Introduction
The hotel chain Marriott is well-known for its exquisite approach to guests’ reception. The management of the chain conducts the policy aimed at a wide range of potential customers, and even high-ranking guests, as a rule, can choose the hotel that corresponds to their price category and type. Customer focus is an important part of the hotel business; nevertheless, certain characteristics offered to guests sometimes contradict the conditions of an affordable market, and most brands of this chain remain inaccessible to a wide range of consumers because of high prices. Therefore, it is necessary to consider some variants of Marriott brand hotels to conclude their variety, as well as to examine possible risk factors and potential mistakes that can be made because of the current brand policy.
Sources of Differentiation
The Marriott hotel chain has a rich history and high quality of services provided to guests. According to its official website, the company offers varieties of hotels with a wide profile (Explore our brands 2018). As the analysis of the differentiation that underlies this division, it is possible to consider several types of these houses and review the differences that are observed in their arrangement and, accordingly, a price category.
One of the proposed types of apartments is a classic luxury, and Ritz-Carlton is one of the company’s most famous brands (Explore our brands 2018). Rooms in such hotels are rich in interior and have unusual design solutions. The differentiation that is used in this case is based on a geographical and behavioral factor. Typically, these hotels are located in large cities where a large flow of customers is observed. Luxury can be accessed only by honorable guests with high incomes who are willing to pay much money for the convenience of high class. The chain has multimarket contacts, which causes such high prices (Silva 2015, p. 305). Accordingly, a geographical location plays an important role, as well as the behavior of potential customers who are accustomed to staying in such luxury rooms as in Ritz-Carlton.
Another category is premium hotels (Explore our brands 2018). Interiors in these rooms are less luxurious than in the previous case, but the accommodation also has a high cost. The main principle of differentiation that is observed is geographical since most of such hotels are located in well-known world resorts where guests can comfortably spend their time. According to Lee (2015, p. 114), competition among hotels is largely based on the principle of convenience. The primary difference from the previous type is in the interior design that is less expensive and convoluted. A demographic factor does not play a role here since the hotels of this category can be found in different countries of the world, including both ski resorts and famous places along the coasts of the seas and oceans. In terms of accessibility, the price of these types of rooms is also quite high.
One of the most affordable categories of Marriott hotels includes so-called longer stays (Explore our brands 2018). Even though rooms in such houses are estimated at five stars, these apartments are less expensive compared to the previous ones and, accordingly, have a lower cost. Interior designs are attractive, but no delight is found in luxury hotels. The management always tries to find out customers’ needs, which is a good way of clients’ recognition (Madar 2017, p. 141). The corresponding sources of differentiation that can be observed in this case are psychographic and behavioral, which is explained by the desire of guests to live in comfortable conditions but not to overpay for extra luxury. Of all the presented hotel types, this one is the most affordable; however, it cannot be called cheap since the cost of living here is also quite high.
Budget Category of Lodging
The lack of relatively inexpensive hotels by the Marriott chain maybe because this brand is known all over the world, and much money is spent on arranging rooms since such lodging has a reputation of the elite. Moreover, many people are willing to pay money to rest or to spend time with maximum comfort. As Rahimi and Kozak (2017) remark, the only thing that satisfies consumers in budget hotels is the more affordable cost compared to elite lodging. However, for many clients, such a value as money does not play a significant role, and Marriott’s policy is primarily aimed at such customers.
Another reason why this hotel chain does not represent low-cost accommodation is the high cost of renting the land. As a rule, Marriott facilities occupy well-known places, for example, in the center of the city or on the coasts. To compete with other participants in this market, the management needs much money to receive the right to occupy a certain territory. According to Vrkljan, Bartolucci, and Čižmar (2017, p. 462), different hotels of world-famous chains with recognized brands are significantly more likely to succeed in attracting customers than those that do not have a rich history. Therefore, the management of Marriott does not see any profit in offering inexpensive lodging to customers because of the high costs of renting, advertising, and innovations that are regularly introduced.
