Strategic Hospitality Management
•Strategies overview and positioning •The overview of Marriott, Accor and Holiday Inn in terms of strategies and group positioning can be understood through following points:
Factors
Marriott
Accor
Holiday Inn
Location
Location of premises in five different areas
Based on two areas of expertise.
Expansion of business into different segments.
Financial strategies
Controlled Payroll Strategy
Increment in Budget
Increase in occupancy rate.
Marketing strategy
Adoption of 4 Ps which includes marketing mix.
Franchising and Investment
Online reservation services
•Comparison of strategies in three hotels •Comparison of Strategies of Marriott, Accor and Hotel Inn can be understood through the help of following points:
Strategic management of all three firms is totally distinct from each other where Marriott expands its business
through locating five different outlets in its own premises, whereas, Accor hotel managers plans to provide services in franchised hotels and making investment in selling-off existing selected properties. On the other hand, Holiday Inn, employers through fascinating services like availability of fax machines and additional work space in rooms.
The five outlets of Marriott provides services of different menus which are based on customer's needs,
Accor's managers which are responsible for generating huge profitability, generating cash and location expansion. Whereas, Holiday Inn managers made strategies for satisfying business class people by offering services like wireless internet, broad daylight in meeting rooms, projectors and other essential equipments.
Allies American Grille, Tuscany, Barhemia, Atrium and Costa coffee are the five outlets located by Marriott
and their names are also attractive as they arises the light that reflects the comfort possessed by them.
•Contd....
Marriott employed a controlled payroll strategy in recession times also, while Accor managers expanded their
business in Scotland where their existing hotel was already enjoying lot of success. On the other hand, Holiday Inn managers are of a total different mind who tends to provide all luxury services to guests with a family-like
standard atmosphere that creates mind-blowing experience for the guests.
Marriott managers decided to apply marketing mix through keeping price of products according to the needs
and desires of customers by understanding their behaviour. Whereas, Accor Hotel made strategies in order to become the most innovative and most valued group of hotels in the world by securing the leading position.
Holiday Inn targeted not only economic class but also aimed to grab business class by charging affordable prices.
Marriott aimed at using marketing audit which helped to understand or which gave broad idea about current
marketing trends and then to convert it into viable strategy.
•Models Factors
Marriott
Accor
Holiday Inn
Models
4 Ps marketing model
Hotel service business model and hotel invest business model
Franchising and managing hotels model
Brand Portfolio
High
Moderate
High
Level of Internationaliza tion
High
Very High
High
•Contd... ď Ź
Marriott managers used the model of four Ps but, they did not only depended of factors such as product, place, price and promotion but marketing managers of the firm also tended to focus on changing needs and desires of the customers. On the other hand, Accor used two models, namely, hotel service business model and hotel invest business model which has wide concept as compared to marketing mix. Lastly,
Holiday Inn used franchising and managing hotels model helped the firm to add 1900 hotels in its brand family. ď Ź
With the help of this model, Marriott earned reputation from its Italian clients as they like to spend long period of time in Marriott during holidays. Accor's two models helped to operate their strong
brands which included marketing and sales, management and franchise and IT and distribution of departments. The hotel invest model helped the firm to re-enforce firm's objectives of increasing the Net Operating income over 75% through owned hotels. the local target markets of Europe.
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Contd.... ď Ź
Level of internationalization in Marriott hotels is high as it has its presence in more than 80 countries with over 4087 properties and 697,000 rooms. It is present in almost every country and is known for its services and hospitality. Company is very aggressive in expanding its business through acquisitions and mergers.
ď Ź
On the other hand, if Accor group is seen than it can be said that the level of internationalization in this group is very high as it has its business in almost 92 countries with over 3700 hotels. Company has its business from low end hotels to very high end one and are basically known for its exotic treatments. From last few years, it has been noticed that company has stopped its expansion and is currently
focusing on its existing properties. ď Ź
Lastly, Holiday Inn is also one of the biggest hotels in the world with its presence in 5 continents and almost 3643 properties. This chain is expanding its business from more than any other company and is very well known for its luxurious environment.
•Recommendations ď Ź
Management needs to predict the magnitude of recession: For enhancing effectiveness of Hotel business in market, the management team have to predict magnitude and chances of recession in existing market. From trade projection in future and quantitative analysis, management team will be able to draw future opportunities and threats existing in market.
ď Ź
Need to improve co-ordination in Hotel Services and Hotel Invest: This is the another way for
managing operations and functioning of the hotel. It will be the responsibility of managers of hotel to make balance between different departments of hotel. This can be managed by proper co-ordination and communication between employees and members of organization.
•Cont... ď Ź
Necessary to increase profitability of brand simultaneously with emerging market: It is also the responsibility of management team to find out the opportunities in emerging markets. This plays an important role for generating revenues in the market. Brand awareness in new emerging market is profitable in monetary terms as well as future for the business. Analysis of existing and new market is important for the hospitality industry.
•References •
Bharwani, S. and Butt, N., 2012. Challenges for the global hospitality industry: an HR perspective. Worldwide Hospitality and Tourism Themes. 4 (2). pp.150 – 162.
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Bluementritt, T., 2006. Integrating strategic management and budgeting. Journal of Business Strategy. 27(6). pp.73 – 79.
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Brown, P., 2003. Seeking success through strategic management development. Journal of European Industrial Training. 27(6). pp.292 – 303.Clarke, A. and Chen, W., 2012. International Hospitality Management. Routledge.
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Crick, P. A. and Spencer, A., 2011. Hospitality quality: new directions and new challenges. International Journal of Contemporary Hospitality Management. 23 (4). pp.463 – 478.
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Ford, C. R., Sturman, C. M. and Heaton, P. C., 2011. Managing Quality Service In Hospitality: How
Organizations Achieve Excellence In The Guest Experience: How Organizations Achieve Excellence in the Guest Experience. Cengage Learning. •
Jeffs, C., 2008. Strategic Management. SAGE.
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