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Uncovering Starwood Hotels Weaknesses

weaknesses of starwood hotels

SWOT Analysis of Starwood Hotels

Conducting a comprehensive SWOT analysis of Starwood Hotels allows us to gain insights into the strengths and weaknesses of the company. By examining internal factors, we can better understand how Starwood Hotels positions itself in the highly competitive hospitality industry.

Strengths of Starwood Hotels

Starwood Hotels has several notable strengths that contribute to its success. These strengths include:

  1. Strong Brand Portfolio: Starwood Hotels owns a diverse portfolio of well-established hotel brands, including Sheraton, Westin, W Hotels, and St. Regis, among others. This extensive brand portfolio allows Starwood to cater to a wide range of target markets and attract a diverse customer base.

  2. Global Presence: Starwood Hotels has a strong global presence, with properties in over 100 countries. This broad geographical reach enables the company to tap into various markets and benefit from international travel trends.

  3. Loyalty Program: Starwood Preferred Guest (SPG), the loyalty program of Starwood Hotels, has been highly regarded in the industry. The program offers exclusive benefits, rewards, and personalized experiences to loyal customers, fostering customer loyalty and repeat business.

  4. Innovation and Design: Starwood Hotels is known for its innovative approach and distinctive hotel designs. The company continuously strives to create unique and memorable guest experiences by incorporating modern design elements and embracing emerging trends in the hospitality industry.

Weaknesses of Starwood Hotels

Despite its strengths, Starwood Hotels also faces certain weaknesses that need to be addressed. These weaknesses include:

  1. Customer Service Issues: Starwood Hotels has encountered weaknesses in its customer service department, leading to errors in the room reservation system and customer dissatisfaction with the level of service provided. These issues can result in negative customer experiences and impact the company’s reputation (ResearchGate).

  2. Branding and Portfolio Challenges: With the acquisition of Starwood Hotels by Marriott International Inc., certain brands within the Starwood portfolio, such as Element Hotels, may face potential overshadowing within the larger Marriott portfolio. This can lead to resource allocation challenges and hinder the growth and development of these brands (Wonder).

  3. Facilities and Maintenance Concerns: Aging infrastructure and maintenance issues have been identified as weaknesses within Starwood Hotels. These concerns can impact the guest experience, as customers expect well-maintained facilities and cleanliness during their stay.

  4. Financial Management: Starwood Hotels has faced weaknesses in cost management and profitability, resulting in lower occupancy rates compared to competitors in the industry (Source). Addressing these financial management challenges is crucial for maintaining a competitive position in the market.

  5. Cybersecurity Vulnerabilities: Starwood Hotels experienced a significant data breach in 2014, affecting approximately 500 million customers. This breach exposed sensitive personal information and highlighted weaknesses in the company’s cybersecurity measures.

  6. Loyalty Program Issues: Starwood Hotels faced weaknesses in its loyalty program, including price increases and a lack of effective communication with customers. These issues created uncertainty and anxiety among customers, potentially impacting their loyalty and engagement with the brand.

By acknowledging and addressing these weaknesses, Starwood Hotels can strive to improve its operations, enhance customer satisfaction, and maintain a competitive edge within the hospitality industry.

Weaknesses in Customer Service

Customer service plays a vital role in the hospitality industry, and unfortunately, Starwood Hotels has faced some weaknesses in this area. Two key areas of concern are errors in the room reservation system and customer dissatisfaction with the service.

Errors in Room Reservation System

Starwood Hotels has experienced frequent errors made by customer service representatives in their room reservation system. These errors have resulted in incorrect bookings, leading to inconveniences and frustrations for guests. Inaccurate room assignments or reservations can disrupt guests’ plans and negatively impact their overall experience at the hotel. These issues have been identified as a weakness in the customer service process at Starwood Hotels (ResearchGate).

Customer Dissatisfaction with Service

Customer dissatisfaction with the service provided by Starwood Hotels has been a recurring issue. Numerous complaints have been received regarding poor customer service, with reports of staff being rude, unhelpful, and unresponsive to guests’ needs or complaints. This lack of attentiveness and courteousness can leave guests feeling undervalued and impact their overall satisfaction with their stay.

Additionally, guests have raised concerns about noise disturbances within the hotels, such as loud music playing late into the night and thin walls that allow noise from neighboring rooms to be clearly audible (Consumer Affairs). These issues can disrupt guests’ sleep and contribute to their dissatisfaction with the level of service provided.

Addressing these weaknesses in customer service is crucial for Starwood Hotels to enhance guest satisfaction and loyalty. Improving the accuracy of the reservation system and investing in comprehensive training programs to enhance staff’s customer service skills and responsiveness can help mitigate these weaknesses. By prioritizing exceptional service, Starwood Hotels can ensure a positive and memorable experience for their guests.

