Operations Management - Marriott International

 

 

Operations Management

 

 

Date: April 27, 2006

 

Project Report On

 

 

Marriott International, Inc

 

 

 

 

Table Of Content

 

1.     Executive Summary. 3

a)     Marriott History. 3

b)     Mission Statement 3

c)     Business’s Management 4

d)     Competition. 4

e)     Why customers choose the Farmington Marriott 5

f)      Sales. 5

g)     Relevant Awards. 6

2.     Process flow.. 7

a)     Steps of Process. 7

Visible to customer 7

b)     Process Flow.. 8

3.     Quality. 9

a)     Customer Expectations. 9

b)     Measurement of quality. 9

c)     Tally list of issues. 9

d)     Issue Chart 10

e)     Pareto chart 10

f)      For the worst issue - create a cause and effect chart. 11

4.     Capacity. 11

5.     Location Layout 12

6.     Supply Chain. 15

7.     Inventory. 17

8.     Forecasting. 17

9.     IT/ERP. 18

a)     IT tools/software used. 18

b)     Areas are not using IT and recommendations. 20

c)     Competitors. 20

10.       Lean/Ace/QRM... 21

11.       References. 24

 

1.   Executive Summary

a)     Marriott History

Marriott International, Inc., is a leading worldwide hospitality company. Its heritage can be traced to a root beer stand opened in Washington DC, in 1927 by J. Willard and Alice S. Marriott. Today, Marriott International has nearly 2,800 lodging properties located in the United States and 66 other countries and territories. The Marriott is one of the world’s largest lodging companies; they consist of worldwide operations and franchises of hotels and lodging facilities. Their operations are grouped as into the following five business segments:

 

 

Full-Service Lodging	Extended-Stay Lodging
•  Marriott Hotels & Resorts	•   Residence Inn by Marriott
•   Marriott Conference Centers	•   Towne Place Suites by Marriott
•   JW Marriott Hotels & Resorts	•   Marriott Executive-Stay
•  The Ritz-Carlton	•  Marriott Executive Apartments
•  Renaissance Hotels & Resorts	Timeshare
•   Bulgari Hotels & Resorts	•   Marriott Vacation Club International
Select-Service Lodging	•   The Ritz-Carlton Club
•  Courtyard by Marriott	•  Grand Residences by Marriott
•  Fairfield Inn by Marriott	•  Horizons by Marriott Vacation Club
•   Spring Hill Suites by Marriott

 

The Marriott operated and franchised 2,741 lodging properties and 499,165 rooms in 2005. The Marriott also provided 1,850 furnished corporate housing rental units. Their portfolio of lodging and timeshares consist such brands:

 

  The full service lodging is the primary product process which primarily serves business and leisure travelers and meeting groups at locations in downtown, urban, and suburban areas, near airports and at resort locations.  Extended stay lodging allows guests on long-term trips to maintain balance between work and life while away from home with suites that include kitchens and separate areas for sleeping, working, relaxing. The Select service lodging is aimed at attracting individual business and leisure travelers as well as families, who want to maintain a residential atmosphere while away from home.

b)     Mission Statement

Mr. Marriott's vision for the company is to be the world's leading provider of hospitality services.  It is grounded in his intense focus on taking care of the guest, extensive operational knowledge, the development of a highly skilled and diverse workforce, and offering the best portfolio of lodging brands in the industry. Under his leadership, Marriott continues to enjoy strong customer, owner and franchise preference, steady growth and profitability.

c)     Business’s Management

The Marriott’s business management is derived from core values such that are referred as the spirit to serve which consist of solid ideas that pertain to:

 

• The unshakeable conviction that employees are the most important asset
• Work environment that supports employee growth and personal development
• A reputation for caring dependable employees who are ethical and trustworthy
• A home-like atmosphere with friendly workplace relationships
• Performance-reward system that recognizes contributions of hourly and management workers
• Pride in the Marriott name, accomplishments, and record of success
• A focus on growth-managed and franchised properties, owners, and investors

 

 

The Marriott’s primary productive processes are to create and develop lodging facilities. The Marriot’s management is responsible for hiring, training and supervising managers and employees required running the facilities. The Marriott provides centralized reservation services and national advertising, marketing and promotional services, as well as various accounting and data processing services.

