International Hospitality Management: Industry Analysis and Strategies

This report provides a comprehensive analysis of the international hospitality industry, examining its background, roles, and responsibilities. It delves into the SWOT and PEST analysis of the industry, highlighting the strategic approaches of Marriott Hotel, known for its quality hospitality services and attractive interiors. The report also explores emerging markets, particularly the Chinese market, and discusses strategic models and frameworks for market entry. The report provides a detailed overview of the international hospitality sector, offering valuable insights into its dynamics, challenges, and opportunities, making it a useful resource for students studying international hospitality management. It references key industry reports and provides a clear understanding of the industry's evolution and future prospects.

International
Hospitality Management

INTRODUCTION
International industry is a study of service industry providing hospitality services in
multiple number of nations with an objective of earning profits and build strong image in
hospitality industry. It attracts local as well as foreign visitors who comes in country for some
purpose. Therefore, such industry are expanded across national borders with the help of
advanced technologies in form of attracting millions of visitors through out the nations. It
contributes maximum in the growth of GDP of nation as well due to generation of high revenue
thus large number of companies are engaged in such industry with a motive of earning huge
revenues. The present assignment report is based on study of hospitality industry across national
boundaries. The project describes the background, roles and responsibilities of hospitality
industry along with doing an analysis through SWOT and PEST. Also, effective strategies and
policies formulated by Marriott hotel which are famous of its quality hospitality services and
attractive interiors are properly mentioned. In addition with this, background of emerging
markets at international level are briefly summarised. Apart from this, strategic model and
frameworks within entering market are also discussed under this report with their proper
justification (Bowie, Buttle and Brookes, 2016) Chinese market is an emerging market which is
good for every business to expand its business to achieve huge profits.
TASK A
Background to international Hotel industry
Hospitality industry is growing more rapidly through maximising their area of offering
hospitality services. The prospects and characteristics of hospitality industry have undergone a
large modification over time since the Colonial Period. In fact, tourism is playing an important
role in promoting international trade at national level and generation of huge income as well. It
also help a country to maintain healthy relation with other nations through welcoming their
visitors in more effective and efficient manner. Apart from this, tourism industry has become the
major reason of damaging environment as well as polluting atmosphere which directly impact
the society as as whole in an adverse manner. Along with this, hospitality sector is the major
agenda which deals with global development through bringing new and innovative ideas of
attracting millions of customers through out the nations.
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In addition with this, tourism act as a social, cultural and economic phenomena whose
main objective is to serve hospitality services to those people who travel from one nation to
another with either personal or professional purposes. Such people are called as visitors. Along
with this, tourism also deals with foreign visitors with full of complexity due to emergence of
number of a new things. Thus, the background of hospitality industry is much related with their
history, emergence, past services, strategies, plans and policies in order to show their objective in
the growth of economy of nation (Brotherton, 2012).
Illustration 1: Tourist travelling in UK with different purpose
(Source:- International passenger survey, 2015)
As per the above graph, it is clearly understood about the number of tourists came in UK
with their different purposes. Thus, it may bring useful information to hospitality companies
about making plans in order to attract visitors comes from different nations.
In the last few years, hospitality industry were facing lots of issues and problems due to
economic recession which majorly affects the entire sector as all are interdependent on each
other. In present scenario, there are number of countries which has attained large number tourist
destinations due to which the development of tourism industry are very much depend on such
destinations to earn huge revenues. Hospitality includes all hotel companies, small and large
restaurants, travel agency etc. which are facilitating visitors in gaining better experience. At last,
international hospitality depends upon the visitors which are moving from one place to another
(Dawson and Abbott, 2011).
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Background of Marriott Hotel West India Quay
Marriott Hotel is an international hospitality industry which is operating its business and
operation in London. Main objectives of the organisation is to provide quality services to clients
and customers. The business and operations are mainly associated with analysing the
performance and managing business and operations by implementing new technology and
innovative ideas are considered in various forms. Quay is one of the luxurious organisation
which mainly associated with providing the combine hospitality and hotel services to clients and
customers. Attractive atmosphere, interior and physical appearance is the main USP of
organisation. There are various type of hospitality services provided by Marriott Hotel West
India Quay. It is a five star hotel which mainly associated delivers class and luxurious
atmosphere and experience to local and international guests. It provides twenty four hours rooms
delivering and supply services with in the hotel (Erciş and et. al., 2012).
