International Hospitality Management Report

This report examines the international hospitality industry, focusing on Marriott Hotel West India Quay. It analyzes the hotel's strengths, weaknesses, opportunities, and threats (SWOT) and explores the political, economic, social, and technological (PEST) factors influencing emerging markets. The report then evaluates strategic options for Marriott International to pursue in these markets, utilizing Porter's Generic Strategies, Ansoff's Matrix, and Nykiel's 14 Strategies.

INTERNATIONAL HOSPITALITY
MANAGEMENT

INTRODUCTION
Many trends have been taking place in relation with the international hospitality industry
and all these trends are linked with the speedy development in assimilation, globalization, new
management and vacation ownership. Many organizations such as Marriott Vacation Club,
Hyatt Hotels and Hilton Hotels have added brand power to the concept and are being taking part
in an industry that is showing rapid growth in recent years. If the firms venture outside their
home nation then there are many possibilities for them to develop. For this purpose, Marriott
Hotel West India Quay has been taken into account. In addition to this, Marriott International is
one of largest hospitality organizations all over world and also possesses large number of
properties as well. The present report will carry out SWOT and PEST analysis of the hotel and
will evaluate the best strategic options for Marriott international to pursue for within selected
emerging market by adopting various strategic tools and techniques.
TASK – 1
SWOT analysis of Marriott Hotel West India Quay
Marriott International has inaugurated first hotel in Arizona in the year 1967 in USA.
They being to expend their operation outside US in the year 1969 and by 1975, they have
expanded their operations in Europe. The hotel is a multi-national diversified hospitality
organization which are effectively managing and franchising a broad assortment of hotels and
related amenities for lodging. At international level, the firm is carrying out operations in 19
brands (Cook, HSU and Marqua, 2013). Furthermore, in year 2015, Marriott has acquired the
Canadian Hotel chain known as Delta Hotels and Starwood Hotels and Resorts for $12.2 billion.
Because of this deal, Marriott hotel became the largest hotel company all across world. In
addition to this, company follows its 19 brand. This type of acquisition has helped hotel in
having larger presence outside US and around 75 percent of revenue of Starwood comes from
international market. In this context, below given are the SWOT analysis carried out for Marriott
Hotel West India Quay: Strengths (S) – The hotel holds positive brand image in market and has an ability to take
market position. Seeking help from their target customers, Marriott Hotel West Indian
Quay has gained popularity and has become famous as well. In addition to this, the hotel
also possesses internal control system which has lot of efficiency and effectiveness.
Consequently, it becomes important on part of the hospitality organizations to take into
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account propositions of international context where they are operating and must be
prepared to address questions which are rising from the environment which is inclined to
change. This important part is taken into account of hospital for purpose of international
systems. The hotel carries out their functions and operations by seeking help from
management skills which is every forceful style and dynamic leadership. Moreover, there
is also a positive reputation of the management of Marriott Hotel West Indian Quay that
they have competence of satisfying needs of targeted customers. It also carries different
functional and operational activities. The hotel is adopting continuous technological
innovation with passage of time and improving customer’s experience. Lastly, they are
also upgrading their processes in relation with the business. Weaknesses (W) – The hotel is missing out from any customers as it is a very costly
brand. Marriott Hotel West Indian Quay is targeting only those individuals who belongs
to business class and because of this, requirements and gratification of the middle class
people are getting ignored. Its weakness is that they do not see that they lose customers.
In regards to this company is also losing in terms of profit. This is the main reason
behind dealing with very limited number of clients by hotel. Furthermore, hotel has very
limited and reduced size of market. Pertaining to this, Marriott hotel is not able to
diversify their services. Opportunities (O) – Studies have reflected which Marriott international is operating in
more than 73 nations of the world. This has significantly helped the hotel in building
brand loyalty and awareness in same. In addition to this, the Marriott Hotel West Indian
Quay will also be able to increase their revenue and is availing opportunities in regards
with growth of business. Other than this, Marriott hotel is also carrying out their business
seeking support of the policies that are linked with sustainable development and eco -
friendliness (Pizam, 2009). With the help of this, Marriott Hotel West Indian Quay is able
to create e scope for enhancing their current business which in turn support in bringing
international visitors or tourist from many parts of world. Significantly, this helped hotel
in terms of kindness and in increasing its potential. The hotel is also continuously making
innovation in their services as well as products associated with customers.
