Marriott International, Inc is a worldwide operator and franchisor of a broad portfolio of hotels and related lodging facilities.

Founded by J. WILLARD MARRIOTT, the company is now led by son J.W. (Bill) Marriott, Jr. Today, Marriott International has about 3,150 lodging properties located in the United States and 68 other countries and territories. Marriott International operates and franchise hotels under the Marriott, JW Marriott, The Ritz-Carlton, Renaissance, Residence Inn, Courtyard, TownePlace Suites, Fairfield Inn, SpringHill Suites and Bulgari brand names. Marriott's operations are grouped into the following five business segments:

Full-service lodging Select-service lodging Extended stay lodging Timeshare Synthetic fuel

HISTORY

Marriott was founded by J. Willard Marriott in 1927 when he and his wife opened a root beer stand in Washington D.C.As a Mormon missionary in the sweltering, humid summers in Washington D.C, Marriott was convinced that what the city needed was a such a place to get a cool drink. They later expanded their enterprises into a chain of restaurants and hotels. The Key Bridge Marriott in Arlington, Virginia is Marriott Internationals longest operating hotel, and celebrated its 50th anniversary in 2009. Their son and current Chairman and Chief Executive Officer, J.W. (Bill) Marriott, Jr. has led the company to spectacular worldwide growth. Today, Marriott International has about 3,400 lodging properties located in the United States and 67 other countries and territories. Edwin D. Fuller is the current President and Managing Director of International Lodging for Marriott International. Marriott International was formed in 1992 when Marriott Corporation split into two companies, Marriott International and Host Marriott Corporation. In 2002 Marriott International began a major restructuring by spinning off many Senior Living Services Communities (which is now part of Sunrise Senior Living) and Marriott Distribution Services, so that it could focus on hotel ownership and management. The changes were completed in 2003.

In April 1995, Marriott International acquired a 49% interest in the RitzCarlton Hotel Company LLC. Marriott International believed that it could increase sales and profit margins at the Ritz, a troubled chain with a significant number of properties either losing money or barely breaking even. The cost of Marriott's initial investment was estimated to be about $200 million in cash and assumed debt. The next year, Marriott spent $331 million to take over the Ritz-Carlton Atlanta and buy a majority interest in two properties owned by William Johnson, a real estate developer who had purchased the Ritz-Carlton Boston in 1983 and expanded his Ritz holdings over the next twenty years. The Ritz began expansion into the lucrative timeshare market among other new initiatives made financially possible by the deep pockets of Marriott, which also lent its own in-house expertise in certain areas. There were other benefits for Ritz-Carlton flowing from its relationship with Marriott, such as being able to take advantage of the parent company's reservation system and buying power. The partnership was solidified in 1998 when Marriott boosted its interest in Ritz-Carlton to 99 percent. By 1999 revenues from the 35 hotels it operated around the world totaled about $1.4 billion. Marriott International owned Ramada International Hotels & Resorts until its sale on September 15, 2004 to Cendant. It is the first hotel chain to serve food that is completely free of trans fats at all of its North American properties. In 2005, Marriott International and Marriott Vacation Club International comprised two of the 53 entities that contributed the maximum of $250,000 to the second inauguration of President George W. Bush. On July 19, 2006, Marriott announced that all lodging buildings they operate in the United States and Canada would become non-smoking beginning September 2006. "The new policy includes all guest rooms, restaurants, lounges, meeting rooms, public space and employee work areas. On November 11, 2010, Announced plans to add over 600 hotel properties by 2015, the bulk of the additions will be in the emerging markets of India, where it plans to have 100 hotel properties and other countries include China and Southeast Asia. On January 21, 2011, Marriott said that pornography would not be included in the entertainment offered at new hotels, which will use an internet-based video on demand system.

MARRIOTT CULTURE
"Culture is the life-thread and glue that links our past, present, and future."

Marriott is committed to fair treatment of associates and to providing training and advancement opportunities to all Marriott's reputation for superior customer service rises out of a long tradition that started with J. Willard Marriott's simple goal for Hot Shoppes to provide "Good Food and Good Service at a Fair Price" -"Do Whatever it Takes to Take Care of the Customer" -Pay extraordinary attention to detail -Take pride in their physical surroundings -Use their creativity to find new ways to meet the needs of customers The company actively supports the community and encourages associate volunteerism through a variety of organizations At Marriott, the perpetuation of a company's culture has a proven positive financial impact.

