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Analyzing the Marriott Business Strategy

marriott business strategy

Overview of Marriott International

Marriott International is a leading global hospitality company with a strong presence in the hotel industry. Their commitment to providing exceptional guest experiences, global expansion efforts, and sustainability initiatives have contributed to their success and reputation as a top hotel brand.

Introduction to Marriott International

Marriott International has a rich history dating back to 1927 when J. Willard Marriott and his wife Alice opened their first root beer stand in Washington, D.C. Since then, the company has grown into a global powerhouse, operating in more than 140 countries and territories. Marriott International encompasses a diverse portfolio of hotel brands, from luxury to budget-friendly options, catering to various traveler preferences.

Marriott International’s success can be attributed to its unwavering focus on customer satisfaction and delivering high-quality experiences. The company strives to create a warm and welcoming environment for guests, ensuring their needs are met and their expectations exceeded. By prioritizing guest comfort and constantly innovating their guest-facing technologies, Marriott aims to enhance the overall guest experience.

Global Expansion Efforts

Marriott International has consistently pursued a strategy of global expansion, which has contributed to its widespread recognition and market presence. In 2021, the company reported a record 510 new deals, representing over 103,000 rooms worldwide, signifying a strong year for Marriott’s global expansion efforts. This expansion further solidifies Marriott’s position as one of the largest and most influential hotel chains globally.

By strategically partnering with local developers and investors, Marriott has successfully entered new markets and expanded its footprint in existing ones. The company’s ability to adapt to different cultures, preferences, and market conditions has allowed them to establish a strong global presence. Marriott’s commitment to understanding the unique needs and preferences of each market has contributed to its success in expanding its brand portfolio across the globe.

As Marriott International continues to grow, it remains dedicated to maintaining the highest standards of hospitality, ensuring that guests receive exceptional service and memorable experiences at all their properties.

In the following sections, we will delve deeper into Marriott’s innovative guest-facing technologies, their commitment to sustainability and social impact, and their market segmentation strategies that contribute to their overall business strategy.

Marriott’s Guest-Facing Technologies

Marriott International, a leader in the hospitality industry, has been at the forefront of hotel technology transformation, particularly with their focus on guest-facing technologies. By continuously innovating and enhancing the digital aspects of the guest experience, Marriott strives to deliver exceptional value and customer satisfaction.

Innovations in Guest Experience

Marriott places great emphasis on improving both the physical and digital aspects of the guest experience. By investing in comfort, amenities, and personalized services, Marriott aims to create memorable stays for their guests. In addition, Marriott has introduced numerous high-profile tech-enabled initiatives to enhance the overall guest experience.

One significant innovation is the introduction of personalized app experiences. Through features like Mobile Check-in, Mobile Requests, and Mobile Key, guests can conveniently manage their stay using their mobile devices. These initiatives allow guests to have a seamless and efficient experience, from booking to check-out. According to Hotel Technology News, Marriott has been successful in connecting with guests and enhancing their stay experiences through these personalized app features.

Another notable innovation is the Mobile Requests feature, which allows guests to easily communicate with hotel associates through the app. This feature has proven to be popular, with over 2.5 million requests received, a significant portion of which were made before check-in. Building on this success, Marriott has expanded guest-facing mobile communication options, including the integration of chatbots for Marriott Rewards members across various platforms. This enables guests to have their questions answered and requests fulfilled in a timely and convenient manner.

Marriott has also adopted voice-activated technology to simplify tasks for guests and offer virtual concierge services. At select hotels, Marriott has integrated Alexa for Hospitality, leveraging existing amenities and services to enhance the guest experience. This integration allows guests to use voice commands to control their room environment, request information, or access hotel services, providing an intuitive and personalized stay experience.

Digital Enhancements for Guests

Marriott’s commitment to guest-facing technologies extends beyond personalized app experiences and voice-activated technology. The company continuously explores new ways to leverage digital enhancements to enhance the guest experience.

For instance, Marriott has embraced augmented reality (AR) to provide guests with interactive experiences. By utilizing AR technology, guests can visualize hotel rooms and amenities virtually, allowing them to make more informed decisions during the booking process. This interactive approach enhances the overall guest experience, providing a virtual preview of their stay.

Furthermore, Marriott has leveraged social media platforms to engage with guests and provide personalized content. By maintaining an active presence on platforms like Facebook, Instagram, and Twitter, Marriott connects with their audience, shares updates, and responds to guest inquiries and feedback. This social media engagement helps Marriott build relationships with guests, creating a sense of community and loyalty.

