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Effects Of Global Downturn On Marriott Hotels

The hospitality industry is in the midsection of venturesome, verdicts. there are two troubles, which can be effecting hospitality industry, the first obstacle is globalization and second one is economical tough economy.

Hospitality industry is hit by the global financial crisis, mostly tourism is associated with money, during economic recession, people can't stand to invest much money for entertainment, they may be began to think for saving cash for basic needs like food shelter and family requirements.

Any way because of recession hotel industry is at risky position, matching to cost-effective data the hospitality industry need, find away to bring normal position.

Organization Track record:

Marriott is most popular and leading hotels on the planet, first Marriott was exposed by J Willard and Alice S Marriott, in Washington D. C (U. S), in 1927. also Marriott has more than 2800 properties, almost in 70 countries.

Marriott planning to open up more hotels and resorts different places in various countries. they plan to target the business strategies; Marriott developed the" courtyard by Marriott concept" method of new product development. Marriott offers customer credit card (for regular customers) it gives 30%discount on the bill. The major in come for the hotels is from rooms Marriott is very good at there.

1. Situations: Marriages and meetings: Marriott provides different types of deals for the marriages, Marriott is among the best places to rejoice the marriages, and Marriott provides special accommodation for the few, Marriott gives more facilities for sports, it's provided the golf courtroom in Resorts, They offer range of banquet facilities with, qualities service. They main theme is give good service to the customers and build-up the business enterprise strategy.

2. Inquiries: Marriott hotel manages the business questions from all around the globe, Marriott's human resources is exhausting study of local market requested by U. K hotels in U. K. local knowledge of local staff is most comprehended for the local inquiry.

Rationale for the chosen subject:

In this research on proposed topic scheduled to my past working experience in hotel Marriott, Hyderabad, India, there my position was a supervisor, during that time, my hotel was influencing by the current economic climate crunch, not only that hotel but virtually all hotels were facing same problem, the business has been getting down.

The recruiting were having more problems, rather than taking new staff, these were using same personnel for extra work, they chopping the careers, and lowering the salaries. And there were more contests between other hotels, Therefore this matter persuade to research on the specified objective below.

Research objectives:

The research aim is to critically check out the affects of global downturn on the tourism and hotel industry, in this process how hotel industry seek from recession.

The research targets are the following:

1. The first purpose is to identify the several issues, laying in hotel industry.

2. The next goal is resolving the different, solutions to economic recession and constructs the level.

3. The 3rd objective is to create several strategies, which is allocated in the economic recession issues, with another shove.

Research questions:

This proposed research seeks to answer the next questions: How can the market meltdown and recession change the hotel industry all together? Answering the aforementioned question will lead to the subsequent questions like: How would the Hotel Marriot take it up as difficult? And what steps would it not follow to get over the recession? Why and exactly how are they likely to reduce the accommodation tariffs? What are the reasons for the credit crunch and recession? And finally what types of procedures would they put in place to be able to overcome today's recession?

Literature Re-view:

In this tough economy period competition started between your hotels, your competition is rely on, quality of restaurants and kind of acommbidation and tariff, hotel Starwood, Hilton, Inter Continental, the Accor teams are the primary competition for Marriott hotel.

"Lately the global tourism and hospitality industry has experienced many serious crises and catastrophe, including terrorist disorders political instability, cost-effective tough economy". Ref: (Boniface and Cooper, geography of travel and travel and leisure 476).

This proposal concur the aforementioned article, according to creator, the hotel and tourism industries has been achieving problems with politics and economical downturn.

The market is depending through to their state, when the economy is lowered the recession will took place. People taken the greater loans and homes on home loan, they couldn't know whether they can gain or not, during the economy slumps these were unable to give back the money to banks, at exactly the same time the lenders are began to get loses, hence the tough economy started.

After 9/11 attack the hotel industry has instantly changed, they have lost major part of income.

Hotel industry is depended with luxury and expensive, during recession people have started to change their thinking's, as excitement is merely part of life, instead of spending money for satisfaction they started saving cash to important needs. And people haven't any money, the majority of the employees are losing their jobs, they just scaring about their future.

During the downturn the hotels has been facing more problems, because they can not afford the own money to run their business, and banks are not financing the money to any, business organizations.

"Unfortunately, the growth in the U. K sector is not matched by the provision or detailed evaluation of information options. Typically supply part reports are usually limited to room stock, while demand side figures are usually restricted to occupancy percentage". Ref: (Paul, A. Phillips hospitality management 147-154).

