible (Find Your World, n.d.).

Finally, Marriott is always prepared for what is to be expected for the future, but success

cannot be obtain without having to learn about the past. In their final principle, Marriott is

always taking steps to become a better hotel chain, a better hospitality source and a better

company. Their history allows consumers and employees to better understand why the mission of

high quality and outstanding service is important to Marriott International (Find Your World,

n.d.).

Description of the Research

Primarily the research was provided along with the information collected from the sources

used to define the success of Marriott International, the research involves developing an

understanding of the three focus areas that attribute to Marriott’s accomplishments over the years. In

the case for the financial success of Marriott, the research around this area emphasize the entire

research paper by providing evidence that is dedicated to proving Marriott’s climb to economic and

financial stability.

Economic Progress. According to Fortune 500 (“Marriott International,” n.d.) Marriott

International is currently ranked 163rd all-time on the list of companies. Marriott International was

reported to have earned exactly $22,894,000 in revenue from the past fiscal year, this was reported to

have been a 34.1% change in revenue (“Marriott International,” n.d.). This is a positive statistic that

outlines the work Marriott is involved with in collaboration with their innovative progress as a
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company. From their total revenue in 2017, according to their profit ratios Marriott has generated 6%

of profit as a percentage of their total revenue (“Marriott International,” n.d.).

Financial Responsibility. From the statistic provides for the economic accomplishments

of Marriott, the company has also had their fair share of improvement along with a changing

political climate, one example of this is the 2008 global financial crisis, which is ensured that

Marriott along with many other companies were clearly affected by this event. From a collation

of an expert panel of some of the top hotel and lodging executives, Peter James analyzes the

thoughts provided by the panel of executive that correlate with the then recent financial crisis

(James, 2009).

According to Peter James interpretation of the panel, a comment made by Tim Walton who

was the Vice President of Development for Marriott International, discuss the progress of hotel

operations during the financial of crisis and how companies including Marriott were struggling to re-

develop their strategy of hotel growth and operation (James, 2009).

Along with the progress of hotel operations and the economic success of Marriott

International, these two sources provide reliable sources of information that emphasizes the

importance of the focus area towards financial and economic success. Yet Marriott has done more

than go above and beyond on the economic scale of change and improvement, their financial

strategies play an important role to the economic and financial focus area of study.

Pricing Optimization. Based on the research from Sharon Hormby, Julia Morrison, Prashant

Dave, Michele Meyers, Tim Tenca (2010), who conducted research based on the pricing optimization

that Marriott has taken initiative of which relay to the purchase of group rooms at Marriott Hotels

around the globe. As part of the financial success for Marriott International, Sharon Hormby, Julia
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Morrison, Prashant Dave, Michele Meyers, Tim Tenca (2010) analyzed the standard logistics of price

change while projecting the possible outcome based on the price ratio.

The chart provided in this research paper clearly identifies the price ratio (on the x-axis), and

the probability of win (or success in generating satisfaction from consumers on the y-axis) (Hormby,

Morrison, Dave, Meyers, Tenca, 2010).

Figure 3. Price Ratio Chart. Adapted from “Marriott International Increases Revenue by Implementing a Group
Pricing Optimizer,” by Sharon Hormby, Julia Morrison, Prashant Dave, Michele Meyers, Tim Tenca, 2010,
Interfaces, 40, p. 52. Copyright 2010 by Interfaces.

According to the chart provided, the authors have observed that the change in price

ration outlined by the grey bubbles shows the win rate of the overall data from the chart,

demonstrating that it “results in optimal rates 2 to 3 times greater than the average rates

historically offered by the hotel” (Hormby, Morrison, Dave, Meyers, Tenca, 2010).

This also correlates with the changing optimal costs provided by most hotel chains in the

United states, as discussed by John W. O’Neill, Bjorn Hanson, and Anna S. Mattila (2008) who

conducted the research correlated with the dynamic changes in sales and marketing by major
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hotel companies. The report covers a key area that affects the optimization of marketing and

sales for Marriott International while also comparing them to other hotel chains through the

Franchise Fee, which represent the expense of affiliated hotel companies and their services

(O’Neill, Hanson, Mattila, 2008).

