Academic journal article Journal of Multidisciplinary Research

Marriott International: Exploring and Understanding Disruption in the Hospitality Industry in South Florida

Academic journal article Journal of Multidisciplinary Research

Marriott International: Exploring and Understanding Disruption in the Hospitality Industry in South Florida

Article excerpt


In this article, we explore and seek to understanding disruption in the hospitality industry in South Florida through a detailed evaluation of the Marriott International, Inc. hotel company. We tackle this project with two distinct approaches.


Approach 1: Fact Finding. First, we visited several Marriott hotels operating under different brands in Miami-Dade County, Florida. We then conducted personal interviews with various industry leaders who gave us great insight into the hotel industry (see Interview References).

Approach 2: Research. This approach included reviewing news articles, Marriott's Annual Report and 10K, and several other data sources that we reference throughout the article. We used the information to analyze trends and facts of the industry. We then used Tableau to produce several charts and visualizations that help to illustrate our findings.

Brainstorming. Finally, we had several brainstorming sessions and came up with four specific disruption ideas for Marriott and an action plan for their implementation. The concept behind these is to create new revenue streams to maximize the use of existing resources without major investments. In our report, we dive into the history of Marriott and analyze the scope within the industry.

Marriott: A Brief History

Marriott is a company not unfamiliar with disruption and innovation. In fact, the Marriott website shows that J. W. Marriott, together with his wife Alice, and his partner Frank Kimball, opened Hot Shoppes as A&W Root Beer stands in 1927. In 1953, Hot Shoppes became a publicly traded company and in 1957 opened its first motor hotel in Virginia. Through its history, J. W. Marriott and family have successfully navigated disruption such as the Cuban Missile Crisis, the Oil Embargo in the 1970s, and the Cold War. Marriott continued to innovate in the 1980s by offering the first automated reservations system in the hospitality industry and in the 1990s by offering the first website in the industry. Most innovative, and pioneering, was the strategic decision to separate the real estate from the hospitality management business throughout the 1980s, culminating with a restructuring in 1993, the year in which the company divided into Marriott International and Host Marriott Corporation. The former became the operating company with long-term contracts, and the latter owned the real estate. Host Marriott Corporation became the largest hospitality Real Estate Investment Trust.

Since the late 1990s, Marriott International has continued to expand through organic growth and acquisitions of complementary hotel companies such as The Ritz-Carlton Hotel Company, Renaissance Hotel Group, ExecuStay Apartments, and Gaylord Hotels Brand. Most notably, Marriott International acquired Starwood Hotels & Resorts in 2016, creating the world's largest hotel company (Marriott International, 2019). In early 2019, Marriott International combined loyalty programs from previous acquisitions to launch a unified customer loyalty platform called BonVoy, a strategic move to secure customer loyalty and attract customers to its website (Slotnick, 2019).

Industry Analysis

Marriott International is an incumbent in the hospitality industry. The global hotel industry retail value is worth $570 billion USD (Statista, 2019), with the U.S. hotel industry taking about a third of the revenue, valued at $208 billion USD (see Exhibit A). The hotel industry measures itself with three main Key Performance Indicators (KPIs): Revenue per Available Room (RevPAR), Average Daily Room Rate (ADR), and Occupancy. Marriott outperforms the U.S. hotel industry in all three KPIs (see Exhibit B). When analyzing the market in Greater Miami-Dade County, we found that 86% of visitors come with the purpose of Leisure/Vacation while only 7% come for business (Greater Miami Convention and Visitors Bureau, 2017). When performing a deeper analysis of Marriott's target segmentation, we determined that Marriott has a target market of 11. …

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