Marketing of services useing unabler e-business strategy of MARRIOTT WAY

8/9/2019 Marketing of services useing unabler e-business strategy of MARRIOTT WAY

1/76

Executive summary:

In the emerging global economy, e-business has increasingly become a necessary component of

business strategy and a strong catalyst for economic development. The integration of information

and communications technology (ICT) in business has revolutionized relationships within

organizations and those between and among organizations and individuals. Specifically, the use

of ICT in business has enhanced productivity, encouraged greater customer participation, and

enabled mass customization, besides reducing costs.

Marriott hotel has using latest e-business strategy. Marriott has more focus on e-business

technology to acquire more satisfied customer. They create their web site such way that customer

can find all information quick and easily. Online business of Marriott is good then other hotel

business. They can keep contact their customer and give good services.

Marriott hotel is doing good customer relation with their e-business. They have provided all

information to customer in one click of mouse because they create their web site such way that

all information can find easily. They also use reward system to customer. They will give bonus

system as well as free room to their loyal customers.

E-business is an important tool to make success their business. Use different types of e-business

tools to expand your business and make loyal and satisfied customer. Marriott is using their

online service such way that customer will know all information easily.

1


2/76

Objective of The study:

The objective is to understand and validate the use of an enabling strategy for the success

of Services Marketing strategy using a real-life case of an organization in the Hospitality

Industry, where the competition is fierce and their exist a lot of challenges. Additionally, it

is also important to understand the importance of the HRM policies and Organizational

coordination to make a strategy successful, which is also discussed, briefly.

2


3/76

Research Methodology:

The objective of the study will be accomplished by conducting a systematic design, collection,

analysis and reporting of data and findings that are relevant to different situations facing by the

company.

1. Data Collection:-

Primary data:-

Questionnaires

Conduct interview of companys employees

Secondary data:-

Magazines

Journals

Internet

Books

2. Sampling Design:-

Type of sampling: -

Convenience Sampling

Sample Size: -

50 people

Sample Area: -

Ahmedabad

3. Data Analysis:-

The collected data analyses by using various formulas and methods i.e.

correlation analysis, by defining dependent and independent variables will also make use

3


4/76

of graphs, tables, charts and pictures to make the reader understand it easily and less time

consuming.

4. Presentation :-

Final report would be drafted by following the logical sequence. Presentation data

would be such that it inculcates interest in the reader to read further.

5. References :-

The references would be provided as and when project proceed. Till now only

company website and company journal have been referred.

Statement of the Problem:

In recent years, IT strategy has played a major role in the successes of the business strategies.

Marketing of Hospitality services has been always challenging. To enable a successful Services

Marketing strategy, the company needs to have enabling strategies and one of them may be E-

Business Strategy. Find out the effective implementation of E-Business strategy.

4


5/76

CHAPTER 1

INTRODUCTION OF MAKETING OF SERVICES

1.1 Definition :

A form of product that consists of activities, benefits, or satisfactions offered for sale

that are essentially intangible and do not result in the ownership of anything.

Services are deeds, processes, and performances.

- Valarie Zeithaml & Mary Jo Bitn

Something that can be bought and sold but which cannot be dropped on your foot

Examples of Service Industries:

Health Care

o Hospital, medical practice, dentistry, eye care

Professional Services

o Accounting, legal, architectural

Financial Services

o Banking, investment advising, insurance

Hospitality

o Restaurant, hotel/motel, bed & breakfast,

o Ski resort, rafting

5


6/76

Travel

o Airlines, travel agencies, theme park

Others:

o Hair styling, pest control, plumbing, lawn maintenance, counseling services, health club.

1.2 Introductions of services:

Service plays an important role in every nationals economy and country economy

always depends on service infrastructure like transportation, communication, education and

government services. In today's economy, you don't have to produce anything to get rich not

have to employ anybody. Now days money rests on bigger markets and more ways to makemoney. Having a name, a status, an idea can be sufficient. E. g. entertainment and sports figures

make money by bringing people happiness. A service is a financial activity that is basically

intangible and does not result in the ownership of anything.

Service can not be owned by anyone, The American economy is quickly becoming

service leaning. According to the Monthly Labor Review Online, after Second World War

factory jobs declined in figure, while service-based employment increased. And it is increasing

with rapid growth. Difference between services and manufacturing processes comprises thenature of outputs and the primary production processes, which are closely related. Service inputs

include the facility where the service is provided, any products that are essential in providing the

service. Even product-based organizations must give and manage a service package for their

clientele. The bunch of services might include pre-sale services such as technical advice and

dependable delivery, as well as post-sale services such as prompt repair and training. Not like

most products, services are intangible, inseparable, variable and perishable.

6


7/76

1.3 Service classification:

Service Factory

There is less intensity of human contact with low labour intensity and low interaction and

customization. Example for this kind of service are hotels, there is less of staff than customer like

in a restaurant also one waiter takes care of many tables and customer have no customized

service because they have to select from a menu and that only will be served, same in room sale

variation is not there, guest has to choose from, what hotel have rooms are not customized as per

guest choice., same in public transportation also less staff takes care of many customers and

customer cannot customize the routes of transportation system. Insurance services, museums,

airlines also come under the same classification. (Leask, A, 1999)

Service Shop:

It is classified as high degree of variation and interaction but low labour intensity so there

is high customization with less labour intensity examples like maintenance, servicing, where

customer interaction is more and serviced as per customers choice and also no need of much

man power, some other examples like hospitals, repairing of goods etc. (Anon, 2000)

Mass Service:

It relates to high labour intensity and low variety and interaction, so customization is less

but mass worker works in such organization e.g. banks, retailing industries, where enough man

power is used but there is less of interaction between customer and bidder. Highly standardise

with less of customization, customer have to pick up from what is available for them, same in

banks also you have to choose from the selected scheme not what you want but, which one is

7


8/76


9/76

1.4 Service Marketing:

Services marketing is marketing based on relationship and value. It may be used to

market a service or a product.

Marketing a service-base business is different from marketing a goods-base business.

