International Hospitality Management: Marriott Hotel Strategic Report

This report provides a comprehensive analysis of the international hospitality industry, with a specific focus on Marriott Hotel. It begins with an introduction to the industry, highlighting its growth and importance in the global economy, and then delves into Marriott Hotel's background, including its operations and services. The report includes a detailed SWOT analysis of Marriott Hotel West India Quay, evaluating its strengths, weaknesses, opportunities, and threats. Furthermore, it examines Marriott's presence in emerging markets, particularly China, and provides a PEST analysis of the country. The report also discusses strategic models and frameworks applicable to Marriott within these markets, justifying the chosen strategies and considering their practical application over a 5- and 10-year horizon. The report concludes by summarizing the key findings and insights into Marriott's strategic approach in the hospitality industry.

INTERNATIONAL
HOSPITALITY
MANAGEMENT

Table of Contents
INTRODUCTION...........................................................................................................................1
TASK A...........................................................................................................................................1
Background to international Hotel industry................................................................................1
Background of Marriott Hotel West India Quay.........................................................................2
SWOT analysis of Marriott hotel................................................................................................3
TASK B...........................................................................................................................................4
Background to Marriott Hotel as well as Emerging markets......................................................4
PEST of emerging market...........................................................................................................5
Analysis of SWOT and PEST.....................................................................................................7
TASK C...........................................................................................................................................7
Strategic model and frameworks within emerging market.........................................................7
Justification of strategy...............................................................................................................9
Practical application of scheme- 5 and 10 years ahead.............................................................10
CONCLUSION..............................................................................................................................10
REFERENCES..............................................................................................................................12

INTRODUCTION
International Hospitality Industry can be regarded as one of the most growing industry in
the world. It has seen major growth in the recent past due to high discretionary spendings of
families as well as individuals within the Global environment. Travel and Tourism Industry has
become an important part of GDP of some countries that has resulted in the growth as well as
development of their economy. There is a need to make sure that right kind of policies are being
made for effective growth and development of this industry in the longer run. The current report
will throw some light on the background of International hospitality industry, along with a detail
knowledge of the same through SWOT and PESTLE Analysis. The report will also discuss the
various policies framed by Marriott Hotels for effectively leading the Hospitality Industry in the
longer run. The strategic Models used by the organisation for gaining market share in this
competitive industry is also discussed in detail (Brotherton ed., 2012).
TASK A
Background to international Hotel industry
Hospitality is one of the most growing industry and is a major part of any economic
system in the longer run. The roles and characteristics of hospitality industry has gone through
major modifications in the recent past. Hotel Industry has gone through different changes over
period of time, The services are now being offered to a higher number of people with an efficient
use of digital technology platforms. The Hotels now a days are now coming up various kinds of
services like Spa's, Bars, Restaurants that are inbuilt within the hotel itself, the efficiency of
services have also increased. 15% of the people in hospitality industry works in Hotel industry.
Travel and Tourism has played a very crucial role in promotion of international trade at
Domestic level and this leads to higher income generation along with Employment creation over
longer period of time. Through effective management of foreign tourists, a healthy relation
between countries can be maintained which is beneficial for the foreign policies of the nation.
There are various drawbacks of Growth in the Tourism Industry as well, these includes pollution
and polluted environment which damages the environment in general and hence is a negative for
any country.
After an Advancement in technology of commutation like Air Travel and High End
Railway tourism, the growth in the travel and tourism sector has boosted even more, also the
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process of digitisation within the economy has lead to effective growth and development of the
industry in general. There is a specific need to make sure that, every nation shall have right kind
of policies of promoting growth in Tourism as well as travelling industry.
(Source:- International passenger survey, 2015)
The above Graph clearly states, the countries from which the visitors in UK has come up,
Large Number of people has came up from north America as well as Europe, the growth of
tourists from other countries was quite good enough as well. UK has tuned out to be one of the
most attractive destination for visitors around the world. Usually in Hospitality Industry, It
includes all Hotel Companies, Small as well as Large Restaurants, and Travel Agency etc. which
helps in gaining better experience to visitors in general (Dawson and Abbott, 2011).
Background of Marriott Hotel West India Quay
Marriott Hotel is one of the biggest Hospitality company within the industry and is
having diverse sorts of operations around the world. The hotel was opened up in 2004 and is
having around 301 rooms which are located on the bottom 12 floors of the 33 story building as
well as 47 apartments within it. It is one of the property of Marriott Hotels and is growing
rapidly. It has been able to serve the tourists and visitors of UK in an effective manner, through
its premium as well as luxury services over period of time. It is a luxurious Hotel that delivers
world class services to its customers, which are both local as well as international. It is situated
on the verge of sea line and thus gives a greater staying experience to the people within the hotel.
