The the marriott hotel is a company that has been in business for over 100 years. Recently, the CEO of the company said that some cuts to the Covid system are permanent, and emphasized on how guests are not as important as hotel owners.
Some Covid cuts are permanent, according to Marriott’s CEO, who emphasizes hotel owners vs. guests.
on August 5, 2021 by Gary Leff
The greatest error companies make, according to Jeff Bezos, is not concentrating on what consumers want.
If Marriott fails to provide the best value to customers, they have more choices than they have with airlines or car rentals in many areas. They compete not just with Hyatt and Hilton, but also with Airbnb.
Marriott, on the other hand, thinks it must strike a balance between “the expectations of our customers…and the financial realities that our owners and franchisees face,” according to its CEO, who believes employees earn too much money and that visitors should have more compassion for hotel ownership groups.
As a result, “hotels may have a new method of conducting business in the future.” Brand guidelines will be implemented “sometime next year.” However, they’ll be tweaked to “reflect franchisee input and..focus on cost reduction,” including the “removal of daily cleaning at some locations.”
During the pandemic, brand requirements for everything from food and beverage ideas to housekeeping were loosened to enable businesses to concentrate more on financial survival. Marriott executives, on the other hand, intend to return to these criteria next year and ensure that owners and franchisees are adhering to them.
During the call, Oberg and Capuano emphasized that the reinstatement of brand standards would take franchisee input into account as well as a focus on cost reduction. This may imply a greater focus on contactless services like mobile check-in and check-out, which decrease front-desk personnel requirements, and the removal of daily cleaning at certain locations.
Capuano said, “You can expect us to continue to strive to strike the appropriate balance between our customers’ expectations when they go back on the road and the financial realities that our owners and franchisees face.” “We’ll continue to assess service standards by market and quality tier throughout the globe, whether it’s cleaning procedures or food and beverage service.”
The issue at Marriott, which started under the late Arne Sorenson, is that franchisees are treated as customers rather than guests. If you want to grasp Bonvoy’s predicament, read on.
- The goal of the initiative was to reduce owner expenses.
- From late check-out to suite upgrades, the fundamental perks are more extensive than those provided by Hilton or IHG.
- The issue is that perks aren’t always available at the hotel level.
- Furthermore, the program is not aggressive enough in ensuring consistent benefit delivery (that would require financial penalties for owners)
- And they aren’t investing in customer service that understands program rules and is proactive in assisting guests; instead, when disputes with properties arise, customer service frequently gives incorrect answers (this reflects management’s predisposition, and better customer service means higher costs).
Management seems to exist in a bubble where they only hear from their real clients, hoteliers. The commodity they offer to the owners is guests.
However, they are hurting their company by being stuck in mid-2020, when hotels were short on visitors and income, rather than concentrating on a future with plenty of business to compete for.
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