Why is Marriott the Big Data analytics leader in hospitality

Running Head: HOSPITAITY MANAGEMENT; JW MARRIOTT
Hospitality Management; JW Marriott
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Table of Contents
Introduction......................................................................................................................................3
Discussion........................................................................................................................................3
The current position of JW Marriott............................................................................................3
Theories used to analyze the position of JW Marriot..................................................................5
SWOT analysis............................................................................................................................5
Strength of JW Marriot............................................................................................................5
Weaknesses of JW Marriot......................................................................................................5
Opportunities of JW Marriott..................................................................................................5
Threats of JW Marriott............................................................................................................6
PESTEL analysis of JW Marriott................................................................................................6
Political factor..........................................................................................................................6
Economical factor....................................................................................................................6
Social factor.............................................................................................................................6
Technological factor................................................................................................................7
Environmental factor...............................................................................................................7
Legal factor..............................................................................................................................7
Conclusion and recommendations...................................................................................................7
References........................................................................................................................................9

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Introduction
A hotel is an industry, which provides lodging according to the requirement of the
customers. Five-star hotels are assets that offer visitants premium services through custom-made
amenities and stylish accommodations. Hotels earn five-star grading by offering guests the
services of a higher level that meet the expectations like comfort, luxury, and décor of the
customers (Baldwin & Vinson, 2016). The five-star hotel chosen for this assignment is JW
Marriott. JW Marriott is a premium five-star hotel and belongs to the hotel chain of Marriott
International. The hotel has it's headquartered in France, Paris, the United States, and Maryland
and was founded in the year 1984. The report outlines the current position of the JW Marriott.
The theoretical model used to analyse the situation is PESTLE and SWOT analysis. The project
aims to give recommendations regarding how to increase the market share and to analyse the
financial and economic data of the selected hotel.
Discussion
The current position of JW Marriott
The JW Marriott has evolved as a giant in the hotel industry over the last three decades. It
has evolved and established its position among premium luxurious hotels under the international
hotel chain of Marriott International. It owns 89 outstanding properties in gateway cities around
the world. It has unique resorts in around 29 countries. The hotel has effective revenue
management for managing its resources well and managing human resources for the smooth
functioning of the business (Rosner, Urdaneta & Yepes, 2019).
JW Marriott has expanded in almost all the continents, and most of its portfolio is
situated exterior of the United States. Its property is ranked in the Forbes Travel Guide as a four-
star tier. Its target competitors are Conrad, Grand Hyatt, Shangri-La, and Fairmont. It holds the
third position among the hotel chains globally. It has completed its 75th anniversary in the year
2002 (Perkins-Chavis, 2017). It has expanded its business widely. Marriot International consists
of 2400 hotels, 156 service communities, 60 luxurious resorts, and 13 conference centres in the
United States of America. It has eighteen brands under its umbrella. In the year 2019, the
revenue of the hotel increased to 1% and reached 20.97$. The annual revenue of the JW Marriott
in the fiscal year is recorded around $22.894 billion and constitutes market shares of around 39.1
billion dollars (Wei, 2018).

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Figure: Net income of 2019
Source: (Wei, 2018)
Figure: Income statement of JW Marriott
Source: (Wei, 2018)

HOSPITALITY MANAGEMENT; JW MARRIOTT
Figure: Perceptual map of JW Marriott
Source: (Krawczyk & Xiang, 2016)
Theories used to analyze the position of JW Marriot
SWOT analysis
A SWOT analysis is an essential requirement for companies belonging to different
sectors. It analyses the industry's strategic business configuration, processes, and strategies.
Strength of JW Marriot
 The biggest strength of the hotel is the commitment towards the operational rules and
norms. The code of conduct followed at the hotel (Takacs & Vaduva, 2017).
 The hotel has made its presence globally and established itself as a brand.
 The hotel's operation focuses on innovations and incorporates commitment.
 One of the competitive brands in the hotel industry and uninterruptedly reinvent its
policies for better performance.
 One of the significant core strength of the industry is the positive attitude maintained by
the hotel.
Weaknesses of JW Marriot
 The hotel's expansion strategy has made the brand to dilute to some extent because it is
difficult to maintain the level of service all over the branches of the industry. Therefore,
the hotel should not focus on the violent extension drive.
 The strictness regarding the code of conduct in the hotel resulted in the low morale of the
staff. Therefore, the industry should be a bit lenient among the employees and give them
the power of empowerment, especially the women staff (Madar, 2017).
 The hotel has indulged in controversies like blocking the personal Wi-Fi services of the
guests. Therefore, the hotel should not indulge in such activities because this lowers the
brand image of the industry in the marketplace.
 The hotel industry is a family-based business and follows specific traditional rules and
norms. The hotel should be adaptive to modern practices leaving its bureaucratic
structure behind to remain in the competitive world.
Opportunities of JW Marriott
 The growing demand of the customers creates an excellent opportunity for the hotel
because people prefer luxury hotels even while traveling with the family. The demand for
the luxury hotels has become a trend. This opportunity should be appropriately utilized
by the hotel to earn huge revenue. The hotel should provide more discounts and offers to
the customers of the middle class also.

