Here in this article, we will see the Marriott SWOT Analysis and its Competitors.
Introduction
The hospitality sector is wide. There are multiple fishes in this ocean, some big and some small. It is one of the fastest-growing industries in the last decade. Those who have managed to keep up the good quality services and guest satisfaction are the ones who become icons in this arena. To become a big name in the industry one has to be pro in his/her skills and have a great understanding of ins and outs. It takes a lot of hard work and sleepless nights to build an empire in this sector. Construction of an image based on services, quality, customer welfare, and credibility take time. There are many big brands in here which started years ago to reach a reputation like they have today. Some known names are Hilton Hotel and Resorts, Hyatt Hotel Corporation, Marriot, IHG, and Wyndham.
One of the biggest brands in the world is Marriot. It started 65 years ago as an airport motel called “Quality Inn” in Washington DC which shut down later. Today it is known as Marriot Hotels and Resorts which provides high-quality full-service. According to the latest report, there are 582 hotels and resorts with 205,053 rooms which are spread over 131 countries in the world. Their annual revenue in 2020 was recorded to be US $13.770 BILLION which declined 34.08%. This chain gives tough competition in the market and has some good oppositions too!! Let us understand its business strategies by swot analysis. SWOT means strengths, weaknesses, opportunities, and threats.
Marriott’s Strengths
Consumers
This chain has worked wonderfully in keeping its guests happy, satisfied, and engaged through various customer loyalty programs called Marriot Reward.
- Some programs under this are The Ritz-Carlton Reward and the Starwood Preferred Guest (SPG).
- These programs allow you to earn points and get a benefit by redeeming them to stay at properties like St. Regis, Sheraton, the Ritz-Carlton, Westin, and Renaissance hotels.
These kinds of programs have helped the brand to make over 110 million members making them loyal customers. Such programs show that how much the brand cares for its consumers and in return they give their loyalty to them by choosing them over and again against their competitors. This maintains a chain of guest loyalty and having several people fixed which gives business is what every hotel desires.
Innovation and Creativity
To keep their guests enchanted with their services, they are constantly making their innovation game strong. Smart work and technology are always welcomed in their business.
- Recently they have collaborated with “Fast Company”.
This company is one of the leading media companies in the market and now they have joined hands with Marriott to introduce a line called “Inspiration Collective”. This is a program that enables the guest to explore the company-related products through a digital platform and physical experiences. This is a chain that is enabling the new generations to travel brilliantly. Some of their innovations include the Greatroom lobby and Mobile Guest Services which focus on their style, design, and technology.
Acquisitions – it is one of the largest chains of hotels in the whole wide world. It offers over 30 hospitality brands that have more than 7,200 properties which are spread over 130 countries.
- This brand has managed to acquire some known hotels such as The Ritz-Carlton, St. Regis, JW Marriot, Delta Hotels, Westin, etc.
This has made it easier for them to reach a larger mass and attract greater business.
Rules and Regulations
In the long run, the “break the rules stand apart” theory doesn’t work. Marriott makes sure that they are always on track by abiding by the rules and regulations set by the company. These are a set of fixed rules which are strictly followed by the staff. They do not compromise on the quality of their service, grooming standards, hygiene, and cleanliness. Their staff is well-read about their work so that they know how to practically do their tasks in the right way.
Image in the market
according to the latest ranking of Forbes, this brand took hold of the 44th position in the World’s Most Diverse Organization. They secured the 99th position of Best Employer for Women and 28th position of World’s Best Employer. Also, the 84th position of America’s Best Employer.
Collaborations
this is a super competitive industry. This brand takes charge of always collaborating with the best companies in the game. They have partnered with big restaurant brands like Alibaba.
- Airline companies like United Airlines MileagePlus and Emirates Airlines World Rewards are their partners too, which provide extra bonuses and benefits award miles.
Their credit card partners are Chase and American Express which have provided Marriott Bonvoy.
Global Company
This company has successfully reached a large mass and over 130 countries. This brand is present in most of the countries which include many business hubs. Multiple markets have witnessed the quality of service this hotel has been providing. They have such a strong financial base that they can maintain revenue even if it’s not working in one country. All in all, they are so much globally present that every second individual knows what ‘Marriott’ is.
Marriott’s Weaknesses
Negative Image in the Market
During a hurricane, Irma hit in 2017 their image got a little bruised in the market. This happened because they had decided to rescue only their in-house guests from the cruise even though they could have done it easily as it was already half empty. This industry is very much dependent on the public’s assumptions and perceptions. This incident made this brand known for the wrong reasons.
Low Security in Data
It is known to all that when the customer has less faith towards their provider who fails to protect them. Customer privacy is the most important aspect of a service business. An incident in 2018 happened which was about the hacking of customer information. The reservation database of Marriott’s Starwood was hacked and over 500 million customer’s personal information was leaked which included names, addresses, passport no., phone numbers, etc.
