Marriott digital strategy

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marriott digital strategy

Marriott International has been facing a rapidly changing operating environment: consumer preferences are evolving and digital disruptors, like Airbnb and One Fine Stay, are providing attractive alternatives for travellers seeking lodging options.

To compete with the cost advantages offered by these digital disruptors, it is more critical than ever that Marriott deliver an extraordinary customer experience.

In their Innovation Lab, Marriott already has full-scale models of these rooms built. Despite the significant and varied changes impacting its industry, Marriott has managed to continue to succeed while creating value for its customers around the world.

Marriott is an excellent example of an incumbent defending against intensifying disruptive threats by leveraging innovative technologies to deliver an extraordinary experience for customers. I am surprised to learn that Marriott is performing well given the increased competition from substitute products such as Airbnb.

marriott digital strategy

Is Marriott an outlier in the industry? The new technology rooms seem like an innovative feature — it will be interesting to see how guests feel about these innovations. Great Post, I think Marriott along with Accor Hotels are the most successful companies so far to compete with short term rental platforms, through new technologies or new brands like Moxy Hotel.

However, Personally I believe Major hotel companies have a good shot to survive the disruption wave specially that cities are starting to regulate short term rentals. However, are new technologies and new brand are enough to convince guests that hotel may provide the same experience as local or authentic accommodation?

You must be logged in to post a comment. Register for an account. Skip to content. We manage this forum to gather and share perspectives from the HBS student community. Want to learn more about digital transformation? Log in to Reply. February 1, Alaa says:. Leave a comment Cancel reply You must be logged in to post a comment.The company continues to lead the way in innovating the digital aspects of the guest experience with a slew of initiatives designed to surprise and delight guests and enhance the quality of the overall guest experience.

These remarks come from a new interviewhosted by Microsoft, in which Sorenson notes that success in using technology to improve the guest experience means putting both the right tools and the right data infrastructure in place.

When it comes to improving the overall guest experience, Marriott focuses on both the physical and digital aspects of its business.

The physical aspects, including the comfort and cleanliness of the rooms as well as the pools, spas, exercise rooms, etc. Meanwhile, the digital aspects of the guest experience have taken on heightened importance in recent years. These aspects include everything from the process of booking a room to engaging with customer service to personalized mobile experiences.

Marriott has launched a large number of high-profile technology-enabled initiatives in this area. It has also launched a number of less-buzzworthy initiatives that have nonetheless served to enhance the quality of the guest experience.

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With the acquisition of Starwood Hotels and Resorts, for example, the company immediately enabled members of its loyalty programs — Marriott Rewards, The Ritz-Carlton Rewards and Starwood Preferred Guest — to link their accounts, allowing members to have their status matched across all three programs, which was no easy feat from a technology and data integration perspective.

The growing popularity of text messaging prompted the company to launch the Mobile Requests feature on the Marriott Mobile app inenabling guests to chat directly with hotel associates. Within two years, more than 2. The success of Mobile Requests inspired Marriott to expand the number of guest-facing mobile communications options, including chatbots for its Marriott Rewards members.

Marriott Rewards members on Facebook Messenger and Slack can research and book travel at more than 4, hotels and chat directly with customer engagement center associates. The app also uses chatbots, enabling guests to ask questions, make simple requests, and receive instant responses. It is designed to simplify tasks for guests like playing music, ordering towels, controlling in-room temperature or lighting, finding local restaurants and attractions, calling, and even checking out. The technology is managed by Volaraa provider of custom voice-based solutions to the hospitality industry.

Last month, The Westin Buffalo, one of the upper-upscale properties in the Starwood collection, became one of the first hotels to deploy guest-servicing Echo devices in each of its guest rooms, where guests can now connect their own Amazon accounts with their personal music playlists. As reported hereit was also the first hotel in New York State, and one of just 20 hotels in the country at the time, into employ a Relay robot, manufactured by California-based Savioke.

The Savioke Relay, nicknamed Chip, is programmed to provide automated service to hotel guests, from bringing a cold cocktail to their room to delivering extra towels or dropping off a complimentary toothbrush and tube of toothpaste. Some guest-facing innovations have been experimental in nature, and even whimsical.

