Marriott: Hospitality Industry Analysis, SWOT, PESTLE, and Trends

This report provides a comprehensive analysis of the Marriott hotel chain within the contemporary hospitality industry. It begins with an introduction to the company, highlighting its global presence and brand image. The core of the report focuses on an external analysis using the PESTLE framework, examining political, economic, social, technological, legal, and environmental factors impacting Marriott's operations. Subsequently, a SWOT analysis is conducted to determine the company's internal strengths, weaknesses, opportunities, and threats, and how this can inform the decision-making process. Finally, the report discusses current and future trends in the hospitality industry, and some implications that may affect company's overall structure. The analysis covers various factors such as political instability, economic fluctuations, social changes, technological advancements, legal challenges, and environmental concerns, and their potential impact on Marriott's performance and strategic planning. The report concludes by summarizing the key findings and implications for the company's future.

The contemporary Hospitality
Industry: 2

Table of Contents
INTRODUCTION...........................................................................................................................1
LO 3.................................................................................................................................................1
P6 Presenting the external analysis of the Marriott................................................................1
P7 Swot analysis for a hospitality business and the review how this can inform the decision
making process-......................................................................................................................4
P8 Current and future Trends in hospitality industry.............................................................6
CONCLUSION................................................................................................................................8
REFERENCES................................................................................................................................9

INTRODUCTION
Hospitality industry provide the services of accommodation to their customers. For this
report the chosen organization is Marriott which is one of the top and leading hotels in UK. It is a
multinational American Hotel that provides best services to their customers and it present its
store in more than 6520 location and this shows that the company have good and effective brand
image in market. Further the report presents the external analysis of Marriott by using PESTLE
analysis and to determine the company's internal environment, report uses SWOT analysis.
Further report also describes current and potential trends in the hospitality industry and some
implications that may affect company's overall structure.
LO 3
P6 Presenting the external analysis of the Marriott
To determine the external environment of the company, Marriott uses PESTLE analysis
and it is mentioned below:
Political Factor: The biggest factor that affect the company's internally as well as
externally i.e. danger of terrorism or international relation. As the hotel is also deals with
different countries and it operates in lodging in more than a dozen countries. Hence, expose itself
to many types of different political environment as well as risk. To cope up from this situation,
Marriott has to diversify its strategic risk of political environment. Even if there is any political
instability in the country then it directly affects the company's overall performance in adverse
way. As well as climate that affect the tourism. Beside this, there is another threat that may affect
the company's profitability such as terrorist attack or attack of military because this may disrupt
the international air travel agency and even people are also frighten to go out from their country.
In addition to this, Marriott also faces another threat from the terrorist such that there are
increases chances of terrorist attack that directly affect the entire tourist in adverse way (Al-
Araidah and et.al., 2015). Beside this, the government suddenly raise the taxes and as a result it
directly affects the company's overall working performance. For example, in June in UK, there is
a terrorist attack and as a result, many people were killed and it directly affects the country
tourism industry.
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Economical factor: Slowing down the economic growth of the country directly affect
the company's overall performance and if the country's economic situation is not stable then it
also lowers down the prices of those services or products which are provided by the company to
the customers. For example, the stock market is also collapsed in China and this creates issues
related to debt crisis and also affects the buying power of the company. Further, the U.S. Dollar
also creates another problem for Marriott and it also discourages many people to travel and
hence the foreign tourist is also affected. If this economic instability is growing year by year then
it directly affects the company's sales such that people have to reduce the people's ability to
travel and stay in the hotels. On the other side, if there is an increase rate of inflation then it
affects the company in adverse way such that it reduces the overall sales in hotel industry and
causing so many difficulties for their customers too. Because customer actually have fixed
budget which they have to spend on their holiday but on the other side, if the government
suddenly raise the tax rates and there is imbalance in economy then people will not spend more
to enjoy. That is why economic factor of external environment directly affect the company's
overall performance.
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Illustration 1: PESTLE analysis
(Source: PESTLE analysis, 2018)