Through their continuous innovations and digital enhancements, Marriott International demonstrates their commitment to providing an exceptional guest experience. By leveraging technology, Marriott aims to streamline processes, personalize services, and create memorable moments for their guests.

Marriott’s Commitment to Sustainability and Social Impact

Marriott International is dedicated to creating a positive and sustainable impact wherever they do business. Guided by their 2025 Sustainability and Social Impact Goals and the UN Sustainable Development Goals, Marriott strives to make a difference in the world (Marriott Serve 360).

Sustainability Goals and Initiatives

Marriott understands its obligation to operate responsibly and has integrated sustainability across its value chain. With an expanding global presence, Marriott is committed to mitigating climate-related risks, reducing environmental impacts, and building sustainable hotels. They aim to reduce their environmental footprint through various initiatives, including:

  • Energy and water conservation programs
  • Waste reduction and recycling efforts
  • Green building and design practices
  • Renewable energy utilization

By sourcing responsibly and prioritizing sustainable practices, Marriott aims to contribute to a more sustainable future.

Positive Impact on Communities

Marriott believes in making the communities where they operate better places to live, work, and visit. They invest in the vitality of children, natural resources, and provide aid and support in times of need. Through their community engagement initiatives, Marriott addresses key social issues and collaborates with nonprofit organizations to make a positive impact. Some areas of focus include:

  • Empowering youth through education and skill-building programs
  • Supporting diverse populations and promoting workplace readiness
  • Championing human rights, including advocating for pro-travel policies and upholding supplier accountability

Marriott recognizes the importance of cultural exchange and aims to create a safe and welcoming world for all. By partnering with nonprofit organizations, engaging in training, advocacy, and supplier accountability, they strive to promote inclusivity, understanding, and respect (Marriott Serve 360).

Marriott’s commitment to sustainability and social impact reflects their dedication to being a responsible corporate citizen. Through their initiatives and partnerships, Marriott continues to drive positive change and set an example for the hospitality industry and beyond.

Market Segmentation Strategies of Marriott

To effectively cater to the diverse needs and preferences of customers, Marriott International employs market segmentation strategies that allow them to target specific segments of the market. Through careful segmentation, Marriott ensures that their offerings align with the unique requirements of different customer groups. Let’s explore the key market segmentation strategies utilized by Marriott.

Hotel Brand Segmentation

Marriott Hotels & Resorts can be segmented into four categories based on the level of luxury and service they provide. These categories include luxury hotels, upper upscale hotels, upscale hotels, and upper middle-scale hotels (IvyPanda).

In the luxury segment, Marriott offers prestigious properties such as Ritz-Carlton, JW Marriott, and Bulgari Hotels & Resorts. These hotels provide unparalleled luxury and exceptional service to cater to the needs of high-end clientele.

The upper upscale hotels category encompasses brands like Marriott, Renaissance, and Autograph Collection. These hotels offer a blend of luxury and comfort, targeting customers seeking a sophisticated experience.

Marriott’s upscale hotels cater to the needs of travelers looking for high-quality accommodations and amenities. Brands within this category include Courtyard, Fairfield, and Four Points by Sheraton.

Lastly, Marriott’s upper middle-scale hotels, such as SpringHill Suites and Residence Inn, provide reliable and comfortable accommodations for travelers seeking a balance between affordability and quality.

Demographic and Psychographic Segmentation

Marriott considers demographic factors such as income, marital status, and occupation to further segment their target market. This approach allows them to cater to the specific needs of different customer groups (IvyPanda).

By targeting high-income individuals, Marriott’s luxury hotels attract customers who value exclusivity and personalized experiences. Businessmen and seasoned travelers often opt for upper upscale and upscale hotels, which provide a combination of luxury and convenience.

Marriott also caters to the needs of various demographic groups, including singles, married couples, families, and employees working abroad. By understanding the diverse requirements of these segments, Marriott can tailor their offerings to meet and exceed customer expectations.

In addition to demographic segmentation, Marriott also utilizes psychographic segmentation. This segmentation approach focuses on customers’ interests, opinions, and attitudes. By offering a range of services, from luxury accommodations for special occasions to extended stays for business travelers and employees working abroad, Marriott ensures that they meet the unique preferences of their target customers.

