Hospitality Management: Literature Review and Case Study of Marriot Group

This report provides a literature review of customer relationship management and hospitality management in the tourism industry. It also includes a case study of Marriot International Group and offers recommendations for improving service delivery in international hospitality management.

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Hospitality Management
By (Name)
Course
Professor
University
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Table of Contents
Introduction................................................................................................................................................3
Literature review........................................................................................................................................4
Literature review of customer relationship management.........................................................................4
Literature review on Hospitality Management..........................................................................................8
Case study.................................................................................................................................................11
Case study of Marriot Group....................................................................................................................11
Recommendations....................................................................................................................................15
Conclusion.................................................................................................................................................16
Bibliography..............................................................................................................................................17

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Introduction
Tourism is the activity of traveling for leisure purposes and hospitality is the friendly
treatment of guest and travelers, and it is a critical function of the tourism industry. The concept
of international tourism and hospitality management has facilitated the growth of the hospitality
and tourism industry across the globe. The growth of hotels in the world is very rapid with the
establishment of a new luxurious hotel every week in a different part of the globe (Fleşeriu,
Cosma and Bota, 2014, pp.50). Globalization has also brought unprecedented change in this
industry by creating both opportunities and challenges. Much of the acceleration in this service
industry is characterized by the advent of technology and improved transport and communication
infrastructure. Globalization has also facilitated the deregulation of the tourism and hospitality
industry and the elimination of barriers around the world (Schuckert, Liu and Law, 2015,
pp.610). In the contemporary business environment, hotels have the opportunity to expand to the
global market around the world with few restrictions. Around, 40 years ago, the notion of hotels
expanding into global enterprises was considered lubricious, however, the rapid expansion of
hospitality industry players has proven how globalization can integrate the world markets. The
tourism industry is the leading export service industry and one of the largest employers in the
world. The industry currently employs over 250 million people and produces over 10 percent of
the world Gross Domestic Product (GDP) (Leung, Law, Van Hoof and Buhalis, 2013, pp.15).
Tourism is a major facilitator of globalization and international business. The hotel industry in
the international market has also undergone enormous shifts in terms of service delivery. The
modern hotels provide more than just meals and accommodations. The hotels are now providing
services to the clients based on their needs, thus the name hospitality. The hotels are classified
based on their facilities, infrastructures, and the services that they provide. The hotels are
classified based on their room charges, range of facilities, for example, five star or four stars,

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their location, brand luxury, and ownership and management. Many of the existing hotel brands
are incorporating technological innovation to stay ahead of the competition. For example, the
rise of smartphone use has enabled consumers to book room reservations remotely through
websites and travel agents. The consumer is the greatest asset in the service industry (Ye, Li and
Law, 2013, pp.62). Contemporary human resource managers and hotel leadership are
increasingly integrating aspects of the customer relationship to create a good rapport with them.
Additionally, the hospitality industry has seen an increase in service efficiency to attract more
customers. These report will focus on the current trends in the hospitality and tourism industry,
by analyzing the concept of customer relationship management. The report will also analyze how
Marriot International Group has incorporated international hospitality management concepts
such as customer relationship management and other hospitality related services. After
examining the trends in the industry, the report will offer an appropriate recommendation that
will increase service delivery in international hospitality management.
Literature review
Literature review of customer relationship
management
Customer Relationship Management (CRM) is one of the most dynamic topics in today
business environment. The concept is not entirely new, but the current shifts in technology and
information systems have made business organizations to consider its importance (Rahimi and
Kozak, 2017, pp.46). CRM is channeled from relationship marketing and its main objective is to
improve the long term profitability of a business enterprise by shifting from product-centric
operations to customer –centric.

