Marriott Hotels (UK)

Task 1 Historical Background Legal and Financial Size & Structure Products and services Customers & Markets Task 2 SWOT analysis Vertical and horizontal integration Task 3 List down the main economic factors that may impact you company Select three economic factors that you consider to be the most significant Task 4 List down 10 laws that may be relevant to a manager in the THL# List down the member states of the European Union and the dates they joined. List down the main advantages for the U.K adapting the euro currency Task 5 Identify 5 of the major social and cultural trends over the last decade in the UK Briefly consider how these trends are reflected in changing patterns of consumption for THL products and services. What is meant by an ageing population? Briefly examine the key ways in which an ageing population can affect the hospitality industry

 The famous lodging company named Marriott International, Inc, headquartered in USA. The hotel opened in Washington D.C in the year 1927. The hotel operates in more then 73 countries and has 3700

properties. The hotel has huge staff of around 300,000

The company is earning good revenues since the beginning. In the year 2011, the company earned $12 billion, which is not a small amount at all.

Marriott International believes in providing the best customer services in all their franchises, the company also focuses on the growth and career of employees and attract the shareholders by offering good returns.

The stakeholders of the company are Independent owners, Customers and communities, Workforce and vendors.

Marriott manages or franchises the vast majority of its hotels,

and owns very few.

The company is performing at its best in the countries like Canada, Mexico, United Kingdom, China, and Germany.

Marriott International is operating 2600+ resorts and hotels and around 6300 vacation villas all over the world.

The company has 15 brands The company also believe in making the best and creative products and services. Marriott International has 2832 lodging properties, 2046 housing units which are

furnished.

Is operating in 73 different countries and Has been ranked as the most liked company of the lodging industry which provides the best career opportunities. The ranking is declared by the Fortune magazine.

Luxury Lodging

Full Service

Select Service

Extended Stay

Ownership Resorts

Events

Social events

Meetings

Marriott international offers their services for various social events and meetings. The company also offer the services of event planner which helps the customers in making their event memorable. Events may include wedding functions, birthday parties, anniversaries, fund raising parties etc Likewise, people can also arrange the meetings as the ambience provided by the Marriott International is very professional

Meetings may include, conferencing, meeting to discuss about

Specials and Packages offered Last minute weekend package, Design your own trip, and Escape packages. Marriott international also offers various services and packages like, weekend package, that can be arranged at the last minute, another package which is designing the own trip and various other packages like escape packages etc Another special package named as AAA packages, to avail this package, one has to become the member of the package in order to avail numerous discounts on rooms, and not just that but Marriott international also offer special services to the members of AAA packages. There are also various packages for seniors along with various Government and military packages.

 Marriott has various major competitors nationally and internationally, which include

Hyatt Hilton Holiday Inn Sheraton Holiday inn Best Western Serena

LEADERSHIP EXCELLENCE

ACTION PLANNING

Core Values

PERSONAL GROWTH

TOTAL REWARDS

QUALITY OF LIFE AT WORK

Strengths

Marriott international is a well recognised brand name and is located worldwide in convenient locations. The company offers great security along with they offer good reservation system, which means that customers can reserve the rooms from anywhere. There services also include health clubs for both the genders and especially for the people who are fitness conscious along with offering swimming pool and temperature of the pool is maintained according to the weather. Marriott international also provide business centres which are offered 24 hours and which has a complete business ambience.

Marriott internationals parking space is problem in metropolitan cities. The hotel does not offer live barbeque and cooking but they only offer eating indoors. All the restaurants are international and no traditional touch to satisfy the local culture needs of the specific country. The hotel also does not offer sports facilities, that is, various tennis or squash courts.

Weaknesses

 Opportunities

need of smart rooms on every floor, there should be aerobics classes to satisfy those customers who are fitness conscious. Incentives for the present employees rather than attracting new ones, as the new employees will need the training from the beginning. Traditional food should be offered to attract every customer and also in order to have variety in food. Moreover, hotel should also think about social media cafes, tech shops, Health club machines and its up gradation.

Competitors providing the best services and comfort to clients. Governments instability and terrorism threats in Asian countries affect the overall business environment.

Threats

Vertical integration It occurs when an organization takes part in various activities of purchase and distribution (Ahmed et al 1994). Example include, Marriott, with its hotels & resorts business, business travel management business, and restaurant business Horizontal integration It takes place when a companys shares has a increasing trend in market shares in their respective industry (Ahmed et al 1994). For instance, Marriott international and its lodging brands like Courtyard, Ritz-Carlton, Marriott Hotels & Resorts.

There are numerous factors which are affecting the business of Marriott international since 5 years, which include Huge recession in European countries and in America. Economic conditions in the countries like India and China Intense competition within the industry. High rate of inflation and tax. Purchasing power of the customers. Tax Rules and regulations of Governments.