It has been analysed that fuel prices will also affect the company's performance in
adverse way (Baines and et.al., 2018). Failing in the prices of oil may sometimes lead to disrupt
the brand image of the company and hence it is the potential threat for the company.
Social Factors: for Hospitality industry it is always an issue to accept the change in their
customer’s mood. But for Marriott, these factors are quite beneficial because many tourists are
planned to spend their holidays in a hotel and the income of the company is raises up to 13
percent during the time of holiday (Agustin and Singh, 2015). It shows that the people are
spending more on their travelling. Such that Australian people spend lot of money for travelling
to enjoy on their holiday. Beside this, cultural changes also create impact upon Chinese as well
as Asian travellers. Shared belief as well as attitudes of the populations are also plays an
effective role in the hospitality industry such that at that time Industry have to understand the
needs of their customers and then provide services accordingly.
Technological factors: This factor also affects the company's overall performance in
adverse way such that adopting new and sudden changes will be more beneficial for Marriott.
For example, by using online system for booking will create positive impact upon it because it
will help customers to save money as well as time. To attract wide range of customers, there is a
need to adopt all new and advance technique into the working area (Anderson and Mittal, 2018).
For example, Marriott also provide online services to their customers so that they could not find
any difficulties to search out the hotels. By using advance techniques or internet, hospitality
industry also llet people know about new offers too.
Legal factors: The major threat for legal factor is Airbnb (Private company that arranges
or offer lodging and home stay facility to customers at reasonable rates) that creates negative
impact upon Marriott and it also affects the brand image in market. If the company is not
following all legal system and authorities then it directly affects the company's overall
performance. It is quite necessary for Marriott to apply employment law, data protection law and
discrimination law in order to sustain the brand image in market.
Environmental factors:On the other side, sudden change in climate may affect the
business and even raising the level of ocean also creates the condition of flood and as a result
people avoiding visiting such places and this impact upon company's sales as well as profitability
too. Hence, it is quite important to follow environmental laws for Marriott.
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P7 Swot analysis for a hospitality business and the review how this can inform the decision
making process-
Swot analysis is a tool to find out the strength, weakness, opportunity and the threat of any
company is one of the important tool to find out the position of the company here hotel Marriott ,
it is one of the famous hotel in the world has a range of areas across the world this hotel comes in
five star and seven star hotel hotels in the hospitality industry.
Swot analysis of the Marriott
These are the factors of the strength of the hotel Marriott which are written below-
Marriott way- this is all about the operational norms which are this industry is providing to all
the employees would have to be obedient about these norms and conditions of the company.
International market – Marriott international has expanded its business across the world . It is
situated in the 122 countries around the world and the Marriott has 600 properties under its
supervision across the world. And the 1.2 millions rooms are there Focus on innovation- it
should be one of the important and big strength for the all companies . Many companies are
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Illustration 2: Swot analysis
(Source: Swot analysis, 2018)

