Create a marketing campaign that applies to your current or former company/business/organization. Utilize information from the Market Research Project. Dev

Market Research Project: Analysis of the Marriott Hotels

California State University East Bay

04/20/2025

REC 670 Advanced Marketing in HRT

Spring 2022

Valerie Ann Spellman

Background and History of the Company/Business/Organization

Marriott opened its first hotel branch in 1957, the Twin Bridges Marriott Motor Hotel. In

1972, it created the Marriott corporation, which was a hotel management and franchising

corporation to boost its dominance in the hospitality industry (Harris et al., 2022). In 1993, the

company split into two: Marriott International, which manages the franchising of various hotels

under its chains, and Host Marriott Corporation, which is responsible for the management of the

real estate (Harris et al., 2022). The Host Marriott Corporation later changed its name to Host

Hotels and Resorts. In 1995, it created a new segment, the Marriott Courtyard, which mainly

focused on business travelers and the mid-priced consumer segments.

Marriott grew significantly between 1995 and 1997 when it acquired stakes in The Ritz-

Carlton, Renaissance hotels, and Ramada branches. The move boosted its service offering,

enabling it to enter the luxury segments. This boosts its international presence and makes it the

most diverse hotel. In 2002, the hotel reached a significant milestone by offering 500,000 rooms

within its hotel chains and systems (Harris et al., 2022). This made it one of the largest and most

expansive hotel chains globally. In 2016, it grew further by acquiring Starwood Hotels and

Resorts to boost its luxury offers and vacation services (Harris et al., 2022). This acquisition

made it the largest hotel chain with a vast portfolio ahead of all its competitors. This acquisition

led to The Marriott owning iconic brands like the Sheraton, Westin, and W Hotels in its portfolio.

Market Characteristics

The market Marriott serves is diverse and consists of various segments. One of the

integral characteristics of the market is the focus on luxury. Most of its market seeks affluent

treatment and services (Al-Ansi et al., 2022). This group consists of major age demographics,

from young adults to older adults. However, the rich travelers want consistency and tend to stay

loyal to the brand name. These people want leisure trips consisting of recreational resorts and

top-notch facilities. The market is also service-intensive and oriented, since most customers

prefer quality services and treatments. Service is equated to excellence and customer satisfaction

(Mody et al., 2021). Marriott heavily focuses on these aspects to make the clients happier and

maintain loyalty to avoid losing to competitors.

Lately, the market served by Marriott International has been technology oriented. This is

because technology is associated with providing guests with the best service, delivery, and

satisfaction. Marriott utilizes technology in major aspects, beginning with bookings, check-ins,

communication, the restaurant, and guest experience in their rooms (Mody et al., 2021). Today,

the market is also shifting to prefer sustainable technologies to focus on the long term.

The hospitality market is also competitive in terms of pricing and value offered. The

market is price sensitive, and occasionally the prices are equated to the delivery of services. A

higher price is associated with excellent services (Mody et al., 2021). However, today, the market

wants the best services and focuses on affordability. This is one of Hilton's main missions. The

hospitality industry is currently more focused on sustainability and corporate social

responsibility. The market desires a company that is part of the community, part of

environmental stewardship, and has ethical practices (Al-Ansi et al., 2022). Marriott focuses on

being environmentally conscious and stewarding environmental conservation and community

engagement.

Market Potential

The diverse market offers Marriott a lot of opportunities to explore to increase business.

Marriott can expand to emerging markets all over the globe. Some markets with more potential

are the Middle East, Vietnam, Thailand, and the Philippines (Chen, 2023). These markets are

more lucrative due to the rising middle-class income and changing economics in these countries.

The markets are lucrative due to the rising employment and production (Chen, 2023).

Additionally, tourism numbers and business travel in these countries are rising exponentially.

The number of people currently prioritizing work-life balance is high. This creates

opportunities for Maritt to create more facilities to attract leisure travelers (Chen, 2023). The

company can create more packages to meet the needs of young and older travelers. Besides that,

there has also been a rise in remote work. Marriott can create leisure and affordable service

accommodation for remote workers and travelers.