 

The Marriott believes that in order to continuous seek improvement that they must have financial resources to finance their growth as well as to provide resources for ongoing operations while always planning accordingly to meet debt requirements and other debt deadlines. The Marriott takes great pride in property development because they often sell properties, to finance their growth. Their growth is partially dependent on their ability to generate and maintain available capital and resources.

d)     Competition

The Major competitors are comprised of national and international hotel chains and smaller regional independent companies.

There are approximately 615 lodging management companies in the United States, including several that operate more than 100 properties. These operators are primarily private management firms, but also include several large national chains that own and operate their own hotels and also franchise their brands.

The Farmington Marriott’s largest competitor’s are the Hilton Hotel in Downtown Hartford and the Double Tree Hotel at the Bradley International Airport, which in fact both Hilton Brands. Globally the Marriott competitors are Accor, Hilton Hotel Corporation, and the Intercontinental Hotel Group.

 

 

 

 

 

DIRECT COMPETITOR COMPARISON
	Marriott	Accor	Hilton	IHG	Industry
Market Cap:	14.09B	N/A	9.76B	7.08B	1.57B
Employ­ees:	143,000	1,686,191	61,000	27,879	6.00K
Quarterly Revenue Growth:	15.90%	N/A	2.80%	N/A	11.30%
Revenue:	11.55B	9.72B1	4.44B	1.48B	477.40M
Gross Margin:	11.08%	N/A	37.57%	48.12%	45.40%
EBITDA:	753.00M	N/A	1.09B	555.17M	61.53M
Operating Margins:	4.62%	N/A	17.31%	22.30%	6.07%
Net Income:	668.00M	326.00M1	460.00M	234.21M	28.15M

e)     Why customers choose the Farmington Marriott

The Marriott has many affiliations and reward programs that provide even higher standards of satisfaction to those who stay more frequently. The Marriott’s rewards program is similar to airline frequent flyer miles. Individuals and companies are reward with points to redeem for other products or services such as cruises and rental car discounts from Marriott affiliated companies. Customers who hit certain membership plateaus receive larger and more secluded rooms. The four memberships are:

 

Basic Membership	Customers who stay 0- 15 nights per year
Silver Membership	Customers who stay 15- 50 nights per year
Gold Membership	Customers who stay 50-75 nights per year
Platinum Membership	Customers who stay 75 <>

 

Gold and Platinum members receive more pleasantries such as personal bathrobes, different furniture, different carpets, larger rooms, larger lobbies, and free buffets.

The Marriot has just implemented a new program whether customers no longer have to participate in price shopping. The Marriott will now match prices for lower publicly available rooms, if a customer finds a lower priced Marriott resort the resort will honor the lower rate refund the customer 25 % of the lower Marriott priced room. There is no longer a need for customers to price shop anymore because now the Marriott’ Look No Further Guarantees that will honor the lower rate.

Most importantly the Marriott places emphasis on delivering quality to the customer, customers who visit the Marriott hotels can expect to be treated with respect and should expect requested service to be completed in timely and orderly fashion with eager and courteous workers.

f)       Sales

In 2005 Marriott generated more revenue and had the largest market capacity of any of its competitors. Unfortunately the Marriott has one of the lowest Gross Margins in the lodging industry. Marriott needs to revalue their structure to decide if they can be expenditures that can be removed from their operating cycles.

Fig 1.1 Distribution of sales among different group.

g)     Relevant Awards

The Marriott has continually played a role in community involvement, in 2005 the Marriott was rewarded numerous times fort their efforts and contributions.

• The United States Environmental Protection Agency named Marriott the Energy Star Partner of the Year for implementing programs that saved millions of electric energy consumption and reduced greenhouse gas emissions.
• Business Ethics Magazine placed the Marriott on its "100 Best Corporate Citizens" list, as the only hotel company.
• Fortune Magazine recognized the Marriott as the most admired company in the lodging industry for the 6th consecutive year.
• Travel Weekly China Magazine named the Marriott as the best hotel chain in China. The Business Travel News Magazine ranked the Marriott number one in the upscale category.
• For the second consecutive year, Diversity Incorporated Magazine named the Marriott as one of the “Top 50 Companies for Diversity,” which was also the only lodging company on the list. Marriott placed 12th overall, up from 25th last year.