Behavioral Segmentation

Marriott’s market segmentation strategies also encompass behavioral segmentation. This involves understanding customer behaviors, preferences, and needs, and tailoring offerings accordingly.

Promotions, rewards programs, and loyalty initiatives are key components of Marriott’s behavioral segmentation strategy. By providing special offers and benefits to loyal customers, Marriott aims to attract and retain their target market. This approach helps build customer loyalty and differentiates Marriott from its competitors.

Moreover, Marriott offers unique service provisions to specific customer segments. For example, they provide specialized services for business travelers and customers organizing events. By aligning their offerings with specific customer behaviors and needs, Marriott maintains a strong position in the global hospitality market.

Through hotel brand segmentation, demographic and psychographic segmentation, and behavioral segmentation, Marriott successfully targets and caters to various customer segments. This strategic approach allows them to deliver tailored experiences and build lasting relationships with their diverse customer base.

Marriott’s Strategic Growth and Expansion

Marriott International has implemented a strategic growth and expansion plan to solidify its position as a global leader in the hospitality industry. This section will explore three key aspects of Marriott’s growth strategy: expansion in the Caribbean and Latin America region, diversification of the portfolio, and embracing hotel conversions.

Expansion in the Caribbean and Latin America Region

Marriott International has been actively expanding its presence in the Caribbean and Latin America (CALA) region, demonstrating its commitment to strategic growth in emerging markets. This expansion has been a key component of Marriott’s long-term business strategy, as it recognizes the potential for growth and development in this vibrant region.

In 2023, Marriott nearly doubled the number of organic deal signings in the CALA region, resulting in a pipeline of 24,000 rooms by the end of the year. This signifies a significant expansion effort and highlights Marriott’s dedication to capturing opportunities in the region (StockTitan).

Marriott’s growth in the CALA region involved the addition of over 170 properties to its portfolio in 2023, bringing the total number of properties, including hotels and residences, to nearly 500. This expansion has allowed Marriott to establish a strong foothold and cater to the growing demand for quality hospitality experiences (StockTitan).

Diversification of Portfolio

To sustain its growth and meet the evolving needs of travelers, Marriott International has focused on diversifying its portfolio. One significant move was the strategic acquisition of the City Express brand portfolio, with a specific focus on the affordable midscale segment in the CALA region. This acquisition has enabled Marriott to expand its footprint by approximately 45%, tapping into a rapidly growing market segment (StockTitan).

By diversifying its portfolio, Marriott has been able to cater to a wider range of travelers, offering different price points and accommodation styles. This strategy allows Marriott to capture a larger market share and enhance its competitive advantage in the hospitality industry.

Embracing Hotel Conversions

Hotel conversions have played a significant role in Marriott’s growth strategy in the CALA region. In fact, nearly 35% of the room signings in 2023 were conversions of existing properties. This approach allows Marriott to quickly expand its presence and increase brand visibility in the market.

Hotel conversions offer several advantages for Marriott. They provide an opportunity for quicker returns on investment, as the existing properties can be renovated and rebranded to align with Marriott’s standards and brand identity. Additionally, hotel conversions allow Marriott to tap into established markets and benefit from existing customer bases, further strengthening its position in the region (StockTitan).

By leveraging hotel conversions as part of its growth strategy, Marriott International can efficiently expand its portfolio and extend its reach into new markets, ensuring continued success and market leadership.

Marriott’s strategic growth and expansion efforts, including its focus on the CALA region, portfolio diversification, and hotel conversions, have been instrumental in positioning the company as a leading player in the global hospitality industry. These strategic initiatives allow Marriott to capture new opportunities, cater to diverse customer segments, and maintain its competitive edge in the market.

Marriott’s Sustainable Practices and Environmental Responsibility

As a leading global hotel brand, Marriott International recognizes the importance of sustainable practices and environmental responsibility. The company has implemented various initiatives to reduce its environmental footprint, promote sustainable sourcing and supply chain practices, and commit to the development of sustainable hotels.

Environmental Footprint Reduction

Marriott aims to reduce its environmental footprint by 15% – 50% across its portfolio by 2025, based on a 2016 baseline. This reduction encompasses areas such as water consumption, carbon emissions, waste generation, and food waste (Marriott Serve 360). By implementing energy-efficient technologies and practices, Marriott strives to minimize its impact on the environment.