Marriott Hotel Group is one of the most reputed group within the Hospitality Industry and is
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having good brand image as well as recognition in the marketplace. There is a need to ensure that
management of the organisation frames effective policies to maintain the level of growth as well
as reputation over longer period of time. It is also very important to make sure that the ultimate
needs and wants of Tourists and visitors are addressed by the Management of Hotel to retain on
one of the top position within the industry effectively. The Hotel is trying to increase its online
presence in a manner that will enable it to capture a higher market share at the same time derive
growth as well as profits over period of time (Erciş, and et. al., 2012).
SWOT analysis of Marriott hotel West India Quay
Marriott Hotel West India Quay is a large hotel on a global scale, thus company enjoys a
reputation of higher growth within the business of Hotel Industry. SWOT Analysis is an
effective tool which helps an organisation in assessing the internal strengths as well as
weaknesses with external opportunities and threats that prevails within the business environment.
This analysis also guides an organisation as to what steps can be taken that will lead to better and
effective management its resources and how higher growth as well as profitability can be
achieved by focusing on internal factors. The SWOT Analysis of Marriott Hotel West India
Quay is laid down as follows:
Strengths Weaknesses Opportunities Threats
Marriott Hotel West
India Quay offers
unique and luxurious
interiors to its visitors
which is not usually
seen in any other hotel
groups easily, thus it
gives a competitive
advantage to the group
in an effective manner.
Due to providing
premium and quality
services to its clients,
the hotel is having a
high cost structure
which turns out to be
one of the main
weakness of the
organisation over
period of time (Hall,
Timothy and Duval,
2012).
China is one of the
fastest emerging
country within the
world, therefore
various opportunities
are there for Marriott
to use advanced
technology In serving
its costumers in an
effective manner.
The various mid range
Hotel Group within
china is offering high
quality services to
visitors and tourists in
a very competitive
price point, which can
be a threat for market
share of Marriott in
China.
Effective adaptation of Marriott hotel West The availability of Threats of losing
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digital tools and
technologies that will
enhance and speed up
the process of service
delivery to customers
for growth and
development of the
organisation in longer
run.
India Quay shall focus
on improving its
services towards
customers and at the
same time maintaining
the price at the same
level to gain a
competitive edge over
the others.
resources within
china is quite huge
and thus company
can utilise those
resources in an
effective manner.
market share as well as
interests of mid
income group. The
reason for the same is
the emergence of new
Mid range Hotels that
are providing the same
quality of services in a
considerable less
amount to consumers.
The organisation
maintains proper
reserves of cash for
future growth and
development of its
business operations.
The company's
expenditure on
marketing is not
enough to compete
effectively with
competitors.
Marriott hotel West
India Quay have the
opportunity to target
the mid income
segment of China,
which can expand the
business activity of
the organisation in
the longer run.
There is a larger threat
on the organisation of
increasing cost of
travel and leisure
which can further fuel
the costing for hotel
and hence may make it
less competitive
(Huimin and Ryan,
2011).
TASK B
Background to Marriott Hotel as well as Emerging markets
Marriott Hotel is one of the biggest hotel Brands having a headquarter in United States. It
is regarded as the fourth best company to work for in United Kingdom by the Times Magazines
in the year 2009. The company is having over 566 properties around the world. The company has
been a pioneer within the industry of Travel and Tourism. The tourism Industry do have a
important contribution in the overall growth as well as development of economy be it developed
or an emerging nation. It has contributed in giving employments to millions of people and at the
same time has raised the foreign exchange reserve of the nations. Which further increased the
relevance of this industry in the GDP of nations.
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Background to Emerging Markets
China is the fastest growing economy in the world, and is having a higher market share in
most of the international trade. According to the UNTWO tourism highlights 2014, The country
attracts tourists as well as visitors in large numbers from various regions that is beneficial for its
economy as well. There is a need to make sure that right kind of policies are framed by the
political people in china to ensure effective travel and tourism growth within the nation. Various
Steps needs to be taken by the concerned authorities for effective development of the tourism
industry within the Country. These are discussed as follows:
Prosperity: If effective growth has to be achieved, there is a specific need to make sure
that more funds are invested within country like china, so that more destinations can be
developed for the purpose of travel and tourism. This will ultimately enhance the standard of
living of individuals within China.