expanding their business on the traditional methods. As in result they are not able to grow their
business according to expectations. Because customers attracts towards the innovative products.
So Marriott international is one of the innovation based company
Drive for the competitive advantage- according to research methods , it has founded that
Marriott international is one of the most competitive brand in the market among variety of the
companies this is what is strength of the company to expand the business of the company.
Power of the positivity- Marriott international is one the trustworthy brand in the market , just
because of the positive vision of the company. This positive attitude and the thinking make this
company on the hill.
Weaknesses- Weakness words refers to a particular area which needs improvement
Marriott controversial- that means Marriott has its name in the world so there are many
competitors who want to failure of the Marriott. There are many companies which are the
competitor of the Marriott which always plays a controversial role in the market in these
controversies makes the poor market of Marriott.
Excessive focus on expansion- this is all about the aggressive expansion of the company hast
means company is using aggressive marketing strategies for the advertisement and for the
marketing as well. This company has reached out on the top of the hill so it is necessary for the
company to maintain the dignity of the company and stop to do aggressive marketing.
Family business – it has said that Marriott is doing a family business that means company is
working according to the founder of the company and thinking of the founder is not so much
modern .so it is also a weakness of the company.
Opportunities – This word refers to all the environment procedure which be proved beneficial
for the company.
Huge unexploited market-Marriott international has a big market to provide e many
opportunities to join with the customers and company can attract its customers by providing the
many offers for the same sex couples , on their honeymoons facilitie , etc so it it should be best
opportunity for the Marriott to provide offers according to customers.
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The shift of consumer behaviour- consumer behaviour has a quality to change rapidly
according tom m, mood and the trend. So nowadays people does not think about the money when
they are travelling outside the nation. They spend a lot of money behind there accommodations
and the luxurious life . So this is all about their thinking of then tourist this is call shift of the
consumer behaviour.
Increase in global travel- it is also a good opportunity for the company to tie up, with the many
airlines to provide them many offer on the travelling. This can also be beneficial for the company
for the profit maximization.
By provide personalization- nowadays everyone needs privacy. When tourist goes outside the
country for fun they never think about the money. They always want their privacy from others .
Which they can get if Hotel Marriott will provide them personalization.
Threats-: somehow threats and weakness are inter related to each other-are From it has
been analysed that hotel Marriott hotel is facing many problems. Which are related to staff
turnover and because of poor management system, employees do not want to stay for long time.
It has been analysed that through proper training session, Imperial Hotel can also raise the
working effective of the staff members and if the effectively will increase it will directly affect
the production level of the hotel imperial. Overall, this help to increase the profit for future and
present and on the other side, if the hotel Marriott have systematic maintenance and cleanliness
then it will help to attract all the visitors across the world towards them. Another suggestion is
providing is such that there are many employees are working in every organization. A few
employees provide their work contribution to the organization but they do not get enough salary
accordingly. Because this training system motivate staff members and result they provide work
in more effective way so it is very helpful for company to provide training and development
programs so that they can increase their productivity.
Competition – The company is facing many more competition in the market there are several
numbers of competition Hilton. Etc.
P8 Current and future Trends in hospitality industry
Hospitality industry is on growth and has wide area. Hospitality industry provides
accommodation, foods and beverages, different packages. It is the industry which contributes in
global development of the country(Singal, 2015).
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Direct booking with meta-search- It is in current trend that anyone who want to travel,
can book the hotel through online portal. Nowadays people do not like to go through the offline
portal because there they have to face many difficulties. So they book the hotel online and paid
for that. Through it the traveller feel comfortable and happy journey.
Block chain, mobile, cloud- Block chain and cloud defined a software in which every
hotel have maintained the record of every person and this thing make people comfortable.
Through use of block chain customers can gain benefit in travelling packages.
Experiential marketing- It is all about the experience of customer’s from check-in to
check-out. It includes the all experience of hospitality industry which start from booking to
travel. Experiential marketing has number of digital medium that can be used in travelling by
traveller. Marriott hotel chain allows customers to use virtual reality on their mobile.
Social media marketing- Nowadays it is in tend that every people use social media to be
famous. Hotels chain also use this for marketing of the hotel. Not only hotels but also people
who go for travelling, they also share the images and videos of the hotel. They also share their
experience towards the hospitality industry and a particular hotel. One more thing which is
famous nowadays, is live video. People use live video to share their experience with other.
Customize facility- It is a new trend which comes into the hospitality industry and in it
the customer who take place on the hotel room, can demand for any service in the room. No need
to go anywhere, the service providers help them to being customize.
Technology- In the hospitality industry many of the travellers want new technology and
they needed for technology only. Some customers can pay anything for good services. Many
hotels provide mobile facilities in which they can demand for anything from a call on a text
message. They can know about the nearest areas according to their wants(Anderson and Mittal,
2018).
Travelling package- Much hospitality industry chain are available for good services and
travelling packages. They provide different packages for the travelling in this package all things
include with accommodation, travelling expenses, food, travelling place and everything. It is in
affordable price. Marriott hotel have tie ups with many other hospitality industry chain and they
provide best packages for travelling and accommodation. They also provide the bonus packages
to the customers for future. The customer who already travels that particular hotel, will gain
benefits in future if again travel(Agustin and Singh, 2015).
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Price comparison- It is a mobile facility in which any customer who want to travel,
compare the rates of different hotels. They can easily search on the app and find price
differentiation of hotels. Some applications provide customer service with price differentiation.
On this application travellers can see different packages by different hotels and they can reach
their easily.
The era of the bots- Chatbot is a way from where the service provider and customer can
make a chat. Through this service provider can easily know about the needs and wants of the
customers and customer also know about the hotel where want to go. For service provider
customer satisfaction is very important and they know about their understandings and their
reviews before and after staying in the hotel(Araidah and et.al., 2015).
Greater efficiency in use of data- It is also in trend that hotels compare themselves
from the other hotels. With using of proper data hotels can make comfortable with the hotel
industry. Hotels have all record of the customers and their own as well. They can use it for
future that what they are and wast they will.
Self services- Hospitality industry is grown with self services and travellers also like self
service because nobody wants to disturb others. In service of foods and beverages people like
self services and it increases day by day.
CONCLUSION
From the above study it has been summarised that hospitality industry had wide area and
it contributed in the economic growth. External factors which made effect the hospitality
industry and in economy it contributed too much with use of technology. Through swot analysis
it has found that hospitality industry had many opportunities to grow. Many technologies
developed in the hospitality industry and new tends of computer technology which through this
industry made sustainable environment and developed itself also in other countries..
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REFERENCES
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the inpatient pharmacy at a local hospital”, Journal for Healthcare Quality , Vol. 32 No. 1.
pp. 59-66.
Anderson, E.W. and Mittal, V. 2018, “Strengthening the satisfaction-profit chain”, Journal of
Service Research , Vol. 3 No. 2, pp. 107-120.
Baines, P. R., and et.al., 2018, “Measuring communication channel experiences and their
influence on voting in the 2010 British General Election”, Journal of Marketing
Management , Vol. 27 Nos 7/8, pp. 691-717.
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Radojevic, T., Stanisic, N. and Stanic, N., 2015. Ensuring positive feedback: Factors that
influence customer satisfaction in the contemporary hospitality industry. Tourism
Management.51.pp.13-21.
Romero, C., 2014. Handbook of critical issues in goal programming. Elsevier.
Singal, M., 2015. How is the hospitality and tourism industry different? An empirical test of
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pp.116-119.
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