There are several major differences, including:

1. The buyer purchases are intangible

2. The service may be based on the reputation of a single person

3. It's more difficult to compare the quality of similar services

4. The buyer cannot return the service

The major difference in the education of services marketing versus regular marketing is

that apart from the traditional "4 P's," Product, Price, Place, Promotion, there are three additional

"P's" consisting of People, Physical evidence, and Process Service marketing also includes the

servicewomen referring to but not limited to the aesthetic appearance of the business from the

outside, the inside, and the general appearance of the employees themselves. Service Marketing

has been relatively gaining ground in the overall spectrum of educational marketing as developed

economies move farther away from industrial importance to service oriented economies. What ismarketing? Marketing is the flow of goods and services from the producer to consumer. It is

based on relationship and value. In common parlance it is the distribution and sale of goods and

services. Marketing can be differentiated as:

Marketing of products

9


10/76

Marketing of services.

Marketing includes the services of all those indulged may it be then the wholesaler

retailer, Warehouse keeper, transport etc. In this modern age of competition marketing of a

product or service plays a key role. It is estimated that almost 50% of the price paid for a

commodity goes to the marketing of the product in US. Marketing is now said to be a term which

has no particular definition as the definitions change everyday.

"Managing the evidence" refers to the act of informing customers that the service

encounter has been performed successfully. It is best done in subtle ways like providing

examples or descriptions of good and poor service that can be used as a basis of comparison. The

underlying rationale is that a customer might not appreciate the full worth of the service if they

do not have a good benchmark for comparisons.

However, it is worth remembering that many of the concepts, as well as many of the

specific techniques, will work equally well whether they are directed at products or services. In

particular, developing a marketing strategy is much the same for products and services, in that it

involves selecting target markets and formulating a marketing mix. Thus, Theodore suggested

that "instead of talking of 'goods' and of 'services', it is better to talk of 'tangibles' and

'intangibles'". Levitt also went on to suggest that marketing a physical product is often moreconcerned with intangible aspects (frequently the `product service' elements of the total package)

than with its physical. Sales after service are very important in service sector properties. Charles

Revson made a famous comment regarding the business of Revlon Inc.: `In the factory we make

cosmetics. In the store we sell hope.' Arguably, service industry marketing merely approaches the

problems from the opposite end of the same spectrum.

10


11/76

1.5 Service Characteristics:

Intangibility of service:

Service cannot be defined as physical attributes because it cannot be seen, tasted, felt,

heard, touched or smelled before it is bought, so it is difficult for consumers to tell in advancewhat they will be getting. (Sheila Webber, 2001) The experience consumers obtain from the

service has an impact on how they will perceive it. And perceived service is risky and difficult to

evaluate, customer tend to rely more on personal references, reputation, facilities of the service

provider as an indication of quality. Service marketers identify the feelings that they want the

customer to experience as a result of the service.

They stress the positive elements of tangibility in the service, make all communications

with the customer very clear and focus constantly on service quality. For example when anybody

buys a car, he/she takes it to test drive, if they like it than only pay and buy the car ,never pay for

test drive. But if you buy a meal at a restaurant, you do not know what is going to serve. Now

buyers only look at tangible evidence like cleanliness, decoration, staff movement, which

provide the information of quality of intangible service. (Kotleret al. 1996, 61)

Inseparability of service:

Services cannot be separated from the service supplier. It is labour intensive. After it is

sold, the customer can not be taken away from the producer it is simultaneously produced and

consumed. It is being produced at the same time that the customer is receiving. So customer is

also part of the product. For example in a restaurant, you order your meal, during the time of

waiting and delivery of the meal, the service provided by the service provider is all part of the

11


12/76

service production process and is inseparable, the staff in a restaurant are as part of the process as

well as the quality of food provided.

Perishability of service:

A characteristic of services unused capacity cannot be stored or saved for future sale or

use; it perishes after a specific time. (Sheila Webber, 2001) For example a 200 room hotel that

only sells about 160 rooms for particular night. It can not inventory the remaining 40 rooms and

sell them next night; revenue lost from these 40 unsold rooms is gone forever, because of

perishable character of service. Same in a play ground or airlines, where if a match is held today

and few seats are not sold lets take because of less popular team are playing these seats can not

be sold in next match. And in airlines also for a destination all seats are not sold, revenue will be

gone once journey over, so if these seats were sold even at low price some revenue could have

earn. Thus service is perishable; it perishes if it is not used at particular time.

Heterogeneity or variability of service:

It is very difficult to make each service experience identical, since services are not

produced by a single entity and then distributed to consumers, the quality of services may vary

depending on who provides the service as well as when, where, and how they are provided.

There is a strong possibility that the same question would be answered slightly differently by

different people and even by the same person at different times. (Wolak. R, 1998) A guest can

receive excellent service one day and not that good another day from the same person, because

service person may have some personal problem or not have felt well. If travelling by plane the

service quality may differ from the first time you travelled by that airline to the second, because

the airhostess is more or less experienced. (Kotleret al. 1996, 61)

Simultaneity of service:PServices are being produced and consumed at the similar time. You buy not just the

service but also a section of how the service is created and delivered. Services companies cannot

classify functions like sales, customer service, etc. like you can in manufacturing. Yes, they still

possibly need a marketing department, but all workforce who deal with customers need to be

12


13/76

FIGURE: 1 SERVICE CHARECTERISTICS

1.6 Service Marketing Mix:

Having discussed the characteristics of a service, let us now look at the marketing mix ofa service.

The service marketing mix comprises off the 7ps. These include:

Product

Price

Place

Promotion

People

Process

Physical evidence.

PRODUCT:An Object or Service - Mass Produced on

Large Scale - With a Specific volume of units

A global company is one that can create a single product and only have to tweak elements

for different markets. For example, Coca-Cola uses two formulas (one with sugar, one with corn

syrup) for all markets. The product packaging in every country incorporates the contour bottle

design and the dynamic ribbons in some way, shape, or form. However, the bottle or can also

includes the countrys native language and is the same size as other beverage bottles or cans in

that country.

13


14/76

PRICE:

Amount/Consideration paid by Customer for services or product. It can vary fromlocation to location & based on the demand in the local markets.

Price will always vary from market to market. Price is affected by many variables: cost of product development (produced locally or imported), cost of ingredients, cost of delivery

(transportation, tariffs, etc.), and much more. Additionally, the products position in relation to

the competition influences the ultimate profit margin. Whether this product is considered the

high-end, expensive choice, the economical, low-cost choice, or something in-between helps

determine the price point.

PLACEMENT:

How the product is distributed is also a country-by-country decision influenced by howthe competition is being offered to the target market. Using Coca-Cola as an example

again, not all cultures use vending machines. In the United States, beverages are sold by

the pallet via warehouse stores. In India, this is not an option. Placement decisions must

also consider the products position in the market place. For example, a high-end product

would not want to be distributed via a dollar store in the United States. Conversely, a

product promoted as the low-cost option in France would find limited success in a pricey

boutique.