2.   Process flow

a)      Steps of Process

Visible to customer
1.Customer makes a request for information:
	Via: phone, computer, or in person
2. Hotel worker receives request and delivers information to customer
	* Marriott has outsourced all reservations to a company in New Jersey
	Only customers who walk can actually request information or services
3. Customer has two options
	1. Leave the service process of the Marriott and look somewhere else
	2. Prepay for a reservation to made
Invisible to the customer
4. Hotel makes the reservation and checks for available rooms
5. Hotel reserves and allocates room for confirmed reservation
6.Enter customers information in the Marriott database
	-The Marriott values quality; each week random customers are selected and mailed scorecards to rate the level of quality that was provided by the Marriott.
	-Marriott has different programs that reward frequent customers such as the rewards program, the database allows the Marriott the opportunity to thank for the customer by mail or email to encourage the customer to revisit.
7. Housekeeping prepares room
8. Maintenance checks for broken appliances or equipment
8.b If defects are found maintenance reorder and fixes appliances
9. Final inspection of room is conducted
10. Bellhop unloads vehicles and takes luggage to room while customer checks in
11. Hotel continuous supplies power, water, health club, gift shops, bars, and restaurants functionally properly to add value to customers stay
12. Housekeeping and maintenance prepare their carts the night before to prepare for the next to keep the hotel clean
13. Hotel continuously add values to customer stay via guests services and delivering information on events and attractions nearby
Visible to the customer
14. Customer checks out of hotel

b)     Process Flow

Fig 2.1: Process Flow Diagram

3.   Quality

a)      Customer Expectations

The customer should expect to be treated with tact and kindness because one of the Marriott’s core values is to emphasize that the customer is always right. Customers should expect issues to be settles in a timely manner because Marriott managers use a hands-on management style via constantly walking around looking for improvements and discrepancies. Customers should expect functioning facilities because Marriot associates pay attention to detail. The Marriott has numerous ways to encourage customers to drop off possible tips and advice. Customers should expect all Marriott branches to operate as Flagship brand of quality tier. Customers should expect to have the ability to engage in fully equipped fitness centers, gift shops, swimming pools, concierge levels, business centers, and high-speed wireless Internet connections.

b)      Measurement of quality

At the Marriott quality is measured by the customers who stay at the Marriott. Every week names are sampled out of the Marriott’s computer database and are used to measure prior customer’s level of satisfaction. The rate and suggestions are used as advice for improvements.

c)     Tally list of issues

 

No.	Complaints	Tally	Frequency
1	Heat and Air conditioning controls	IIIII IIIII IIIII	15
2	Not functioning properly rooms	IIIII IIIII IIIII III	18
3	Customers who don’t show	IIIII IIIII IIIII II	17
4	Room type errors (Size)	IIIII IIIII III	13
5	Room service orders	IIIII IIIII III	13
6	Miscommunication between reservation system and hotel	IIIII IIIII IIIII IIIII IIII	24

d)      Issue Chart

Fig 2.1 Issued Chart showing the complains the their frequency

e)     Pareto chart

Fig 2.2 Pareto chart of Issues showing the 80/20 ratio of issues.

f)       For the worst issue - create a cause and effect chart.

Fig 2.3: Diagram showing the cause and effect diagram for the worst issue

 

4.   Capacity

 

• The customer expects quick & smooth check-in & checkout and a pleasant stay.
• Bottlenecks could be when air conditioners/heaters, Internet, Cable are not functioning. Room service is not quick and efficient.
• Staff calling in sick.
• 90 rooms, staff of 35. 1 General Manager, 3 Managers, 4 front desk staff, 16 housekeepers, 10 part time staff.
• Use overtime and temporary labour to cover fluctuations in demand.
• Staff should be scheduled accordingly and in a ratio to the number of guests staying in the hotel. Fortunately, most people book ahead and the workload is known well in advance, especially during peak periods.
• Having a pool of multi-skilled and specialist, full-time workers, part-time workers, annualised hours to vary the working week, overtime and temporary labour on variable contracts, can be used to expand and contract capacity to meet the demand curve.
• Cross training of staff

 

5.   Location Layout

 

Locations:

Marriott International, Inc., has more than 2,800 operating units in the United States and 65 other countries and territories. Employs 128,000 people

 

Marriott Lodging operates and franchises hotels under the following brands:

