Marriott Global Growth Outlook for 2018
Marriott Global: Marriott is an American multinational corporation that owns, operates, franchises, and licenses hotels. Headquartered in Bethesda, Maryland, the company has hotels and resorts worldwide. Its founders are Alice and J. Willard Marriott, who hoped to create a more comfortable place to stay for travelers.
Marriott’s growth in international markets
The company is continuing its focus on international markets and is expanding in Asia and the Pacific. The first quarter of 2018 saw the company adds 3.6 percent to revenue per available room worldwide, with 7.5 percent of that growth occurring outside North America. The company also added nearly 15,000 rooms globally, including conversions of 1,600 rooms from competitor brands. The company expects to add at least 20,000 net rooms by year-end 2020.
Marriott is expanding its presence in international markets and has signed agreements to build nearly 51,000 new rooms. The company also plans to enter new markets such as Bermuda, Grenada, St. Lucia, Turks & Caicos, and Antigua and Barbuda. In addition, the company has announced plans to open a hotel in Honduras by 2022.
The global economy has cooled down recently, but the company still faces challenges. COVID-19 remains a problem, affecting hotel companies worldwide. But, the situation is improving with higher vaccination rates in many countries. As a result, many of these countries have adopted a live-with-COVID policy, which is likely to boost travel demand. However, the company’s global RevPAR is still down 19 percent year-on-year, despite the company’s growth in international markets.
In the international market, Marriott has been able to expand its online presence. In addition to building its own website platform, the company also acquired services from TripAdvisor, an online web firm. This alliance allows consumers to customize bookings and experiences in Marriott hotels. This new strategy has also helped the company expand its global reach by promoting web-based services. Marriott has also introduced a reward system for customers who book through their channel services.
As part of this growth strategy, Marriott has made strategic investments in the African and Middle Eastern markets. The economic conditions in these regions are improving, which has resulted in an increase in consumer spending and profitability in lifestyle-related businesses. As a result, Marriott has launched new brands such as EDITION and Protea hotels, in order to better serve their target markets.
By developing and expanding its global footprint, Marriott has become a major player in the hospitality industry. The company has a wide range of hotels in the United States and around the world. Its headquarters is in Bethesda, Maryland. In addition to hotels, Marriott has a vast portfolio of residential properties and timeshare properties.
Le Meridien’s appeal to weekend Bohemians
With its Air France heritage and upscale weekend Bohemian customer base, Le Meridien has a unique advantage. The hotel’s creative mojo should be emphasized in marketing efforts. To attract this crowd, the hotel should expand its social media presence.
Residence Inn by Marriott’s appeal to extended-stay travelers
As the global hotel chain continues to evolve its extended-stay product portfolio, the brand is focusing on design and amenities. The company has added signature programming, new food, and beverage offerings, and flexible room mixes. In addition, Marriott has leveraged its well-established brand model. The company is also trying new tactics to woo young business travelers and introverts.
The extended-stay market is a big business. More than one-third of business travelers spend time in hotels for more than a week or two. The brand is positioned well for this growing market segment and has a unique culture and service model designed to cater to the specific needs of this niche. In addition, the chain’s strong value proposition and mix of suite types make it a good choice for extended-stay travelers.
Unlike conventional hotels, Residence Inn suites offer more space than typical hotel rooms. A one-bedroom suite is about 450 square feet, while Marriott Global a two-bedroom suite is over 750 square feet. As a part of the Marriott International Hotels group, this brand offers upscale amenities and competitive rates.
A full-service lobby bar and a kitchen with a full-sized refrigerator and microwave are additional amenities that help make these properties popular with extended-stay travelers. In-room amenities include a washer and dryer, a dishwasher, a flat-screen TV, and a drop-down projection screen. Some hotels even have free grocery delivery.
The hotel is not for the snobbish or trendy crowd. Though this hotel is aimed at extended-stay travelers, it offers a wide array of amenities that make it attractive for travelers of all ages. In addition, the location makes this hotel attractive to business and leisure travelers.
Marriott’s commitment to net-zero value chain greenhouse gas (GHG) emissions
With its commitment to net-zero emissions, Marriott is joining a global effort to cut greenhouse gas (GHG) emissions. The company has signed the Race to Zero pledge, which is sponsored by the United Nations and encourages businesses and organizations to achieve net-zero emissions by 2050. To become a part of the Race to Zero, organizations, and companies need to reduce their emissions quickly and implement transparent action plans.
One way to meet this goal is to switch to renewable energy supplies. Many of Marriott’s hotels use fossil fuels to heat and cool their rooms. In addition, hotels must be energy-efficient. Marriott is committed to reducing its use of electricity through its commitment to net-zero emissions.
In addition to making hotel rooms more energy-efficient, the company is phasing out single-use plastics. It also plans to install refillable pump bottles across its network by 2022. In addition, Marriott is committing to planting 415,000 trees over the next few years. It is also working with environmental groups to make its operations more sustainable.
While Marriott is making progress on conversions, it still has a long way to go. About one-third of its hotels were converted in the first half of the year but there is still a lot of work ahead. But the company is doing its part to share knowledge with smaller hotels and other hospitality businesses.
Marriott has signed up to the COP26 initiative, a global campaign to achieve net-zero carbon emissions by 2050. The company also signed the Science Based Targets initiative, which calls for companies to commit to a clear path to zero-carbon emissions by 2050.
To help achieve net-zero emissions, Marriott is making many changes in its business processes and operations. The company’s first step towards achieving net-zero emissions includes transforming its corporate strategy, governance, operating models, and tax strategy. Additionally, the company is collaborating with universities to test new technologies and interventions. It aims to reduce its food waste by 50% by 2025.