Marriott Value Chain Analysis

By John Dudovskiy
October 28, 2023

Value chain analysis is an analytical tool that helps to find business activities that can create the most value and competitive advantage to the business. Figure  below illustrates the essence of Marriott value chain analysis.

Marriott Value Chain Analysis

Marriott Value Chain Analysis


Marriott Primary Activities

Marriott Inbound logistics

The inbound logistics activities for Marriott International involve the procurement, transportation, and storage of the goods and services that the company needs to operate its hotels and resorts. These activities are essential to the company’s ability to provide its guests with a high-quality experience.

Marriott International procures a wide range of goods and services from suppliers such as food and beverage, linen, furniture, toiletries and other supplies. The largest hotel chain in the world has a strong supplier network and is able to negotiate competitive prices. The company also has a team of experienced procurement professionals who are responsible for managing the inbound logistics process.


Marriott Operations

Marriott’s operations can be divided into four key areas:

1. Hotels. Marriott operates and franchises hotels under its various brands. It also manages hotels on behalf of other owners.

2. Vacation ownership. Marriott operates a vacation ownership program called Marriott Vacation Club International. This program allows members to purchase vacation points that can be used to stay at Marriott-affiliated vacation resorts.

3. Timeshare exchange. Marriott operates Interval International, a timeshare exchange program that allows members to swap their timeshare weeks for stays at other resorts.

4. Food and beverage. Marriott operates restaurants and bars in many of its hotels. It also provides catering services.


Marriott Outbound Logistics

Generally, outbound logistics within value chain analysis refer to all the activities involved in delivering the finished product or service to the customer. This includes warehousing, order fulfilment, transportation, and delivery. For Marriott International outbound logistics activities include the following:

– Reservation fulfilment. Processing and confirming reservations made by guests, and providing them with all the necessary information about their stay, such as check-in and check-out times, room type, and amenities.

– Guest check-in and check-out. Welcoming guests to the hotel, checking them in to their rooms, and assisting them with their luggage and other needs. At check-out, hotel staff process payments, return deposits, and provide guests with luggage storage and transportation assistance.

– Food and beverage service. Providing guests with food and beverage options throughout their stay, including breakfast, lunch, dinner, room service, and in-room dining.

– Housekeeping and maintenance. Cleaning and maintaining guest rooms and other hotel facilities to ensure that they are in top condition.

– Guest transportation. Providing guests with transportation to and from the airport, train station, or other local destinations.


Marriott Marketing and Sales

Marketing costs for Marriott International amounted to USD 635 million in 2022, USD 470 million in 2021, and USD 276 million in 2020[1]. The largest hotel chain in the world uses a variety of marketing channels to reach its target customers, including the following:

– Online marketing. Marriott has a strong online presence, with a well-designed website and social media accounts. The company also uses search engine optimization (SEO) and pay-per-click (PPC) advertising to drive traffic to its website.

– Traditional advertising. The company also uses traditional advertising channels, such as television, print, and radio, to reach its target customers. The company’s advertising campaigns typically focus on the comfort, luxury, and convenience of Marriott hotels.

– Public relations. The hotel chain uses public relations to generate positive media coverage and build brand awareness. The company regularly issues press releases about new hotel openings, renovations, and awards.

– Loyalty program. Marriott International’s Bonvoy loyalty program is one of the largest and most successful loyalty programs in the hotel industry. The program offers members a variety of benefits, such as free nights, room upgrades, and exclusive discounts.


Sales practices

Marriott International has a global sales team that is responsible for generating sales leads and closing deals with corporate clients, travel agencies, and other groups. The company’s sales team also works with individual travellers to help them book their hotel stays. Marriott International uses a variety of sales strategies. These strategies include the following:

– Relationship building. Marriott International’s sales team focuses on building relationships with key decision-makers at corporate clients and travel agencies. This helps the company to understand the needs of its customers and develop tailored solutions.

– Value-based selling. Marriott International’s sales team focuses on selling the value of Marriott hotels, rather than simply selling the price. This means highlighting the benefits that Marriott hotels offer, such as comfortable accommodations, convenient locations, and excellent amenities.

– Technology. Marriott International uses a variety of technology tools to help its sales team generate leads and close deals. For example, the company uses a customer relationship management (CRM) system to track customer interactions and manage sales opportunities.

Marriott International Inc. Report contains a full version of Marriott value chain analysis. The report illustrates the application of the major analytical strategic frameworks in business studies such as SWOT, PESTEL, Porter’s Five Forces, Ansoff Matrix and McKinsey 7S Model on Marriott. Moreover, the report contains analyses of Marriott leadership, business strategy, organizational structure and organizational culture. The report also comprises discussions of Marriott marketing strategy, ecosystem and addresses issues of corporate social responsibility.

Marriott International Inc. Report

[1] Annual Report 2022, Marriott International Inc.