Marriott hotel pestle analysis. Marriott PESTEL Analysis 2022-10-09

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A PESTLE analysis is a tool used to understand the external factors that can affect an organization. By examining the Political, Economic, Sociocultural, Technological, Legal, and Environmental factors, a company can better understand its operating environment and the potential opportunities and challenges it may face. In this essay, we will perform a PESTLE analysis on Marriott International, Inc., a global hotel company with a portfolio of 30 hotel brands and over 7,600 properties around the world.

Political Factors:

Marriott operates in many countries with different political systems and regulatory environments. In some countries, the government may exert a significant influence on the hospitality industry, while in others, the industry may be more market-driven. In addition, Marriott may be affected by global political developments, such as trade disputes and economic sanctions. The company must also consider the impact of political instability, terrorism, and natural disasters on its operations.

Economic Factors:

The global economic environment can have a major impact on Marriott's business. Factors such as GDP growth, inflation, unemployment, and exchange rates can all affect consumer demand for travel and hospitality services. Marriott must also consider the impact of economic trends on its supply chain and labor costs. For example, rising fuel prices may increase the cost of transportation, while changes in exchange rates may affect the cost of goods and services purchased from foreign suppliers.

Sociocultural Factors:

Marriott's operations are also influenced by sociocultural factors, such as demographic trends, consumer preferences, and social values. For example, the growing trend of eco-tourism may lead to increased demand for hotels that offer sustainable and environmentally-friendly services. Marriott must also consider the impact of cultural differences on its operations, such as the need to adapt its products and services to local customs and preferences.

Technological Factors:

The rapid pace of technological change has had a significant impact on the hospitality industry, and Marriott is no exception. The company must consider the impact of new technologies on its operations, such as the use of digital platforms to connect with customers and the adoption of automation and artificial intelligence in its operations. Marriott must also consider the impact of technological disruptions, such as the rise of alternative accommodation platforms like Airbnb.

Legal Factors:

Marriott operates in a highly regulated industry, and the company must comply with a wide range of laws and regulations related to health and safety, employment, and the environment. Marriott must also consider the impact of laws and regulations related to data privacy and cybersecurity, as well as the potential risks and liabilities associated with these issues.

Environmental Factors:

Marriott's operations also have an impact on the environment, and the company must consider the impact of its activities on natural resources, air and water quality, and waste management. Marriott must also consider the impact of environmental regulations and the growing trend of eco-tourism on its operations.

In conclusion, Marriott operates in a complex and dynamic environment, and the company must consider a wide range of factors in its strategic planning and decision-making processes. By conducting a PESTLE analysis, Marriott can better understand the opportunities and challenges it faces, and take steps to navigate these challenges and capitalize on opportunities.

Pestle analysis of marriott international

marriott hotel pestle analysis

As of Q3 2017 it had over 450,000 rooms in pipeline. The booking of their hotels through indirect booking channels can increase their overall cost and hence lead to a decrease in its profitability. However, the capriciousness and volatility in the political environment of the host market increases hazard and uncertainness, which declines houses from come ining with heavy resource. Political Factors that Impact Marriott International, Inc. Environmental Factors Countries that have severe weather conditions have a difficult time flourishing their hotel industry. The SWOT matrix of Marriott International is presented below in the SWOT Matrix followed by the detailed analysis: Strengths Weaknesses 1.

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Marriott International PESTEL Analysis

marriott hotel pestle analysis

The application of PESTEL analysis can help Marriott International. Marriott Passed should carefully analyze the attitude towards authority before launching a marketing campaign for its products and services. Diversification Diversification is essential for businesses. Copy to Clipboard Reference Copied to Clipboard. The health and efficiency of financial markets will determine Marriott International.


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Marriott hotel's pestel analysis Free Essays

marriott hotel pestle analysis

The growing inequality in many countries is altering the power structure, which has serious implications for international business organizations like Marriott. Even within a country often states can have different environmental laws and liability laws. This is so, because the Courtyard is standard 3. About Marriott International : Marriott International, Inc. Moreover, a well-developed governance system with a democratic political environment makes the business environment more comfortable for international business organizations like Marriott.

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Marriott SWOT Analysis: Can the Competition Threaten the Hotels?

marriott hotel pestle analysis

The longer it would take the researchers to develop the vaccine, the more difficult things would be after the pandemic. Willard and Alice Marriott. It started an above average profitability operations in Argentina and made strong returns in 5-7 years. Increased international tensions and the rise of aggressive new terrorist organizations such as ISIS make such events likely in the future. Functional and easy to use website. The corporation has developed several brands in the mid to luxury sectors of the hotel industry, including The Ritz-Carlton in the luxury sector; Marriott Hotels and Resorts, and Renaissance Hotels and Resorts in the upscale sector; Courtyard by Marriott in the upper mid sector; and Fairfield Inn by Marriott in the mid-scale market.