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The concept of CRM was established because consumers have different needs and
preferences in their purchasing behavior. CRM would not have been viable if all the customers
exhibited similar behavior. By understanding the needs of the customers, a business can,
therefore, tailor their products to achieve maximum value for each customer segment. The
advent of CRM has been largely necessitated by the stiff competition experienced in the
operating environment of businesses (Wang, Law, Hung and Guillet, 2014, pp.8). CRM
encompasses all the departments and functions of a business. It is not limited to the service
industry but also has operations in product planning, manufacturing, assembling and testing,
purchasing and supply chain, human resource, billing and sales, and marketing. The process of
instituting CRM is a complicated approach that involves the mining of customer data from all
business departments and this gives the organization a complete overview of the customer.
Consequently, the business is able to determine its customer needs and predict future purchasing
behavior (Abdul, Basri and Shaharuddin, 2013, pp.232). CRM also includes services that
integrate critical operations of a business such as sales, marketing, consumer service, and field
operations. Basically, the main goal of CRM is to enable the business to identify its profitable
customers, reduce operations cost, and eventually develop a product as per each customer needs
to achieve high-profit margins.
The modern customer relationship management development was highly influenced by
total quality management theories. CRM however, lacks clarity in its definition with
organizations linking it to basic consumer management, consumer relationships, and consumer
retention and personalization concept. Majority of business organizations considers CRM as a
technological solution involving customer databases and automation tools and marketing and
sale functions aimed at improving organization effort. In the Information technology sector,

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CRM is viewed as a vast integration of technologies working harmoniously. CRM depends on IT
systems to gather data, which is then analyzed and used to create a more personal relationship
with each consumer group. In the long-term, CRM is a continuous analysis of the customer
trends that reinforce the values between the customer and the business.
Successful integration of CRM system enables the business to have a cross-functional,
technology –integrated, and customer-driven process that maximizes the relationship with the
customer. Many businesses confuse CRM as just a piece of technology due to its automation and
technological solutions it offers. However, many companies have realized recently that CRM is
more of a business value effort and not technology-centric effort (Bunakov, et al., 2015, pp.39).
Companies have established that keen competitive marketing, technological innovations, and the
advent of the internet as the main drivers of customer related profitability. The firms are
increasingly allocating resources to areas that affect customer relationships. As a result of
growing globalization and a competitive market, the business cannot just achieve a competitive
advantage by having minor tricks and advantages that can be easily imitated by the competition.
Implementation of CRM creates a huge competitive advantage and ensure the development of
actual relationships with the customers.
Implementation of CRM has many benefits to a business. CRM assists a business to
evaluate the profitability and loyalty of a customer, and also finds unprofitable customers. The
business can, therefore, use CRM to establish which customers to retain, the customers that have
potential, the important customers, and those that should be abandoned (Padilla-Meléndez and
Garrido-Moreno, 2014, pp.392). CRM improves the economic viability of a business by ensuring
the lifetime value of the customer. A good CRM program creates loyalty among the customers,

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encourages them to buy more products, and they can give honest feedback and reviews on the
operation of the business. Other benefits of CRM include;
• It lowers the cost of maintaining customers
• It ensures the steady performance of the business by focusing on profitable customers
• It results in higher profitability in the customers
• It facilitates customer loyalty and retention
• CRM enables the business to evaluate different segments of the customers and
understand their needs.
CRM has its own challenges and drawbacks too. For example, the systems require
resources of capital and manpower to establish and maintain. Additionally, in order for a CRM
initiative to contribute to organization renaissance, the responsibility must incorporate top-level
managers. CRM works as an organization-wide system and it is not only limited to specific
departments such as marketing (Maggon and Chaudhry, 2015, pp.60). Businesses seeking to
adopt CRM systems must undergo a complete overhaul from production oriented strategy to
customer-centric strategy. This cultural shift in an organization is sometimes difficult to
implement as employees are more often resistant to change (Waligo, Clarke and Hawkins, 2013,
pp.348). The implementation of CRM is also complex and requires significant time and
investments in personnel training. Such training programs may be costly for the business. CRM
also requires infrastructure development. There are many software options that are scalable to a
company needs. The challenges lie in selecting the best and building the technology system of
the organization. CRM requires increased technical support, data servers, and system