PROMOTION:

After product research, development and creation, promotion (specifically advertising) is

generally the largest line item in a global companys marketing budget. At this stage of a

companys development, integrated marketing is the goal. The global corporation seeks to reduce

costs, minimize redundancies in personnel and work, maximize speed of implementation, and to

speak with one voice. If the goal of a global

Company is to send the same message worldwide, then delivering that message in a

relevant, engaging, and cost-effective way is the challenge.

Effective global advertising techniques do exist. The key is testing advertising ideas

using a marketing research system proven to provide results that can be compared across

countries. The ability to identify which elements or moments of an ad are contributing to that

14


15/76

success is how economies of scale are maximized. Market research measures such as Flow of

Attention, Flow of Emotion and branding moments provide insights into what is working in an

ad in any country because the measures are based on visual, not verbal, elements of the ad.

ESSENTIAL ELIMANTS BEYOND THE 4Ps

Resources:

Include: finances, physical, human, organizational, informational resources

More resources: Better competitive advantage.

Relationships:

Four types: 1) Win-win, 2) Win-lose, 3) Lose-lose, & 4) Lose-Win (Cust-vndr)

Community marketing: Strategy that focuses and leverages win-win relationships.

Community marketing may not be created but can be considered as cultivation of a natural socialresponse.

Business models:

Business model innovation can make the competitions product superiority irrelevant.

Business model allows the marketer to change the game rather than competing on a level play-field.

Customer Focus:

Companies focus their activities and products based on customer demands.

Three ways of doing this: Customer-driven approach, sense of identifying market changes,andproduct innovation approach.

15


16/76

Lets now look at the remaining 3 Ps:

PEOPLE

SERVICE PERSONNEL

1. Careful Selection and Training

2. Laying Down Norms, Rules, Procedures for Persistence Performance

3. Constitant Appearance

4. Reduce Human Interface Automation computerization

An essential ingredient to any service provision is the use of appropriate staff and people.

Recruiting the right staff and training them appropriately in the delivery of their service is

essential if the organization wants to obtain a form of competitive advantage. Consumers make

judgments and deliver perceptions of the service based on the employees they interact with. Staff

should have the appropriate interpersonal skills, attitude, and service knowledge to provide the

service that consumers are paying for. Many British organizations aim to apply for the Investors

In People accreditation, which tells consumers that staff are taken care off by the company and

they are trained to certain standards.

E.g.: Customer, service employees, other customers

PROCESS

An organize flow of tasks which have to be or have been completed to provide services tothe consumer.

Production/delivery of service/customer interface Processes Should Be:

16


17/76


18/76

FIGURE:2 SERVICE MARKETING MIX

CHAPTER 2

E-BUSINESS

2.1 Definition:

E-business (electronic business) , derived from such terms as e-mail and e-commerce,

is the conduct of business on internet, not only buying and selling but also servicing

customers and collaborating with business partners

E-business is just business using electronic network to transform a business process or

business system to create superior value for current or potential customers

Companies are using the web to buy parts and supplies from other companies, to

collaborate on sales promotion and to do joint research.

Electronic commerce or e-commerce refers to a wide range of online business activities

for products and services. It also pertains to any form of business transaction in which the

parties interact electronically rather than by physical exchanges or direct physical

contact.

18


19/76

E-commerce is usually associated with buying and selling over the Internet, or conducting

any transaction involving the transfer of ownership or rights to use goods or services

through a computer-mediated network. Though popular, this definition is not

comprehensive enough to capture recent developments in this new and revolutionary

business phenomenon. A more complete definition is: E-commerce is the use of electronic

communications and digital information processing technology in business transactions to

create, transform, and redefine relationships for value creation between or among

organizations, and between organizations and individuals.

2.2 Introduction:

In the emerging global economy, e-commerce and e-business have increasingly become a

necessary component of business strategy and a strong catalyst for economic development. The

integration of information and communications technology (ICT) in business has

revolutionized relationships within organizations and those between and among organizations

and individuals. Specifically, the use of ICT in business has enhanced productivity, encouraged

greater customer participation, and enabled mass customization, besides reducing costs. With

developments in the Internet and Web-based technologies, distinctions between traditional

markets and the global electronic marketplace-such as business capital size, among others-are

gradually being narrowed down. The name of the game is strategic positioning, the ability of a

company to determine emerging opportunities and utilize the necessary human capital skills

(such as intellectual resources) to make the most of these opportunities through an e-business

strategy that is simple, workable and practicable within the context of a global information

milieu and new economic environment. With its effect of leveling the playing field, e-

commerce coupled with the appropriate strategy and policy approach enables small and

medium scale enterprises to compete with large and capital-rich businesses. On another plane,

developing countries are given increased access to the global marketplace, where they compete

19


20/76

with and complement the more developed economies. Most, if not all, developing countries are

already participating in e-commerce, either as sellers or buyers. However, to facilitate e-

commerce growth in these countries, the relatively underdeveloped information infrastructure

must be improved.

Among the areas for policy interventions are:

High Internet access costs, including connection service fees, communication fees, and

hosting charges for websites with sufficient bandwidth;

Limited availability of credit cards and a nationwide credit card system;

Under developed transportation infrastructure resulting in slow and uncertain delivery of

goods and services;

Network security problems and insufficient security safeguards;

Lack of skilled human resources and key technologies (i.e., inadequate professional IT work

force)

Content restriction on national security and other public policy grounds, which greatly affect

business in the field of information services, such as the media and entertainment sectors;

Cross-border issues, such as the recognition of transactions under laws of other ASEAN

member-countries, certification services, improvement of delivery methods and customs

facilitation; and

The relatively low cost of labor, which implies that a shift to a comparatively capital

intensive solution (including investments on the improvement of the physical and network

infrastructure) is not apparent.

It is recognized that in the Information Age, Internet commerce is a powerful tool in the

economic growth of developing countries. While there are indications of ecommerce patronage

among large firms in developing countries, there seems to be little and negligible use of the

Internet for commerce among small and medium sized firms. E-commerce promises better

business for SMEs and sustainable economic development for developing countries. However,

this is premised on strong political will and good governance, as well as on a responsible and

supportive private sector within an effective policy framework. This primer seeks to provide

policy guidelines toward this end.