They can write or draw whatever comes to mind using steam. Whether the technology is rolled out on wider basis is yet to be seen. The hack involved as many as million guest records, as well as more than 5 million unencrypted passport numbers and more than 9 million encrypted payment cards. To its credit, Marriott handled the data breach issue better than most other major companies that have also fallen prey to cybercriminals, allowing it to move past the issue, at least in terms of retaining the trust of its customers.Posted by Chris Robinson on Mar 13, Understanding your source market is an essential step in any digital marketing strategy, but knowing the potential of new ones is even more powerful.

There are several online tools you can use to determine possible opportunities, one of which is Google Trends. When you access the tool, you can input a search term and determine interest levels in any keyword. Think like a customer, what would they search to find a hotel like yours? Posted by Chris Robinson on Mar 12, You must use multiple techniques to stay on top of this ever-changing world Posted by Chris Robinson on Mar 11, Posted by Chris Robinson on Mar 10, There are two closely linked Starting this Monday, March 9th, we will be releasing a week-long educational series on MDS Decoded outlining some of the key digital strategies you can implement.

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Working remotely, it is an even greater challenge to participate in our When you think about first impressions, they often are framed in the context of job interviews, dates, meeting a C-Suite colleague and other significant life and work events. Photos provide that important first impression of your hotel, whether they When it comes to search engine optimization SEOit is well known that content is king. Keeping tabs on our websites can be hard work. As comes to an end, now would be a great time to take a look at our hotel websites and start This year, more than 55 million travelers are making plans to kick off the holiday season with a trip 50 miles or more away from home.

Traveling during the holidays is part of the joy of the season, but for many of us, getting there is I was recently served an ad that at first I found to be odd.

marriott digital strategy

It was a safety lock to add to your hotel room door or wherever you are staying. And then it made me think, how safe are we when traveling?

With so many travel options these days and the As of October 28, I am part of the k Sonoma County evacuees. The local police, Sheriffs, California Highway Patrol, firefighters and first responders have done a tremendous job mitigating risk in the community while staying safe themselves. In the same report, BrightEdge later uncovered that Mar Here are four areas you can be focusing on to ensure you are always Want To Be Happier In ?

Marriott Marketing Mix (4Ps) Strategy

Email Subscription Email Subscription.Marriott is one of the most recognized luxury hotel chains in the world. For Marriott the core product in its marketing mix is in the form of hospitality services.

It divides its services mainly in the 3 parts: core, actual and augmented which comprises of different services like Hotels, Hospitability management, Resorts, lodgings etc. Among all of these the maximum revenue is generated by their core product i. Among the hotel as a product it is further subcategorized into different brands such The Ritz-Carlton, St.

Each brand is unique in its own style and theme which makes it recognizable in comparison to other. More or less Marriott has almost same concept for all the brands but they used the same concept with the location, environment and according to convenience of customers which made Marriott so successful all across the world.

Their prime motive is to deliver the right product at the right price. Marriott determines the prices of their hotels by keeping the value with quality framework satisfied and also the pricing strategy is maintained in such a way that without losing their brand name Marriott is able to maximize their revenue. Hotels prices also varies on the customer demand and also to maintain the cost incurred in promotion and maintenance. Marriott has established itself in more than countries all across the world and its hotels are also located in various places across the city like near airport, highways, near central market etc.

Being location specific give Marriott an advantage to attract customers like the business people will be acquiring hotel near airport while the travelers will love to do night stay in hotels near highways and tourists in the city near market so that it is easily accessible. For the growth of its hotels Marriott has also adopted a mix channel strategy which consist of both direct channel and third party channel.

This enhances the speed in maintaining the inventory across the different infrastructure and reducing the overall costs. Generally in choosing a distribution strategy looks for parameters like maximizing revenue, maintaining consistent growth, delivering adequate services to customers at the correct price which is worth the value and also operates profit.

Marriott totally focuses on the digital promotion of their products. Being an international brand they has created a website which clearly showcase all of their products in a very good detailed manner and also allows users to pre-book the rooms in hotels with easy procedure.

It do its promotion with different advertisement, videos and campaigns on different social media sites. Marriott tries to maintain its loyal customers by coming up with different promotional schemes and also attract new customers with the marketing of new products.

