Marriott International Inc. SWOT & PESTLE

SWOT

SWOT Overview

With numerous brand names under its umbrella, Marriott is a worldwide operator, franchisor, and licensor of the hotel, residential, and timeshare properties with distinct pricing to suit a broad array of patrons. As of 2020, Marriott International is the world's third-largest chain of hotels. With Marriott's Automatic Reservation System for Hotel Accommodations (MARSHA), Marriott became the world's first company to implement the concept of booking reservations online. Accordingly, the SWOT analysis of Marriott International manifests a discussion on the assets that generate surplus cash and are the greatest strengths that the Company enjoys as a competitive advantage over its rival(s) in the hospitality and tourism industry. The analysis highlights the opportunities in the external environment that can be incorporated to further strengthen the company. The SWOT report also confers intelligence on the internal weaknesses and external threats that the company confronts being in such a highly competitive environment.

Global market leadership, strong brands portfolio, strong employee base, sturdy brand recognition and recall, global presence, unique and innovative approach, constantly upgraded with technology, etc. are a few amongst several strengths of Marriott International. Marriott's key internal weakness are its aggressive expansion and establishment of too many hotels as this may lead to dilution of the company and maintaining the standards of service throughout could be challenging. The 2018 cyber-attack on the Marriott hotel chain led to millions of customer’s private information being compromised, hence data breach is another significant weakness of Marriott. With an increase in disposable income, the number of travelers for both work and vacation purpose are constantly rising. Therefore, hotel chains can take full advantage of this opportunity and entice patrons with better packages, innovative customer services, attractive interiors, personalized attention and more. Competition threat to Marriott is increasing as the hotel and tourism industry is globally expanding and observing the penetration of many international brands into the industry. 

SWOT Matrix for Marriott

Detailed SWOT Analysis of Marriott

The detailed SWOT analysis for Marriott International Inc. is presented below:

Strength

1. Top position in competitive landscape: Marriott International is the largest hotel company in the world in terms of value sales worldwide (Marriott has value sales close to USD50 billion). It has the largest number of rooms globally. The number of hotels that fall in the portfolio of upscale category and above are the also the highest for Marriott International. With an overall capacity of 1,160,000 rooms (Hilton is second with 792,000) it is best positioned to take advantage of the growing demand for luxury accommodations. It also has the best global market share of 11% in top 100 revpar market tracts (second is Hilton with 5.5%). Global fee for Marriott international is $2700 per room which is the most for any hotel. In terms of global market share of current system size and signed STR pipeline (rooms), it occupies a leading share in North America, Europe, Asia Pacific, Caribbean, Latin America, Middle East and Africa. Worldwide it has an 8.3% market share, ahead of Hilton having a 5.9% market share.  

2. Ubiquitous luxury brands and presence across the world: Ritz Carlton and JW Marriott are strong luxury brands with a loyal customer base. Due to Starwood acquisition, popular luxury hotels such as W Hotels and St Regis are now also under Marriott International. It also has presence in 127 countries and 6500 properties under its umbrella. Acquisition of Starwood has also helped Marriott to tap into the Asia Pacific market (Starwood is strong in that region) which should remain a key target for expansion.

The remaining points in this section are available in the 'Complete Report' on purchase.

Weakness

This section is available only in the 'Complete Report' on purchase.

Opportunity

This section is available only in the 'Complete Report' on purchase.

Threat

This section is available only in the 'Complete Report' on purchase.

POLITICAL

This section is available only in the 'Complete Report' on purchase.

ECONOMIC

This section is available only in the 'Complete Report' on purchase.

SOCIAL

This section is available only in the 'Complete Report' on purchase.

TECHNOLOGICAL

This section is available only in the 'Complete Report' on purchase.

LEGAL

This section is available only in the 'Complete Report' on purchase.

ENVIRONMENTAL

1. Integration of various sustainability practices: In lodging industry, areas of concern for the environment include pollution through solid & liquid waste, high energy consumption and increasing release of greenhouse gases that cause changes in the atmosphere. To mitigate these, practices such as waste management, recycling of waste, adopting a purchasing policy, environmental health, environmental education, energy & water conservation and supplying clean air; are considered in many hotels. The challenge before Marriott international lies in the form of integrating best practices in terms of environmental impact with its brands which are already operating in this space for quite some time. Integrating environment friendly practices will be carried out in the form renovation, process changes, design changes in some cases and technological changes. All these changes will have considerable impact on the operating cost of Marriott international.

The remaining points in this section are available in the 'Complete Report' on purchase.