Weaknesses in Branding and Portfolio

As part of the SWOT analysis of Starwood Hotels, it is important to identify the weaknesses that the company faces in terms of branding and portfolio. Two significant weaknesses in this area are potential overshadowing within Marriott International and challenges in marketing strategies.

Potential overshadowing within Marriott International

One of the weaknesses faced by Starwood Hotels, particularly Element Hotels, is the potential for the brand to be overshadowed by other hotel chains within the larger Marriott International Inc. portfolio. With the merger of Starwood Hotels and Marriott International, there is a risk that Element Hotels may receive less focus and resources compared to other prominent brands under the Marriott umbrella. This could hinder the growth and development of Element Hotels within the highly competitive market. Ensuring that each brand within the portfolio receives adequate attention and resources is crucial to maintaining a strong presence and maximizing the potential of each brand.

Challenges in Marketing Strategies

Starwood Hotels has also faced weaknesses in their marketing strategies, leading to challenges in effectively targeting and attracting customers in a competitive market. This weakness has resulted in lower occupancy rates compared to industry benchmarks. To overcome this weakness, Starwood Hotels needs to reevaluate and refine their marketing strategies to better align with the preferences and needs of their target market. This may involve a comprehensive analysis of customer segments, understanding their preferences, and tailoring marketing efforts to effectively reach and engage with these target audiences. By addressing these challenges, Starwood Hotels can improve their brand positioning and increase their market share within the highly competitive hospitality industry.

Identifying and addressing these weaknesses in branding and portfolio is essential for Starwood Hotels to maintain a strong presence in the market and effectively compete with other hotel brands. By allocating resources appropriately and refining their marketing strategies, Starwood Hotels can strengthen their brand equity and improve their overall performance within the industry. For a comprehensive understanding of Starwood Hotels’ strengths, weaknesses, opportunities, and threats, refer to our article on the SWOT analysis of Starwood Hotels.

Weaknesses in Facilities and Maintenance

As part of the SWOT analysis of Starwood Hotels, it’s important to consider the weaknesses in facilities and maintenance. These weaknesses can have a significant impact on the overall guest experience and satisfaction.

Aging Infrastructure and Upkeep

One of the weaknesses identified in Starwood Hotels is the presence of aging infrastructure and the need for upkeep. Reports indicate that certain Starwood properties have encountered issues with outdated facilities and amenities, including aged furnishings, worn-out carpets, and malfunctioning equipment. These factors can negatively impact guests’ overall satisfaction with their stay (Consumer Affairs).

To maintain a competitive edge in the hospitality industry, it is essential for Starwood Hotels to invest in regular maintenance and upgrades, ensuring that the facilities are up to par with customer expectations. By addressing the aging infrastructure, Starwood Hotels can enhance the guest experience and maintain a positive reputation within the industry.

Cleanliness and Maintenance Issues

Customer complaints regarding cleanliness and maintenance have also been reported in various Starwood hotels. Guests have expressed concerns about dirty rooms, mold, and poor plumbing in the bathrooms. These issues can significantly impact the perception of the hotel brand and lead to dissatisfaction among guests.

To address these weaknesses, Starwood Hotels should prioritize cleanliness and maintenance standards across all properties. Implementing robust cleaning protocols, conducting regular inspections, and promptly addressing maintenance issues can help improve the overall guest experience and ensure that guests feel comfortable and satisfied during their stay.

By addressing the weaknesses in facilities and maintenance, Starwood Hotels can enhance the quality of their properties and improve guest satisfaction. This, in turn, can contribute to positive reviews, increased customer loyalty, and a stronger competitive position within the hotel industry.

Weaknesses in Financial Management

When conducting a SWOT analysis of Starwood Hotels, it is essential to identify the weaknesses in financial management that the company faces. These weaknesses directly impact the overall profitability and success of the organization.

Cost Management and Profitability

One notable weakness of Starwood Hotels lies in its cost management strategies, resulting in lower profitability compared to its competitors in the industry. According to a source, the financial performance of Starwood hotels has been impacted by weaknesses in managing costs effectively. In an industry where profit margins are crucial, inadequate cost management can hinder the company’s ability to maximize its revenue and maintain a competitive edge.

To address this weakness, Starwood Hotels should focus on implementing more efficient cost control measures. This includes closely monitoring expenses, optimizing procurement processes, and streamlining operations to minimize wastage and unnecessary expenditures. By improving cost management practices, Starwood Hotels can enhance its profitability and strengthen its financial position within the market.

Lower Occupancy Rates

Another weakness in financial management that Starwood Hotels faces is lower occupancy rates compared to industry benchmarks. This weakness can be attributed to challenges in the company’s marketing strategies, as mentioned in a source. In a highly competitive market, effectively targeting and attracting customers is essential for maintaining high occupancy rates.

To address this weakness, Starwood Hotels should reassess its marketing strategies and focus on effectively reaching and engaging its target market. This may involve refining its brand positioning, implementing targeted advertising campaigns, and leveraging digital marketing channels to increase brand visibility and attract potential guests. By improving its marketing efforts, Starwood Hotels can increase occupancy rates and generate higher revenues.