20


21/76

2.2.1. Features of E-business:

Links their internal and external data processing systems more efficiently and flexibly.

E-business refers to more strategic focus with an emphasis on the functions that occur

using electronic capabilities. E-business involves business processes spanning the entire value chain: electronic

purchasing and supply chain management, processing orders electronically, handling

customer service, and cooperating with business partner.

Special technical standards for e-business facilitate the exchange of data between

companies.

E-business can be conducted using the Web, the Internet, intranets, extranets, or some

combination of these.

One of the first to use the term was IBM, when, in October, 1997, it launched a thematic

campaign.

2.2.2. Application of E-Business:

Manufacturing sector

Tourism

Telecommunication

Hospitals

Retail

Customer service

Auction

Hotels

21


22/76

2.3 E-business Benefits Include:

Highly Accessible -Businesses can operate 24 hours a day, 7 days a week, 365 days ayear

Increased Customer Loyalty -Additional channels to contact, respond to, and access

customers helps contribute to customer loyalty Improved Information Content-In the past, customers had to order catalogs or travel to

a physical facility before they could compare price and product attributes. Electroniccatalogs and Web pages present customers with updated information in real-time aboutgoods, services, and prices

Increased Convenience e-business automates and improves many of the activities thatmake up a buying experience

Increased Global Reach -Businesses, both small and large, can reach new markets

Decreased Cost -The cost of conducting business on the Internet is substantially smaller

than traditional forms of business communication

Benefits to Organizations

Global reach

Cost reduction

22


23/76

Supply chain improvements

Extended hours: 24/7/365

Customization

Efficient procurement

No city business permits & fees.

Benefits to Society

Telecommuting

Higher standard of living

Hope for the poor

Availability of public services

Benefits to Consumers

Ubiquity

More products & services

Cheaper products & services

Instant delivery

Get it your way

2.3.1 Limitations of E-Business:

Host of security

Legal & financial problems

The incoherence of the web

Concerns about security & flexibility

In using web as a purchasing tool.

23


24/76

2.4 E-business vs. E-commerce:

Electronic business transactions involving money are E-Commerce" activities.

E-commerce refers to online transactions buying and selling of goods and/or services

over the Internet, E-business covers online transactions, but also extends to all Internets

based interactions with business partners, suppliers and customers such as: selling direct

to consumers, manufacturers and suppliers; monitoring and exchanging information;

auctioning surplus inventory; and collaborative product design. These online interactions

are aimed at improving or transforming business processes and efficiency.

Improved accuracy, quality and time required for updating and delivering information on

products and/or services.

Access for customers to catalogues and prices - 24 hours x 7 days.

Improved ease, speed and immediacy of customer ordering.

Enhanced market, industry or competitor intelligence acquired through informationgathering and research activities.

24


25/76

New distribution channels via the electronic delivery of some products and services, forexample, product design collaboration, publications, software, translation services,banking, etc.

Expansion of customer base and growth in export opportunities.

Reduces routine administrative tasks (invoices and order records) freeing staff to focus onmore strategic activities.

2.4.1. How do e-commerce and e-business differ?

E-commercethe buying and selling of goods and services over the Internet.

E-business the conducting of business on the Internet including, not only buying and

selling, but also serving customers and collaborating with business partners.

How E-business differs From Normal Business While Considering

Consumer Behaviour Model

25


26/76

FIGURE: 3 E-BUSINESSES MODEL

2.4.2 E-BUSINESS MODEL:

E-business Models (Traditional)

26


27/76

FIGURE: 4 TRADITIONAL E-BUSINESSES MODEL

New Trends in E-business: E-government

FIGURE: 5 NEW MODEL OF E-BUSINESS

2.5 How is the Internet relevant to e-commerce?

The Internet allows people from all over the world to get connected inexpensively and

reliably. As a technical infrastructure, it is a global collection of networks, connected to share

information using a common set of protocols. Also, as a vast network of people and information,

27


28/76


29/76

Remember to maintain a contact page which mentions your contact details on the site have a

sitemap and design the site for users. It is of utmost importance that you keep search engine

optimisation factors in mind. Have your pages titled. For more on this contact a web designer.

If you are in business retail or manufacturing a good idea is to have your site e-com

enabled. You must have shopped on the internet, if not you are among the chosen few. If you

have you must be aware of the shopping cart on the e-commerce site.

The shopping cart enables your visitors to manage their shopping well. You will need a

payment gateway and a merchant account to receive money for sales. To test out your site

integrate it with PayPal and try out the shopping experience.

So your site seems to be ready now. Next step. Make your site presentable and make it

known. So we are now into advertising and marketing of your website.

Here note this that 95% of websites gets visitors from referred from search engines.

These search sites work like a gateway to the internet world.

Your next step towards making your site known to others is to follow the search engine

optimization tips offered by the search engines while making your site.

You should look for the terms people use to search your type of service or product and

create your site around it. As in the advertising world headings for your pages should becatchy. Internet visitors scan web pages for information instead of reading through them,

so all the rules of advertising world which helps in writing the content for the

advertisement apply here. Do it yourself, get to know what the inverted pyramid style of

writing is or hire a web designer, see specialist to do it for you.

With pay per click, the internet advertising world has revolutionized. It offers you

advertising opportunities on the net for a few shillings. Check out Google Ad sense or

Overture PPC campaigns. These are offered by mostly the leading search engines and

your advertisements are displayed on the search result pages of these sites for keywords

you choose. If controlled optimally you can benefit from these. Use PPC to get visitors to

your site during the launching period. Dual benefits. One you get visitors though your site

is too new and second due to advertising, your site gets noticed. If you are not aware of

this, use the services of a PPC management company to do this for you.

29


30/76

So what else to look out for? Interaction. Give reasons to your visitors to come back to

your site. Start a newsletter campaign. Offer your visitors something free. Give them tips.

Start a blog. Make your visitors come back to your site.

Give them options to sign up for your newsletter free. You get their emails and use a

mailer program to send out regular mails to them.