The rising environmental and sustainability concerns create an opportunity for Marriott to

focus more on eco-travelers. These are people who prize ecotravels and sustainable practices.

Guests increasingly choose hotel brands that implement sustainable and environmental

responsibilities and practices. The markets prefer more technology integration as part of service

delivery (Kabangire & Korir, 2023). Today, it can invest in AI and big data to improve services,

eliminate errors, and effectively plan for operations like a pricing model. With these

technologies, Maritt can enjoy more benefits like cost-cutting and operational efficiency.

Business Trends

Covid-19 changed the markets, leading to more strategic practices that the industry had never

embraced. Before 2020, the industry focused much on business travel, and Marriott mainly

focused on marketing its business accessories like conference services (Khan et al., 2024). The

industry also focused more on standard services than specialized and tailored consumer services.

Guests were promised the same experience across all the facilities globally (Aksoy et al., 2022).

The brand standards were consistent across all the hotel chains and locations.

Service delivery was more human-based instead of technology. The guest relied on the

hotel agents and the receptionist for various needs. Mobile booking was available, however, it

wasn't as dominant (Aksoy et al., 2022). Finally, the main model of growth by the industry was

franchising. Marriott grew through franchising and acquisition. For example, it acquired

Starwood Hotels in 2016.

Current

After Covid-19, there is a rise in the number of domestic and leisure travels. Therefore,

hotels should focus on providing domestic and luxury travelers with an unparalleled experience.

Marriott adapted to this trend by introducing staycations and leisure-focused packages (Gursoy et

al., 2022). Most hotel guests prefer eco-conscious brands focusing on environmental practices

and sustainable services. The company commits to these practices by enforcing green practices

like reduced carbon emissions, proper waste management, and energy sustainability.

Instead of universal or standard services, hotel guests prefer unique and personalized

services. Guests expect customized rays, unique rooms, and dedicated services. To meet these

demands, Marriott currently relies on programs like Bonvoy loyalty programs (Gursoy et al.,

2022). Most hotels have fully embraced digital services, mainly for check-ins and bookings.

Some priority technology services include contact services, AI-powered personalization, and

smart rooms. One of the technologies the company uses is the Marriott global app (Fauzi, 2022).

Besides that, it has introduced more tech like keyless room, smart lighting, and AI room

assistants. The future of the hotel industry and markets will be driven by augmented, virtual

reality, and more automation. Hotels are expected to introduce more robotics, such as robot

concierge, cleaning robots, and smarter rooms. Future travelers are also likely to prefer more

sustainable luxury (Talukder et al., 2025). As more people become more environmentally

responsible, the demand for eco-friendly services will likely rise. Therefore, hotels must utilize

low-waste operations, green buildings, carbon-neutral practices, and more. The number of guests

travelling for experiential travel is likely to increase in the future (El Archi & Benbba, 2024).

Travelers will likely prefer meaningful, cultural, and wellness-based services and experiences

when traveling to a new destination.

Competition Analysis

The biggest competitor for Marriott International is Airbnb, a key provider of lodging

services and stays, including vacation rentals. It provides amenities from low-cost to luxury and

highly affordable facilities. It is a direct alternative to hotels offering more services, like

specialized experiences, for guests who can personalize their services (Liu, 2024). It competes

with Marriott in various demographics, such as families and those seeking longer stays. The next

competitors are high-end hotel services, mainly Hilton Worldwide, Four Seasons, and Hyatt

hotels. They offer the same portfolio and serve the same services and packages as Marriott.

These hotels compete for the same market segments and have a global presence (Correia, 2024).

Hence, they are likely to compete directly with the same clients. They are also likely to

implement more changes, like innovation and more guest-oriented strategies, to boost service

delivery and customer experience (Correia, 2024). Like Marriott, these hotels have also

introduced loyalty programs to boost their competitive advantage. Another aspect where they

compete is the processing and the value they deliver to their guests through exceptional service.