 

Marriott Hotel Brands	In US	International	Total
Marriott Hotels & Resorts	312	170	482
JW Marriott Hotels & Resorts	8	12	20
Renaissance Hotels & Resorts	64	66	130
Courtyard by Marriott	583	55	683
Residence Inn by Marriott	441	13	454
Fairfield Inn by Marriott	527	3	530
Marriott Conference Centers	13		13
TownePlace Suites by Marriott	112		112
SpringHill Suites by Marriott	115	1	116
Marriott Vacation Club International			52
The Ritz-Carlton Hotel Company, L.L.C	35	22	57
The Ritz-Carlton Club	4		4
Marriott ExecuStay			37
Marriott Executive Apartments		14	14
Marriott Grand Residence Club	1	1	2

 

  

Drivers of location:  Marriott owns high quality lodging assets in prime urban, airport and resort/convention locations.

 

 

Fig 4.1: Showing the Marriott Hotels & Resorts location worldwide.

 

 

Fig 4.2: Layout of Marriott Hotel

6.   Supply Chain

 

 

Supplies:

Marriott being in the hospitality business requires different supplies for their lodging. Their major supplies for cleaning and maintenance like towels and soaps are stored in each hotel as backup, but major supplies are ordered from their supplies as and when required by each hotel. Mostly suppliers are localized so that they can deliver as and when required. Some of the products and services frequently purchased or contracted include:

·        Construction

·        Cleaning and Maintenance Services (e.g., carpet cleaning, windows, janitorial, hood cleaning, etc)

·        Dry Cleaning

·        Energy and Electrical Supplies and Service

·        Florist / Fresh Flowers

·        Food & Beverages

·        Golf and Related Products

·        Interior Design Services

·        IT Services 

·        Marketing & Advertising

·         Waste Removal

 

Suppliers include Guest Supply, Inc & American Supply Corp.

 

Improvements that could help with delivery or quality of product are listed as below

• Earlier supplier engagement to make sure the products are ready when required and proper inspection of the products are done prior to their use to check the quality of the product.
• Long lead times
• Incentive programs for the suppliers to be competitive and checks the quality.
• Recognition for the suppliers to achieve more in less.
• Resource sharing

 

Procurement professionals deal with three different business models. First are the owned properties, at which spend is much easier to control. Second are company-operated or managed properties, where the spend is more difficult to control, but it can be influenced by purchasing to a certain extent. Third are franchised properties, which require more choices.

Another new focus to improve quality is closer relationships with both internal customers and suppliers. The department uses customer surveys and other communication tools to find out what customers really want and how the purchasing department can deliver it. Breaking down traditional adversarial roles with suppliers, they work closely with suppliers to leverage their resources. The department also surveys suppliers anonymously on potential improvements

 

 

 

 

 

7.   Inventory

 

The prime inventory of Marriott is their rooms. To maintain these rooms and entertain guest, they have inventories listed below which mostly are obtained by their local suppliers.

 

• Entertainment items (TV, VCR, Cable, music)
• Swimming pool items.
• Construction materials
• Cleaning and Maintenance Services (e.g., carpet cleaning, windows, janitorial, hood cleaning, etc)
• Dry Cleaning
• Energy and Electrical Supplies and Service
• Florist / Fresh Flowers
• Food & Beverages
• Golf and Related Products
• Interior Design Services
• IT Services 
• Marketing & Advertising
• Waste Removal

 

8.    Forecasting

 

Marriott has their strong forecasting technique to estimate the increase and decrease in occupancy level, staffs needed to handle the peak season, quantity of food required etc.

The breakdown of tasks and subtasks for forecasting are as follows:

1.      Fill out a Weekly Forecast/Actual Summary form for the upcoming week

a.       Gather last week’s Weekly Forecast/Actual Summary and ensure that all “actual” figures are entered

b.      Print a Forecaster report from the RMS system

c.       Pull rolling six-week average tracking book and ensure that most recent numbers are entered

d.      Pull last year’s history and note factors such as holidays, special events, etc.