 Threats (T) – The major threat in relation with Marriott Hotel West Indian Quay is
related with terrorism and political unrest in certain countries of the world. In addition to
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this, rising level of competition in the global as well as national market is also becoming
a significant threat for Marriott Hotel West Indian Quay. Threat of this hotel relates in
terms of making political interest more and in creating terrorism unresting in specific
areas of world. Other than this, there is also another threat associated with competition in
relation of price points that influences operations of the hotel (Page, 2012).
TASK – 2
Background to Global Hotel and Tourism Industry
Throwing light in relation with developed markets, there are numerous drifts that has
been occurring in relation with hotel and tourism industry worldwide. These are related with the
expectation of international tourist, customer service, and innovative technology, sharing
economy, booking more profitable business, reputation management, trends associated with
health and wellness and political uncertainty. They relates in terms of making profit more and
results in higher production. This background relates in terms of various trends and in addition
to this, it also helps in making hotel and industry grow wider and helps in achieving its
objectives rapidly. All these are being defined underneath: Customer Service – The global hotel and tourism industry in developed market is
exceeding all anticipations by creating better and exclusive guest experience. They are
also having ability to capture the customer through presence of technological support and
in absence of it. (Horner, 2012). Profitable business needs to be booked – It is considered to be the one of important
aspect in relation with tourism industry and global hotel. These are helpful enough to
raise the profitability for each of the rooms available. Innovative technology – In recent business scenario, mobile applications are being used
in most of things related to hotels in the global hotel and tourism industry. New
techniques and modern concepts helps in achieving objectives indicatively and significant
manner. Considering the altering perspective of customers in the current business era,
technological innovation is being regarded as one of most supreme part. Real time marketing – Throwing light in relation with real time marketing, it will take
place continuously and will be including guest-generated content especially with the
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support of social media. This is being measured as vital aspect of marketing mix for
international hotel as well as travel industry which is developed.
 Trends in relation with health and wellness – Trends in relation with health as well as
wellness will support in driving decisions of the clients in this industry continuously in
those market which is developed. In order to cater with this rising trend, hale food
options are being regarded as one of the tranquil means (Frydman, 2013).
Focusing towards emerging market, it is being identified a raise in tourism and hotel
market. This is increase is due to change in preferences of people towards travel. More
specifically, it provides the opportunity to travel different parts around the world and to
undiscovered locations. These places can be African nations or Southeast Asia where there is
emergence of business as well as economies, cities also has inadequate lodging of hotels. The
hotel is quite perfect in relation with the leisure and business and is located in an aristocratic
location in business district of London known as Canary Wharf. There are many readings, which
have concluded that developing market can be regarded has having increased unpredictability. In
order to entertain these markets, there is a requirement to invest time and money. Focus on the
contemporary issues like international marketing, global trend analysis, change management,
impact of globalization and food and hospitality industry. There is also considerable amount of
risk being linked with this but with understanding of the landscape for domestic business,
authentic interest in people, building of tradition and cultural aspects, risk can be mitigated
(Powers and Barrows, 2009).
Background to Emerging markets
Africa is being regarded to be an emerging market as people around the world have
started visiting it and thus hotel and tourism industry has contributed towards economic growth.
In Africa, Nigeria is the most exciting merging market, main reason for this is that it consists of
suitable economy stable government and high educated elite that raises business tremendously.
There are many people who travel to Nigeria for carrying out business from all over the world.
Though Nigeria is considered strong for economy for tourism but in the recent times there are
tremendous growth identified and thus government has also showed its concern for the same and
they have created some interesting tourist location. In regards to this one of the fastest
developing segment of hospitality industry and will grow tremendously in future as well. In
current situation, there are very few hotels that are serving the needs of modern business
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travelers and for meeting expectations of the modern business travelers, there are actually no
great restaurants, spas and shopping mall.
Other than this, Morocco is also being regarded as one more emergent market in the
international hotel and tourism industry that offers stimulating scopes. When compared with
Nigeria, it have a strong institution as a destination for visitors for some period of time (Welfens,
2002). Another developing market in Latin America is Columbia. In Columbia, there is a balance
of urban centers and resort destinations. In addition to this, typology of Columbia is also offering
enormous scope with mounting progress in association with Pacific and Caribbean costs plus
there is better firmness, safety and natural environment which possess diversity. With the
increase in tourism, the hotel, restaurant and other entertainment will also increase.