CHAPTER 3

MARRIOTT BACKGROUND

30


31/76

3.1 Introduction:

MARRIOTT INTERNATIONAL, INC. CORPORATE PROFILE

Marriott International, Inc. is a worldwide hospitality leader with operations in the United

States and 67 other countries and territories. The company had approximately 137,000 associates

at 2009 yearend and is headquartered in Bethesda, Md. Its operations include:

Marriott Lodging, at the end of the fourth quarter 2009, operates or franchises 3,420 hotels,

residences, services apartments and resorts totaling 595,461 rooms, including 12,891 timeshare

villas, worldwide. Its portfolio of lodging brands includes: Marriott Hotels & Resorts (upper-

upscale full service brand, 545 hotels including 43 JW Marriott Hotels and Resorts, and 11

Marriott Conference Centers)

The Ritz-Carlton Hotels (luxury, 103 hotels, residences and services apartments)

Bulgari (luxury, 2 hotels); Renaissance Hotels & Resorts (upper upscale full-service brand, 143

hotels)

Courtyard (upper moderate-price limited service brand, 858 hotels); Residence Inn (extended-

stay limited service brand, 608 inns); Fairfield Inn (lower moderate-price limited service brand,

629 inns)

The Ritz-Carlton Destination Club and Residences (fractional and residential timeshare, 13

resorts)

Grand Residences by Marriott (fractional and residential timeshare, 4 resorts); and Marriott

31


32/76

Executive Apartments (upscale serviced apartments, 23 properties including 3 other

Serviced Apartments). In addition, ExecuStay by Marriott provides 2,072 furnished corporate

housing units, and Marriott Golf operates 41 golf course facilities around the world.

Synthetic Fuel consisted of four coal-based synthetic fuel production facilities (the Facilities).

Because tax credits under Section 45K of the IRC are not available for the production and

sale of synthetic fuel produced from coal after calendar year-end 2007, and because high oil

prices during 2007 were expected to result in the phase-out of a significant portion of the tax

credits available for synthetic fuel produced and sold in 2007, on November 3, 2007, we shut

down the Facilities and permanently ceased production of synthetic fuel. Accordingly, we now

report this business segment as a disc Nontinued operation. The book value of the Facilities was

zero at year-end 2007, as the Facilities have been transferred to third parties. Under the siteleases for the Facilities, we were required to restore the leased premises to substantially the

condition the premises were in when the leases were originally executed. However, we executed

agreements with the lessors of the sites pursuant to which we transferred the Facilities to the

lessors in exchange for the release of our obligations to restore the leased premises to their

original conditions. Costs associated with shutting down the synthetic fuel operation and

transferring the Facilities to the site lessors was not material.

Corporate Office Investor Contact

Marriott International, Inc. Laura Paugh, Senior Vice President, Investor Relations

10400 Fernwood Road (301) 380-7418

Bethesda, MD 20817 Betsy Dahm, Senior Director, Investor Relations

(301) 380-3000 (301) 380-3372

(301) 380-5067 fax

3.2 Background of Marriott:

In 1927, J.William Marriott set up a nine-seat rootbeer shop in Washington and after some time

started serving hot food and named the shop The Hot Shoppe.

32


33/76


34/76

The website in its homepage had five Icons Hotel Directories- This section had details

such as the name of the hotel, the address and the phone numbers of all the hotels in the Marriott

chain across the world.

Reservations:

By clicking the Make Reservations that led to the click hotel availability page. Then

after entering the date of arrival and departure and the number of people the page displays the

type of rooms and their.

Meeting Planner:

This section targeted business customers to conducted frequent meetings. These clients could

book a min and max number of rooms and meeting rooms.

Travel Agent:

This section was targeted at travel agents providing them with the information regarding the

codes of hotels and to know the availability of the hotels.

Suggestion Box :

Through this the users could e-mail their suggestions on improving services.

3.3 ABOUT J.W.MARRIOTT:

34


35/76

John Willard Bill Marriott, Sr.(September 17, 1900 August 13, 1985)

John Willard "Bill" Marriott, Jr. (b. March 25, 1932, Washington, D.C.) is the Chairman and

CEO of Marriott International.

LIFE AND SUCCESS

J.W. Marriott, Jr. is Chairman and Chief Executive Officer of Marriott International, Inc.,

one of the worlds largest lodging companies. His leadership spans more than 50 years, and he

has taken Marriott from a family restaurant business to a global lodging company with more than

3,200 properties in 67 countries and territories.

Mr. Marriotts vision for the company is to be the worlds lodging leader. It is grounded

in his intense focus on taking care of the guest, extensive operational knowledge, the

development of a highly skilled and diverse workforce, and offering the best portfolio of lodging

brands in the industry.

Under his leadership, Marriott continues to enjoy strong customer, owner and franchise

preference, steady growth and profitability.

35
http://www.blogs.marriott.com/


36/76


37/76

Town Place Suites, and Fairfield Inn brand names; develops and operates vacation ownership

resorts under the Marriott Vacation Club International, The Ritz-Carlton Club, Grand Residences

by Marriott, and Horizons brands; operates Marriott Executive Apartments; provides furnished

corporate housing through its Marriott Executes division; operates conference centres; and

manages golf courses.

Mr. Marriott serves on the board of The J. Willard & Alice S. Marriott Foundation. He is

a member of the National Business Council and the Executive Committee of the World Travel &

Tourism Council. He also serves as the chairman of the Mayo Clinic Capital Campaign.

Mr. Marriott recently served on the Board of Trustees of the National Geographic

Society, director of the United States Naval Academy Foundation, chairman of the Presidents

Export Council (PEC) and member of the Secure Borders Open Doors Advisory Committee

(SBODAC) and the U.S. Travel and Tourism Advisory Board (TTAB).

He is an active member of The Church of Jesus Christ of Latter-day Saints. He is

married to the former Donna Garff. They have four children and 15 grandchildren and three

great grandchildren.

On May 4, 2006, Marriott received an honorary doctorate of humanities from Weber

State University during the university's 127th commencement. He also delivered the

commencement address during these proceedings.

Marriott's book The Spirit To Serve (1997), written with Kathi Ann Brown and with a

Foreword by James C. Collins, is a personal view of the rise of the Marriott company and

outlines principles of business success.

JW Marriott Jr. is a 2006 nominee for the Hotel Travel Personality of the Year award

from World Travel Awards.

While CEO of Marriott International in 2008, J. Willard Marriott Jr. earned a total

compensation of $8,314,136, which included a base salary of $1,253,654, a cash bonus of

$904,700, no stock, options granted of $5,750,012, and other compensation of $405,77.

3.4 Corporate History

37


38/76

1927

At age 27, J. Willard Marriott enters business with the opening of a nine-seat root beer stand in

Washington, DC. Hot food later added and name changed to The Hot Shoppe.

1929

Marriott officially incorporated in the state of Delaware as Hot Shoppes, Inc.