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maintenance. A company can choose to use a third party to host its CRM, however, the challenge
with this approach is that the data is held with the third party and this may pose infringement and
privacy challenges.
Literature review on Hospitality Management
Most people think that hospitality is only encompassed to hotels and restaurants. The
term is however broad and complex in scope. The term hospitality comes from the word hospice,
a word that it is related to a health care facility. Hospitality is not only construed to hotels alone
but refers to general institutions that offer such services as food and shelter and other
contemporary services to people who are away from home (Rosman and Stuhura, 2013, pp.20).
Hospitality institutions also include private clubs, resorts, and casinos. These institutions all have
one common management concern that includes providing food, entertainment and shelter,
cleaning and maintaining the premises, overseeing the premise operations and providing their
services in ways that pleases the guests (Prentice, 2013, pp.56). The hospitality industry is
expected to do this with good will and liberality.
The hospitality profession is among the oldest of the profession that there is. The main
work of the hospitality service provider is to make customers feel comfortable and welcomed.
There also exist opportunities for career progression in this industry as it is broad. For instance, a
hospitality graduate may begin as a management trainee and then progress to be an assistant
manager (Cheng, 2013, pp.102). The hospitality industry is intertwined across the globe with the
advent of globalization and technological development. Management in the hospitality industry
requires the exhibition of skill, command and vast knowledge of the industry. The manager in
the hospitality settings has to fulfill three critical objectives.

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• The manager has to ensure that the guest feels welcomed. He as to be friendly in
promoting the culture of good will and liberality that is synonymous with the hospitality
industry. Through this, the manager has to ensure that the employees are getting along with each
other.
• A hospitality manager has to ensure the guests are enjoying their experience. The
food, drinks, refreshments, and the service, in general, has to be performed as per the
requirement s of the client (Gustavo, 2013, pp.13). The manager has to ensure also that the
atmosphere is conducive and there is a high level of cleanliness. The hospitality industry is labor
intensive and the departments are dependent on each other. A good manger should oversee that
all the work is done properly.
• The manager should ensure the continuance of the operations while maintaining high-
profit margins. The main objectives of institutions in the hospitality industry are profit making. A
good hospitality management operations should enlist the services of a revenue manager to
recover the cost of inputs and to make enough money to meet the expediters such as salaries
while making a profit for the investors and the shareholders.
In hospitality management, the manager should relate well with the employees, and
create a good rapport with the customers for the effective running of the establishment.
The main facilitator of international hospitality is the tourism and travel sector. Tourism
enables guest to travel all over the world for leisure purposes. Hospitality can, therefore, be
considered as a product of the tourism sector that seeks to welcome guests who transverse the
globe (Yoo and Bai, 2013, pp.169). The hospitality industry is critical for the development of the
tourism sector that is largely run by the private sector. There are various models that have been

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developed to explain the relationship context between socio culture and hospitality management.
These models are commercial, socio-cultural, and private domains. Commercially, hospitality
management seeks to provide customers with unrivaled experience while expecting monetary
gains as a reward. This model explains the business aspects of the hospitable industry. Socio-
cultural models entail that the management in the hospitality industry is characterized by the
intention to serve customers without regarding rewards and compensation (Mauri and Minazzi,
2013, pp.100). Lastly, the private domain involves the hospitality services that are offered in a
private environment, for example, a home. However, customer satisfaction can mainly be
achieved through quality services as compared from seeking emotional empathy from the guests
Hospitality management assists service providers in an efficient manner. The main factor
in hospitality management is meeting the demands of the consumer, offering excellent services,
and creating good relationships with the guests. World class hospitality service providers such as
the Marriot Group relies on superior management and quality of services to attract new
customers and retain the existing ones (Köseoglu, Topaloglu, Parnell and Lester, 2013, pp.88).
Hospitality management is characterized by entrepreneurial spirit and the need to surpass the
competition by differentiating the product and services offered to the client. Successful hotels
and restaurants apply different managerial aspects such as market segmentation, product
differentiation and effective targeting different audience in the market.
International hospitality and tourism are correlated with the existence of a symbiotic
relationship between them. The tourism sector relies on the hospitality industry to provide such
amenities as food and shelter, while hospitality relies on tourism to bring a guest to their service
centers. Customer service is important to both sectors, as good experience brings back the