To quote from the article “Franchise fees appeared as a significant factor for upscale

hotels (including such brands as Courtyard by Marriott and Radisson). Other than that finding,

results for upscale chains were similar to those of upper upscale hotels”. (O’Neill, Hanson,

Mattila, 2008, p. 358). Marriott is commonly known for their upscale hospitality shares the same

implication as any other upscale hotel.

As part of the research the previous three sources serve as clear references that Marriott

is dedicated to their future of financial stability and progress while also making an impact on the

communities all over the globe where Marriott continues to share their passion for better

hospitality and outstanding service. Overall the research provided on the key points interpreted

by the financial and economic focus area complies with the requirements necessary to respond to

the research question, which would be designated as how Marriott has become more acclimated

to the changing economic climate and what they continue to do to preserve a growing financial

environment.

Discussion

While covering the basics of the financial success of Marriott International and to follow

up with the world-renowned innovation that is being perfected by all of Marriott in general, it is

important to focus on the impact that Marriott is leaving on communities all around the globe.

Analyzing their contributions provides extensive evidence that supports the previous two focus

areas of finance and innovation.


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Consumer Service and Values. In an article that was written once again by David Pollitt

(2008) it exemplifies Marriott’s dedication to implement the “Spirit to Serve”. This article was

written primarily about the perspectives with the employee working for Marriott, this article

describes the importance that Marriott International has had in the United Kingdom and the

accomplishments that it has obtained over the years due to their dedicated service and countless

opportunities for their employees and the consumers.

To quote Garry Dodds who is the Regional VP of Human Resources for Ireland, UK,

Middle-East and Africa for Marriott “For 80 years, our philosophy has not changed – taking care

of the customers begins with taking care of our associates” (Dodds, 2008, p. 27). In the article

Pollitt praises the philosophy of Marriott and their continuous service to be the best in quality

and in higher service. For 90 years Marriott has lived through their principle of expectations and

have gone the distance especially when it comes down to partnering and working with more

local communities and businesses for which Marriott operates in (Pollitt, 2008).
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Financial Correlation. And the statistics show this to be a major factor for Marriott, in

the article, Pollitt (2008) observes that Marriott has a primary goal in spending at least 15% of its

budget with businesses that are operated by minorities or women, so within the article that was

written in 2008, it was Marriott’s goal to spend 15% prior to 2009. According to the statistics

provided, in 2007, Marriott International spend 13.6% which is calculated to about $478 million.

(Pollitt, 2008, p. 27). These statistics also correlate with historical financial data that was

provided by Marriott International in 2007, at the time Marriott recorded a record breaking $1.4

billion dollars in revenue. (Investor Relations, n.d.).

Conclusion
Marriott International is an ever-growing company and it continues to make a name for

itself along with providing excellent results and proving true to what they proceed to instill for

their employees and their consumers all around the world. This research paper conveys critical

information based on what many have said about Marriott. The important factors that make this

research paper possible outline the focus areas involving the community integration for Marriott

and how they connect with small businesses and communities on a global scale, because of this it

allows Marriott to expand its financial success while it relays the responsibility it has to become

a trusted company in hospitality and service, never letting money get in the way of amazing

service, as they are dedicated to using their profit to help communities and people, using finances

to help improve the quality of hospitality and service from all of their brands, and developing

new ways to implement new ways to bring Marriott to the world.

Which collaborates with the final focus area of the research paper, which is to develop

new innovative and creative ways to expand Marriott as a global business while also changing

the way hospitality is observed, this involves the optimization of prices for group purchases, as

well as developing and designing new marketing strategies that appeal to all generations but
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more importantly to the millennial generation as their diversity and culture is interconnected

though the internet and social media.

Reflection Statement
Everywhere you go from big cities to small communities, there is always a chance

you will see the name Marriott on any hotel sign. As a student with a high investment in

marketing I am proud to have conducted this research paper on Marriott International. I have

understood the brand of the company even long before I wrote this research paper. And even

then, I bought into the culture that Marriott brings to their customers and to their employees.

Marriott is a leader in innovation and partnership, they are willing to go the extra mile when it

comes to making connections with millions of people from all around the globe.

Marriott continues to demonstrate their selfless character by putting their people and their

customers first, especially at the time of a struggling financial crisis in 2008. Even as if people

could no longer afford to go on vacations, Marriott made an impact by giving back to

communities who were affected. Opening new hotels and increasing the number of hires that

span from recently graduated college students looking to jumpstart their career, to the local

community members working within the hotel providing the award-winning service that Marriott

stands by.

