Marriott has been holding the crown place in the hotel business for a long time, catering to millions worldwide. Even if you didn’t see the hotel name “Marriott” before, you must have seen one of its 31 brands in your country. And in this Marriott swot analysis, we will learn more about the company’s other aspects of the business.
Marriott: Company Overview
| Company | Marriott International |
| Industry | Hospitality |
| Founded | 5 March, 1927 |
| Founders | J. Willard Marriott, Alice Marriott |
| CEO | Anthony Capuano |
| Headquarter | Bethesda, Maryland, U.S. |
| No. of Employees | 120,000+ |
| Annual Revenue | $13.86 billion (FY 2021) |
| Website | marriott.com |
About 96 years before, in 1927, Marriott International was founded by J. Willard Marriott with a root beer stand in Washington, D.C. After that, the company has grown into a big hotel with a diverse portfolio of hotel brands, including Marriott Hotels & Resorts, Sheraton, Westin, Renaissance, and many others.
Marriott reported a total revenue of $20.773B and a net income of $2.358B, with approximately 377,000 employees worldwide as of 2022.
Product & Services of Marriott
Accommodation | Hotel Reservations | Timeshare Vacations | Flight and Hotel Packages | Car Rental Services
Marriott Competitors
Hilton | Hyatt Hotels | IHG Hotels & Resorts | Accor Group | Radisson | Oyo | Wyndham
Did You Know?
The largest Marriott hotel in the world is the 5,000-room Marriott Bonvoy Shanghai, located in Shanghai, China.
Strengths – Marriott SWOT Analysis
International Brand: Marriott has a strong global presence with a diverse portfolio of brands and a presence in over 8500 properties across 138 countries and territories. Besides, it has 31 hotel brands under its umbrella, and the most well-known brands include Marriott Hotels & Resorts, Sheraton, Westin, Renaissance, and W Hotels.
Loyal Customer Base: Behind all the success stories of the brands, the customer plays one of the significant roles. Marriott’s consistent delivery of quality service and amenities has helped to build customer loyalty over the years. According to the company’s data, Marriott Bonvoy has approximately 160M members worldwide who get special benefits such as free room upgrades, late checkout, and exclusive experiences.
Huge Market Share: The company has a massive market share with a huge around 23% global and 10% USA market share compared to its competitors. On the other hand, the biggest competitor of Marriott, Hilton Worldwide, holds a global market share of 7% and a US market share of 10.23%.
Strategic P&A: One way to diversify a company’s offerings is through partnerships and acquisitions. By doing that, Marriott has become one of the world’s largest and most diverse hospitality companies. As a part of the process, the company acquired Starwood Hotels & Resorts, adding 11 new brands to its portfolio, which helped it become the largest hotel company. Besides, Marriott has partnered with companies such as Alibaba Group and Uber to offer transportation services to guests.
Weaknesses – Marriott SWOT Analysis
Uneven Revenue Market: Most of the company’s earnings come from a few specific and first-world country markets and mostly from America, which counted almost 60%. On the other hand, regions like Europe, Asia-Pacific, the Middle East, and Africa each contribute around three to five percent, which is very low.
Internal Data Leak: In the modern world, data is one of the most valuable items, and people are sensitive about their personal information being leaked. Marriott suffered a major data breach in 2018 that exposed the personal information of up to 500 million guests since 2014. And even last year, 2022, they faced the third significant data breach in the last five years.
Employee Issues: The company has faced various employee issues, including low wages and inadequate benefits, which have led to high turnover rates and low employee satisfaction. As a result, around 8000 Marriott workers in several cities went on strike to demand better pay and job security a couple of years back.
Opportunities – Marriott SWOT Analysis
Market Expansion: With globalization and the economic boom, there are enough opportunities in the Middle East, Asia, and Africa. As a part of the process, Marriott has been actively expanding its footprint in these regions, with plans to open over 1,500 hotels in the next few years.