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customers. This report will investigate how Marriot hotel has applied hospitality management
and the findings will develop a recommendation for the improvement of the service.
Case study
Case study of Marriot Group
Marriot International group is a multinational global hotel chain that is headquartered in
Bethesda, Maryland in the United States of America. The Group manages a large number of
hotels and lodging facilities. The hotel group was founded in 1972 by Willard Marriott. Marriot
International is the largest hotel chain in the world, with over 30 brands and more than 10,000
properties across 150 countries. The hotel group has over 1.3 million hotel rooms.
Marriot international hotel group operates in three main segments. These segments
include the North America full service, North-America limited-service, and the International
service. The North-American service is made up of premium and luxury brands such as JW
Marriot, The Ritz-Carlton, Marriot hotels, and The Luxury collection with their location in the
United States and Canada (Law, Buhalis and Cobanoglu, 2014, pp.730). The North-America
limited service includes select brands such as Springhill suites, FourPoints, and Aloft hotels also
located in Canada and united states. The international segment includes the Ritz Carlton, JW
Marriott, and the Luxury collection among others. The international segments are tasked with
operations out of the United States and Canada. Apart from hotels operations, Marriot groups
also deal with property development and home-based services.
Marriot group has a large brand portfolio consisting of numerous brands and properties in
the hospitality industry. The quality of the service is offered in three distinctive tiers that are
luxury, premium, and select. The company additionally operates licensed credit card and rewards

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programs across the globe. The international division of the Marriott group offers Global design
division for development, and construction of properties. Some of the major competitors of
Marriott Group include Intercontinental hotel, Hilton, Hyatt, Airbnb, and Wyndham.
Customer relationship management at Marriott Group
When the customer makes the reservation to the moment when they check-out, it is
essential for hotels to nurture the best experience for the customer over and beyond their stay.
Many of the hospitality service providers are using diverse customer management solutions to
foster the relationship with the customer (Rahimi, 2017, pp.1390). The vision of the Marriot
group is to be the favorite service provider in the hospitality industry. Marriot group has
partnered with Salesforce, a marketing platform, to manage its customer relations and
personalization in various channels and touch points (Mohammed, Rashid and Tahir, 2014,
pp.197). The program dubbed as ‘customer recognition platform’ aims at conducting a
continuous interaction between the hotel and the holders of its loyalty programs. Marriot
combines the data gathered from the customers with the service cloud of Salesforce to get a 360-
degree overview of each customer profile.
Marriot uses digital personalization to anticipate and remember the needs of the guests.
Salesforce helps Marriot to connect with the guest through multiple online platforms. Marriot
uses Omnichannel strategy to deliver personalized content to the guests through its Marriott
mobile app (Lee, Denizci Guillet and Law, 2013, pp.100). Marriot has embraced technological
innovations by using digital platforms to gauge the needs of the customers. The hotel group has a
vast client base spawning from its over 6,500 hotel brands and franchise. The CRM system by
Salesforce has enabled the hotel group to combine separate rewards programs from the Marriot

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brand, Starwood brand, and The Ritz-Carlton brand. The forms a single reward portfolio for each
customer regardless of the brand the customer visits.
Apart from the Salesforce CRM software, Marriott Group additionally uses Siebel
Systems. These CRM has allowed the hotel group to seek bookings from regular customers who
use the conference facilities instead of waiting for the client to call. According to the vice
president of Marriott lodging system, Michael Dalton, the sales agents of the company
consolidate together all the information pertaining corporate accounts and use the data to manage
the accounts by recording opportunities and leads (Sun and Kim, 2013, pp.70). The Siebel CRM
system has additionally, enabled Marriott to sales additional products and services. For instance,
most of the Marriott brands hotel uses the system to provide personalized planned service to the
guest through the creation of vacation itineraries long before the guest arrive at the hotels
(Zakaria, et al., 2014, pp.25). Marriott emphasizes that the experience of the guest begins during
the itinerary planning. By creating a lasting impression for the guest before their vacation even
starts. Dalton states that when the guest first makes a reservation, Marriott is able to build a
portfolio based on the request of the customer. The CRM system records and stores the
preferences and choices of the customer (Guttentag, 2015, pp.1199). This information is then
used for planning the stay of the customer well before the customer has arrived. For example, the
hotel schedules meal times, dinner reservations, shopping itineraries, and other services. From
the feedback collected by this system, Marriott has established that the guest who have used the
system show greater satisfaction.
According to Marriott human resource department, each customer has a unique
motivation, needs, and expected outcomes. The expectation of the client is that the service
provider will deliver a personalized experience for them. Marriott is taking this into regard and

