Hospitality Business Development

RUNNING HEAD: Hospitality Business Development
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Hospitality Business Development

Hospitality Business Development 1
Contents
Introduction...........................................................................................................................................2
Business positioning strategy................................................................................................................2
Existing and future development strategy..............................................................................................6
Conclusion.............................................................................................................................................9
References...........................................................................................................................................10

Hospitality Business Development 2
Introduction
Marriott is an American multinational hospitality company headquartered at Bethesda,
Maryland in Washington D.C. The hotel is having more than 6500 properties across 127
countries. The company manages a broad portfolio of hotels and lodging facilities. Marriott
continuously creates extraordinary experiences for the guests. The hotel generates strong
economic returns for the owners and franchisees. Marriott provides better career
opportunities to the associates. It acquired Starwood hotels and resorts in 2016. It is the one
of the biggest opportunity of the Marriott and makes the largest and global lodging company
worldwide. Marriott puts people first and pursue excellence in it’s core values.
Marriott practices multi stage segmentation. It have personalized it’s brands to cater to unique
target markets. The hotel targets middle upper age customers, professionals, business
travellers and families. The hotel keeps on updating it’s market segmentation strategy. For
instance, recently, it was targeting football fans who are Visa card holders. They were
entitled to get a $20 Visa gift card and combo snack pack. The luxury hotels of the Marriott
can be found in the metropolitan cities such as London, Paris, LA and NYC. Marriott have
portfolio of brands such as Residence Inn, Courtyard, Fairfield Inn & Suites, Spring Hill
Suites and Towne Place Suites. The Fairfield Inn & Suites have business centres connected
with internet and printing facilities. It also provides free Wi-Fi in public spaces. The rooms
have access to high speed internet and are well-lit. Marriott is committed to service
excellence.
Business positioning strategy
The Marriott has effectively built up target market by pointing the needs of the customers.
The business positioning strategy of the Marriott can be understood by the points given
below:
Existing market and segments
Marriott believes that the customers vary in willingness to pay for different levels of ease and
luxury. It is the motive that hotel created a tier of various style hotels which varies from price
to facilities in order to meet want and need of the customers. The company have
approximately 3.747 properties, 14 brands in 72 countries. The hotel covers luxury, seasoned,

Hospitality Business Development 3
high income and business professionals. It also covers business travellers, middle class and
young business professionals. Marriott segments on the basis of the factors given below:
Geographic: The hotels of the Marriott group are dispersed geographically. The luxury hotels
are in the metropolitan cities of all the countries. For instance, the hotel has branches in
London, NYC, Paris and LA.
Demographics: The demographics undertake revenue, religion, culture and education. The
chains of the hotels are in the particular areas depending on the necessities and wants of the
consumers. There is tier for every income group in the Marriott organization (Aliouche &
Schlentrich, 2011). The hotel also offers different services for different age groups.
Behavioural: The behavioural segmentation is done on the basis of brand loyalty, habit, status
and benefits. Marriott proposes reward program includes free nights, advancements and third
party promotions in order to charm it’s loyal customers (Rogerson, 2011).
Psychographics: This segment focuses on the lifestyle of the customers. For example, a jet
setter residing in Beverly Hills will like to stay in the accommodations that they are used to.
They will prefer to pick JW Marriott over a Fairfield to fulfil their needs.
Marketing and promotion strategy
Marriott makes use of marketing mix and promotional tools in it’s marketing and promotion
strategy.
The marketing mix of Marriott covers product, price, place and promotion.
Product: Marriott is one of the leading luxury hotel chains in the world. The products of the
Marriott are in the form of hospitality services. The services of the company are divided in
three parts, core, actual and augmented. It includes different services such as hotels, resorts,
hospitality management, accommodations and more (Alon, Ni & Wang, 2012). The
maximum revenue is generated from it’s hotels segment. The hotels are categorized into
various brands such as St. Regis, JW Marriott, Bulgari, Le Meriden, Westin, Renaissance
hotels, Courtyard, Four points and many more. The JW Marriott, a sub brand of Marriott
international is designed to target customers who seek for the luxurious atmosphere. The
hotel mostly targets the person above 30 who earn higher income and usually travel for the
business purpose.