e.       Pull MARSHA forecast reports from PMS terminal

f.        Call up Weekly Forecast spreadsheet in computer and save a “blank” file as the file for the upcoming week

g.       Transfer forecasted room and guest pickup numbers from MARSHA forecast reports to spreadsheet

h.       Compare rolling six-week pickup numbers and last year’s actual rooms and guests to the forecasted numbers from MARSHA and adjust if needed

i.         Check for any upcoming special events, group blocks, or other information on the RMS Forecaster report and adjust spreadsheet numbers if needed

j.        Print the spreadsheet, save it, and exit the spreadsheet program

k.      Distribute the Weekly Forecast/Actual Summary to applicable managers and associates

2.      Analyze the Weekly Forecast and Forecaster reports to make informed decisions about the level of business for the upcoming week

a.       Determine if the pattern of arrivals, departures, number of guests, and rooms sold each night is within the normal range for the hotel

b.      If abnormal numbers are forecasted for one or more days, make adjustments when scheduling staff

The breakdown of tasks for scheduling and staffing are as follows:

1.  Compare staffing budgets/objectives to staffing requirements implied by the Weekly Forecast/Actual Summary

a.       Review the hotel’s budgetary guidelines for staffing in various work areas/departments

b.      If completing a Front Desk schedule, focus on the forecasted arrival and departure rooms noted on the Weekly Forecast spreadsheet for each day; if completing a housekeeping schedule, focus on the “offset rooms” numbers; if completing a restaurant schedule, focus on the forecasted number of guests each day

2.  Complete a work schedule incorporating the staffing requirements implied by the Weekly Forecast/Actual Summary

a.       Gather a schedule form for the appropriate work area/department for which you are completing a schedule

b.      Schedule staff so that the most staff is working at the times forecasted as heavy by the Weekly Forecast, while maintaining recommended staffing levels at all other times

c.       Schedule staff so that the hotel’s budget (in man hours per occupied room or sales per man hour) is met

 

9.   IT/ERP

 

a)     IT tools/software used

 

Marriott International uses the most advanced technology to meet the stringent demands of today’s meetings and business travel. Depending upon your needs, they offer high-speed Internet connections.

 

Wired Internet

Achieve an unprecedented level of connectivity and productivity with their high-speed wired Internet access. Perfect for real-time, interactive training sessions, posting event schedules, and conducting secure chat sessions.
 
Wireless Internet

SuiteSpeed provides innovative wireless and wired Internet access solutions. Every room in Marriott hotel is networked with high-speed access that guests can use with their own computer or the in-room. The thin clients have no hard drive, floppy drive, or other such devices to break down or cause performance problems. They connect to servers where all applications are hosted and only the screen image travels the network.

 

Marriott announcement marks "the largest deployment of wireless high-speed Internet access in the hotel industry." But Marriott will offer the WiFi service in less than a sixth of all of its hotels worldwide. Marriott International's has 1,200 I.T. employees to guide IT decision making. They implemented the PeopleSoft enterprise service automation module for project tracking and time reporting by which productivity metrics are automatically computed after time is entered.

CRM Application

Marriott implemented Siebel Systems Inc.'s customer-relationship- management package, and has put the tool in the hands of 2,000 salespeople and events-booking staffers. If a group is interested in the Manhattan Marriott Marquis, but the property is sold out, the software helps salespeople cross-sell other Marriott properties. Marriott also relies on Newmarket International's NetMarketplace sales and catering software to link the inventory at its hotels into a single database that allows for cross-selling and centralized account management of business groups and meetings.

Competitors Meristar Hotels and Resorts Inc. and Hilton Hospitality Inc. use the software to offer a unified image of inventory and lead generation. By using XML-based APIs, companies can link the software to traditional travel agency supply chains, as well as convention and visitors' bureaus and meetings-oriented Web sites like PlanSoft.com and Starcite.com, which let organizers post automated requests for proposals for their group business.

The Marriott hotel chain has also upgraded to central reservations, revenue and property management, and CRM systems. For example, the property-management system is used around the world to manage everything from room inventory to kitchen supplies. Four years ago, franchisees were using 19 different systems, including some custom-made ones and one from the Micros-Fidelio division of Micros Systems Inc. Now, they're down to six.

Marriott also has electronic portfolio program, which the hotel company emails bills to guests, to its loyalty members, with plans to extend the service to all guests.