PEST analysis of Emerging markets Political (P) – In reference to political factors, they are depicted by areas such as tax
policy, labor law, limits in relation with trade and environmental law etc. These issues
clearly signifies means and extent to which a government has power to influence t
economy in regards with the hotel and tourism industry in the emerging markets. Africa
is a multi-parliamentary republic in which legitimate power is being shared amid the
chief and assembly (Freeman, 2010). On the basis of current situation, there are
numerous challenges ahead for Africa such as transformation in the economy, wide
spreading right to use improved chances in education and business. In many areas, e
economy of Africa is developed but nature of apartheid has caused international isolation
of the country until 1990 and this is major disadvantage. Economical (E) – This factor accounts for FDI (foreign direct investment) which is
accountable on hospitality industry i.e. getting knowledge of this analysis will help the
firms in understanding the scenario of hospitality and travel industry in the evolving
market. The economic issues include issues related with foreign exchange rates,
economic development, interest rate and many more. Issues related to economic factors
also emerges on hotel industry. This does not lead in managing factors effectively. All
these attributes are issues of an economic performance that impacts the firm indirectly
and also have lasting influence as well. The economy of Africa significantly has 2 facets,
one is being refereed as developed whereas another one relates to basic infrastructure.
Through the release of growth, economy of Africa has reflected its dedication towards
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open market, favorable investment climate and privatization (Olsen and Roper, 2008).
Further, irrespective of the optimistic achievements since 1994, economy of nation is
troubling to attract FDI’s. Social (S) – There are frequent changes that has been identified in relation with taste and
preferences of people. It is important for the business to make sure that they understand
the needs and develop packages accordingly. In other words, the hotels and tour operators
are required to make sure that they understand the preferences of people and full their
needs so that they can be satisfied. It helps in measuring various issues like cultural
aspects, demographics, population analytic etc. The population is quite large, half of
which are settled in urban areas and partial are living in the areas which is not yet
developed. In both countryside and built-up centers, most of the people have problems
related to water supply, sanitation and electricity. In addition to this, immigration among
citizens is rising rapidly because of fact that population is quite mobile today and urban
areas are offering more employment opportunities to them (Cooper and Shepherd, 2012).
Furthermore, public establishments are also lacking necessary resource and are also not
capable to accomplish the demand.
 Technological (T) – Throwing light in relation with the technological factors, these
impact have connections with inducements, mechanization, activity in regards with
research and design and rate of its change. These traits impacts many areas such as
delegating decisions, limited effective level of production, costs and quality for hotel and
tourism industry in emerging market. In the rural areas of Africa, telecommunication is
quite costly and limited. However, in general telecommunication is at the developing
stage in parts of Africa.
SWOT and PEST
Above analysis of SWOT and PEST, it can be said that hotel holds a positive brand
image in the market and has an ability to take local position. The Marriott Hotel West India Quay
also holds a positive reputation of t management that they have the competence of satisfying
needs of the targeted customers. All these strengths should be capitalized to avail opportunities
in merging market of Africa. Africa is a multi-parliamentary democracy that contains the
constitutional power is being shared amid president and parliament (Evans and Campbell, 2013).
In addition to this, through release of growth, economy of Africa has reflected its dedication
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towards the open market, favorable investment climate and privatization. From this analysis it
can be said that if multinational hotel such as Marriott Hotel West Indian Quay enters into the
emerging market of Africa than there are many reasons attached for growth and success. These
markets will offer huge potential to the hotel with its untapped market. The markets of Africa
possess ability to create new demand for goods and services. Furthermore, this wave of new
demand will help hotel in gaining more market share and profits, globalization and liberalization
forces are carrying competition for customer at higher level.
TASK – 3
Strategies to entering market
Porter’s Generic Strategies and its justification
For the hotels such as Marriott Hotel West India Quay which are entering in emerging
markets will try to adopt and implement strategy related to porter’s generic strategies. This
pertains to fact that they are entering into new market and seeking for development and long
term upkeep of their market share (Osborn, 2013). There are mainly 3 kinds of planned aspects
related to it such as differentiation strategy, cost leadership and focus strategy.
The Cost Leadership
strategy
This is being defined as that strategy where hotel can grab the
position of manufacturer who produces at lower costs in
industry for a specified type of quality. Speaking in relation
with Marriott Hotel West India Quay, hotel will sell their
facilities at a regular industry price in order to earn profit
more than their rivalries or below the average prices in
industry in order to gain the market share. In the situation of
price war, hotel might be in a situation where they can
maintain their profits while losses will be agonized by
competition. Furthermore, there are numerous ways through
which hotel will be able to acquire the advantage related to
costs through improvement in efficiency of methods, taking
decisions related to vertical integration and through fulfilling
accessibility to an increases source of lower costs items
(Kotler, Bowen and Makens, 2010).
