Hotel Industry/Marriott Analysis
Analysis of the Hotel Industry
The need for lodging for individuals after traveling a great distance from home has been around since mankind began living inside of dwellings. To serve this need, hotels, or as they were more commonly referred to, inns, were created as a means to accommodate these travelers. In fact, the first recorded inn in America opened in 1607. Since their introduction they have grown in complexity, amenities, price, and number, however, their purpose has remained to provide paid lodging typically on a short-term basis. Despite a common purpose, it is said that “hotels are as different as the many family and business travelers they accommodate.” Today there are several categories of hotels, each of which serves a slightly unique purpose. They include upscale luxury, full service, select service, limited service, motel, extended stay, timeshare, casino hotel, and destination club. Depending on which category a hotel belongs to, it may provide a refrigerator, oven, stove, microwave, mini-bar, coffee maker, bathrobes, and Jacuzzi bathtubs, along with access to a swimming pool, fitness center, business center, and conference facility. Nevertheless, despite its category, it is customary for hotels in each of the categories to provide guests with a bed, bathroom, television, telephone, and alarm clock. The hotel Industry is a sub industry within the travel and hospitality industry. According to the bureau of labor statistics, there were 64,300 establishments that provided accommodations to suit travelers’ different needs and budgets as of 2008. Over the last few decades, a few large national hotel chains have dominated the hotel industry; many of which have hotels that fall in several of the categories of hotels in hopes of appeasing different groups of travelers. This has been supported by guests who are loyal to particular brands due to their dependability, known quality, and familiarity. These “brand named” hotels are at times owned by the national corporation but most are franchised to independent owners. The trend, however, is moving towards companies managing the chain and franchising the individual hotels. In regards to size, the hotel industry is fairly large. In the U.S., the hotel industry ended 2010 with a $127.7 billion in total revenue, which was a .04 percent increase over 2009’s earnings. This increase in total revenue is attributed to operating expenses reduction practices that began in 2009 as well as an increase in demand due to an improvement in the economy. This industry employed 1.9 million employees in 2008, with the majority of the employment occurring in cities and resort areas. Also, about 74% of the companies in this industry employed less than 20 workers, whereas most of the employees belong to larger hotels. In addition, it is important to note that due to the simplicity of many of the jobs in this industry-which include front desk clerks, security guards, cooks, janitors, maids and housekeeping staffs, and grounds maintenance workers-19 percent of the workers in this industry are younger than 25 years old. Though this industry has a multitude of companies, the market leader is Marriott International Inc., which has 3,150 locations in the U.S. and within 68 other countries. It is headquartered in Washington D.C. and includes several popular brands of hotels such as the Courtyard, Fairfield, Spring Hill, and Residence Inn. Another popular hotel chain is the Global Hyatt Corporation headquartered in Chicago. Hyatt has over 200 branded hotels and resorts and offers accommodations in 43 countries. Its brands include, the Hyatt, Grand Hyatt, Hyatt Regency, and Park Hyatt. Starwood Hotels and Resorts Worldwide is yet another major player in this industry. Based in White Plains, New York, this hotel is the parent of the Westin, Sheraton, Aloft, and several other brands. One of the more renowned brands is the Hilton Hotels Corporation...
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