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Since this is a service marketing brand, here are the other three Ps to make it the 7Ps marketing mix of Marriott. Marriott knows the importance of serving its guests, which is the basic people strategy of the brand. Marriott has several business processes in place to ensure quality customer services, efficient bookings and a comfortable stay for customers. In order to keep their customers always satisfy Marriott works with a transparent process which is very easy to see, judge, operate and is user friendly right from the online booking of rooms to the check-in and check-out is done in a pretty well versed way.

Marriott hotel buildings and resorts are the biggest physical evidence for the company. Services are mainly intangible but Marriott gives their customers a great ambience with a lasting physical experience which itself makes customers to return back and retain that experience. Other physical objects of the brand Marriott are their towels, booklets, pens, soaps etc.

Hence this gives an insight in the marketing mix of Marriott. Recently in for the further expansion of its market outside US, Marriott has acquired Resorts worldwide and Starwoods hotel. For the growth Marriott follows partnership approach by creating different franchisee with different benefits and incentives which helps the partner itself in achieving their objective.

With the acquisition of Starwood, Marriott has extended its loyalty program to the unparalleled stage which consist of more than million customers who actually help in generating revenue from more than fifty percent of their rooms all across the world. Marriott is known for the tall hotels and buildings like the Marriott world trade center which was destroyed in the terrorist attack on 11th September Marriott is also known for its cutting edge in the innovation.

It was Marriott and Starwood who were the first one to come up with the innovation like hotel check-in through mobile, heavenly bed and keyless entry. Marriott also monitors its facilities in a great way and maintain the services to a premium quality.Facebook Twitter RSS. Andy Kauffman is a digital guru. We use data and insights to present the right message to the right guest at the right moment across their journey with us.

CM: Can you give me an example?

3 Ways Marriott Is Revamping Its Brands and Promoting a Trendier Image

We started with driving bookings and now are extending this personalized approach to additional activities such as signing up Marriott Rewards members or downloading the Marriott Mobile app to take advantage of benefits like mobile check-in and checkout and mobile requests while on-property. Through this guest-centric approach, we can engage with our guests continuously and ensure our content is relevant to their needs and wants in the moment.

We have recently added a studio in Hong Kong and one for our Caribbean and Latin America region with two more set to open in Europe and the Middle East. Our global approach means we can better engage our guests wherever they live, in-language, and in a way that is culturally relevant.

The power of M Live is that it gives us the opportunity to go from speaking one to many to potentially speaking one-to-one. CM: What types of data do you track?

KAUFFMAN: We track conversations, trends, global performance, marketing campaigns and brand reputation across social platforms and use that data to identify opportunities to interact with customers in a personalized way that enhances their travel experience. Marrying the data we collect on social media through M Live with the rest of our guest data to create a holistic engagement at any moment in time generates loyalty and revenue.

CM: Where and how do tech innovations and hospitality collide, taking culture, language and locale into account? We now have many more touch points to engage with guests before, during, and after their stay—from Marriott. Each interaction is an important moment for our guests and for us to enhance our relationship with them. We are extending that core value into our digital interactions and delivering more personalized engagement and services.

CM: Can you provide another example? KAUFFMAN: We know that some guests will always want to interact with our associates at the front desk, while others may prefer to use their mobile device to check-in and out of our hotels.

We understand that different guests have different needs at different times, and technology is a great way to recognize those personal preferences and customize our guest service model to each interaction. Those personal preferences extend to language and culture as well. One example of this is our Mobile Requests feature in the Marriott Mobile app.

Guests can choose from a pick-list of services and amenities, or communicate in real-time with an on-property associate, in English, Spanish, French, Chinese, and German. In addition, our M Live studios around the world enable us to deliver regionalized, in-language content to engage with guests in a more culturally significant way. CM: What is your favorite new marketing technology? We can now engage in guest-centric dialogues through digital interactions across devices that use data, insights, and content to deliver what a guest wants to hear, which may or may not be what the marketer intended to say.

The combination of data and content to deliver personalized experiences is our formula for people-based marketing. Clearly, this is enabled by technology, but also by a mindset shift combined with changing how we work cross-functionally across our teams. CM: What are your thoughts on the ability and capabilities of measuring marketing campaigns today?