Too stressful
Well, to be successful in business we need to follow rules. When we impose too many rules, when we are so focused that we don’t care for the people who are working for us, we eventually suffocate them. This affects the employee’s performance and, in the end, we don’t get good results. This brand is so focused that it ignores the difficulties its staff is facing. Their freedom to express themselves is under surveillance. In 2018, an incident happened where the brand fired an employee for just liking a tweet because it offended China.
Family-Focused Business
Everyone in the market knows that this brand is owned by a family. According to the chain, it is very obvious that the business is going under young millennials of the family. But it might be a case where these young leaders of the future don’t want to be a part of this business. Maybe they are bored or any other reason might be. Due to lack of dedication in this business they can face rough days or even collapse. This is a big weakness for the company.
Lawsuits
Businesses come with a lot of responsibilities and arrangements. Dealing with cases is also a part of their arrangements. When any lawsuit against a company is highlighted, it portrays them in a bad light. It also changes the consumer’s perception of them. Marriot also holds such history in its books where they were sued. They faced this case because they had blocked a customer’s Wi-Fi due to security reasons. They were fined for it with an amount of $600,000.
Marriott’s Opportunities
Approaching new economies
We all can see that the world is constantly growing for the good. Many countries which were not ideal locations for a high-end hospitality brand, now can be considered. Some places have gone through major development. So, it’s a big opportunity for Marriott to sow their seeds in those fields first as we all know the one who comes gets served first.
Expansion
As the industry is expanding in various corners of the world, it would be better if the brand takes steps to expand in terms of demographics. The current population has millennials and Gen-Z, which will be coming into the market soon. This is an amazing opportunity to evolute into a more advanced version. It is easier to try new things and experiment with ideas keeping in mind what these young generations need.
Increase their Reach
The Hospitality sector is connected to many other sectors such as tourism, airlines, catering, properties, etc. It will be beneficial for them if they expand their business in these sectors. Opening franchises in collaboration with other sectors can be a good move. There is always risk in a new business until it is successful.
Customization
People are living lavish lives these days. They have houses which are very comfortable in themselves. They need to offer them something which the consumers don’t possess.
- To attract such customers this brand can provide a self-customization service.
A service where the customer has access to the type of service they need from the hotel, sort of a personalized package. This way the brand will offer different services varying from customer to customer. The customer will feel special and give you a confirmed business. This strategy can give tough competition in the market.
Marriott’s Threats
Tough Competition
This is a super competitive industry. No chance is left here to attract the competition’s consumers. With time passing by, each day new companies are coming, new candidates are coming into the game. In such a scenario this brand needs to constantly upgrade its brand to keep up with the competitors. This brand is getting tough competition from various brands in the market like Hilton, Novotel, Accor, Hyatt, etc.
Pandemic
2020 was a year when the pandemic hit globally, affecting businesses. Not just the hospitality sector but every other business was hardly surviving. It shook the economical pillar of the industry; many people lost their jobs and some brands shut down completely. It has been a tough phase that is still going on. Marriott is a luxury hospitality brand, which needs business to maintain the brand. The profit of the hotel has been deeply affected by low business and annual revenue has also been reduced.
Security at Stake
It is a luxury brand that offers high-quality accommodation and caretaking services to consumers who are from different nations. Consumers are generally wealthy in a big property. Five-star properties are usually under red alert most of the time due to this reason. These are prime locations for inappropriate incidents to happen. History is witness that many high-end hotels have become a target to criminals. Marriott should invest in its security systems to ensure good security to its guests.
Marriott and its Competitors
As any brand uprises in the market, so do their competitions increase. The same theory applies to Marriott. It is a huge name in the market and the world knows about it. Everyone wants to be on that same scale where Marriott stays. Many companies are giving tough competition to this big fish. Let us know about them.
IHG (Intercontinental Hotel Groups)
This is also a global brand that spreads over 100 countries and has 842,759 guestrooms. It also acquires several companies like Six Senses, Regent, Hotel Indigo, Kimpton Hotel and Restaurants, Crown Plaza, and many more of them. It comes in 3rd ranking for top hotel companies in 2019. But Marriott’s revenue is five times more than them and it is a long way to reach the top.
Wyndham Hotels and Resorts
This company started in 1981 in Texas. This company operates in 19 brands like Dolce Hotels and Resort, La Quinta, Trademark Collection, Ramada, etc. Its annual revenue is $2.05 billion which is ten times smaller than that of Marriott.
Hyatt Hotel Corporations
It started in 1957 near Los Angeles airport. In the past few years, this brand has been growing rapidly in the market, acquiring brands and opening new properties. Some of its brands are Alila, Andaz, Hyatt Regency, Miraval Resorts, etc. They have a revenue of $5.02 billion. They are spread over 65 countries in the world with over 600 properties.
Hilton Hotel and Resorts
This started in 1919 in Texas. They operate over 18 brands like Motto, Tru, Homewood Suites, Conrad, Canopy, etc. It has 6110 properties with 977,000 rooms. Their revenue is about $9.45 billion. It is the second-largest hotel chain and comes after Marriott.