There is a proper management of hotel receptionist and support services. Many of rooms
are look out over Canary Wharf and the skyline of London's business district.
Marriott Hospitality is arranged at roughly 22 Hertsmere street canary wharf with 12
stories and 300 rooms completely outfitted (London Marriott Hotel West India Quay, 2018).
Principle focal point of this administration organization is to look for consideration of a great
many customers by featuring their inn with amazing inside and additionally the best offices.
There are number of variables which separate this Hospitality from different organizations. The
distinction is said as follows:-
Appealing identity of representatives for catching the consideration of youths and distinctive
clients
 Rise of imaginative thoughts
 On time conveyance and administrations
 Noteworthy inside
 Alluring subjects with the assistance of experienced people
 Arranged exercises previously execution programs
 Experienced and concentrated people for executing every one of the assignments and
exercises in an appropriate way.
Besides this, it has been comprehended that Marriott inn is an extensive association
extended crosswise over national fringes whose fundamental thought process is to fulfil their
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customers with the best administrations. In a years ago, Marriott inn isn't particularly appealing
because of inappropriate administration and non appearance of a successful correspondence as a
result of lacking innovation (Hall, Timothy and Duval, 2012). Rather than this, one of the real
explanations for foundation of this inn is to create most extreme income by thinking about the
taste and inclinations of different purchasers. In this way, Hospitality needs to actualize different
powerful techniques and plans for advancing their products and enterprises at worldwide level.
SWOT analysis of Marriott hotel
Marriott hotel has a expensive and Luxurious brand image across the world and in
international level it is creating an effective brand image. SWOT analysis is one of the analytical
approach which mainly associated with assessing the liabilities and the changes related to
internal and external environment (Huimin and Ryan, 2011). Management authorities and the
accountants mainly engage in creating the information and the details for conflict of interest for
developing the structure of business. The SWOT analysis is defined as follows:
Strengths Weaknesses Threats Opportunities
At initial stage the
hotel has an attractive
and unique interior for
grasping the mind of
various customers and
consumers. This is the
main strength of
business.
High cost structure
and expensive
hospitality serveries is
the main weakness of
organisation.
Various affordable and
customer satisfactory
hospitality industries
are formed which are
creating challenging
situations and
competition in various
form.
Marriott as an
opportunities to
explore and emerge the
hospitality in Chine
with advanced tools
and technology.
Proper adaptation and
implementation for
development and
growth. for example
Ansoff matrix
Approachability of
Marriott hotel group
is not found in rural
and small cities. Lack
of reach found in
domestic areas.
Threat of getting less
interest from lower
income groups and
customer area.
There is an enough
availability of
resources found in
china.
Organisation retain
sufficient funds and
Support of local bodies
and government to
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reserves as capital
subject to the lifeblood
for hospitality services
and activities.
invest in economic
developing country as
china.
It has potential
customer market and
base for expanding the
business and
operations.
There is a huge scope
of gathering the
information regarding
culture, trend and
manpower at lower
cost.
As per above analysis of strength and weakness of organisation, it is summarised that
Marriott hotel has vast opportunities regarding exploring the hospitality sector in china. It is seen
that organisation will get benefits of lower wage rate in china. Technology and advancements are
the backbone of the country which make organisation more advanced and effective. SWOT
analysis also provides some aid regarding the threats of domestic hospitality and medium scale
investitures in china. It is also analysed that there are type of hidden barriers were found which
were occurring ducting the year (Kim and Hardin, 2010).
TASK B
Background to Marriott Hotel and Emerging markets
It is a brand of full-service hotels and resorts whose headquarter is in Bethesda,
Maryland, United states. It becomes the four best company to work for in the UK by the Times
in 2009. It has owned more than 566 hotels and resorts operating under the brand. It continuously
expand its business to different countries with a motive of capturing large market share. It
contributes maximum support in the growth of GDP of countries in which they are operated bits
business. With their contribution, tourism industry has achieved growth and success in market
which attracts maximum number of companies to engaged in providing hospitality cproducts and
services..