The professionalism that Marriott has demonstrated over the years has always fascinated

me, and I have been impressed with how Marriott operates, especially with providing people

countless opportunities to become a part of the Marriott culture. I feel more confident knowing

that I look forward to begin my career and with the care and service that Marriott provides, I am

positive that I will make an impact from the skills that I have learned, with the possibility of

becoming a marketing coordinator and developing future marketing strategies that allow me to

learn hands on with some of the best in the business.


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Annotated Bibliography

About Marriott International - Find Your World. (n.d.). Retrieved November 4, 2018, from

https://www.marriott.com/about/corporate-overview.mi

Information obtained from Marriott’s website outlines four aspects of business that

correlate to Marriott’s principle expectations for the people that work for Marriott, the

business they are invested in, the values that they believe in, and a short statement about

Marriott’s history.

About Marriott Hotels | Marriott Corporate Business Information. (n.d.). Retrieved October 21,

2018, from https://www.marriott.com/marriott/aboutmarriott.mi

The official website of Marriott International outlines a short background of the

company’s history and brief information involving careers, core values, hotel

development and more.

Hormby, S., Morrison, J., Dave, P., Meyers, M., & Tenca, T. (2010). Marriott International

Increases Revenue by Implementing a Group Pricing Optimizer. Interfaces,40(1), 47-57.

doi:10.1287/inte.1090.0482

The authors from interface shave conducted research on the implementation of Marriott

International developing a Group Pricing Optimizer. This research allows Marriott

International to provide guidance for specific personnel in pricing hotel rooms for

customers who are purchasing as a group. They use a variety of techniques to develop the

research in finding a reliable rate.


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Investor Relations. (n.d.). Retrieved October 21, 2018, from https://marriott.gcs-web.com/


This website incorporates all the necessary financial information from the past and

present. It outlines all the fiscal records while also providing relative investor information

and statistics for those who are interested in Marriott International.

Jones, P. (2009). Impact of the global recession on the hospitality and tourism industry. Tourism

and Hospitality Research,9(4), 363-367. doi:10.1057/thr.2009.20

This short article collated by Peter Jones outlines the impact that the 2008 Global

Recession left on the hospitality and tourism industry. What was a difficult time for most

major companies, from the words of official company professional gives a personal look

at how their companies have overcome the global recession.

Madar, A. (2017). Quality - a competitive advantage on the hotel services market. Case study:
Marriott Hotels & Resort versus Radisson Blu. Bulletin of the Transilvania University of

Brasov. Economic Sciences. Series V; Brasov,10(2), 144-146.

The author conducts the research of understanding and knowing the consumer base of a

two hotel chains through Marriott International, and the Radisson Blu in a professional

case study. Madar underlines the importance that customer service provides in the

hospitality and tourism chain.


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Pollitt D. (2011). Marriott Hotels stresses the Spirit to Serve. (2008). Human Resource

Management International Digest,16(5), 26-28. doi:10.1108/09670730810888483

From the perspective of the employee, this article describes the importance that Marriott

International has had in the UK and the accomplishments that it has obtained over the

years.

Marriott International. (n.d.). Retrieved October 21, 2018, from

http://fortune.com/fortune500/marriott-international/

The Fortune 500 website provides specific financial analysis on the holding of Marriott

International. It also outlines the profit ratios and stock quote for Marriott, Fortune 500

can provide all this information publicly while also posting current updates about what is

taking place within Marriott International, the news varies from the impact of the stock

market to changes within the company.

Oneill, J. W., Hanson, B., & Mattila, A. S. (2008). The Relationship of Sales and Marketing
Expenses to Hotel Performance in the United States. Cornell Hospitality Quarterly,49(4),

355-363. doi:10.1177/1938965508324634

Productive research on the ever-changing relationship of most hotel companies in the

United States, this article analyzes the optimal costs and operating characteristics and

identifies what some hotel chains could be lacking in.


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Pollitt D. (2011). Marriott targets millennials through social‐media game.. Human Resource
Management International Digest,19(7), 9-11. doi:10.1108/09670731111175506

Another article that outlines the employment aspect of Marriott International, this article

provides and in-depth analysis of how Marriott is using social media to influence a new

generation of workers to become more integrated with the company and the factors that

Marriott is using to implement employment engagement.