Marriott's Automated Reservation System for Hotel Accommodations (MARSHA) is a powerful reservation network and demand management tool. Marriott has 17 Worldwide Reservation Centers with over 3,000 reservation agents. MARSHA is linked directly with the global distribution systems (GDS) operated by major airlines and travel organizations, and leads the industry in GDS productivity

Putting on demand technology into action

 

IBM teamed up with Marriott and Siebel Systems to establish an on demand technical platform for Marriott hotels everywhere, creating a shared inventory information structure that will let the sales force sell inventory more efficiently--increasing room and event space visibility on a local level. Enabling the sales force in Boston, for example, to instantly give availability information for all properties in that area.Most importantly, Marriott now has the flexibility to scale capacity according to need and pay according to what they actually use, because the technology is hosted and financed by IBM.

It allows Marriott to respond quicker, be more flexible and offer more choices. Customers are able to more easily do business with the company, regardless of sales channel used. Moreover, the project has solidified Marriott's reputation as having an innovative sales force-and is changing the way hotels everywhere do business.

 

b)     Areas are not using IT and recommendations.

·        No system to recognize or share real time customer information across different brands of hotel during check-in time if they are not enrolled in any reward programs.

·          No advanced features like Web-Based Check-In, which provides greater convenience for customers.

c)     Competitors

 

Hilton Hotel Corporation is the major competitor of Marriott. From Hilton’s operations perspective, innovative new technologies like check-in kiosks are helping guests check in more easily, and team members spend less time on administration, which frees resources up to spend more time ensuring guests achieve the goals of their stay. Hilton Hotels Corporation uses OnQ. This improves guest recognition at check-in and provides more enhanced levels of service based on real-time access to guest preferences, information about Hilton HHonors guest reward program membership status, and past and future guest stays across all brands. This integrated technology currently is available at more than 90 percent of the company's owned, managed and franchised Hilton, Doubletree, Embassy Suites Hotels, Hampton Inn, Hampton Inn & Suites, Hilton Garden Inn and Homewood Suites by Hilton hotels.

The Hilton Family of Hotels will be the only hospitality company utilizing a single, integrated technology platform across all brands and sharing real-time information across every guest touch point i.e. the hotel front desk, reservations, the HHonors Service Center and our brand websites.

Based on personal profile information the guest provides to the company via hotel or central reservations, Hilton Family of Hotels websites, or through Hilton HHonors membership, a "Guest Profile Manager" will be created for frequent guests.

 

For meeting professionals and convention services, GRIP eliminates the tedious and labor-intensive process of manually reviewing lists to identify the source of reservations made for a particular event.

The GRIP reports provide detailed summaries of attendee booking activity, which can be accessed anytime after the reservation has begun through a post meeting at no charge to the planner – reducing the time-consuming process from what could have been days with the old manual process, to minutes with the fully automated and integrated GRIP.

Another major benefit of GRIP is the ability to provide accurate historical data that the planner and hotel can capture to assist in making future business decisions.

Web-Based Check-In Provides Greater Convenience

Available within the fourth quarter 2004 at selected hotels across all brands, Web-based check-in will enable Gold and Diamond Hilton HHonors(R) members with password-protected online accounts to check into their hotel rooms in advance of arrival, regardless of how they made their reservation. Guests simply access their reservation via one of the brand websites, select a room with features that best meet their needs, and print the confirmation. Since guest information is stored within the online personal account, the hotel does not need to collect the same information at check-in.

 

Once a guest creates a password-protected account, front desk team members can recognize him or her at check-in and provide more personalized, enhanced service, including:

·        Welcoming a guest back when he or she typically stays at another of our hotels in the Hilton Family and is staying for the first-time at one of the sister brands;

·        Delivering a guest's top four guest preferences, including smoking or non-smoking room; type of bed (king or double/double); floor level; and room location relative to the elevator, among other preferences;

·        Accessing real-time information about an HHonors member's reward status;

·         Making requested adjustments to a guest's personal profile.

 

 

10.                     Lean/Ace/QRM

 

On demand inventory system improves responsiveness

Today, if a customer calls about planning a convention in Atlanta, a Marriott salesperson must gather information from separate properties and then return the call. Changes to requirements might result in further rounds of research and phone calls. In the future, that same salesperson will be able to access availability and pricing across multiple properties in real-time, perhaps even booking the space during that first phone call.

