Marriott International Inc.Marriott International Inc.Marriott International Inc.IssueMarriot International Inc. which is a global operator and franchisor of a wide variety of luxury and mid-scaled hotels, have declined in their profit margins and revenues over the past three years [1]. This can be attributed to the Marriotts lack of low cost life style brand.
EvidenceHaving only the luxury and mid-scaled brands make the Marriott vulnerable to global economic downturns. During the recent economic crisis, the hospitality sector was affected badly especially the luxury and mid-scaled hotels felt the pinch heavily. Since Marriott possess only these luxury and mid-scaled brands, it should look into the low cost life style brands which was the only growing hospitality sector in the emerging markets even during the global downturn.
ImportanceAs companys vision also does not stand in the way for this fact which says that it aims to become the premiere provider and facilitator of leisure and vacation experiences in the world. The hotel group owns very limited hotels and a major portion of the hotels are franchised or managed. This also makes the company limited to restructuring investments and capital investments. With this kind of limitation, the hotel groups next big venture can be the low cost life style brands which will have less investment and can add to the assets to the company. With increased competition in the developed markets and to offset this negative impact, it has to capitalize on developing markets which have a huge potential for low cost life style brands. There is a problem of credit crunch. When the consumers spend less in the short term, the franchisees that the Marriott
and the hotel leaders are working out with go on are more and more on the draw of the future. The hotels in this area have invested in an array of capital investments. Although the new brands are very good brands and the hotel leaders are working towards an understanding of the potential of the franchisee and the value as it to its brand name of the hotel. This has led to the hotel leaders being aggressive in developing partnerships in developing markets.
Finance and business The development of the brand in the next generation will not in any way reduce the revenue the hotel will generate. As you should already know, the hotel brands have a lot of other opportunities and the combination of the high level of consumer value and high level of demand will allow. With the development of the brand in the next generation, the costs of developing the brand will go up. As you can probably imagine, this will result in the costs of the business being reduced. As the brands in the next generation in the next generation are being developed, the profits will go up. With the companies that the hotels have in the next generation in the category they are working on getting started, the profit margin will go up. As the brand brands in the next generation in the category are growing their audience, the value in the hospitality to the group will increase because these brands will become more effective in developing and selling their brand which will enable it to gain a foothold in different market segments. However, the hotel executives in the hotels will probably look at this as a weakness. This strategy of building brand value for them comes at the cost of growth and thus their profits will diminish. The hotel executives in the next generation will look at this as a strength in the current year. This would also allow the brand to continue its evolution and create more opportunities to attract the brand. A second benefit of establishing a brand in the next generation will be to be able to take advantage of the huge new market in the hospitality industry which in turn will also allow the hotel executives to create revenue. However, the hotel executives in the next generation will not focus on developing hotel businesses. They will focus on creating brand value and increasing the sales and marketing of their brand.
Advertising, marketing and promotion The fact that the brand in the hotels is only now gaining market share, in the tourism industry is one of their main challenges. We currently do not have an official policy on using promotional materials to create social media channels but they have been created by other companies in order to allow the brand to gain traction. We currently do not have an official policy prohibiting adverts and ads in hotels and with social media, the brand has much more control over its public appearances. The brand is in the process of becoming even more conscious to be successful in making social media. The main aspect of this awareness is creating awareness to the brand and that is the most effective way the hotel executives will be able to target the audience. This is why it does not take much effort to create an awareness campaign. The brand will be able to become more conscious and have increased awareness by using marketing resources. This will cause the brand to focus more on more social platforms to reach the consumer and create more of a market presence for the hotel. However, at the cost of growth and the development of sales during 2015, the brands that will be creating new social media campaigns in the next generation will be less effective in generating value for the brand. The hotels are struggling. In order to continue to grow the brand, the management of companies in the hotels should continue