This analysis presents the detailed Marriott SWOT analysis. SWOT framework highlights important internal and external strategic factors that influence the Marriott’s competitive positioning.
The external environment analysis covers both- 1) SWOT analysis for hotel industry in general, and 2) company specific implications of each external environmental factor.
1. Company Overview
| Company name | Marriott International |
| Year founded | 1927 |
| Headquarters | Bethesda, Maryland, USA |
| Industry | Hospitality |
| CEO | Anthony Capuano |
| Marriott hotel branches | 8,000 (2,149 owned by Marriott and remaining under franchise agreements) |
| Number of countries | 139 |
| Number of employees | 120,000 |
| Revenue (2022) | $20.773 billion |
| Profit (2022) | $2.358 billion |
| Market capitalization (2023) | $50.69 billion |
2. Marriot SWOT Analysis
2.1. Marriot Strengths
2.1.1. Innovative company
Marriot was ranked #19 in Forbes list of most innovative companies in 2017. In 2023, Marriot toped the Fortune’s list of most admired companies.
2.1.2. Customer satisfaction and loyalty
Marriott has successfully maintained high customer satisfaction score over years, as depicted in following graph:
Source: Statista
Marriott’s customers are highly loyal. It offers best loyalty programs that keep customers hooked with the brand. Customers get loyalty points for even cent they spend, and therefore, competitors are unable to launch better loyalty programs than Marriott.
2.1.3. Strategic acquisitions
Marriot has a history of successful acquisitions, including Starwood hotels and Ritz Carlton. In 2022, Marriot entered in acquisition deal with the City Express, which will soon become the Marriott’s 31st brand.
2.1.4. Market reputation
Marriott has strong market reputation. In 2022, it earned 73.3 reputation score, which is considered strong. The score is measured based on factors including- innovation, products/services, governance, performance, leadership, and citizenship.
2.1.5. Global presence
Marriott has 30 brands, and more than 8,000 properties in 139 countries. It is considered among the hotels with largest network and most properties, which allow the brand to achieve the economies of scale.
2.1.6. L.E.A.R.N. model Marriott
Marriott’s L.e.a.r.n model is highly famous in hospitality industry, and is also referred outside hospitality sector. The model focuses on resolving the customers’ complaints by listening to them, empathizing with the situation, and apologizing.
2.1.7. Marriott data analytics
Marriot promotes data based decision making culture by investing heavily on analytics and related technologies. It has a history of using both- structured and unstructured datasets to deliver data-driven customer experience.
2.1.8. Strong competitive positioning
Marriott competitors analysis indicates the company holds top position based on market value, as depicted in following graph:
Source: Statista
2.1.9. Innovative marketing
Marriott marketing strategies work really well for the brand. Around 80% of the millennials use social media. Marriott understands it well, and creates user generated content to grab the millennials’ attention.
M Live is another example of highly innovative marketing strategy that sets Marriot apart from its competitors. M staff monitors and tracks the guests who post reviews while staying at hotels to give them surprise gifts.
To know more about Marriott’s social media marketing strategies, click here
2.1.10. Marriott stars and luminous program
Marriott stars and luminous program has been highly successful in strengthening the brands’ ties with the travel agencies around the world.
2.2. Marriot Weaknesses
2.2.1. Poorly implemented data privacy policies
Marriot receives intense criticism for its weak data management policies. Flaws in its data privacy policies increases the vulnerability to cyber-attacks.
2.2.2. Rigid structure
Marriot has an overly rigid structure, which sometimes resists the change, and slows down the decision making process.
2.2.3. Misalignment between brand positioning and younger customers
Marriott places high importance to the family values, and is positioned as a family oriented brand. This brand image mismatches the interests, style and preferences of Millennials and Generation Z who are more adventurous and individualistic.
However, Marriott is trying to overcome this weakness by investing heavily on digital marketing strategies. Click here to know how Marriott is trying to reposition itself to cater needs of young customers.
2.2.4. Controversies
Unfortunately, Marriot frequently faces the controversies that hurt its brand image. In 2022, the ‘ching and chong’ controversy- filled with bigotry put the brand in trouble. To know more about this controversy, click here.
2.2.5. Lawsuits
Marriott has a poor understanding of law, due to which it frequently faces lawsuits. In 2022, it faced the largest ever class action lawsuit for data breach. In 2019, it was sued for making millions from deceptive fees.
2.2.6. Toxic work environment
Marriott’s work environment is considered hostile by many employees. Its work culture is overly strict. Recently in 2018, Marriott fired an employee just for liking a Tweet on Tibet. Such incidents damage the Marriott’s reputation as an employer.
2.2.7. Long holding times
Many times, Marriott customers complain that their emails and messages over social media accounts go unanswered. So, they have to contact customer support agent to resolve their issue.
2.3. Marriot Opportunities
2.3.1. Digital and contactless services
Contactless and digital services are quickly gaining the momentum. Following graph shows the growing adoption of contactless services by hotel customers in USA:
Source: Statista
Marriot may invest more on contactless technologies to capture this trend.
2.3.2. Expansion in budget hotel category
There is consistent rise in the consumers’ preferences for the mid-range hotels over luxury hotels, as depicted in following graph:
Source: Maximize Market Research
Marriot may increase presence in the budget and mid-range market to capture more from price conscious customers.
2.3.3. Rise of smart hotels
In post pandemic world, the trend of smart hotels is on rise. Hospitality customers are preferring hotels that are equipped with disruptive technologies like artificial intelligence and robotics. Following graph shows the expected growth in global smart hospitality market:
Source: Data Bridge
Marriot may invest on such disruptive technologies to increase the market share.
