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Introduction to Tourism

Tourism is the world's largest civilian industry and accounts for nearly fourteen percent of the world's

GDP. Its growth, economic significance and potential are phenomenal across the globe; although yet

to be exploited to its maximum capacity. Directly or indirectly, it is all set to change business

propositions in manufacturing as well as services sector. As a quasi-manufacturing activity, tourism

is contributing immensely in terms of both earnings and employment across nations.

Be it domestic or foreign in nature, its largesse to the target destinations helps not only economically

but also in the evolution of civilized societies sharing a cosmopolitan ambience of culture. The

advancement in Information Technology- particularly the arrival of the Internet - has further

expanded the scope of tourism to global markets. Online tourism, as its natural corollary has emerged

to occupy a central place in tourism marketing. Due to its sheer potential, online tourism has become

a buzzword uttering out from almost every tongue that speaks of tourism. The present form of the

Internet; particularly the World Wide Web has only been inexistence since 1992 and there is only adecades time to draw any inferences out. Further, literature which examines internet and tourism has

only recently emerged. Although it is rapidly becoming a growing topic of research, the information

on the websites seems to be the only rescue for the researchers. At the same time, it forewarns and

forearms the marketers of tomorrow about its importance as future mode of acquiring information

and purchase of tourism products and services.

Online Tourism

Online Tourism has been defined as a new form of travel product distribution where a

supplier/service provider offers products/services mainly through the medium of Internet to a group

of customers, irrespective of their physical location (Singh 2003). Online tourism equips a tourist,

tour operator or travel agent for convenient exchanges using electronic medium. User groups globally

are finding online technologies supportive indecision making for availing tourism products and

services. Even in its introductory stage, Tourism Industry has largely been benefited by online

tourism in certain countries. It has been found that a strong network of online technologies helps in

developing an environment of spontaneity and convenience. Customized websites, value-added

services, focused marketing, easy-to-use self-service tools, and sophisticated contact-center solutions

attempt to provide higher user-awareness, accessibility and autonomy. This further provides severalways to build loyalty. Online Tourism has caused several changes in the tourism industry out of

which the main impact has been on the interrelation between service providers and traditional

intermediaries. It has offered Tourists, across the globe, a tool to express their needs, to seek details

on destinations, facilities, availabilities, prices, geography, and climate information for diverse

tourism products and services. Moreover, it has given an upper hand to travel agents while looking

for information or details about tourists, market trends, service providers, destinations, facilities,

availabilities, prices, tour packages and also in maintaining direct contacts with their partners. With

its virtue, it has become increasingly convenient for tourism offices to search for industry trends, size

and nature of tourism flows, policies, and plans for the developmental concerns.


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LIST OF TOP 10 HOSPITALITY COMPANIES ACROSS THE

GLOBE

1) Intercontinental Hotels Group (IHG)

2) Wyndham Hotels Group (WHG)3) Marriott International4) Hilton Hotels Corporation5) ACCOR Hotels6) Choice Hotels International7) Best Western International8) Starwood Hotels and Resorts Worldwide9) Carlson Hotels10)Global Hyatt Corporation

MARRIOTT INTERNATIONAL

Introduction

Marriott International, Incorporations is a leading lodging company with more than 3,000 launched

properties in the United States and operates in more than 65 countries in the world. It was formed in

1993 whenMarriott Corporationsplit into two companies, Marriott International andHost Marriott Corporation..

Marriotts hotels include 10 brands. Among them there are brands such as Renaissance Hotels with

flagship of Marriott Hotels & Resorts, also brands as Fairfield and Marriott Vacation Club

International, Towne Place Suits, JW Marriott Hotels and Resorts, Residence INN and Courtyard.

(Marriott International, Inc., 2009). The Ritz-Carlton Company is a luxury chain of hotels that was

owned in April 1995, is also under the head of Marriott International (Funding Universe,2009).The

Marriott International is headquartered in Bethesda (USA), and has 146,000 employees worldwide. It

is ranked as the most admired company in the hospitality industry. The Company has also been

recognized by the U.S. Environmental Protection Agency (EPA, 2007)) with the 2008 Sustained

Excellence Award.

Five force Business Model Marriott International

According to the Ibis World database, Marriott International Inc is the leading player in the global

hotels and motels industry; employing about 137,000 people in about 69 countries. In order to further

understand the nature of competition in this industry one should first examine its external

environment; more specifically the forces that drive it. The five forces model that shall be analysed is

comprised of buyer power, supplier power, threat of new entrants, threat of substitutes and degree of

rivalry.

1.