Job Creation: Growth of Travel and Tourism industry creates large number of
employment within the country and thus higher level of growth is expected within china through
growth in the travel and tourism industry.
Infrastructure Development: It is also essential that effective Infrastructure is there
which will attract tourists to travel and visit to china quite frequently in an efficient manner.
China is spending heavily on its infrastructural objectives, which can further fuel the growth as
well as development of Tourism industry within it. The infrastructure of china has gone through
efficient development in the previous decades, thus it makes the country more conducive for the
growth of tourism industry in general.
Highlights of 2014 also explains the future outlook of Tourism Industry, these are as
follows:
Forecasting towards 2030: As per the reports of UNTWO, There is an increment of
around 3% in total number of visitors from 2010 to 2030. It is also expected that number can
increase to 1.8 billion till 2030.
Market Share: The market share of emerging economies is increasing quite rapidly in the
International tourism industry, mainly because of the high discretionary spending that prevails
out there. The market share has increased from 30% in 1980 to around 47% in 2013 which if
translated in numbers equals to 1 billion arrivals of tourists from around the world (Kim and
Hardin, 2010).
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(Source: UNWTO Tourism Highlights of 2014)
PEST of emerging market
China is one of the most developing country in the world and its economy is growing on
a fast pace, which is giving opportunities to companies around the world to capture the market of
tourism. Marriott Hotel West India Quay has been focusing on china, which has resulted in
effective growth in its revenue as well as profits. Some of the primary reason of entering into
China was Low cost of Labour, Considering The immense size of the country as well as
economy, Potential of the country is also very high because of its high discretionary spending
and Domestic Savings. The PEST Analysis of China are laid down as follows:
Political The political positioning of the country is quite good enough and
there is a level of stability within the economy, thus it attracts Big
companies for the purpose of investment within the tourism
industry. The political situation of China is quite balanced, the
country does not run on democracy, hence most of the policies that
are framed by the government are easily implemented without any
protest. Thus, the chances of development in both tourism as well as
Hotel Industry is quite high. Marriott Hotel West India Quay shall
consider the political situation before investing heavily in country
like china, because the legal policies and procedure may differ from
developed countries like USA and UK. If the political Position of a
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country is good, that means it will be translated in a better economic
condition, thus higher per capita and disposable income in China
which will be beneficial for Marriott Hotel West India Quay in the
longer run.
Economical In the recent few years, Chinese economy is fluctuated due to
various positive as well as negative factors and it has a much
positive influence on the existence of hospitality companies, Some
of these influences can be presence of Export Business for
effectively exchanging goods and services. The ever rising Urban
Population of China has lead to growth and development of
economy very fast, thus there is higher potential for market
Expansion and business growth, This can be a very important
growth factor for international hospitality industry and Marriott
Hotel West India Quay can enter into China to capture a ever
growing disposable income of Chinese consumers, also china is
becoming attractive destination for tourists around the world, which
can be beneficial for the organisation in longer run.
Social This is an important factor that a business shall consider before
investing in a particular country. Marriott Hotel is continuously
planning to make its business environment conducive enough to
cope up with the social norms that prevails within the Chinese
business environment and it is expected that it will help the business
of Marriott hotel effectively. Socially china is not as evolved as any
other developed countries, there are restrictions on free exchange of
views and the criticism of government policies are not entertained in
the country, but there is availability of people from most of the
regions around the world, thus hiring is not an issue for hospitality
industry, more specifically hotels like Marriott Hotel West India
Quay. The social growth going forward can enhance the profitability
of the whole industry in an effective way. (Kong, Cheung and Song,
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2011).
Technological The level of Technology within Chinese economy is growing quite
rapidly, a report of World bank has suggested that china may be
spending around 3.5% of GDP on the development of innovative
tools as well as technologies in the longer run, but the official
number of China is way much higher. . Marriott Hotel West India
Quay can bring new as well as innovative products for its customers
and visitors. The company shall make effective plans of marketing
and productions with efficient use of internet and Extranet. Some of
the benefits that can be derived Marriott are given as under:
 Availability of latest Technology within
 Digital Promotional Tools like internet marketing etc.
 Mobile Communication availability can help in reaching a
wide range of consumers easily (Line and Runyan, 2012).