2.3.4. Rise of Bleisure travel
A survey with 2,551 business travelers revealed that more than 50% of the business trips turn into leisure trips globally:
Source: Deane (2022)
Marriot may increase focus on Bleisure category to fuel the revenue growth.
2.3.5. Diversification
Considering the stiff competition from Airbnb, many hotels are now offering concierge services. Following graph shows the growing demand of concierge services by individuals and corporations:
Source: Million Insights
The market will grow with 5.3% CAGR rate, which presents a lucrative growth opportunity to Marriot as well. Airbnb has already attained the leadership position in the rental market. To know more about rental industry, have a look on Airbnb SWOT analysis (internal linking here)
2.3.6. Entrance in emerging markets
There is consistent rise in the demand for high-end hotels, particularly in the Asian-Pacific and middle eastern region. From 2022 to 2032, luxury hospitality market will grow with 5% CAGR rate.
In forecast period, Asian Pacific and Middle East are the fastest growing regions. Considering the growth opportunity, Marriot may penetrate further in these regions.
2.3.7. Changing demographic characteristics
Following graph shows that compared to older generations, generation Z and millennials spend more on travel:
Source: Hospitality-Tech
Marriot may need to reposition and align its brand image with the interests and preferences of younger travelers.
2.3.8. Hyper personalization
A recent study on hospitality customers revealed that more than 71% guests expect highly personalized interactions. In 2023, many proactive hotels are moving beyond personalization to hyper-personalization.
Marriot may increase investments on CEM and CRM, and leverage the power of big data to offer highly personalized experience at scale.
2.4. Marriot Threats
2.4.1. Data breach
Data breach issue has emerged as a major threat for Marriot. In 2022, Marriot was hit by another data breach. Hackers stole 20GB of data, including payment information and other confidential business documents.
2.4.2. Labor shortage
Marriott CEO considered labor shortage as the most serious challenge for hospitality industry. “Quick Quits” phenomenon is hitting hospitality industry hard. In a recent meeting, all 60 CEOs of major hospitality companies considered skilled labor shortage a threat for hospitality sector.
2.4.3. Reduction in travel budgets
A report by Deloitte revealed possible 11% to 25% reduction in consumers’ travel budget by 2025. It can affect the Marriott and other hospitality industry players.
2.4.4. Reduced business travel
In post pandemic world, many companies have reduced their business travel, and prefer conducting business meetings online. According to a recent survey by Tourism Economics, 47% of corporate executives mentioned their organization is cutting down travel expenses to achieve sustainability goals.
2.4.5. Terrorism threat
Terrorism is a serious threat for five-star rated hotels including Marriott. Despite taking strict measures, the terrorism risk cannot be fully eliminated.
2.4.6. Intense competition
Although, hospitality industry has high entry barriers, but many new hotels enter in industry almost every day. Other than competition from new entrants, the competition between well-established players is also rising, which may reduce the Marriott’s market share.
2.4.7. Political unrest
The on-going trade tensions, geopolitical unrest and Russia-Ukraine war are some major political factors that are threatening the survival of hospitality industry.
3. Marriot SWOT Summary
| Strengths • Innovative company • High satisfaction and loyalty • Successful acquisitions • Strong reputation and international presence • LEARN model • Data based culture • Strong competitive positioning • Effective marketing | Weaknesses • Ineffective data privacy policies • Rigid structure • Family focused brand • Controversies and lawsuits • Toxic environment • Long holding times |
| Opportunities • Digital/contactless services • Expansion in smart and budget segments • Bleisure travel • Diversification • Emerging markets • Younger population • Hyper personalization | Threats • Data breach Labor shortage • Reduction in travel budget • Reduced business travel • Terrorism threat • Intense competition • Political unrest |
4. Recommendations
SWOT analysis on hotels industry (in general) and Marriott (in particular) provides basis for following recommendations:
• Improve implementation of data privacy policies
• Integrate flexibility in structure, and make work culture friendlier
• Rebrand Marriot to match changing consumer demographics
• Handle controversies by investing on PR
• Invest more on smart technologies
• Expand in budget and mid-range hotel segment
• Penetrate further in Asian Pacific region
• Focus more on Bleisure travel
• Diversify to compete with players like Airbnb
• Invest on artificial intelligence and analytics to offer hyper personalized experience
5. Conclusion
Marriott holds the strong leadership position in global hospitality industry. However, rising competition from other luxury hotels, customers’ growing price sensitivity, changing demographics, geo political unrest and looming recession are some serious challenges that require strategic wisdom, and need a proactive response from Marriott. Marriott is succesfully responding to all these challenges through its innovative marketing strategy. Click here to know more about Marriott’s marketing mix.
References
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Klint, M., & Klint, M. (2022, August 3). Marriott “Ching And Chong” Controversy Is Loaded With Bigotry. Live and Let’s Fly.
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Smart Hospitality Market Analysis, Research, Size, Share, Statistics, Trends, & Forecast by 2029. (n.d.). Data Bridge Market Research, https://www.databridgemarketresearch.com, All Right Reserved 2023.
Deane, S. (2022, January 5). 77+ Bleisure Travel Statistics [Updated 2022]. Stratos Jet Charters, Inc.
Concierge Services Market Size, Research, 2025 | Industry Report. (n.d.).
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EHL Insights. (n.d.). 2023 Top Hospitality Industry Trends.
Faife, C. (2022, July 6). The Marriott hotel chain has been hit by another data breach. The Verge.
Hotel Labor Shortage ‘Most Significant Challenge,’ Says Marriott CEO. (n.d.). TravelPulse.
Daher, M., Crowley, E., Caputo, P., Jackson, A. J., Rauch, M., & Terry, B. (2022, September 2). Reshaping the landscape: Corporate travel in 2022 and beyond. Deloitte Insights.
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