Buyer Power:In the global hotel and motel industry a primary strength a player has to

have in order to flourish is strong brand recognition. A strong brand recognition not only
http://en.wikipedia.org/wiki/Marriott_Corporationhttp://en.wikipedia.org/wiki/Marriott_Corporationhttp://en.wikipedia.org/wiki/Marriott_Corporationhttp://en.wikipedia.org/wiki/Host_Marriott_Corporationhttp://en.wikipedia.org/wiki/Host_Marriott_Corporationhttp://en.wikipedia.org/wiki/Host_Marriott_Corporationhttp://en.wikipedia.org/wiki/Host_Marriott_Corporationhttp://en.wikipedia.org/wiki/Marriott_Corporation


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aids in attracting first time customers, but it also entails repeat business since switching costs

can be trifling in this industry. Price competition alone is not a good stimulator of this force,

yet innovation undeniably is. Companies are always trying new ideas to capture a diversified

set of consumers, ranging from the middle class to the premium segment. By utilizing new

styles of design to superior facilities, such as gyms, spas, even integrated golf complexes, avast fragmented group of consumers can be captured through an increase in the value they

receive.

2. Supplier power: Due to the fact that this industry is very labour intensive, the playerswithin it have to take on effective strategies to bargain. The degree of quality and accessibility

of the suppliers equipment and services are a primordial part for the success of a company.

Hotel managers usually have to rely on technology and advanced systems to manage, analyse,

and locate good prospective properties that will complement the hotels profitability. Since

most of this technology is acquired through separate suppliers, their bargaining power is

considerably strengthened.

3. Threats of new entrants: This industry is very influenced by tourism and travel trendswhich create prime opportunities for competitors to enter the market. Even though there has

been an economic downturn globally, the expectations for the hotel industry continue to be

positive and growth is most likely going to continue throughout the year. The threat of new

entrants appears to be stronger in the Asia- Pacific region specially, as the number of tourists

continues to grow and new flight pathways are unveiled. In this industry new entrants may

surge as small, independent sole proprietors, yet the likelihood of their success is uncertain. In

order to sustain revenue growth in the premium market, where the highest profitability is

usually found, a large scale of initial capital is required; this can present itself as a strong

deterrent to new entrants.

4. Threat of Substitutes: Substitutes for this industry include alternative types of lodging,such as RVs, camping, even informal visits to friends and family. Even though these

substitutes do exist, and switching costs may be low, they usually do not provide the same

utility as a hotel does. The basic function of a place to stay may be fulfilled by substitutes, but

the added benefits, such as restaurants and spas, are better provided by hotels. The threat of

substitutes may exist in this industry, yet it is no match for an entity with a strong brand

equity that provides customer satisfaction

5. Degree of Rivalry: The threat of rivalry for this industry can be considered moderate dueto mostly financial and logistical factors. Most of the hotel industrys key players are large

branded chains, yet there are a large number of independent companies currently in the

industry. The larger chains have a powerful competitive advantage by being able to use their

higher level of revenues to diversify into other businesses. On the other hand smaller

companies have to struggle to devise strategies of survival and innovation, which can be a

complicated task. The capital availability key players have allows for a higher degree of

global diversification; insulating them from volatile market conditions.


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Information Technology at Marriott International

Marriott transforms key finance processes, XEROX ERP CASE STUDY

(The lodging leader develops scalable platform)

Snapshot

The Challenge

Inefficient, redundant processes for Accounts Payable

and Claims Management

Reliance on paper-based workflows

Time-consuming paperwork diverted associatesfrom core tasks

Transition to a Shared Services Centre and newERP

software

The need for optimised processes to sharpen the

focus on core competencies and support global

grow

We wanted to control costs, operate

more efficiently and help our associates

spend more time enhancing the guest

experience. Xerox helped us achieve

these goals.

Clay Hall, Senior Director

Information Resources

Marriott Shared Services


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The Results

Automated work processes for data andinformation; 4x processing capacity

Increased efficiency and productivity

Optimised costs, improved financialreporting

Better cash flow and supplier management

More effective approach to risk management, compliance

Delivered to strict Service Level Agreements

Enhanced customer and associate satisfaction

Improved environmental sustainability

Marriott International DeployedSiebel ebusiness Applications

Marriott International Enhances

Customer Loyalty and Boosts Profitability

Measuring Customer Value: While customer service has always been associated withMarriotts

brand name, the company has always measured its success byhotel occupancy rates. To achieve higher revenue per customer, Marriott sought to implement an

The Solution

Strategic partnership with Marriotts

Information Resource organisation

A single, scalable services platform to

support Marriotts growing global needs

Solutions that integrate easily with

Marriotts ERP and claims processing

systems

Re-engineered workflows based on digital

documents and automation

Outsourced mailroom, imaging and

content management services with

guaranteed turnaround times

Wewere looking for an innovative

Company that could help us compete

globally and grow and expand. We

found the right partner in Xerox. Its

been a beneficial relationship from day

one.