According to author the hotel business is depended with occupancy ratio, when the room Occupancy rooms high automatically the income would be high. Regarding to analyze above statement shows, market meltdown and economical tough economy.

Credit crunch: where in fact the low money to financing for business and interest rates are very high is called credit crunch. During the 2007 their for successful business, almost all of the business consumers facing more problems by credit crunch. Banks are scared to give loans for business, at exactly the same time, customers also not depositing their profit banks, because the customers also fearing about market meltdown and they're keeping money with them. And high rates of pursuits also battling business companies, no chance to start out big business firm hotels. So credit crunch has effects on the major hotels.

"Although hotel insolvencies have increased by over 150% from the end of 2006 to October 2008 you will see further failure in 2009 2009 when the entire effects of reduced demand will be thought". Ref: (Stephen Broom, Financial Times, nov23, 2008).

According to creator, Hotels are loosing their profit by offering low rates of acommbidation; Marriott has been getting down the total profit.

People taken the greater loans and residences on mortgage, they couldn't know if they can give back or not, during the economy slumps these were unable to returning the amount of money to banks, at the same time the bankers are started to get loses, hence the tough economy started.

During the recession the hotels has been facing more problems, because they can't afford the own money to run their business, and banking companies are not lending the money to any, business organizations. Hotels are loosing their gain offering low rates of acommbidation.

"Assesses changes taking place in the united kingdom hotel market during 1997 and relates these to current and predicted future improvements. Identifies the main element issues affecting resource and demand, competitive success and likely influences and affects on the UK market during 1998". Ref: (Trevor Ward, Modern day Hospitality Management 270-273).

According to Ward the main element issues are boosting on product and demand, almost all of the hotels following same way, just they decrease the room cost, they aim to attract the customers in the downturn by the same way they has been gaining loses.

"The overall economical factors also influence the hotel industry, bad whether, the market meltdown and a drop in job, work resistant to the industry as getaway travel is curtailed or eliminate". Ref: (Roo Sadegi Financial Times, n. d. ).

According to Roo, the hotel industry is affecting by whether and economical recession, almost all of employees are shedding their jobs during the recession. It is hardly affecting the industry, employers also, not interesting to recruit the new personnel, why means they cannot pay wages to personnel, so they are really cutting careers frequently. Not only in U. K almost all of countries influencing by economical tough economy.

Data collection method:

1. Main data collection method

2. Secondary data collection method

Primary Data Collection Method:

This main data contain in-dept interview with the assistant general administrator of hotel Marriott and customers, the interview for manager will be conducted by phone, and whole talk will be tape documented.

This interview approximated to between half an hour to an hour, questions will be prepared advance in a particular schedule. The questions will be having clear idea about area, what we must cover. This is research of process is devolved by (Gill and Johnson 1991).

Secondary Data Collection Method:

Information will be compiled through online, catalogs and news documents. This research proposal consists of more info from online because no much books concerning this research (Saunders, Lewis and Thorn hill). The info collection methods give simple idea about above research proposal.


Research methodology carries out the important function in describing the sort of research strategy that the researcher may suppose pass leading a study and it clarifies the way the research is departing. The study is very important so it has main intention as information of the examiners, examine and normal (Jankkowicz, 2005). It explains how data would be accumulated, and provides idea about which solutions to be utilized.

As the principal indented of the researcher is to ''check out the impacts of global recession on hotel and tourism industry with hotel Marriott, allocate access would be principally inductive in identity. The info collecting method in-depth interview (Saunders, Lewis and Thorn hill, 2007), this interview will never be the prepared questions, it'll be matching participant, and would be very clear ideas (Alyan Bryman, Emma Bell, 2007).

Data Research:

The research process contain both qualitative and quantitative data evaluation approach, this is produced by (Saunders, Lewis and Thorn hill, 2007), data accumulated through, in-depth interviews in mobile phone. This research will developed, predicated on grounded theory, use of this proposal is data analysis could perform in a formalized.

This research may possibly also create of the data management, statistical evaluation software such as statistical deal for the sociable sciences (SPSS). This software is admittance from the guts; it will be used great full presentation of graphs, furniture.

Resources Need:

For this research proposal, required basically from on-line. And need collection facilities for announced copies, literature and books Re-view. Even rough, its not obtain much books review. The beginning of the bottom work will presume the comprehensive utilize of telephone amenities. It really is key proper to the long way to plan into Hotel Marriott and models supply by the organization. Pursuing interviews of customers also taken by mobile phone or internet rely on the interviewees` concern.

Time Size:

Table: Gantt- Chart (Feb 20th to Apr 29)

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