Better Positioning: When the company started, it primarily catered to motorcyclists. But, with the changes in trend, Marriott positioned itself as business and family oriented, which limits the company from expanding into new markets and appealing to a wider range of customers. But things have been changing, and the company has launched several new brands, such as the Moxy brand for millennials and the Autograph Collection for luxury travelers.
Adopting Tech: People want more accessible and easy services, and one way to do it is by adopting new technologies to enhance guest experiences and optimize operations. Marriott launched its “Connect with Confidence” program, which includes mobile check-in and keyless room entry, among other features.
Differentiate Offerings: Market expansion is not enough if there are no additional and more differentiated offerings to the consumers. To ensure every segment is covered, the company is tapping into opportunities with offerings such as Ritz-Carlton, focusing on high-end amenities and personalized service. At the same time, the select-service brand Courtyard by Marriott offers a more affordable, no-frills option.
Threats – Marriott SWOT Analysis
Cutthroat Competition: As major players like Hilton, InterContinental, and Accor are trying to grab the market share, the competition is getting tougher for Marriott. Besides, the rise of Airbnb and other home-sharing platforms has disrupted the traditional hotel industry, and the company is losing market share and billions of revenue.
Economic Downturns: The 2008 recession and economic downturn significantly impacted the hotel industry, including Marriott. The demand for hotel rooms decreased by a massive margin, leading to lower occupancy rates by 60.4% and decreased revenues. The hotel industry is expected to face similar challenges in the upcoming 2023 recessions and inflations.
Labor Shortage: The company has struggled with a labor shortage and reported difficulty finding and retaining employees for its hotels and resorts, particularly in housekeeping and food and beverage service. As a result, there were circulars for more than 50K jobs at Marriott in the USA alone, not to mention all around the globe.
Geopolitical Issues: Political instability, terrorism, and trade disputes can negatively impact Marriott’s operations, and these have already done that. A few years back, Marriott’s website and app were temporarily shut down in China because the company listed Taiwan and Tibet as separate countries. Besides, even before the Russia-Ukraine War, the company was forced to shut down operations in Crimea due to sanctions imposed by the US government against Russia.
[Bonus Infographic] SWOT Analysis of Marriott
Recommendations for Marriott
In recent years, the hotel industry has been disrupted, not to mention the industry is getting very competitive, and Marriott is struggling with many issues and threats. Here are some recommendations for the company.
- Marriott could explore adopting and leveraging technology to improve the overall guest experience.
- To maintain customer loyalty and attract new members, Marriott could consider expanding the benefits of the Marriott Bonvoy program.
- With growing middle classes in many emerging markets, Marriott could explore expanding its presence in regions like Asia, the Middle East, and Africa.
- Positioning with other perspectives and different target groups with better offerings with help the company reach new consumer markets.
Frequently Asked Questions (FAQs)
How Many Brands Are Under Marriott?
There are 31 brands under Marriott.
What Is Marriott’s Full Name?
Marriott’s full name is Marriott International, Inc.
Final Words on Marriott SWOT Analysis
Marriott’s success has been driven by its differentiated offerings, technology investments, loyalty program, and expansion into new areas of the hospitality industry. However, the company faces ongoing challenges, including competition from other hotel chains, labor strikes and shortages, geopolitical issues, and the impact of global events on the travel industry.
References
- Wikipedia contributors. (n.d.). Marriott International. Wikipedia.
- Marriott buys Starwood, becoming world’s largest hotel chain. (2016, September 23). CNBC.
- Trejos, N. (2017, August 7). Marriott partners with Chinese e-commerce giant Alibaba. USA TODAY.
- Perlroth, N., Tsang, A., & Satariano, A. (2018, November 30). Marriott Hacking Exposes Data of Up to 500 Million Guests. The New York Times.
- Marriott strongly expands its footprint in Middle East and Asia Pacific regions. (2022, September 22). Hospitality ON.
- Chipkin, H. (2022). Hotel Labor Shortage ‘Most Significant Challenge,’ Says Marriott CEO. Travel Pulse