Exchange rates have a high impact on the hospitality industry because people like to spend the money on the countries other then their own and hence the exchange rates impacts the purchasing power of the foreign travelers. Hotel room rates are always fluctuating but if the currency rates are always fluctuating then this would make the room package less attractive depending on the purchasing power or the currency of the potential customer. The recent increase in the dollar rate is not favorable at all for the worldwide businesses as it has made a huge impact on purchasing power of the customers. In fact, stronger the dollar, greater would be the affordability of international travelers.

The impact of recession in the recent times is huge and it has affected badly the overall businesses going on in the world including the hotel industry. the hotels which provided the services to business travelers are the least affected hotels as the business travelers have to travel even in the crucial times of recession. Majority of the hotel businesses of USA and Europe had to change their traveling plans. European hotels and the overall business were least affected as compared to USA. Travelers of Europe continued their traveling instead of recession which proves that Europe was the least affected country in the times of recession. Marriott International planned to increase their Asian and European branches especially in the countries like China and India.

Intense competition in international hospitality industry has changed the operating mechanisms of big five star hotels, Due to recession and low purchasing powers of European and American consumers, the trend of motels, small boutique hotels is on high rise. Marriott is facing strong competition in new markets of China and India also due to large foreign direct investment in these countries in hospitality sector.

Better quality services to the customers so that they do not feel neglected and special instructions to the employees to work in teams as this is the major step in making the program or plan successful There should also be security of all kinds of information, records and materials. Providing the best and healthy conditions with the maintained integrity. Employees should care about each and every customer so that customers keep on coming back to the same hotel and promote their services by word of mouth. Employees should respect other employee and all the employees and staff work collaboratively. Employees should follow strict laws and regulations. Employees should be treated well by the managers as importance of employees is not less than the importance of customers. It is to ensure on the daily basis that all the cameras and equipments are working properly. Moreover, there should be proper concern about the cleanliness of every corner of the hotel and no particles of dust. By following the above mentioned points, a management can establish a good and strong team and a caring operational unit (Coughlan, R. (1994).

Austria (1995) Belgium (1952) Bulgaria (2007) Cyprus (2004) Czech Republic (2004) Denmark (1973) Estonia (2004) Finland (1995) France (1952) Germany (1952) Greece (1981) Hungary (2004) Ireland (1973

Italy (1952) Latvia (2004) Lithuania (2004) Luxembourg (1952) Malta (2004) Netherlands (1952) Poland (2004) Portugal (1986) Romania (2007) Slovakia (2004) Slovenia (2004) Spain (1986) Sweden (1995) United Kingdom (1973) Source: Europa.eu (2012)

Adaptation of Euro helps in eliminating foreign exchange costs which are associated with the business transactions with EMU. Adaptation of euro reduces the risk element in trading. Euro makes all the transactions happening in UK completely transparent. UK can sit and join the boards within EU after joining EMU, that is, European central bank allows the country to take part in important board meetings and policy making. Joining the EMU makes a significant and positive impact on the economy, not only that, but it will also provide benefits to the customers and strengthen the political activities of UK.

Demographics: People live in UK from belonging to different religion, Ageing population and income groups. Cultural Homogenization: every country is adopting the culture of Europe which is one of the major negatives of the globalization. Immigration: immigrants of Asia and Africa. Social class and family structures: class differences, mobilization. Role of women in society: working women, reducing gender discrimination and empowerment of women.

It has been observed that the country UK has an ageing population, which means that the average age of the people is showing the increasing trend. For instance, it has also been observed that the average age of an individual in UK is rising from 31.1 years to 38.8 years between the years of 1971 and 2005. this can be because of the decreasing death rate.

Hotel industry is neglecting the offerings based on various age bands (Nicholls 2012).

There are changes in traveling behavior of the people who belong to the age band of 60 to 79 years, which include:

More international journeys rather then within the country.

Traveling through air and car has increased, and decreased traveling by
coach and trains.

Decreased summer holidays and hence decreased vocational plans. Importance given to health rather then spending vocations outside the country.

Aged customers are more price sensitive (Yu et al 2006).

There should be more eco lodgings and green environment. Innovative services like casinos, theatre, shops and theme parks etc. Innovative boutique hotels Highly recommended to use advanced technologies especially on the check in and check out points. Marriott international should focus on retaining the employees by increasing their salaries.

Member States of European Union (2012), accessed from http://europa.eu/about-eu/countries/index_en.htm Nicholls (2012), Hospitality businesses neglecting UKs ageing population accessed from https://www.bighospitality.co.uk/Trends-Reports/Hospitalitybusinesses-neglecting-UK-s-ageing-population Ahmed, Z. U., F. B. Krohn, and V. L. Heller (1994) International Tourism Ethics as a Way to World Understanding. Journal of Tourism Studies 5.2 (1994): 36-44. Coughlan, R. (1994), An Analysis of Professional Codes of Ethics in the Hospitality Industry. International Journal of Hospitality Management 20.2 (2001): 147-62. Print. Yu, L., G. Stafford, and A. K. Armoo(2006), A Study of Crisis Management Strategies of Hotel Managers in the Washington, DC Metro Area. Tourism crises: management responses and theoretical insight): 91