Jeff Golding, Senior Director

Information Resources

Marriott Corporate


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eBusiness solution that managed customer touch points across all channels, establish a unified set of

customer data accessible by all customer-facing employees, and offer customers a highly

personalized experience.Based on a rich profile of information. With these goals in mind, Marriott

turned to Siebel Systems for its eBusiness solution, deploying Siebel Sales and Siebel Service to

approximately 3,000 employees globally.

Embracing the Customer: By using Siebel eBusiness Applications, Marriott is able to embraceits group customers in new ways. For example, in the past the

company had waited for its large corporate accounts to call to reserve rooms and did little to

proactively drive sales. Today, however, Siebel eBusiness Applications enable Marriott to collect and

consolidate information on all corporate accounts, manage contacts, and record leads and

opportunities. Marriotts sales teams now call corporate customers well in advance of trade shows

and conferences to book arrangements.

Building Brand Loyalty across Hotel Properties: Marriotts Siebel eBusiness solutionalso

helps the company build loyalty and

awareness across its 13 lodging brands. Before implementing Siebel eBusiness Applications

Marriotts sales force logged information in disparate databases based on the hotels or hotel groups to

which they were assigned. If a guest wanted to book a room at a hotel that was full, Marriotts

salespeople had no way of knowing whether another Marriott hotel in the same city was available.

Now, with Siebel eBusiness Applications in place, Marriotts salespeople have visibility of rooms

inventory at multiple Marriott properties and can easily book a customer in a different Marriott

property.

Cross-selling Additional Products and Service: Using Siebel eBusiness Applications,

Marriott has improved its ability to crossselladditional products and services inother ways as well. For example, sevenMarriott leisure hotels

now provide the Personal Planning Service, creatingpersonalized vacation itineraries for guests

well in advance of their arrival.

Benefits

Improves customer satisfaction

Improves profitability

Strengthens brand loyalty Increases sales to corporate accounts

Increases cross-chain sales

Marriott gains new edge in

project transparency, planning


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With HP Project and Portfolio Management Centre, executives are better

equipped to make strategic decisions on global priorities and resources

Project managers can focus on managing

Marriotts first full implementation of HP PPM was within Information Resources (IR), its

technology services organization. The project was extremely well received by Marriotts IR project

managers. HP PPM madeproject managers livesat Marriott easier by automating a lot of steps, they

no longer have to manually create risk and issue watch lists, or scope statements and work plans

because the tool creates them automatically using pre-defined templates. These benefits extend far

HP PPM has helped us improve our planning,

has increased visibility into our portfolio, and has

helped us better align our activities with our

corporate and IT strategies. And we now have a

single source of information on our entire

portfolio.

Leslie Scott, vice president, Information

Resources andEnterprise Project Management Office, Marriott

Snapshot of Case

Objective

Enable global view of corporate projects

to foster better strategic planning and

resource allocation; leverage automation

to drive project management efficiencies

ApproachReplace point project management

solutions with robust, full-featured

enterprise solution

IT improvementsAutomated project management tasks

drive efficiencies, free associates time to

focus on tasks that drive more business

value and take on more projects, which is

critical to the companys growth strategy

Business benefits

Executives have information they

need to make better decisions about

project planning and resource

allocation, ensuring the companys

projects are aligned with its business

goals and focus, and helping to

support its overall success as an

enterprise

Improved governance helps reduce

risk of non-compliance or securityissues, which could be costly to fix or

damaging to the companys brand

Time spent by project managers for

managing their projects and reporting

results reduce.


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beyond convenience: HP PPM frees project managers to focus on tasks that more directly contribute

to projects success.

Helping executives make the best possible decisions

HP PPM helps executives at Marriott to make the best possible decisions about what to do with thoseideas. They have the information they need to figure out where to best allocate resources.

As projects

are evaluated, if they dont align with Marriotts overall business strategy, they are tabled. This helps

keep the company focused and ensures it isnt misallocating precious budget dollars, while ensuring

that the project can be re-initiated later if the companys priorities change. And as Marriott and the

use of HP PPM grows, it will help ensure the company executives have visibility into other lines of

businessnot just the activities of their respective direct reports.

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