Marriott International Business Model Canvas

A Brief History of Marriott

Marriott International, Inc. is a global hospitality company that was founded in 1927 by J. Willard Marriott and his wife, Alice Marriott. The company started as a root beer stand in Washington D.C. and soon expanded to include a chain of restaurants. In 1957, Marriott opened its first hotel in Arlington, Virginia, and over the years the company continued to grow and diversify its portfolio.

In 1967, Marriott International became a public company and in the following decades, it expanded its presence globally through acquisitions and strategic partnerships. The company acquired numerous hotel brands, including the Ritz-Carlton, Sheraton, and Westin, and expanded its portfolio to include luxury, lifestyle, and extended-stay hotels and resorts.

Today, Marriott International is one of the largest hospitality companies in the world, with over 7,000 properties in 131 countries and territories. The company is known for its commitment to customer service, innovation, and sustainability, and it continues to be a leader in the global hospitality industry.

Who Owns Marriott?

Marriott International, Inc. is one of the largest hotel and hospitality companies in the world. The company is publicly traded on the NASDAQ stock exchange, and therefore, ownership is spread among thousands of individual and institutional investors. The top 10 shareholders of Marriott International, Inc. as of the latest available information are Vanguard Group, BlackRock, State Street Corporation, T. Rowe Price, Fidelity Investments, Capital Research Global Investors, JPMorgan Chase & Co., Northern Trust Corporation, Wellington Management, and Geode Capital Management. These institutional investors hold significant stakes in the company and play a pivotal role in its ownership structure and corporate governance.

Marriott Mission Statement

Marriott International, Inc. aims to be the world’s favorite travel company, with a commitment to impeccable service, high-quality experiences, and teamwork. Their mission is to provide excellent and memorable hospitality experiences for guests, while also prioritizing the well-being of their employees and the communities they serve. Marriott International values diversity, sustainability, and continuous innovation in its effort to be a leader in the global hospitality industry. Their mission statement is focused on creating positive and meaningful connections with their guests, employees, and partners to ensure the success and growth of the company.

How Marriott Makes Money?

Marriott International, Inc. operates as a hospitality company and makes money primarily through its hotel and lodging businesses. The company generates revenue from room rentals, food and beverage services, and other ancillary products and services, such as event hosting and conferencing facilities. Additionally, Marriott earns income from management and franchise fees from its various hotel brands worldwide. The company also offers loyalty programs, which drive customer engagement and repeat bookings, contributing to its overall revenue stream. Overall, Marriott International’s business model focuses on providing exceptional customer experiences and leveraging its diverse portfolio of hotel brands to drive revenue and profitability.

Marriott Business Model Canvas

The Business Model Canvas is a strategic management tool that provides a visual representation of a company’s business model. It encompasses key aspects of the business, such as customer segments, value propositions, channels, customer relationships, revenue streams, key resources, key activities, key partners, and cost structure. In this analysis, we will take a closer look at Marriott International, Inc. and how its business model is structured.

Customer Segments:

– Business travelers
– Leisure travelers
– Event and meeting planners
– Corporate customers
– Group and extended stay travelers

Value Propositions:

– Premium hospitality services and accommodations
– Global presence and brand recognition
– Loyalty rewards program, Marriott Bonvoy
– Innovative and personalized guest experiences
– Exceptional customer service and high-quality standards

Channels:

– Direct bookings through Marriott’s website and mobile app
– Third-party online travel agencies (OTAs) and booking platforms
– Global distribution systems (GDS)
– Travel agents and corporate travel departments
– Property-level sales and marketing initiatives

Customer Relationships:

– Personalized guest services and experiences
– Customer feedback and engagement through online and social media platforms
– Loyalty program and rewards for recurring customers
– Direct communication with corporate clients and travel partners
– Assistance and support throughout the guest journey

Revenue Streams:

– Room reservations and accommodation fees
– Food and beverage sales
– Meetings, events, and conference services
– Loyalty program memberships and associated fees
– Ancillary services and partnerships (e.g., car rentals, tours, spa treatments)

Key Resources:

– Property and real estate portfolio
– Brand and reputation
– Technology and digital platforms
– Talent and workforce
– Partnerships and alliances

Key Activities:

– Property development and management
– Sales and marketing efforts
– Guest services and operations
– Loyalty program management
– Innovation and technological advancements

Key Partners:

– Franchisees and property owners
– Travel agencies and booking platforms
– Technology providers and digital partners
– Airlines, car rental companies, and other travel-related businesses
– Corporate clients and event planners

Cost Structure:

– Property operations and maintenance costs
– Marketing and advertising expenses
– Sales and distribution costs
– Technology and innovation investments
– Workforce and talent expenses

Marriott’s Competitors

Marriott International, Inc. faces tough competition in the global hotel industry. The company’s top competitors include Hilton Worldwide Holdings Inc., InterContinental Hotels Group, AccorHotels, Hyatt Hotels Corporation, and Wyndham Hotels & Resorts. These companies operate a wide range of hotel brands and have a strong presence in key travel markets around the world. Marriott competes with these industry giants by offering a diverse portfolio of hotel brands and focusing on delivering exceptional customer service and experiences.

Marriott SWOT Analysis

Strengths:

1. Strong brand recognition and reputation in the hospitality industry
2. Extensive global presence with over 7,600 properties in 133 countries
3. Diversified portfolio of hotel brands catering to different market segments
4. Robust loyalty program with over 140 million members
5. Strong financial performance and revenue growth

Weaknesses:

1. Dependence on macroeconomic conditions and travel industry trends
2. Vulnerability to cybersecurity threats and data breaches
3. Reliance on third-party hotel owners and franchisees
4. Limited presence in certain emerging markets

Opportunities:

1. Expansion into new markets and regions, particularly in Asia and Africa
2. Innovation in technology to enhance guest experience and streamline operations
3. Acquisition or partnerships with complementary businesses or brands
4. Growing demand for eco-friendly and sustainable practices in the hospitality industry

Threats:

1. Intense competition from new and existing players in the hospitality industry
2. Regulatory challenges and changes in government policies affecting travel and tourism
3. Economic downturns and global crises impacting travel and hotel demand
4. Shifts in consumer preferences and behaviors towards alternative accommodations and experiences

Concluding Analysis

So, in conclusion, it’s clear to see that Marriott International, Inc. has a solid and dynamic business model that has proven successful for many years. With its diverse portfolio of brands, innovative customer experiences, and commitment to sustainability, the company is well-positioned for continued growth and success in the hospitality industry. As an analyst, my perspective on the future of Marriott International is optimistic. I believe that their strong brand recognition, global reach, and focus on customer satisfaction will allow them to navigate through any challenges and capitalize on new opportunities in the ever-evolving market. With their strategic planning and forward-thinking approach, I am confident that Marriott International, Inc. will continue to thrive and remain a leader in the hospitality industry for years to come.