 

How on demand puts innovation inside

Improving and integrating reservation processes is a challenging task for any international lodging company. This process becomes even more complex since Marriott operates via multiple sales channels, including the Marriott sales force, travel agents, web site www.marriott.com, and other “discount" hotel sites. IBM is working with Marriott to enable their entire sales force to view and update reservation, pricing and availability information across all sales channels. So when a customer inquires about event space, all inventories can instantly be viewed by the sales force for availability. As soon as an event space is booked, it will appear to all channels as reserved, in real-time.

 

Reduce Cost and improve Service

While reserving, the quote price is much lower than the final bill. Usually the quote does not include a variety of local taxes that can be substantial in some places. Marriott is launching a new service that calculates the room rate plus taxes, surcharges and any fees before guests finish making their reservations. Many travel Web sites just list the additional charges by percentage and do so in small print. You have to do the math yourself, and Marriott says with Total Trip Pricing it will eliminate surprises by factoring in all of the extra fees hence better service to the customer. The service will be available when making reservations through the Internet, the hotel itself and selected travel agents. Optimizing your data center can have a positive result not only by containing costs but also in delivering better customer satisfaction. It is important to invest in strategies that ensure visible return and a positive experience for the end user. At Marriott International numerous initiatives over the last two years have resulted in noticeable improvements and consistent performance. From a strategic standpoint we have embraced a continuous improvement methodology that we call CIA. This stands for Consolidation, Innovation, and Automation. The results have been dramatic and the staff is excited about participating at all levels. Marriott will discuss the following topics:

• Increase productivity for your business units and eliminate costly storage by containing SPAM

• Reduce costs and maintenance with server and storage consolidation

• Mitigate downtime and ensure users with proper credentials and up to date software access that network

• Effective change management processes guarantee that once a problem is identified, it will be eliminated across the enterprise forever

• Improve service delivery by automating process such as server builds and failure resolution

 

Marriott had two separate revenue management systems for its full-service hotels and another for select-service or extended-stay facilities. Two separate systems kept the hotel chain from easily analyzing revenue data for forecasting and marketing insights generated by 62 million reservations annually at 2,800 properties. They had to lower their cost and increase the speed to market, and decided to come up with one system knows as One Yield. By combining the two systems, the need for support staff is 33% lower because only one database is used and the system requires little local IT support. Its Web and thin-client-based architecture delivers training remotely and cuts costs. But Marriott has also improved its ability to forecast changing market conditions. The system's inventory data consolidation improves planning. The upside: Marriott estimates that One Yield delivered incremental profits of $6.7 million last year, its first full year in operation.

 

Reduce Cost by Waste Management

Marriott International, Inc. has been named by the U.S. Environmental Protection Agency (EPA) as an ENERGY STAR Partner of the Year for implementing programs that save more than 83 million kilowatt-hours (kWh) of electric energy consumption and reduce greenhouse gas emissions by 68,000 tons annually.

Today, 90 percent of Marriott hotels have undergone energy efficiency improvements, such as lighting replacements that conserve energy usage by more than 30 percent, electronic thermostats, new brand signs with LED technology, laundry ozone systems, and central plant upgrades and recommissioning. These efforts have helped the company reduce cost, making Marriott the hospitality industry's leader in waste management.

 

Quick Responsiveness

Marriott International provides service hotlines at each hotel to help resolve problems quickly. Managers and associates know that the speed with which they respond is often as critical as what the final resolution becomes.

 

Recognition of Excellence

Recent awards recognizing Marriott as a great place to work include:

• FORTUNE magazine named Marriott one of "100 Best Companies to Work for."
• National Association for the Advancement of Colored People (NAACP) Ranked Marriott number one in the organization's annual lodging industry report card.
• Latina Style magazine named Marriott one of "The 50 Best Companies for Latinas to Work For in the U.S."

• Diversity Inc. magazine named Marriott one of "The Top 50 Companies for Diversity."
• Hispanic magazine recognized Marriott International as one of the 100 "Best Places to Work for Latinos."
• Working Mother magazine ranked Marriott one of the "Best Companies for Working Mothers."
• Washingtonian magazine selected Marriott as a "Great Place to Work."

 

11.   References

·        www.Marriott.com

·        www.encyclopedia.com

·        http://www.vacationclub.com/corporate/corporatePress.jsp

·        http://www.answers.com/topic/marriott-international-inc

·        Marriott Financial Report-2005