1937

Marriott pioneers airline catering at Washingtons old Hoover Airfield (current site of the

Pentagon) serving Eastern, American and Capital Airlines.

1939

Beginning of food service management business with account at the U.S. Treasury building.

Other accounts soon followed at government defense plant cafeterias.

1953

Company stock first offered to the public at $10.25 per share. Offering sold out in two hours of

trading.

1955

Highway division begins with several shops on the New York State Thruway.

1957

Marriott opens first hotel, the Twin Bridges Marriott Motor Hotel, in Arlington, Virginia.

1964

Company name changes to Marriott-Hot Shoppes, Inc. and J.W. Marriott, Jr. elected president

at age 32.

1966

38


39/76

Marriott becomes international, acquiring airline catering kitchen in Caracas, Venezuela.

1967

Marriott acquires 22-unit Big Boy restaurant chain from founder, Bob Wian.

Corporate name changes from Hot Shoppes, Inc. to Marriott Corporation at annual shareholders

meeting.

1968

Marriott begins Roy Rogers fast food restaurant division with first location in Falls Church,

Virginia.

Stock first listed on the New York Stock Exchange ticker symbol MHS.

1972

J.W. Marriott, Jr. succeeds his father as chief executive officer

1979

Company moves to new international headquarters in Bethesda, Maryland.

1982

Marriott acquires Host International, and becomes the countrys largest operator of airport

terminal food, beverage and merchandise facilities.

Marriott acquires Ginos fast food restaurant chain, and plans to convert most units to Roy

Rogers restaurants.

1983

First Courtyard by Marriott, moderate price segment hotels, opens near Atlanta, Georgia.

1984

Marriott enters vacation timesharing business with acquisition of American Resorts Group.

1985

39


40/76

Marriott completes acquisition of Gladieux Corporation, a diversified food service company.

Marriott completes acquisition of Service Systems, a contract food service company.

J. Willard Marriott passes away at age 84. J.W. Marriott, Jr. named chairman of the board.

Marriott acquires Howard Johnson Company, selling hotels to Prime Motor Inns and keeping

350 restaurants and 68 turnpike units.

1986

Marriott acquires Saga Corporation, a diversified food service management company, making

Marriott the largest food service management company in the United States.

1987

Marriott completes expansion of its Worldwide Reservation Center in Omaha, Nebraska,

making it the largest single-site reservations operation in U.S. hotel history.

Marriott acquires The Residence Inn Company, an all-suite hotel chain targeted toward

extended stay travelers.

Marriott stock listed on the Tokyo Stock Exchange.

Marriott enters economy lodging segment with the opening of the first Fairfield Inn in Atlanta,

Georgia.

Marriott transfers Big Boy restaurant system franchise rights to Elias Brothers of Warren,

Michigan.

1988

Marriott acquires Basic American Retirement Communities (BARC) of Indianapolis, giving

Marriott a major presence in the rental retirement market.

Marriotts Senior Living Services division announces development plans for assisted

living/personal care complexes called Brighton Gardens.

1989

Marriott acquires United Healthserv, Inc., a major provider of housekeeping, maintenance and

laundry services.

40


41/76

Marriott completes transfer of airline catering division to CaterAir International, a private

company led by several members of Marriotts In-flite Services division senior management.

Marriott announces corporate restructuring. Plan includes sale of companys fast food and

family restaurants. Company plans to sharpen focus on mega-markets in lodging and contract

services.

1990

Marriott sells its Roy Rogers restaurant division to Hardees Food System for $365 million.

1992

Host completes acquisition of Dobbs airport concessions.

Marriott Corporation announces plan to divide its operation into two separate companies

through a special dividend.

1993

Marriott completes split of its operations into two companies Marriott International and Host

Marriott Corporation.

1995

Marriott International completes acquisition of 49 percent interest in The Ritz-Carlton Hotel

Company.

Host Marriott Corporation announces plan to divide, through a special dividend, its operations

into two separate companies.

Marriott Management Services acquires Taylorplan Services, a custodial and Food Service

Company based in the United Kingdom.

41


42/76

1996

Host Marriott Corporation divides into two separate companies. Host Marriott continues to own

hotels and real estate; Host Marriott Services Corporation will operate concessions at airports, on

toll roads and at sports and entertainment attractions.

Marriott introduces its new all-suite economy hotel Fairfield Suites by Marriott.

Marriott International acquires Forum Group, Inc., a leading operator of senior housing, and

merges it with Marriotts Senior Living Services business.

Marriott Management Services acquires Russell & Brand, Ltd., a UK-based food services

company.

Marriott International awarded nationwide food service distribution contract for Boston Market

and Einstein/Noah Bagel Corporation.

1997

Marriott International reports net income soared 24% in 1996 as sales top $10 billion.

William J. Shaw named president and chief operating officer of Marriott International. Bill

Marriott retains position of chairman and chief executive officer.

Marriott introduces a new brand, Marriott Executive Residences.

Marriott opens its first Towne Place Suites in Newport News, Virginia.

Marriott International acquires Renaissance Hotel Group for approximately $1 billion. Adds

three brands (Renaissance, Ramada International and New World) and doubles Marriotts

presence overseas.

Marriott International launches Marriott Rewards, the worlds largest multi-brand frequent

guest program.

Marriott International announces plans to merge its food service and facilities management

business with Sodexho Alliances North American operations, and spin off to shareholders a new

company comprised of its lodging, senior living and distribution service businesses.

1998

Marriott International increases its ownership interest in The Ritz-Carlton Company LLC to

approximately 98 percent.

42


43/76

Marriott International completes spin off and merger transactions resulting in New Marriott

International and Sodexho Marriott Services.

Marriott International announces it converted the Parc 55 Hotel in San Francisco to a

Renaissance hotel and designated it as Marriotts 1,500th hotel world-wide.

Marriott International announces conversion to single class of common stock effective May

21st.

Marriott International confirms plans to convert Fairfield Suites to Spring Hill Suites by

Marriott.

New product positioned to capture share in the upper moderately priced all-suite lodging

segment.

1999

Marriott International completes acquisition of ExecuStay; launches corporate housing business

ExecuStay by Marriott.

Marriott International named to Fortune 500 list of the largest U.S. companies leads hotel

industry category.

Marriott Vacation Club International launches new moderately priced resorts, Horizons by

Marriott Vacation Club, and luxury resorts, The Ritz-Carlton Club.