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PESTEL ANALYSIS childhealthpolicy.vumc.org

marriott hotel pestle analysis

Style — Leadership style includes participative which encourages staff participation in decision making processes Staff — staff morale is high as they feel part of the organization and share in the roll out processes Skills — Staff are trained in the hospitality field to ensure that customer service and quality service is given. Other factors such as low unemployment, robust stock markets have contributed to elevate consumer confidence. Additionally, location critically affects the ability to draw customers; such importance, visibility, accessibility, and convenience which attract the market. Thus significantly impacting the ability of Marriott Passed to build sustainable competitive advantage 3. And thus, there are various global factors that affect this industry. There has been criticism that some hosts are abusing Airbnb in some markets to run what amounts to illegal hotels. The pricing power is moderate which has a important entry barrier, due to high capital demands and besides inaccessibility of substructure.


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Marriott PESTLE Analysis

marriott hotel pestle analysis

Opportunities to drive future rooms growth 1. The modern form of hotels can be found in every corner of the globe. These destinations include Bulgaria, Cyprus, Malta, Portugal and Spain. Those developments could force the closure or relocation of hotels. The global operations of Marriott are considered its strength.

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Marriott International, Inc. PESTEL / PEST & Environment Analysis[Strategy]

marriott hotel pestle analysis

Case Description of Marriott Corp. It is important for Marriott International. It is an acronym for political, economic, social, technological, environmental and legal factors that shape the macro business environment. Additionally, location critically affects the ability to pull clients ; such importance, visibleness, handiness, and convenience which attract the market. Populations in the United States and Europe that are growing older could increase the demand for certain kinds of travel experiences, such as packaged tours and luxury resorts. High taxation affects international trade and prevents exports.

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PESTEL Analysis of Marriott International

marriott hotel pestle analysis

Moreover, adopting efficient waste management practices in organizational units that are located in or near urban areas is highly crucial for Marriott. Changes in the macro-environment factors can have a direct impact on not only the Marriott International, Inc. Closer to the hotel are Fort Canning one mile away, and Little India historical enclave one and a half miles away. Many countries have placed strict norms to protect their urban areas through effective waste management. The observation of social class stratification is also important for Marriott International. Use of social media has become common in a modern business environment. Managers at Marriott Passed need to examine three inter-related environments in order to come up with an effective strategy.

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PESTLE Analysis of the Hotel Industry

marriott hotel pestle analysis

This is apparently at odds with the financial policies that the Board of Directors passed two years earlier. Marriott Passed should assess what are preferred choice of mobile payments in local economy and chose the business model based on it. Finally the competition in the industry will alter, in such a manner that the growing rate of gross revenues and end product stabilises and will finally meet to zero. Due to the current economic development, faced with softening demand, Marriott have taken steps to reduce operating costs, related to the competitive nature of the industry, with focus in maintaining customer loyalty, owner preference, and associated satisfaction, to help increase market share, where the occupancy average daily rate is eighty-nine percent 89%. It has a base of loyal customers at local level as well as at international level. Increasing consumer preference for sustainable hospitality Political This section is available only in the 'Complete Report' on purchase. Another concern is that Airbnb hosts do not pay lodging taxes, which are a major source of revenue for some municipalities.

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Pest analysis on marriott hotel Free Essays

marriott hotel pestle analysis

They could potentially attract a significant proportion of market volume and once reduce the potential sales volume for existing players. This would hold a important consequence on gross revenues, since clients may seek to fulfill their physiological demands before any other. As everybody knows, China is the largest market outside the United States, and Marriott International is betting everything on that fact. In Asia authority is respected while in west it is something to rebel against. Some of the technology trends that are impacting the macro environment are — developments in artificial intelligence, use of machine learning and big data analytics to predict consumer behavior, growing importance of platforms over service providers etc. The company has led a whole smörgåsbord of energy- and resource-saving initiatives, including: replacing 4,500 outdoor signs with LED displays, replacing 450,000 light-bulbs with CFML in 2006, saving 1 1-17 percent on their water usage through linen reuse programs, and installing 400,000 low-flow shower heads which each save 10% on hot water use per year 96% of Marriott hotels recycle in some form. The rats Competitors are one of the major threats that is faced by Marriott hotel Singapore.

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