VALUING DIVERSITY
Since its founding in 1927, Marriott has valued diversity and inclusion of all associates. This legacy is now a fundamental operating principle and business imperative. Since 2003, our Committee for Excellence has promoted the recruitment, retention, and advancement of women and minority employees, and initiated efforts to develop an increasingly diverse owner, guest, and supplier base. In 2005, the J. W. Marriott Diversity Excellence Award was created to recognize a business unit or department for promoting diversity and building an inclusive environment. Their 10-member Board of Directors includes three minorities, including two women. Our Regional Diversity and Inclusion Councils ensure that our diversity strategy is implemented in local markets with strategic partnerships, targeted

recruitment campaigns, diversity communications, and other outreach to associates.

DISTRIBUTION
Agoda.com, an online travel company specializing in discounted hotel bookings in Asia, is in partnership with Marriott International Inc., the internationally renowned hotel and Resort Company with 3,100 properties worldwide. The partnership allows distribution of Marriotts branded, world-class hotels via Agoda's websites. The distribution agreement covers all Marriotts properties worldwide.Agoda.com is considered a specialist in the Asian marketplace and is expected to focus initially on the Asia Pacific region, in popular destinations like Bangkok, Hong Kong and Singapore. The partnership provides Marriott with a platform which enables them to move room inventory online more effectively. Agoda will provide Marriott with access to their Yield Control System (YCS) allowing properties to dynamically manage yield rather than focusing on negotiating long-term pricing or allotments. Agodas local market expertise will enable it to provide Marriott with advice on frequently changing market situations and trends which can translate into opportunities to increase revenue and growth.

MARKETING MIX
Place

Marriott has hotels in a lot of countries like the USA, Thailand, Argentina, India and so on. There are also three Marriotts in the Netherlands, all of them are in Amsterdam. The hotels are located in all kind of places. There are hotels next to the highway, nearby the airport and there are also hotels in the centrum of cities. This can mean that the Marriott wants to attract all kind of people. Bussiness people will stay in hotels next to the highway or nearby the airport and the hotels nearby the airport will also attract travallers who have to wait a long time before there next flight is leaving. The hotels in the centrum of cities will mostly be filled by tourists who are on a citytrip. Although, you can't deduce the target group on the base of the place.

Promotion

There are a lot of ways to promote a hotel. Nowadays one of the most important ways to promote a brand, in this case a hotel, is on the internet. Marriott has a extensive and clarifying internet site. It has a lot of information for the customers and you can also book online. But of course there are lots of other ways to promote a hotel. First of all we want to say that we think that the Marriott most of all wants to reattract the customers they already ''have''. Of course they also want to attract new customers, but we expect that the Marriott in their promotion campaigns most of all wants to attract the customers they already have. That has consequences for their promotion campaigns. You can also see this on the internet site. For example the site says "Live it up this summer. Stay the weekend, pay with your Visa card and get a $25 Visa gift card". Marriott also sends regular customers letters and emails with special offers. We haven't found any ways how the Marriott tries to attract new customers but we guess that they try to do that with banners on internet sites and folders at Tourist Information Offices.
Product

The core product of the Marriott are their hotels, or better specified, their rooms. Marriott has different kind of hotels, they have the following brands: Marriott Hotels and Resorts JW Marriott Hotels and Resorts Renaissance Hotels Courtyard Residence Inn Fairfield Inn Conference Centers TownePlace Suites Springhill Suites Marriott Vacation Club

Each brand has its own style or theme. For example: Residence Inn hotels and what mostly attracts attention is that they have a really cousy lobby. It was a quite and cousy place with comfortable couches. That's why I think Residence Inn's target group is elder people because it's a calm place to stay. All of the brands have the same concept, but they are specified to places and target group. We think that that is what the Marriott makes so strong. They have one concept, but they found a way to make that concept work in different places and for different people. That way they can attract a lot of customers.

Price

Every Marriott brand has a different price. That's because the different brands want to attract different people. For example they can ask a high price from business people because their rooms are mostly paid by the company they work for. So business people don't really care about the price. But on the other way families want to pay as less as possible because they already have a lot of costs. The price also depends on the fact if the brand has more facilities like "Renaissance Glendale Hotel & Spa". Most of the customers are satisfied about this because Marriott is a big company and they give value for money. They actually leave up to their promises.