Sustainable Sourcing and Supply Chain

Marriott is committed to responsibly sourcing its products and materials. The company aims to source 95% of its top 10 priority categories sustainably by 2025. These categories include items such as animal proteins, bottled water, cleaning supplies, and textiles. By prioritizing sustainable sourcing practices, Marriott ensures that its supply chain aligns with its commitment to environmental responsibility (Marriott Serve 360).

To further emphasize its dedication to sustainable sourcing, Marriott plans to ensure that the top 10 furniture, fixtures, and equipment (FF&E) product categories it sources are in the top tier of the MindClick Sustainability Assessment Program (MSAP) by 2025. This commitment reflects Marriott’s efforts to select environmentally friendly and sustainable products for its properties (Marriott Serve 360).

Commitment to Sustainable Hotels

Marriott has set ambitious goals to ensure that its hotels prioritize sustainability. The company aims to have 100% of Marriott International hotels with a sustainability certification by 2025. Additionally, Marriott plans to have 650 hotels pursuing LEED certification or an equivalent sustainability certification by the same year. These certifications highlight Marriott’s commitment to designing and operating sustainable properties throughout its brand portfolio (Marriott Serve 360).

By 2022, all Marriott properties will include a Serve 360 section on their websites. This section will provide hotel impact metrics, showcasing the environmental efforts and sustainability achievements of each property. Marriott’s commitment to transparency and accountability in its sustainability initiatives is evident through this initiative.

Marriott International’s focus on reducing its environmental footprint, promoting sustainable sourcing, and committing to sustainable hotels demonstrates the company’s dedication to environmental responsibility. By implementing these practices, Marriott aims to make a positive impact on the environment while providing exceptional hospitality experiences to its guests.

Marketing Strategy of Marriott International

Marriott International has implemented a robust marketing strategy to position itself as a leader in the hospitality industry. Through various initiatives, the company focuses on enhancing customer experience, driving brand differentiation, and fostering loyalty among its guests. Let’s explore three key elements of Marriott’s marketing strategy.

Acquisition and Digital Transformation

In response to the COVID-19 pandemic, Marriott International swiftly adjusted its business model by launching Marriott Bonvoy, a comprehensive dynamic loyalty program. This program, as highlighted by IIDE, aimed to engage customers and drive bookings during challenging times. By offering unique rewards, personalized experiences, and exclusive member benefits, Marriott Bonvoy has become a powerful tool for customer retention and acquisition.

Marriott International has also invested heavily in digital marketing strategies, leveraging technology to connect with customers and enhance brand loyalty. The company focuses on social media platforms and personalized content creation to engage with customers effectively, as mentioned by IIDE. By actively managing its social media presence and providing valuable and relevant content, Marriott builds meaningful connections with its audience.

Emphasis on Social Media and Personalized Content

Marriott International recognizes the importance of social media in today’s digital landscape. The company has leveraged social media platforms to engage with customers, share compelling stories, and showcase its unique offerings. By actively maintaining a strong social media presence, Marriott stays connected with its audience, fosters brand loyalty, and cultivates a sense of community.

Furthermore, as highlighted by IIDE, Marriott has embraced the power of personalized content. By tailoring its marketing messages to specific customer segments, the company delivers relevant and impactful content that resonates with its target audience. This approach helps Marriott to create a more personalized and memorable experience for its guests, ultimately driving customer satisfaction and loyalty.

Brand Differentiation and Loyalty Programs

To maintain a competitive edge in the hospitality industry, Marriott International focuses on distinct brand positioning and tailored marketing strategies. The company recognizes the importance of differentiating its various hotel brands and delivering unique experiences to its guests, as mentioned by Travel Market Report. By highlighting the individual characteristics and offerings of each brand, Marriott ensures that customers can make informed choices that align with their preferences and needs.

Loyalty programs play a vital role in Marriott’s marketing strategy, enabling the company to cultivate strong relationships with its customers. The Marriott Bonvoy loyalty program, as mentioned earlier, offers a range of benefits and rewards to its members, fostering loyalty and encouraging repeat business. By providing a seamless and personalized experience, Marriott enhances customer satisfaction and promotes long-term loyalty.

Marriott International’s marketing strategy encompasses various elements, including acquisition and digital transformation, emphasis on social media and personalized content, and brand differentiation through loyalty programs. By leveraging these strategies, Marriott has been successful in engaging customers, driving brand loyalty, and maintaining a competitive edge in the ever-evolving hospitality industry.

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