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redefining the experience of its guest across the brand through the use of Salesforce and Siebel
CRM software. These CRM has enabled the hotel group to establish a connection with the
customers from the moment the client is planning for the trip.
Marriott Group hospitality management strategies
In a highly competitive business environment, it is crucial for organizations to develop
strategies that will position the business critically in the market. The strategies evaluate the
internal and external environment of the business and focus on the best form that will enable the
business to compete for higher profitability. Marriott group applies the generic strategy in its
operation. The hotel group differentiates its product by creating different segments of the brand.
The company has luxury hotels, premium hotels and select hotels, each catering for different
market segments. Since Marriott Group had over 6,500 hotel brands, it is able to position each
brand to cater to the specific consumer group (Jin, Line, and Goh, 2013, pp.689). The hotel
group enjoys advantages of uniqueness, cost due to economies of scale, and competitive
capability. The differentiation strategy of Marriott is geared towards developing a product or
service that addresses the specific need of the consumer (Martínez and del Bosque, 2013, pp.90).
The hotel group is implementing the differentiation strategy by integrating market segmentation
in its operation. The management of the Marriott group established that one brand cannot
adequately cater for each consumer group. The hotel group consequently created different brands
that each targets specific customers. The luxury or upscale brands include the JW Marriott, The
Ritz Carlton, and The Starwood (Wong and Wickham, 2015, pp.450). Other budgetary brands
include Fairfield and Marriott Courtyard. This segmentation strategy ensures Marriott meets the
need of every consumer regardless of the purchasing capabilities. The brand is able to foster
loyalty among the customers by catering for their specific needs across the consumer groups.

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Marriott has a strong organizational culture that cares for the customers through the
rewards program. Marriott uses a frequent-guest program that has over 35 million members
across the globe. The hotel group maintains customer relations through email and the company
website. The customers gain points while using any of the brands under the Marriott group.
Additionally, the customer can redeem the points for vocational packages or discounts in hotel
reservations (Grissemann, Plank and Brunner-Sperdin, 2013, pp.350). The reward programs have
also facilitated interactions between the hotel and customers. The hotel group is always in
constant deliberation with the customer on how to better improve their service. Such vast
opportunities have facilitated Marriott group to develop and use its CRM systems to deliver
touch point information to the customers for instance, Platinum customers are offered gifts when
check-in-into the hotels. The guest has retaliated that the recognition and support that they
receive from the Marriott team makes them feel special and fosters their relationship with the
hotel.
Recommendations
From the above case study, it can be established that the Marriott hotel group has been
able to effectively interact with the customers through its CRM systems. To improve its service,
Marriott should develop its own CRM systems and shift from the third parties providers. The
company can set-up its own data servers and employ the best CRM software to manage customer
relations. Third party providers such as Salesforce incur additional cost to the hotel group.
Additionally, the data is not fully secured. Developing an in-house CRM hub may further
increase the interaction between the hotel and the customers as the staff better understand the
needs of the clients as compared to third party companies. In hospitality management, I
recommend that Marriott should use franchising strategy on a large scale. The company can

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reduce significantly the operation costs by franchising its brands. This will also facilitate further
expansion into the untapped markets.
Conclusion
The concept of customer relationship management has been widely embraced by many
organizations in the contemporary organization environment. The need for organizations,
especially in the hospitality sector to establish competitive advantage has seen a drastic shift
from product-centric operations to customer related operations. CRM initiatives require a critical
investigation into the needs of individual customers and employ measures that will address those
needs. Globalization and technology innovation as further enabled business in the hospitality
sector to employ CRM systems. Example from the case, the Marriott group uses its CRM
systems to prepare customer experience in advance. The system is also used by the hotel group
to attract the customers to new services provided by the hotel. An effective CRM system can
bolster customer interaction on touch points and receive feedback from the clients on areas to
improve. The report has also established the importance of applying various management
strategies in the hospital sector. Hospitality management is aimed at ensuring a company
provides the best available service to its customers while maintaining high-profit margins. It can
be seen that Marriott Group uses a differentiation strategy that segments the consumer group in
accordance with spending capabilities. Marriott Group has further differentiated its brands so
that each can cater to the specific consumer group, this strategy creates a competitive advantage
for the hotel. From the foregone, it is established that hospitality providers that use effective
management strategies and maintain consumer relation through CRM system create a good
rapport and loyalty with the customer.

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