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HOTL6009 Strategic Rooms Division
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Introduction
Marriott Hotel Melbourne is a five-star hotel located at the heart of the city. It is a luxury hotel providing exceptional facilities and unparalleled services to its customers. The hotel is popular for its luxurious accommodations offered to the clients, especially those who prefer comfort. The hotel also provides services to business travellers by offering on-site event managers, exceptional catering facilities and a full-service business centre. In this report, the strategic room division initiative is conducted to increase sales, revenue and growth of the business Marriott Hotel Melbourne is selected as an operating hotel, and SWOT analysis is also conducted to understand the strong and weak areas. Selection of initiative is done after reviewing the hotel’s weak areas to improve the overall functioning in the upcoming years.
Internal analysis of the hotel
Strengths
Global presence: Marriott operates in more than 127 nations and territories. Melbourne Marriott Hotel is in the heart of Melbourne City. Melbourne Marriott Hotel is known for its comfort and spacious accommodation, and plush bedding offers rest that everyone came for having at hotel (Warner and Wäger, 2019). Popular amenities offered by the business are a parking facility, free high-speed internet connectivity, pool area, fitness facilities, bar, airport transportation, conference facilities, meeting rooms, laundry services and many other services.
Market leadership: It is the largest hotel chain at the global level. The firm has more than 30 brands, 81 hotels and assets of $25.1 billion. The firm offers 1.2 million rooms across the globe. Melbourne Marriott Hotel is a five-star hotel that offers award-winning premium services to the customers (Köseoglu et al. 2019). Melbourne Marriot Hotel is a pet-friendly hotel and offers differentiate services such as offers on almost everything. It makes the hotel the first choice for every individual looking for comfortable dining or staying.
Profitable acquisitions: Marriott successfully expanded its portfolio with big players, including Ritz Carlton to Starwood, Gaylord, Resorts Worldwide, and Bulgari Hotel.
Excellent Reputation: It ranked at 44 for diversity, 84 for top regarded firms, and 38 for the best working environment for women, 243 for the best place to work. Marriott managed to be on the Fortune 500 for 21 years and ranked at 151 in 2019 (Hendri, Suharyo, and Susanto, 2019). Melbourne Marriott Hotel receives the most scoring reviews for cleanliness and service offers to the customers. According to TripAdvisor, it ranks 16 of 174 hotels in Melbourne.
Loyal customers: Customers of Marriott’s never switched to any other hotel. The firm uses a combination of customer-oriented strategies to nurture its loyal members, including loyalty programs. Melbourne Marriot Hotel also offers discounts to senior citizens aged 62 or above. It allows the hotel to retain the customers for long durations and a better position in the market.
Strict code of conduct: Marriott follows a strict code of conduct that ensures on-time delivery to the customers. From cleanliness to etiquette, punctuality to regularity, hotels deliver premium services to the customers.
Highly innovative: Marriott offers value by effectively exploiting innovation and technology. The hotel ranked number 21 in most innovative companies. Innovative operations performed by hotels to complete day to day activities are the core of success. The customers also receive alerts through the hotel app regarding their room status, also chat with the hotel, and redeem points at ease.
Weaknesses
Ineffective data protection: According to Martínez and Nishiyama (2019), in 2018, the database of Starwood Hotel of Marriott was hacked, and a huge amount of personal information of half a billion customers leaked. Such incidents hamper the image of the brand.
Poor positioning: It is structured and marketed as a family-focused business. In the future, young single millennial is not able to get the best service experience.
Negativity publicity: The hospitality industry is very sensitive to the perception of customers. The firm’s reputation was tainted in 2017 when the authorities decided to rescue its hotel guests only from St Thomas after Hurricane Irma.
Too strict: Strictness plays a significant role in the success of any business. However, too much strictness results in lowering the morale of employees, reducing productivity and efficiency (Darsin et al. 2019). There was an incident where Marriott employees are required to follow a code of conduct and fired an employee for liking a tweet.
Opportunities
Diversify offerings: In this modern market, satisfying customers require customised services instead of basic services. Marriott must have to differentiate its services from other competitors and offer personalised services as per the candidates’ requirements.
Focus on emerging economics: In developed nations, high-end hospitality services demand is increasing rapidly. It provides outstanding opportunities for the hotel chains such as Marriott to expand the business.
Shifting demographics: Being structured and marketed as a family business, it is essential for the management of the hotel to focus on the young generation as well. It can be done by offering attractive programs to grow the young consumer base.
Threats
Global pandemic: There is a huge downfall in the list of customers due to the pandemic. It causes hotels to lose 92% of the profit. Due to the second stage of the virus, there are chances of suffering profitability.
Stiff competition: This industry is highly competitive. Several popular hotels such as Hilton and Novotel reduced the market share of Marriott.
Risk of terror attack: Being a 5-star hotel with premium accommodation facilities attracts many people from different nationalities. Terror groups can target the 5 star rated hotels because it includes many foreigners.
Strategic initiative
To exceed the customer’s expectations by offering quality hospitality services in a safe, comfortable environment while achieving the objectives of the business.
Goal: To improve the brand image by gaining competitive advantages such as improving customers’ expectations by including innovation techniques. Target single and young generation by initiating more programs suitable for the young generation, such as celebrating birthdays, couple programs, and in-budget meals specially dedicated to single visitors.
HOTL6009 Strategic Rooms Division
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