Background to emerging markets
The world's travel market 2014 industry report states that there are multiple number of
countries which are coming in different markets to expand its business across national
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boundaries. Through considering 2014 report, Marriott hotel is expanding its business to the
market of China in order to grab an attention of Chinese people through manufacturing profits
and services which are more in demand. According to the UNTWO tourism highlights 2014, the
main objective of international market is to develop global tourism overseas. In addition with
this, report also states the various factors which contributes maximum in uplifting the overall
market. For this, it is required for Hotel industry to implement various steps which are given
under below:
Development in prosperity and well-being: On the basis of such report, higher authority
are required to invest more funds so as to establish number of destinations so that maximum
number of visitors are attracted towards them and using hospitality service to maximise their
travelling experience (Kong, Cheung and Song, 2011).
Creation of job: Through expansion of business, it creates large number of employment
opportunities due to which the standard of living of people are maximised.
Infrastructure development: Expansion of business required development in
infrastructure so that the needs and requirements of customers are easily fulfilled.
In addition with this, highlights of 2014 also explained the future outlook which affects the
success of Marriott Hotel some of which are given as under:
Future forecasting towards 2030: As per the UNTWO, there is increment of 3% in total
number of visitors from 2010 to 2030. It forecasted that figures of number of visitors will be
reached to 1.8 billion till 2030.
Emerging destinations: It has been forecasted that in between 2010 to 2030, there is
increment in arrivals at destinations by +4.4% per year which is doubled the rate of modern
economies which is +2.2% per year (Line and Runyan, 2012).
Market share: It also has been forecasted that market share of emerging economies
increases from 30% in the year 1980 to 47% in the year 2013 but on the basis of assumption, it
has been estimated that 47% will rises to 57% till 2030 which is equal to 1 billion arrivals of
tourists from across the world (Global travel patterns, 2017) .
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Illustration 2: Number of tourist arrival
(Source:- UNWTO tourism highlights of 2014)
From the above graph, it has been seen increment in the number of foreign visitors from
1999 to till 2013. It helps tourism companies to make suitable plans and policies in order to
attract million of foreign visitors.
PEST of emerging market
China can be considered as an appropriate nation from all over the world to expand
business because it is known for its unique and innovative products and emerges as strongest
market at international level. Marriott Hotel entered into Chinese market due to some specific
reasons which is mentioned below:
Size: The population size of China is very high due to which Marriott Hotel can easily get
maximum number of customers due to which their chances of sustaining in Chinese market will
be more (Ransley and Ingram, 2012).
Minimum cost of labour: The labour cost in China are much cheaper due to which it
become easy for Marriott Hotel to fulfil their requirement in human resource. It will also be
helpful for them to deal with Chinese guests due to recruiting Chinese labour.
Potentiality: Organisations of China are having maximum potentiality due to which it can
easily attracts Marriott hotel towards their marketing strategy.
China is reaching their business across national borders due to which the market of china
are much affected by macro factors which are given as under:
Political The government of China has made some strict laws and standards
which brings difficulties for foreign hospitality companies to
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exchange goods and services in China. Over the period of time,
China has developing the e-commerce for the completing the
activities in more quickest way which brings advantages to
hospitality company who want to enter into new market.
Economical During last five years the economy of China are more fluctuated due
to several factors makes either positive or negative impact on the
existence of hospitality companies. Some of which are given as
under:
 Availability of skilled and knowledgeable labour due to their
control on activities and task performed by an organisation.
 Presence of export business in order to exchange goods and
services at global level.
 Urban group have more potentiality in growth and
development of economy.
Social This is the factor which plays an important role in helping
organisation to achieve growth and success as it all depends on the
needs and requirements of society. Marriott Hotel is looking to
expand its business into Chinese market which is developing nation.
Therefore, they are required to clearly identify the social factors
which includes values, lifestyle of people, education, religion as well
as culture while making decision regarding producing goods.
Technological China is known for having advanced technologies which makes easy
for Marriott Hotel to bring new and creative products. For this,
Marriott Hotel need to formulate an effective strategies related with
marketing and productions with the help of internet and extranet.
Some of the technological benefits that may received by Marriott
Hotel in China are given as under:
 Availability of fresh production technology.
 Promotional tools used with the help of internet.
 Better communication with targeted people through
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interaction with mobile phones.