Analysis of SWOT and PEST
There is a effective need to make a proper analysis of SWOT and PEST that is being
conducted on Marriott Hotel. These micro as well as macro factors can help in framing effective
as well as efficient strategy for the growth and development of the business. The PEST Analysis
helps in determining the various macro factors that may affect business and its operations in the
longer run. Once the PEST Analysis is done, it is essential to assess the internal factors that can
help in achieving organisational success over period of time. The major attractiveness offered by
the company is its luxurious and premium service offering. The cost structure of company is
quite high with lying opportunities for growth and expansion over period of time.
The PEST assessment has brought out certain knowledge regarding the political and
economical situation of China, along with social and technological growth that can be availed by
the company over period of time. The major outcomes received through analysing SWOT and
PEST are determined as under:
 Acquisition of knowledge about rivals.
 Reliable information about Market.
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 Identification of barriers as well as problems (Sigala, Christou and Gretzel eds., 2012).
TASK C
Strategic model and frameworks within emerging market
International market is having lots of complexities which brings various challenges and
difficulties towards hospitality companies to operate its business functions more smoothly. For
this, it is necessarily required to adopt an effective plans and strategies so as to enter into new
market and ensure sustainability within shorter period of time. The management is required to
appoint specialised and knowledge person who are much aware about the fluctuations in market
which makes easy for an organisation to formulate an effective plans in advance to enter into
new market. Strategies are of different types which are available for the management of Marriott
Hotel West India Quay to expand its business into international market. Some of the strategies
are explained as under:
Porter generic strategy: Using such strategy, the management of Marriott Hotel are able
to analyse various factors which may influences their decision of expansion of business at global
level. Such influencing factors are properly analysed in order to minimised cost, differentiated or
attention towards marketplace. As Marriott Hotel is deciding to expand its business to China in
order to capture large market across worldwide. It can be successful possible using such strategy.
There are mainly three types of porter generic strategies which are explained as under:
Cost leadership: Under this strategy, hospitality companies need to lower its price of
hospitality products and services which can easily attract customers across worldwide. For
example, to attract new customers from new market, the company need to lower price of its
products and services..
Differentiation: Under this strategy, company need to focus on introducing new
products or make changes in existing products so as to differentiate their products from their
rivals. It can be easy for customers to recognise their products in market among their different
rivals. Fot example, Hotel Marriott focuses on reaching its business to Chinese market thus
providing differentiated products as compared to the existing rivals easily grab an attention of
maximum number of customers.
Focus: Under this strategy, company need to focus on targeted segment group so that an
effective strategies can be made to attract their decision to buy company’s hospitality services.
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From the above three strategies, differentiation strategy is the suitable strategy for
Marriott Hotel as it help them in representing their products and services in unique and different
than their rivals existing in Chinese market.
Ansoff matrix: Ansoff matrix is another an effective tools which is adopt to achieve
corporate growth strategies, focusing on the present situations of firm and existing products and
services. To identify its effectiveness regarding achieving growth and expansion of company into
new market, there are four combinations introduces by Igor Anson are required to discussed in
brief which are given under below:
Market penetration: Using such strategy, the firm mainly focuses on achieving growth
with current products and services in the existing market in order to gain large market share.
Marriott Hotel may have option of offer discounts, attractive packages, organising campaigns
etc. to attract middle class customers which encourages them to enter into Chinese market more
successfully.
Product development: Using such strategy, the firm is looking to introduce new products
in existing market segment to achieve loyalty of targeted customers as well as attract new
customers. Marriott Hotel should require to start giving air taxi services for their upcoming
special guest using helicopters from airport to hotel or vice-versa (Tavitiyaman, Qiu Zhang and
Qu, 2012). It increases revenue of company which strong their idea of entering into Chinese
market.
Market development: Using such strategy, the firm mainly focuses on reaching its
existing products and services to the new market segment to reach business at global level.
Marriott Hotel expand its business through establishing new branches to such countries such as
China where they can receive high amount of customers. Various destinations also play a major
role in attracting hospitality companies to expand its business.
Diversification: Using such strategy, the firms looking to achieving growth through
diversifying into new businesses by introducing new products for new markets. Marriott Hotel
should required to start sea cruise company at global level and provide the same standard of
service offered by hotel Marriott. It makes easy for them to enter into Chinese market as it grabs
lots of attention of Chinese customers.
From the above strategies, diversification strategy adopted by Hotel Marriott as it directs
them to introduce new products into new market. As in the present case, Hotel Marriott decided
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