The power lodging market influences how rooms can be sold and rates that can be charged, to support tourists lodging needs. The industry is a multifaceted industry, array of accommodations, attractiveness and conveyances for easy fun. However, the industry is normally seasonal limiting economical viability of vacationers.
Marriott International Inc. , an internationally operator and franchisor of hotels and lodging facilities, with preference to Marriott Courtyard, as shown in Physique 1. 1.
Marriott Courtyard preserves a strong corporate and business culture; "It really is people offering people", which brings about there core ideals and secrets to continued development and satisfaction, that inspires the best performance during travel, engineering an experience with human details that help achieve and recharge. The courtyard is an upper-moderate price select-service hotel aimed primarily at transient business travel, made with genuine Caribbean hospitality for guests to feel like "home abroad", located minutes from Port-of Spain, strongly to an entertainment complex and the Country wide Stadium. 165
2. 0 External Environment
The lodging industry is highly competitive, which effects the ability to compete with other hotels for customers. The Marriott Courtyard has lots of brand competition and for that reason, must avoid such dangers in order to capitalise on the available market opportunities. Courtyard must maintain the ability to remain competitive and to attract and preserve travellers which depends on the success in distinguishing the quality, value, and efficiency of the lodging products.
2. 1 Pestle Analysis
2. 1. 1 Politics Factors
Trinidad remains politically secure and the increasing affluence of its society continues to provide solid foundation for sustained growth, which will trigger investor's self-assurance in the hotel industry that leads to opportunities for the Marriott. On top of that, hotel development means stable taxes for the government, hence, easy for foreign traders to get endorsement for investment. However, the unpredictability and volatility in the politics environment of the host market increases risk and uncertainty, which declines businesses from getting into with heavy source.
2. 1. 2 Economical Factors
Trinidad is a profitable current economic climate in coal and oil; however, if the current economic climate declines, problems arise since petrol is unpredictable and forex rates fluctuate. Thus, a rise in inflation rate would have an adverse effect on customers' purchasing electricity and would reduce the overall sales in the hotel industry causing problems at Marriott. This might have a substantial effect on sales, since customers may seek to fulfill their physiological needs before other. Customers have a set budget when they plan their vacations, thus, if force to spend more on airfare their capacity to invest on hotel room declines, also, business tourists are slowing, because is cheaper to carry out meeting via the net and conference phone calls.
2. 1. 3 Social Factors
Attaining a distinctive atmosphere has turned into a pivotal concern for hospitality managers, where staff render personal services to customers and make an effort to maintain them. Thus, demand for products is not brought about by the grade of services, but, psychosocial factors that encourage individuals towards life. Therefore, Marriott's capabilities is to get customers satisfied for a go back visit.
2. 1. 4 Technological Factors
The lodging establishments continue to demand the use of sophisticated technology and systems, which refines, posts, or replace with progress. Thus, Marriott greatly reduces the ability of intermediaries to undercut the released rates at hotels; intermediaries continue to use a variety of aggressive online marketing techniques to entice customers.
2. 2 Porter's Five Forces
Competitive Factors
Michael Porter nature of competition within an industry is described by the market electric power of customers and suppliers, degree of inter-firm rivalry, strength of substitutes and accessibility to barriers. The lodging industry is competitive, which effects the ability to compete effectively. Marriott's profitability depends on differentiation by branding to fully capture specific a market, efficient operations, effective marketing and economies of scale in functions via the next:-
2. 2. 1 Electricity of Buyers / Suppliers
The vitality of buyers, in this case is the tourists, the hotel industry is relatively high and intensely important, and due to the options within the industry, as well as buyer has full information. High buyer bargaining vitality is negatively related to the industry attractiveness.
2. 2. 2 Potential Entrants
The pricing ability is moderate which has a significant entry hurdle, due to high capital requirements and also unavailability of infrastructure. There is also an incentive being made available from the federal government to smaller hotels which has been a danger to Marriott.
2. 2. 3 Substitutes
As numerous industries, there are many substitutes that can hinder the hotel industry. The pressure from substitutes often put strain on the lodging industry. The substitutes are mainly the generic and budgeted opponents, thus, it is high; located to use good deal as a defence against substitutes. That is, private hire, boutiques, guest residences and Inns.
2. 2. 4 Competitor Competitors
Marriott is most beneficial located to complete offensively on basis of the costs which is most affordable, when compared with Hyatt, Hilton and Carlton Savannah, that are, close in proximity to Marriott, and are definitely more brand recognition with high brand commitment.