By addressing these weaknesses in financial management, Starwood Hotels can enhance its overall financial performance and competitiveness within the hospitality industry. It is crucial for the company to prioritize effective cost management and implement strategic marketing initiatives to drive profitability and increase occupancy rates.

Weaknesses in Cybersecurity

In today’s digital age, cybersecurity is of utmost importance for businesses, especially those that handle sensitive customer data. Unfortunately, Starwood Hotels has experienced weaknesses in this area, which have had a significant impact on the company’s reputation and customer trust. Two notable weaknesses in cybersecurity for Starwood Hotels are the data breach in 2014 and vulnerabilities in network security.

Data Breach in 2014

Starwood Hotels suffered one of the largest data breaches in history, with up to 500 million customers affected by unauthorized access to their reservation database dating back to 2014. This breach was discovered in 2018, with the exposure of sensitive personal information such as names, passport numbers, and credit card details. The breach on Starwood Hotels was attributed to unauthorized access to the Starwood guest reservation database starting in 2014 and continuing until September 10, 2018 (ECCU).

This breach was significant as it exposed guests’ personally identifiable information, payment card information, and reservation details to hackers, impacting a vast number of individuals (ECCU). The attack on Starwood Hotels exploited vulnerabilities in the network security and reservation systems, highlighting weaknesses in cybersecurity measures that could potentially have been prevented with stronger defense measures (ECCU).

Vulnerabilities in Network Security

The breach at Starwood Hotels revealed gaps in data protection practices and raised concerns about the security of sensitive information held by major corporations, emphasizing the need for robust cybersecurity protocols in the hospitality sector (ECCU). This incident highlights weaknesses in network security measures within Starwood Hotels, potentially leaving customer data vulnerable to unauthorized access.

To address these weaknesses, it is essential for Starwood Hotels to invest in stronger cybersecurity measures. This includes implementing robust encryption protocols, regularly updating and patching security systems, conducting thorough vulnerability assessments, and providing comprehensive training to employees to ensure they understand and adhere to best practices for data protection.

By addressing these weaknesses and strengthening their cybersecurity measures, Starwood Hotels can work towards rebuilding customer trust and safeguarding sensitive customer information. It is imperative for the company to prioritize cybersecurity to protect both their customers and their brand reputation.

Weaknesses in Loyalty Program

Starwood Hotels, despite its strengths outlined in the SWOT analysis of Starwood Hotels, is not without its weaknesses. One area where Starwood Hotels has faced criticism is in its loyalty program. This section will explore two key weaknesses related to the loyalty program: price increases and lack of communication, and the resulting uncertainty and anxiety among customers.

Price Increases and Lack of Communication

One of the major weaknesses of Starwood Hotels’ loyalty program is the sudden price increases and the lack of effective communication surrounding these changes. According to a LinkedIn article, Starwood raised the reward point requirements at 12% of their hotels, resulting in a net 4% overall increase in required points for reservations. Notably, these increases were mainly implemented at their best properties in the best cities, which are most valued by their best customers.

When loyal customers discovered the increase in required points for reservations, it came as an unhappy surprise. The lack of proper communication regarding these price increases created shock and disappointment among loyal customers. The changes were not adequately communicated to customers in advance, leaving many unaware until they discovered the changes during the booking process. Customers were only given 11 days’ notice to book at the old rates before the increase in required reward points, further exacerbating dissatisfaction.

To address this weakness, it is imperative for Starwood Hotels to improve communication with its loyal customers. Transparent and timely communication about any changes in the loyalty program, including price increases, is essential to maintain trust and loyalty among customers.

Uncertainty and Anxiety among Customers

The uncertainty surrounding the acquisition of Starwood Hotels by Marriott has created sustained anxiety and fear among loyal customers. Many loyal customers are concerned about the future of the loyalty program under Marriott, especially due to perceived limitations in reward redemption compared to Starwood (LinkedIn).

The lack of concrete reassurance about the loyalty program under Marriott has contributed to this anxiety. Customers are worried that the changes brought about by the acquisition may negatively impact the benefits and flexibility they enjoyed with Starwood’s loyalty program. This uncertainty has the potential to erode customer loyalty and tarnish the brand’s reputation.

To address this weakness, Starwood Hotels needs to provide clear and transparent information about how the loyalty program will be integrated and improved under Marriott. Reassuring loyal customers about the future of the loyalty program and addressing any perceived limitations will help alleviate anxiety and strengthen customer confidence.

By addressing the weaknesses in its loyalty program, Starwood Hotels can work towards enhancing customer satisfaction, loyalty, and retention. Transparent communication, gradual price adjustments, concrete reassurance about the loyalty program under Marriott, and gestures of goodwill towards loyal customers should be prioritized to maintain and strengthen customer loyalty.

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