Marriott Assignment - Sunil Kumar PDF

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Running head: BUSINESS 1YADWINDER SINGH8682934Marriott has been in the news for some time now and with a large merger in 2018 with Starwood seems to be still on the top. The merger made it clear that the Marriott company had more advantages in the merger as compared to the latter. According to the a...

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Running head: BUSINESS

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YADWINDER SINGH 8682934 Marriott has been in the news for some time now and with a large merger in 2018 with Starwood seems to be still on the top. The merger made it clear that the Marriott company had more advantages in the merger as compared to the latter. According to the annual report, there is a confirmation that the transaction has unlocked tremendous value for the customers and other shareholders and it has become one of the largest transactions happening in the hospitality industry. These two companies with two different ideologies integrating into one company have become a complex process however since they are both under the hospitality industry, the team states that they had backend support completely. According to their annual report, it seems like there is Bin revenue per available room for 2.6% worldwide in the year 2018 and the operating margins have improved to 40 basis points. As seen together, the organizations have 500 hotels making it one of the highest numbers ever in a single year. It includes more than 85% of the place being under construction or adaptive reuse. The team is focused on establishing a global footprint with more than 1.3 million rooms taken from 130 countries and territories ("Annual Report", 2018). We cannot deny the fact that the company has been improving every year and the merger seems to be one of the best decisions ever made.

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There has been a points problem with the customers for a long time which is why Marriott International had to pay 13.6 billion dollars to acquire Starwood group. The merger act as a chance for the power to bring unprecedented economies into scaling and it is clear that the decision has been successful as the stock of the company is more than 80% of its competitors. The company was exploring the deal when the Starwood group asked for the preferred guests to keep their SPG names. However, Marriott International did not from any free breakfast and other exclusive benefits that the Starwood group had been already providing. The benefits not as exclusive as it was for the fans of the Starwood group. Due to that, the customers are now facing a lot of issues remaining as fans for longer. Marriott International has been spending the last 2 years to keep these fan requests come and there is been quite progress. But then, some fans think it is the mediocrity of the Marriott International Services and many people have shown dissatisfaction in the largest merger of the hospitality industry. On the other hand, the revenue numbers and the stocks have increased making sure that the merger has been good news for Marriott International. On that note, Starwood group has also become the name of the house in recent times however it has not been able to make the customers as happy as they were when they were not in the Merger. The major problem with the mother is that the hotel loyalty programs that have been built on the basic proportion of the travelers writing of some points based on the trips that they can spend further. If travel spends a lot on a hotel company, then they will be reward-rich depending on the type of the program. Also, SPG members used to get Platinum status if they have completed 25 days or 50 Nights within one year. On the other hand, the Marriott Rewards program conveys that the platinum delight will be given to the travelers only if they spend 75 Nights at least. Hitting an above average goal of 25 nights more in every year is becoming a pressure to even hit the annual goals and get the rewards as promised (Clark, 2018). The transition from number 50 to 60 would not have been a bigger problem but 75 is large as compared to 50 Nights. In addition, the number of days is also not mentioned which means the option comes out of the list. This is one part of the Loyalty program and there are many other exclusive benefits given by the Starwood group being completely exploited by Marriott International leaving the customers dissatisfied.

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Though the merger has been a piece of good news, it will not be feasible for Marriott International to continue being one of the topmost firms if it does not take the concept of making changes in their reward programs into consideration. Also, Starwood has had exclusive customers and loyal fans as compared to Marriott International which means it is the duty of the team to consider their request and make changes accordingly to make sure the merger remains a piece of good news for a long period of time. The team has been facing a lot of problems in the peak times which the customers use to hit the annual goals probably with the 25-day slot and more bookings. It is not possible for Marriott International to keep coming down the SPG fans for long without making changes in their award programs and if these loyal fans walkout, then all the benefits that came along with the Merger will be half lost. Apart from the consumers, The travel agents and booking parties have also shown dissatisfaction regarding their award programs and even the free breakfast concept has been made impossible due to the policies of Marriott International. The year 2018 has been successful for the company but then if the benefits of the merger have to continue then they might have to make a lot of changes in agreement with the Marriott International policies and the Starwood group policies. It is possible to make such changes thereby making the consumers happy and still not overriding their existing policies of Marriott International.

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References Annual Report. (2018). Retrieved 25 March 2020, from http://media.corporateir.net/media_files/IROL/10/108017/marriottAR18/pdfs/Marriott-2018-AnnualReport.pdf Clark, P. (2018). Points-Obsessed Travelers Are Terrified of Losing Perks. Retrieved 25 March 2020, from https://www.bloomberg.com/news/features/2018-08-01/the-marriottstarwood-merger-puts-a-points-program-to-the-test...