ExecuStay by Marriott acquires Executive Living, Inc. of Columbus, Ohio, and enters into

exclusive agreement with JBI-Dallas.

Marriott International, Inc. announces that its Marriott Rewardsprogram is tripling the number

of hotels offering frequent flyer miles and more than doubling the number of miles previously

offered at nine different brands, representing 1,650 hotels.

The last operating Hot Shoppe closes as Marriott tops 1,800 worldwide hotels a historic mark

for Marriott.

2000

Marriott announced the board of directors approval of the purchase of an additional 25 million

shares, or about 10% of outstanding shares, through the company's ongoing share repurchase

program.

Marriott is named the official lodging supplier of the 2002 Winter Olympics and the 2000,

2002 and 2004 U.S. Olympic Teams.

43


44/76

Marriott announces the formation of a joint venture with Hyatt and Club Corporation to create

the largest, most comprehensive electronic procurement network.

Marriott celebrated the opening of its 2,000th property with the Tampa, Florida Marriott Hotel.

2001

Travel industry impacted by difficult economic climate and events of September 11, 2001.

Marriott restructuring and other charges in 2001 totaled $271 million, pretax. Net Income

totaled $236 million.

Marriott opened nearly 50,000 lodging rooms worldwide in 2001.

Marriott Rewards membership reaches 16 million travelers, remaining the largest and most

preferred loyalty program in the lodging industry.

2002

Marriott sold the businesses at nine distribution centers and closed four other centers, exiting

Marriott Distribution Service.

Announced the plan to sell Marriott Senior Living Services to Sunrise Assisted Living, Inc.

Marriott.com reached six million visits in one month. Reservations through Marriott.com grow

53% versus 2001.

With other lodging companies, Marriott formed travelweb.com for consumers who wish to

comparison shop.

Opened the 2,500th hotel, the 950-room J.W. Marriott Desert Ridge Resort & Spa in Phoenix.

2003

Launched Marriotts Look No Further, Best Rate Guarantee.

One third of our room expansion (over 31,000 rooms) was from conversions to Marriott brands

by owners and franchisees of competitor brands.

High-speed internet access available in 1400 hotels, far outpacing our competition. We also

introduced wireless internet access in lobbies, meeting rooms and public spaces in over 900

hotels.

Marriott.com booked revenues of $1.4 billion, 25 percent more than the prior year.

44


45/76


46/76

2007

Marriott announced partnerships with Nickelodeon and Miller Global Properties, LLC, to co

develop a new lodging resort brand and concept for travelers seeking fun and adventure,

Nickelodeon by Marriott.

Marriott announced a partnership with the pioneer of the lifestyle boutique hotel, Ian Schrager,

to create Edition, the first truly global boutique lifestyle hotel brand on a large scale.

Marriott celebrated the opening of its 3,000th property with the JW Marriott Hotel Beijing.

Internet sales totaled $5.4 billion in 2007, 26 percent over 2006 levels. Over 87 percent of

internet sales were booked on Marriott.com.

Marriott repurchased $1.78 billion of the companys common stock.

2008

The travel industry was impacted by the significant economic decline affecting worldwide

demand and turmoil in the financial markets.

Marriott restructuring and other charges in 2008 totaled $192 million pretax. Net income

totaled $362 million.

Marriott Rewards celebrated 25 years. With membership of 30 million, the program has 2,900

participating hotels in 65 countries.

The company announced its five-point environmental plan to address climate change. As part

of that plan, Marriott committed $2 million to the Amazonas Sustainable Foundation to help

protect 1.4 million acres of endangered rainforest.

Marriott opened over 33,000 rooms in 2008; nearly 25 percent of those rooms were outside

North America.

Internet sales totaled $6.4 billion in 2008, 19 percent over 2007 levels. Over 87 percent of

internet sales were booked on Marriott.com. The companys blog Marriott on the Move

generated $2.6 million in gross property-level sales, while guests booked over $2 million using

the new Marriott Mobile booking engine.

46


47/76

2009

William J. Shaw named vice chairman of Marriott International, Arne M. Sorenson named

president and chief operating officer and Carl T. Berquist named executive vice president and

chief financial officer. J. W. Marriott, Jr. retains position of chairman and chief executive officer

and J.W. Marriott III continues to serve as vice chairman of the board of directors.

Marriott Vacation Club celebrated 25 years. With nearly 400,000 owners, the division has more

than 50 Marriott Vacation Club resorts throughout the US, Caribbean, Europe and Asia.

Marriott restructuring and other charges in 2009 totaled $213 million pretax. The company also

recorded non-cash pretax timeshare impairment changes of $752 million largely related to the

plans to reduce prices and development at luxury fractional and residential resorts to accelerate

cash flow. Net losses totaled $346 million.

Marriott opened over 38,000 rooms in 2009; nearly 25 percent of those rooms were outside

North America.

Internet sales totaled $6.0 billion in 2009, a 6 percent decline from 2008 levels. Nearly 85

percent of internet sales were booked on Marriott.com.

47


48/76

3.5 Financial Report

MARRIOTT INTERNATIONAL REPORTS THIRD QUARTER RESULTS:

BETHESDA, MD October 8, 2009 Marriott International, Inc. (Marriott)(NYSE:MAR) today reported third quarter 2009 adjusted income from continuing operations

attributable to

Marriott of $53 million, a 57 percent decline over the year-ago quarter, and adjusted diluted

earnings per share (EPS) from continuing operations attributable to Marriott shareholders of

$0.15, down 55 percent. The companys EPS guidance for the 2009 third quarter, disclosed on

July 16, 2009, totaled $0.09 to $0.14.

The reported loss from continuing operations attributable to Marriott was $466 million in

the third quarter of 2009 compared to reported income from continuing operations attributable to

Marriott of $94 million in the year-ago quarter. Reported diluted losses per share from

continuing operations attributable to Marriott shareholders was $1.31 in the third quarter of 2009

compared to diluted EPS from continuing operations attributable to Marriott shareholders of

$0.25 in the third quarter of 2008.

Adjusted results for the 2009 third quarter exclude $752 million pretax ($502 million

after-tax and $1.41 per diluted share) of impairment charges, which Marriott previously

disclosed, related to the timeshare segment. See the table on page A-14 of the accompanying

schedules for the detail of these impairment charges and their placement on the Consolidated

Statements of Income.

Adjusted results for the 2009 third quarter also exclude $8 million pretax ($4 million

after-tax and $0.01 per diluted share) of restructuring costs and other charges. Restructuring

costs totaled

$9 million pretax and primarily included severance costs and timeshare facilities exit

costs.