CHALLENGES
In April 2009, the Marriotts credit rating had lowered by Standard and Poor Ratings Service. The downgrade in Marriotts credit rating makes it difficult and expensive for the company to access again in the credit market. Eventually, there would be an increase of capital cost of Marriotts; if its credit rating continues to fall down. More important to know is the threats that the company would be going to experience with its operating margin that dropped to 6.1 percent from 9.1 percent in 2008; this only indicates that Marriott has not been able to manage well its cost structure. Subsequently, declining operating margins have great impact on the profit making process of the business. And, even until these days, Marriott reportedly declined its net income to US$157 in the second quarter of June this

year; from US$207 million in the previous year. Moreover, Chief Executive J. W. Marriott stated that the other Marriott chain of hotels outside the United States are continually benefiting from the strong global demand of the customers. But still, the domestic market in the US territories is as not as active as the other branches in other countries. Equally important is the major concern of the hotel industry towards US airlines, which are cutting routes as their way of fuel cost cutting for their own survival. There are many hotel executives in the United States who are hoping for the reduction of fuel prices so that business travel and hotel industry can boom again in the domestic market.

SWOT ANALYSIS
Strengths Global leader Marriott International Inc is the leader in the global hotels market, with a near 5% value share in 2007 and a large geographic presence. Unhampered by hotel ownership the company owns less than 1% of its hotel portfolio and is thus less vulnerable to real estate price fluctuations than rivals. Moreover, its emphasis on franchising facilitates the rapid expansion of its portfolio. Focused pipeline development Marriott International is pursuing a growth strategy to further consolidate its presence in foreign markets and capitalise on the booming travel and tourism industries of emerging markets, which should continue to serve its business well in terms of revenue over the forecast period. Unfortunately, the global economic downturn is hindering expansion plans, particularly as consumer confidence softens and demand for travel accommodation falls. Strong internet presence Marriott International's website guarantees the best rates available, enticing price-conscious consumers away from third party websites. IT solutions Marriott International is upgrading its properties with technology that responds to the needs of business and leisure travellers. In the latter part of the

review period, for example, it has transformed its public areas to encourage guests to work and socialise through the adoption of the latest design, technology, food and beverage offerings. Weaknesses Domestic market focus despite international expansion, Marriott International remains heavily reliant on the US, making it sensitive to the changing fortunes of its domestic market. Luxury brands mid-scale and upscale hotel brands leave Marriott International vulnerable to any potential global economic downturns, particularly given that economy travel accommodation is gaining increased penetration in major destination markets. Courtyard brand the Courtyard brand is maturing and losing its core business customers. Industry experts believe the revitalisation process may not be enough to lure customers back mainly due to a fierce competitive environment, packed with exclusive offers and increasingly modern accommodation, particularly at a time when business travellers want to cut costs. Lack of a low-cost lifestyle brand Marriott International does not have a low-cost lifestyle brand in its product portfolio, like aloft from Starwood and Hotel Indigo from IHG. Uncertainty around the launch of "Edition" the launch of "Edition" by Marriott, a new genre of a lifestyle brand that combines an intimate and unique travel accommodation experience, will come at a turbulent period, characterised by weak demand for luxury hotels in the US. Opportunities Emerging markets in order to offset the negative impact of such a challenging business environment and to capitalise on the opportunities present in emerging markets a number of hotels have turned to them. Marriott International is no

different and Asia-Pacific countries became key target markets. Individuated experience the growing consumer demand for an individuated travelling experience is generating potential for hotel operators to develop distinctive brands, properties and services. Threats Consumer confidence general economic and business conditions, which adversely impact the income levels of potential travellers, coupled with a rising lack of confidence in strong markets like the US, can have a negative impact on Marriott International's operations. This is particularly true given its strong presence in North America, where it is the largest hotel brand in value terms with a strong focus on mid-scale and luxury brands. A downturn in business travel poor economic conditions are forcing businesses to reduce travel and spend less on travelling. Marriott's brands, especially the luxury brands, are likely to see less travellers. Economy brand development the rapid growth achieved by economy hotel brands in the last three years poses a potential threat for mid-scale, limited-service brands such as the SpringHill Suites. Credit crunch there is a fear that the global travel and tourism industry will see a corresponding slowdown in revenue as consumers spend and travel less in the short term. Marriott International is dependent on the availability of consumers willing to enter into credit agreements, and, therefore, a general spending reduction will result in a drop in revenue. This also applies to potential investment from prospective hotel owners and franchisees looking to fund construction, renovations and investments.