Another competitor is Online travel agencies. These websites act as intermediaries,

enabling customers to book hotels directly through them. Most people prefer them because they

offer service classification in terms of pricing and amenities available at these properties. They

can easily take away clients from Marriott by providing them cheaper options and alternative

hotels to consider (Liu, 2024). Besides that, they directly influence booking decisions based on

prices, reviews, and hotel availability. These online travel agencies also form partnerships with

these hotels for more exposure and to get occupancy levels up.

Existing Product(s)

The main product offered by Marriott International is accommodation/hotel stays. It

offers these services under various brands, such as luxury products through the Ritz-Carlton,

premium accommodation through Marriott flagship hotels, and Sheraton (Marriott Hotels, 2025).

It also offers select accommodation and extended stays through Residence Inns, offered by

Marriott, and TownePlace Suites. In the luxury segment, it competes against other existing

products like Hilton's Waldorf Astoria and Park Hyatt, which are effective competitors for the

Ritz-Carlton. Marriott is also directly competing with Hilton's Hilton Hotels & Resorts and Hyatt

Regency, which are competing against Sheraton Hotels.

Marriott also offers loyalty programs called Marriott Bonvoy, a unified loyalty program

encompassing all Marriott brands. The program allows clients to earn, redeem, upgrade room

services, and get various bonuses for loyalty with other Marriott partners in hospitality and other

industries associated with travel and tourism (Marriott Hotels, 2025). Other competitors, like the

Hilton Honors and the World of Hyatt, also offer the same loyalty programs. However, these two

offer more benefits than the Bonvoy program provides. They provide more elite benefits, higher-

tier services, and more guest-oriented rewards.

Another product offered by Marriott is vacation ownership. The main product is the

Marriott vacation club, which offers timeshare ownership, offering guests access to apartment-

style accommodation and all resort amenities (Marriott Hotels, 2025). It comes with other

timeshare products like the Hilton Grand Vacation and Hyatt Vacation Club. Finally, the hotel

also offers meetings and events for business clients and corporate services. Under its event

planning services, it offers large-scale events and conventions under brands like Gaylord Hotels.

This product competes with Hilton Signia and Hyatt Regency meeting and event facilities.

Interpretation of the Findings

All these details create more potential for Marriott to increase its revenue through various

strategic changes. The first change is to focus on a new market segment, which is the ecotravel

segment. These people often need sustainable and green resources catering to their

environmental love. Marriott can take advantage of these by introducing green innovation and

design into their hotels. For instance, it can add more green spaces to their courtyard and resort

Inn facilities. It can also participate in environmental restoration projects and certain facilities

around it. This will enable Marriott to be more lucrative for such clients. Marriott can also

change its facilities to make them more climate-friendly and suitable for such travelers.

Marriott can benefit from sustainable practices to manage its costs effectively. The first

change is improved efficiency in terms of energy and water usage. This can help reduce costs,

enabling it to keep utility costs low. Besides that, Marriott should embrace renewable energy to

avoid spending more on electricity bills. Another sustainable practice suitable for Marritt is local

sourcing for raw materials, mainly food. This enables it to establish stronger bonds and

relationships with the community and reduce costs associated with outsourcing and buying

products from other places. Local outsourcing enables the company to deal effectively with

supply chain disruption, which is mainly caused by pandemics.

While focusing on sustainable practices, it needs to boost its partnership and

collaboration. Success in the current markets requires Marriott to have more connections with

expert partners. For instance, it should have more connections with third parties and travel agents

to ensure it doesn't lose its customers to other hotels. This calls for diversification of its services.

Besides having a booking app, it can also list on third-party booking apps to increase visibility

and accessibility to customers.

Finally, Marriott can rely on technology and innovation to improve services and reduce

costs. First, it can rely on the power of AI to boost smart services. This will help create smart

rooms, thus reducing the number of room service agents available to attend to guests. Secondly,

using robots like concierges can help reduce the number of staff the hotel needs, thus reducing

costs. Additionally, this can help in boosting services by reducing human-related errors.

All these changes can help Marriott improve its competitive advantage instead of creating

new facilities. The goal is to focus on boosting their competitive advantage while keeping the

costs low. The best approach is to improve the existing practices and facilities while

implementing new policies and changes. These changes will help boost service delivery,

customer loyalty, and improve consumer satisfaction levels.

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