HOSPITALITY MANAGEMENT; JW MARRIOTT
 The hotel supports the community of people of the same sex. The trends of same-sex
marriage are on peak. This creates an opportunity for the Marriott to flourish more (Al-
Zoubi & Alomari, 2017).
 The number of people traveling to places worldwide has increased. People travel for
work as well as pleasure. This can create an opportunity for the hotel. The hotel can
utilize the opportunity by tying up with the airlines to gain advantage of the situation.
Threats of JW Marriott
 There is a lot of competition in the hotel industry because there are many giants in this
particular industry who have already established as brands in the market like Hilton,
Novatel, and many more (Takacs & Vaduva, 2017).
 Due to economic slowdown and recession, many hotels are on the urge of closing down
because they are incompetent to create revenues.
 The hotel industries are facing risk due to the terror attacks. Therefore, the hotel should
improve the security of its establishment.
PESTEL analysis of JW Marriott
Political factor
 The biggest challenge for the industry is the danger of tourism worldwide. This scares
people to stay away from traveling, which is a loss for the hotel industry.
 The terror attacks on Malaysian Airlines and the hotel in Tunisia have scared the
potential guests of the industry (Madar, 2017).
Economical factor
 The economic slowdown and recession have badly hurt the business of Marriott.
 The high exchange rate of US dollars has discouraged Americans from traveling less and
even attracted fewer tourists to visit the United States (Madar, 2017).
 The economic instability and income inequality among the middle-class prevent people
from staying in the hotels.
Social factor
 The royalty maintained by the hotel has made it confined to a class of people. The class,
hierarchy and standard maintained by the hotel are under the reach of certain class. The
hotel should try to cater the needs of people of different income level.

HOSPITALITY MANAGEMENT; JW MARRIOTT
Technological factor
 Technological changes have huge impact on the hotel industry. The rental facilities by
many hotels available online is a major threat for the industry. The rentals provide
premium services to the clients at reasonable rates. These medium rating hotels pay less
tax and other service charges to the government, so their room rates are low. To be in
competition, JW Marriott should provide packages on tours as well as for the stay in the
hotel. This will attract the guests specifically the middle man.
Environmental factor
 JW Marriot is one of the biggest brands of Marriot International. It has many branches
scattered globally in different geographical areas. There are different norms and
environmental regulations for the hotels of different market. Some factors that the hotel
should consider for its benefits are:-
 Increase use of recycle material and adopting the concept of green will contribute
towards corporate social responsibility (Madar, 2017).
 The hotel should support the use of renewable energy because many big industries are the
reason for ecological imbalance and threat for the environment.
 There are many factors that proves barrier for the industry and affects its business like
due to flood, the resorts are affected. The hotel should be ready to deal with the natural
calamities that affect its business.
Legal factor
 The hotel has many branches worldwide. Legal aspects are different in all the countries
regarding rules, laws and policies (Marquis, 2016).
 To avoid indiscrepancy charges or penalties, the hotel must follow measures like:
 Proper property and intellectual rights for the duties, no discrimination on the basis of
caste, sex, income or color, imposing proper employment and safety law, protection of
data to maintain the privacy of the guests.
Conclusion and recommendations
Therefore, the above report concludes that the factors discussed in the SWOT and
PESTEL analysis of JW Marriott includes various external and internal elements that impact the
performance of the hotel. Though, the hotel industry is facing uncertainties and risks due to
intense competition, due to this the hotel is suffers and experience less demand for the rooms in
some portion of the market around the world. The changes in the environmental factors are one
of the reasons of falling market share of the hotel. To be in the competitive world, the hotel
should be adaptive for the changes in the global market. Despite this, the hotel is doing well in

HOSPITALITY MANAGEMENT; JW MARRIOTT
the market but the hotel should try to reduce operating costs and improve its efficiency by
fighting with those factors that hinders its market share in the global market.

HOSPITALITY MANAGEMENT; JW MARRIOTT
References
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hotel services in Jordan: A case study of the Marriott International Hotel in
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Baldwin, B., & Vinson, D. (2016). Hotel InduSTRy Overview… What Lies Ahead.
Castillo, U. (2018). Marriott's Acquisition of Starwood: M&A in Hospitality (Doctoral
dissertation).
DO, F. J., & ORLANDO, F. (2017). Breaking the Mold.
Krawczyk, M., & Xiang, Z. (2016). Perceptual mapping of hotel brands using online reviews: a
text analytics approach. Information Technology & Tourism, 16(1), 23-43.
Lesser, D., Jaeger, J., & Gilston, J. (2016). The evolution of dual-branded hotels: How the
Marriott/Starwood Acquisition enhances opportunities for developers. Boston Hospitality
Review, 4(1), 1-6.
Lesser, D., Jaeger, J., & Gilston, J. (2016). The evolution of dual-branded hotels: How the
Marriott/Starwood Acquisition enhances opportunities for developers. Boston Hospitality
Review, 4(1), 1-6.
Madar, A. (2017). Quality-a competitive advantage on the hotel services market. Case study:
Marriott Hotels & Resort versus Radisson Blu. Bulletin of the Transilvania University of
Brasov. Economic Sciences. Series V, 10(2), 141-146.
Marquis, A. M. (2016). Program of the 85th Annual Meeting of the American Association of
Physical Anthropologists.
Perkins-Chavis, M. (2017). Diversity and inclusion is key to Marriott International’s
success. Journal of Brand Strategy, 6(3), 233-236.
Rosner, J., Urdaneta, C., & Yepes, M. (2019). Marriott International: Exploring and
Understanding Disruption in the Hospitality Industry in South Florida Jose
Darsin. Journal of Multidisciplinary Research, 11(1), 99-117.
TAKACS, J., & VADUVA, S. A. (2017). A swot analysis of the global hospitality
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Wei, L. (2018). Marriott International, Inc: A Financial Analysis.

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