Analysis of SWOT and PEST
Analysis is an essential process which help in identifying the necessary requirements of
making changes in existing strategies and policies in order to achieve its desired goals and
objectives Micro and macro factors of Marriott Hotel and Chinese market are much different
from each other due to its different roles and responsibilities in the growth and development of
an economy. All the PEST factors which are briefly described above is having direct and indirect
relation with hospitality industry of international and national level. Therefore, it is essential to
make proper assessment about strengths and weaknesses of Marriott Hotel so as to identify the
hurdles of barriers which can affect the success of their business. The major strength of Marriott
Hotel is having superior interior design which shows their attractive that can easily attracts large
number of visitors across worldwide. On the other hand, Chinese market are expanded at global
level in order to earn huge profits through introducing new ideas and techniques. Therefore, the
decision of Marriott Hotel to expand its business in different nations bring profitable outcome to
an organisation (Sigala, Christou and Gretzel, 2012).
SWOT of Marriott Hotel is conducted in order to get accurate and reliable information
about the company's products and services which enable management to make changes
according to the needs and preferences of targeted people. Whereas PEST is conducted in order
to acquire specific knowledge about the political and economical situations so that an appropriate
strategies are formulated in order to fulfil the needs and requirements of foreign customers.
Both internal and external environment are properly analysed with the help of SWOT and
PEST Analysis which assist hospitality companies such as Marriott hotel to make corrective
plans and actions so as to cope up with the challenges that may comes due to internal and
external factors. Such analysis makes huge impact on a overall development of a market place
due to providing maximum contribution to foreign direct investment. In other words, most of
companies prefer to expand its business to China through making joint venture which directly
increases the foreign direct investment. Apart from all these, it is clearly stated that micro and
macro factors are much interlinked with each other. It affects the objectives of a hotel as whole
hospitality industry. (Tavitiyaman, Qiu Zhang and Qu, 2012). The major outcomes received
through analysing SWOT and PEST are determined as under:
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 Acquiring knowledge about rivals strategies.
 Receiving accurate and reliable information about market.
 Identifying hidden barriers and problems.
 Modification in existing plans and policies in order to overcome issues.
 Determining governing norms, beliefs, rules and regulations.
 Achievement of enterprise and goals of market place within pre-determined time period.
TASK C
Strategic model and frameworks within emerging market
International market is a wider concept which are complex in nature due to which it is
necessary for an organisation to make an effective strategies and plans in order to enter into new
market place. For this, specialised and professional person should be appointed which are much
aware about the fluctuations in market due to which it makes easy to implement schemes of
market entry. There are different methods which can be used by Marriott company to enter into
international market strategy are given as under:
Porter generic strategy: Under this scheme, an organisation can enter into international
market through identifying and analysing various factors in order to minimise cost,
differentiated or attention towards marketplace. Marriott Hotel is focusing on expanding its
business into China market which can be successfully done through lowering the price of their
product cost so as to achieve huge customer strength. It can be possible through offering
differentiated products and services from their rivals at lower price (Tsiotsou and Ratten, 2010).
Thus, such concept is known as a Michael Porter.. Through such strategy, an organisation are
able to target either leadership through cost, different from other or focus which is called as
porter's three generic strategies which should be adopted by every organisation irrespective of
the size whether small or large in order to enter into new market.
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(Source :- Competitive advantage, 2017)
Ansoff matrix:
The Ansoff matrix is a marketing tool used to adopt alternative corporate growth
strategies, focusing on the firm's present and potential products and market. To study product-
market there are four combinations used by Igor Anson:
 Market Penetration
 Product Development
 Market Development
 Diversification
Illustration 3: Ansoff's matrix
(Source:- Ansoff's matrix, 2017)
Use of Ansoff Matrix strategy by Hotel Marriott
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Market Penetration- According to such strategy, an organisation tries to achieve growth
with existing products and services in the existing market segment with an objective of achieving
huge market share. Hotel Marriott should increase the middle class customer base by introducing
new campaigns, new offer and discount service (Yoo and Bai, 2013).
Product Development- According to such strategy, the organisation introduce or make
modification in existing products in existing market segment so as to attract large number of
customers. Marriott Hotel should start giving the services of air taxi for their special guest using
helicopters from airport to hotel or vice versa. They should start a production for plates and
dishes of their own that will help in the reduction of cost. Host monuments exhibition for longer
period on international level with some special discount offer.