Therefore, Marriott's attractive research is shown below:
Table 1-1
Attractiveness Analysis
Description
Scale
Attractiveness
Market Size
Growth
Seasonality
?
High
High
?
+
Bargaining Vitality of Buyers
Bargaining Power of Suppliers
Potential Entrants
Pressure from Substitute
High
Low
Moderate
High
+
0
Source:
671
2. 3 Industry Life Cycle
The industry growth of sales and result initially is very high and growing. However, the rates of expansion will begin to slowdown as the pace of entrance becomes greater than the development of revenue. Eventually your competition in the industry will change, so that the expansion rate of sales and outcome stabilises and can eventually converge to zero.
Figure 1-2
Industry Life Cycle
Hotel Industry
Development Growth Maturity Decline
Source: 64
2. 4 Key Success Factors and Challengers Analysis
The success factors restricts sizes that ensure successful competitive performance (Rockart, 1979), which gratify the entire goal attainment. Thompson et al. (1992) found that the important concerns for hotel selection and go back of frequent vacationers will need to have clean and comfortable rooms, convenient location, size, prompt and courteous service, protected climate and friendly employees. Stand 1-2, size the factors with score of 1 to five (1-5), five (5) being the best.
Table 1-2
KFS and Competitors Analysis
KFS
Marriott
Hyatt
Hilton
Carlton Savannah
Appealing Room
3
4
4
4
Prompt and courteous service
5
2
3
2
Convenient Location
4
4
3
3
Size
1
4
4
3
Operational cost
3
4
3
3
Occupancy rate
3
4
3
3
Additional Amenities
1
5
3
4
Source:
Key Success Factors
Guest bedroom comfort level is important, because people using a hotel room would like comfort and must feel just like home. Thus, all three competition rooms rated one point higher than Marriott, because, there rooms are incredibly exclusive and fit the make of the hotels. However, the swiftness of visitor service and courtesy represents the importance of customer experience. This is a competitive advantage that places emphasis on returns of holidaymakers, which affects operational issues. Thus, Marriott has excellent customer support which reaches guests scheduled to constant training of staff. Additionally, location critically affects the ability to get customers; such importance, presence, accessibility, and convenience which get the market. Venturing in a international country is difficult. Thus, a well-located hotel significantly navigates unfamiliar places, which leads Marriott equally placed with Hyatt, both centrally-located, having business tourists increase output by allowing more time to work. Similarly, Hilton and Hyatt led with four points and Marriott the cheapest due to the smallest in proportions, as it caters limited to business travellers, with a disadvantage of sending guest to their challengers, when overbooked.
Competitor Analysis
Thus, analysing competitors is an essential aspect and understanding the several levels on which the business may be competing. These levels are used to identify the competitive set and allow the company to find out and understand who would like their customers. Because of the current monetary development, confronted with softening demand, Marriott took steps to reduce operating costs, related to the competitive character of the industry, with concentrate in keeping customer commitment, owner preference, and associated satisfaction, to assist in market share, where the occupancy average daily rate is eighty-nine percent (89%). 356
2. 5 Customer Analysis
Courtyard itself caters to the demographic band of executive mature customers; Marriott's perspectives identify customers targets are service quality, but the theme is value for accommodation. However, these buyers purchase via the internet and travel firms, for the purpose of facilitating meetings, meetings, and other related business stay. Thus, buyers purchase when through the business enterprise week. Earnings is seasonal (cyclical) and depends on the health of both the local and nationwide economy.
2. 6 Spectrum of Turbulence
Marriott's amount of turbulence would be ranked moderately, because the hotel is versatile to changes, where its complexity is global socio-political, the familiarity of happenings is extra-potable, rapidity of change is comparable to response and the awareness of future is forecastable. This is so, because the Courtyard is standard
3. 0 Internal Analysis
3. 1 Source Audit
3. 2 Value Chain
3. 3 Mc Kinsey 7S Framework
Hard Elements
Strategy:- The Marriot courtyard aims at sustaining competitive advantage by targeting the business enterprise customer and providing for business activities.
Structure : The Marriot courtyard build their framework flat to make an adaptive, innovation-friendly organization, establishing an inspiring culture and empowering employees.
Systems: formal and informal procedures so you can get things done through policies, procedures eyesight and quest.
Soft Elements
Shared Ideals - Prices that determine the culture of the organization.
Style - Authority style includes participative which motivates staff contribution in decision making processes
Staff - staff morale is high as they feel a part of the organization and share in the roll out processes
Skills - Staff are trained in the hospitality field to ensure that customer support and quality service is given.