Possible Entry to the Budget Market
Theoretically, Marriott can enter the budget hotel market, which will open additional prospects for attracting a new client base. If this niche is also occupied, the chain will have the opportunity to provide comfortable and inexpensive lodging for all customers without exception, and it will possibly be a successful solution in terms of marketing progress. However, if it is about financing such innovations, some nuances may arise during the work process. For example, the corporation will lose a significant part of its funds that they could earn on more profitable customers. Consumers of the middle class will be able to stay at Marriott hotels, but the status of elite lodging may be lost.
Even despite several expensive facilities, the company may be treated as an ordinary chain providing temporary accommodation services and having different categories of lodging. To prevent it, brand management does not need to build very cheap hotels. It is possible that the middle-class lodging will be evaluated as a successful marketing solution, but some elite customers may be lost, which will negatively influence not only the corporate reputation but also its revenue. Therefore, the brand budget should be distributed by the needs of the market. As Xu, Liu, and Liang (2017, p. 61) claim, if all the innovations are preliminary thought out by a group of analysts to find out a potential profit, it will certainly allow the company to remain at the leading positions and at the same time attract more customers.
Risk of Making Positioning Errors
Despite a long period of the Marriott chain’s work on the international market, certain difficulties may arise. According to Dzhandzhugazova et al. (2015, p. 229), the “formation of the financial and economic model of risk management should be based on a complex approach to the analysis of the environment of organization functioning”. It means that any innovations or changes in the work process require careful professional planning; otherwise, mistakes that could lead to the leakage of financial resources may arise. One of such potential errors is the loss of customers because of insufficiently thought out logistics, for example, an unfortunate location of a particular hotel or the lack of certain services. The Marriott chain is known for its attentive work with consumers. Nevertheless, if corporate experts do not focus on clients to provide the most comfortable living conditions corresponding to the modern trends of lodging, the risk of diminishing trust on guests’ part is theoretically possible.
Limited Bonuses
Another possible mistake that Marriott management can make in the process of work is too a narrow profile of services. As Gjerald and Lyngstad (2015, p. 7) note, product constraints are a significant risk since, over time, customers can shift their focus to other companies providing a wider variety of possible services. In other words, the focus exclusively on high-ranking and wealthy guests is the strategy that can eventually lose their relevance if other hotel chains provide clients with more functionality and opportunities than Marriott. Modern development possibilities are wide. The management of the chain under consideration can pay attention to some additional ways to attract consumers, for instance, by providing specific systems of benefits and discounts. Today, Marriott charges its customers with bonus points for coming to their hotels (Explore our brands 2018). However, the wider a discount base is, the more chances that as many customers as possible will interested in the service of such lodging. Accordingly, additional attention can be paid to attracting clients through advertising programs.
Organizational Management
Incorrectly executed organizational management can cause the problem that the leadership of the Marriott chain may face. In particular, mistakes can be made when employing specialists. Despite a large number of hotels around the world, all the facilities belong to the same brand and are regarded as one and indivisible chain. Therefore, it is essential to ensure a specific policy for all Marriott employees to be well prepared. High service prices mean a perfect performance of duties. However, in the case of insufficient quality training, hotel specialists may not be qualified. According to Wang and Chung (2015, p.561), organizational performance implies strict adherence to the current market requirements, and any discrepancies in the stated conditions are fraught with the loss of customers’ confidence. To prevent it, the representatives of the hotel chain should carefully approach recruitment and ensure that all employees are aware of the need to follow job descriptions. In this case, discontent on the part of customers will be prevented.
Conclusion
Thus, the review of the differentiations used in Marriott hotels, the analysis of its features, and the assessment of potential mistakes make it possible to draw up a general picture concerning this chain’s success. Certain improvements in organizational management and the provision of a wider range of services to all the segments of the population can change the situation for the better. The competition in the market can be combated through useful and relevant innovations.
Reference List
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