Data drives our technology development process and enables us to optimize our marketing effectiveness.

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Proofs of concept are an excellent way to test the viability of new services at a lower cost. What did guests have to say about the new features or the new way they are interacting with the brand? Does the approach work in all markets? New measurement techniques have given us many different ways to validate our innovations with customers.Marriott International, Inc. Global systemwide occupancy has inched up more than one percentage point against the prior six months, to During the company's second-quarter earnings conference call in early August, CEO Arne Sorenson described four significant competitive advantages which, in addition to innovation strategiesundergird Marriott's ability to make incremental progress on these and other industry benchmarks.

Our three loyalty programs lead the industry and are getting better While we will retain all three loyalty-program brand names until next year, customers will experience them as one great program. As Sorenson points out, the three names will be rolled into a single moniker in early The advantage of this merger from a customer perspective is the opening up of Marriott's 29 hotel brands to members of each separate program. From Marriott's perspective, revenue per available room RevPAR should experience an incremental lift.

A unified platform, in terms of user experience, means that customers see the full suite of Marriott's brands when accessing branded web sites and mobile apps.

Greater choice spread across a variety of price points should result in higher booking conversions, and a resulting positive effect on RevPAR. With over 6, properties, we are positioned to take care of guests, whether they are on a Midwest road trip, making a sales call in Johannesburg, or enjoying a luxury resort getaway in the South Pacific.

This growing breadth of product, and the growing number of earning and redemption opportunities, increases the value of our loyalty program, as guests don't need to look further than our properties virtually anywhere they may travel.

Marriott maintains the largest inventory of hotel rooms globally, and the company intends to extend this advantage for many years, as it also has more inventory in development than any other hotelier. Marriott's total pipeline of rooms in development at quarter-end reached-- roughly 25, more than the tally at the end of the second quarter of Further increasing the scale of Marriott's reach should result in revenue expansion, as loyal customers flock to new units in both developed and underserved markets.

The company appears to be chasing an ultimate goal of ubiquity, but is far from overbuilding; evidence points to Marriott's skill in matching increased capacity to latent demand. For example, the company added 23, rooms in the second quarter of alone, yet RevPAR rose 3.

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A loyalty program with significant luxury destinations and experiences is magnetic. Dreams about luxury Hawaiian holidays are motivating, particularly for travelers who spend a meaningful part of their lives on the road Regis, and W Hotels create value beyond room-night revenue. These aspirational destinations drive traffic to Marriott's premium, mid-tier, and casual brands, as customers stockpile points for those dreamy tropical vacations. It's no surprise, then, that between affluent core customers and point-redeeming vacationers, the company's luxury collections enjoy enviable occupancy rates.

Climbing occupancy opens additional opportunities for on-property fee revenue. Like loyalty and luxury, our booking engines are also a significant competitive advantage. Guests can book our hotels directly through our websites, apps, call centers, [or] group sales offices, or on property. Increasingly, Marriott is seeking to capture bookings directly instead of relying on online travel agencies OTAs. As the company has upgraded its booking technology and implemented an advanced revenue yield management system, it's more willing to price-match rates offered on third-party sites -- provided customers book through its loyalty program.The digital transformation also extends to the on-property experiences.

For example, we offer mobile check-in and checkout, keyless entry and other services through the mobile app. Linnartz: It cuts across various disciplines.

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I have a new position on my team called the chief customer experience officer [or CXO], and this role helps thread digital throughout the marketing, IT, brand and sales teams.

Digital is ubiquitous, so it touches all those people, as well as the teams that are running our app, our website and our call centers. How do you keep them aligned? Being part of one team makes a big difference.

marriott digital strategy

Mobile check-in and checkout will be standard at some point. Everybody will have them, just like everybody has key cards today. The goal is to stay ahead of the competition and come up with something new. Linnartz: Absolutely. Amazon is so highly personalized—they use big data and predictive analytics to create a really great experience, and consumers expect the same thing on our website.

Linnartz: One challenge is always having enough money and resources to invest. On the technology front, marketing is an ever-changing space and keeping up with it—while prioritizing precious dollars—is always a challenge. Time spent with mobile will account for nearly all of the increase. Preview Report. Not a PRO subscriber? Find out how to become one.

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