Market Development – According to such strategy, an organisation tries to reach its
existing products to new market segments. According to such strategy, Creation of market is
necessary for hotel Marriott in creating customer base and sales figures too. Marriott should
expand their branches to those countries where there are more customer base because of natural
beauty, as like in Morocco(mountain,river), Maldives(target sea tourism) and Iran(focus
religious market).
Diversification- According to such strategy, the firm diversifying into new businesses
through introducing or changing existing products in order to enter into new market. Establishing
new branches of such hotel in different location which makes easy for Marriott hotel to capture
large market share. Open a sea-cruise company at international level and provide the same
standard of service like in hotel Marriott (Yu, Byun and Lee, 2014).
NYKIELS STRATEGY: Such strategy is related with growth and development of Marriott
Hotel through adopting an effective techniques and methods which can uplift the business. Under
this scheme, Marriott Hotel is focusing on implementing various actions to achieve growth and
success in new market. Such actions or methods are briefly explained under the below:
Specialisation: Marriott Hotel is required to offer specialised and luxurious hospitality
services in UK through enhancing skills and knowledge of their staff members.
Horizontal expansion: With the help of such strategy, higher authority of Marriott Hotel
focuses on reaching its business to other countries through arranging and managing sufficient
amount of funds.
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Brand collection: Through such strategy, Marriott Hotel are trying to promote their
brand at global level through adopting various marketing tools and techniques.
Justification of strategy
All strategies mentioned above help Marriott Hotel in getting profitable outcomes to their
existence in international market as such strategies assist them in identifying the market
fluctuations and customer needs and requirements. Without making strategies, the chances of
achieve success in new market is almost nil. Therefore, all such strategies play a crucial role in
achieving sustainability and development of an organisation. Justification of above mentioned
three strategies are elaborated below in briefly manner:
Porter generic model: It reflects the blueprint of five forces of porter which can affect
the decision of expanding business into new market in positive manner. It will bring good impact
on the sustainability and profitability of an organisation through considering all such influencing
factors. The reasons of adoption such strategy by Marriott Hotel are determined as under:
 Increase in profitability through reduction in cost.
 Main focus is to provide differentiated products as compared to their rivals. Proper evaluation of rivals strategies.
Ansoff matrix: This is the strategy which direct an organisation to identify market needs
and accordingly introduce new products in existing as well as new market in order to achieve
huge customer strength. It plays an important role in achieving success and development of an
organisation in new market due to which their brand value also goes high (Ansoff matrix, 2017).
Nykiel strategy: Through such strategy, Marriott Hotel mainly focuses on expanding its
business through arranging and managing funds and money which are required to set up business
in new market.
It has been concluded from analysing such strategies that it must required to adopt by
Marriott Hotel so as to get maximum advantages and achieve sustainability in Chinese market.
Practical application of schemes- 5 and 10 years ahead
As looking in future, Ansoff matrix is considered as an effective strategy which help
Marriott Hotel in building strong goodwill at global level as this is the strategy which considers
all influencing factors which an affects the sustainability of an organisation in new market. After
applying it practically, it act as a very useful technique to fulfil the needs and requirements of
targeted people which makes their path easy to achieve growth and success. Along with this,
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Marriott Hotel also focuses on opening their branches across national boundaries which can help
them in capturing large market share (Competitive advantage, 2017).
CONCLUSION
It has been concluded from the above project report that internationally hospitality
maximises the contribution of tourism industry through establishing and expanding number of
hotels across national boundaries. The main motive of such sector is to maximise the travelling
experience of local as well as foreign visitors through offering them better quality of hospitality
services. In this report, Marriott Hotel is looking to expand its business to Chinese market in
order to wider their area of business thus it can be possible through adopting various strategies
such as Ansoff matrix, porter fiver forces, Nykiel strategy etc. which is clearly understood under
this project. In addition with this, it is also important for such organisation to identify its own
strength and weaknesses through conducting SWOT analysis so that further actions to be taken
to remove their weaknesses and strong their strength. Apart from this, PESTLE analysis is also
required to be conducted in order to analyse external influencing factors which can affect their
sustainability in new market.
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