Differentiation strategy This is being defined as a strategy, where the firm aspires to
sale unique and distinct products in different markets. The
Marriott Hotel West India Quay can achieve success with this
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strategy, as they have access to leading scientific research,
have creative and efficient team and also possess good
standing in relation with innovation and quality.
Focus strategy In this type of strategy, the hotel pays attention on integrated
set of activities which is generally being developed for
delivering products serving the needs of a particular or
competitive segment. Further, there will be efforts for
objectifying either diversity or cost advantages. The hotel
“Marriott Hotel West India Quay” will make use of this type of
strategy for relishing an increased level of loyalty from the
customers.
Ansoff’s Matrix Strategy and its justification
For hotels such as Marriott Hotel West India Quay which are entering in the emerging
markets will try to adopt and implement strategy related to porter’s generic strategies. This
pertains to fact that they are entering into new market and seeking for development and long
term upkeep of their share of market (Iqbal, 2011). There are mainly four types of strategies
related to Ansoff matrix such as market penetration, development, diversification and product
development. Market development – Talking in reference with market development, Marriott Hotel
West India Quay will look in the evolving market by aiming its available services to new
segments.
 Market penetration – The hotel will look for opportunities with existing services in their
existing market and the main focus is on development of its share.
 Product development – Marriott Hotel West India Quay will develop its services aimed
for their existing segment in the market.
 Diversification – This is strategy, through which Marriott Hotel West India Quay will
step towards new business by developing new products and services (Kahn, 2012).
Nykiel’s 14 Strategies
Strategy 1(Expansion horizontally) The hotel will make effort to expand from one line of
hospitality service to another in order to enter into new
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market of Africa.
Strategy 2 (Geographic Expansion) Seeking help from this strategy, the Marriott Hotel West
India Quay will achieve path of growth from relatively
small radius to a greater geographical location for
entering in to emerging market (Jenkins, 2011).
Strategy 3 (Product Hybridization) In product hybridization strategy, hotel will increase
their assortment of services in order to enter into the
marketplace of Africa.
Strategy 4 (Specialization-
Specialist)
Then hotel will concentrate in relation with upmarket
development in price as well as services provided for
stepping towards the new market.
Strategy 5 (Product Tiring) In this, hotel will deal with the forces in relation with the
population growth, economic changes, amplified division
of market and demographic for stepping into new market.
Strategy 6 (Re-Branding of the
products)
In this, the hotel focuses on propagation of services
Strategy 7 (Non- Franchising) Through this strategy, firm will keep control the services,
ownership quality and organization of services for
stepping into the market.
Strategy 8 (Franchising) With this, firm will take into consideration a highly
established business strategy for development which is
being adopted inside hospitality industry.
Strategy 9 (Brand Collection) With this, hotel will try to avail advantage of moderately
partial stock for buying exclusive functions that are
expected to poses ability for progress (Kozak, 2010).
Strategy 10 (Management
Contracts)
With this, Marriott Hotel West India Quay will be
concentrating on management of hotels for owners in
order to enter into the market of Africa.
Strategy 11 (Vertical and
Horizontal Integration)
By adopting this type of strategy, firm hotel will be part
of more than a single hospitality segment with a view to
achieve competitive advantage by investing in different
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rudiments of industry so as to step in the marketplace of
Africa.
Strategy 12 (Singleness) The hotel will be going to develop single service which
will have total proprietorship as well as control of the
management in order to step into emerging market.
Strategy 13 (Value Related
Products and Service)
Seeking help from this strategy, Marriott Hotel will
significantly introduce new services so as to content
specific value within customers for heading towards the
emerging market.
Strategy 14 (Global Positioning) The hotel will expand their market at global level by
considering reasons for investment, related risks, and
strategies as well reasons to expand for entering into
emerging market of Africa (Anderson, 2007).
–
CONCLUSION
Thus, current research study has significantly analyzed the choice of evolving markets of
the globe in relation with the Marriott Hotel West India Quay which is looking to enter in a
particular market. Further, hotel wants to have medium and long term growth in the market as
well as report has also analyzed SWOT and PEST factors and other strategies for determining
significant strengths and opportunities prevailing in market.
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