Other charges totaled $1 million of pretax earnings and primarily reflect the $3 million

favorable impact of the revaluation of residual interests from prior timeshare note sales due to

48


49/76

three default triggers curing in the quarter, partially offset by $2 million of reserves for

guarantees and contract cancellations. Of the total restructuring costs and other charges in the

third quarter, cash payments are expected to be $5 million. See the table on page A-13 of the

accompanying schedules for the detail of these restructuring costs and other charges and their

placement on the Consolidated Statements of Income.

Finally, adjusted results for the 2009 third quarter also exclude$13 million after-tax non-

cash charge ($0.03 per diluted share) in the provision for income taxes primarily related to the

treatment of funds received from certain foreign subsidiaries that is in ongoing discussions with

the Internal Revenue Service. Adjusted results for the 2008 third quarter exclude a $29 million

after-tax non-cash charge ($0.08 per diluted share) in the provision for income taxes primarily

related to a 1994 tax planning transaction.

J.W. Marriott, Jr., chairman and chief executive officer of Marriott International, said,

Revenue per available room across our North American system declined less than expected

during the third quarter as leisure travelers responded to attractive promotions and great values in

our hotels. With solid cost controls, our hotels translated better than expected occupancy rates to

stronger than expected fee revenue and earnings.

The hotel industry has been challenged by the economic environment. Weve worked

hard to rein in costs and right-size our businesses and those efforts are paying off. Our hotels are

in great shape; owners and customers prefer our brands; and we enjoy very strong market share

premiums. As we look ahead, while the recovery may be slow and perhaps uneven, our

continued focus on driving revenue, controlling costs and strengthening our balance sheet will

position us to benefit from an improving economy.

In the 2009 third quarter (12-week period from June 20, 2009 to September 11, 2009),

REVPAR for the companys worldwide comparable company-operated properties declined 23.5

percent (21.1 percent using constant dollars) and REVPAR for the companys worldwide

comparable System wide properties declined 21.4 percent (19.9 percent using constant dollars).

49


50/76

Markets outside North America were impacted by the difficult economic climate, the Olympics,

the timing of holidays and concerns about the H1N1 virus. International comparable company3

operated REVPAR declined 28.9 percent (22.3 percent using constant dollars), including a 22.7

percent decline in average daily rate (15.5 percent using constant dollars) in the third quarter of

2009.

In North America comparable company-operated REVPAR declined 20.6 percent and

comparable system wide REVPAR declined 19.3 percent. REVPAR at the companys

comparable company-operated North American full-service and luxury hotels (including

Marriott Hotels & Resorts, The Ritz-Carlton andRenaissance Hotels & Resorts) was down 20.2

percent driven by a 14.6 percent decline in average daily rate.

Marriott added 79 new properties (10,380 rooms) to its worldwide lodging portfolio in

the 2009 third quarter, including over 8,600 North American limited-service rooms. Three

properties (503 rooms) exited the system during the quarter. At quarter-end, the companys

lodging group encompassed 3,362 properties and timeshare resorts for a total of over 586,000

rooms. As of the end of the third quarter, the companys worldwide pipeline of hotels under

construction, awaiting conversion or approved for development totaled approximately 105,000

rooms. The company expects to open over 33,000 rooms in 2009.

Reported results for the 2009 third quarter, the adjusted results and the associated

reconciliations are shown on pages A-1, A-11, A-13, A-14 and A-17 of the accompanying

schedules. The following paragraphs reflect adjusted results where indicated.

MARRIOTT REVENUES

Totaled approximately $2.5 billion in the 2009 third quarter compared to $3.0 billion for

the third quarter of 2008. Base management and franchise fees declined 14 percent to $216

million reflecting worldwide declines in REVPAR in all brands offset in part by fees from new

hotels. With continued soft lodging demand trends worldwide, third quarter incentive

management fees declined 67 percent. The percentage of company-operated hotels earning

incentive management fees declined to 20 percent in the 2009 third quarter compared to 55

50


51/76

percent in the year-ago quarter. Year-to-date 25 percent of company-operated hotels earned

incentive management fees compared to 62 percent in the prior year. Nearly all incentive

management fees came from hotels outside of North America in the 2009 quarter compared to 68

percent in the 2008 quarter. Worldwide comparable company-operated house profit margins

declined 490 basis points in the third quarter reflecting weak REVPAR offset by continued

efficiency improvements at the property level. House profit margins for comparable company-

operated properties outside North

America declined 430 basis points. North American comparable company-operated house

profit margins declined 520 basis points from the year-ago quarter.

Owned, leased, corporate housing and other revenue, net of direct expenses, declined $8

million in the 2009 third quarter, to $12 million, primarily reflecting weaker operating results at

owned and leased properties and lower corporate housing profits partially offset by a $6 million

transaction cancellation fee.

Third quarter adjusted Timeshare segment contract sales declined 42 percent to $176

million excluding a $24 million allowance for fractional and residential contract cancellations

recorded in the quarter. Contract sales of core one-week timeshare intervals totaled $164 million

as marketing incentives encouraged demand.

In the third quarter of 2009, adjusted Timeshare sales and services revenue declined 35

percent to $251 million and, net of expenses, declined to $13 million from $47 million in the

2008 third quarter. Adjusted results reflected lower development profit due to continued soft

demand for timeshare, fractional, and residential products, and unfavorable report ability.

Services profit was also lower largely due to higher maintenance costs associated with unsold

inventory and lower rental rates.

Adjusted Timeshare segment results, which includes Timeshare sales and services

revenue, net of direct expenses, as well as base management fees, equity earnings, non

controlling interest and general, administrative and other expenses associated with the timeshare

business, totaled $9 million in the 2009 third quarter compared to $49 million in the prior year

51


52/76

quarter. The 2008 third quarter segment results reflected a net $10 million pretax impairment

charge for a fractional and residential consolidated joint venture project. The $10 million charge

in 2008 included a

$22 million negative adjustment in timeshare direct expenses partially offset by a $12

million pretax ($8 million after-tax) benefit associated with the joint venture partners share,

which is reflected in net losses attributable to non controlling interest, net of tax.

ADJUSTED GENERAL, ADMINISTRATIVE AND OTHER expenses for the 2009 third

quarter totaled $143 million, a 14 percent decline from the year-ago quarter largely reflecting

cost reductions throughout the organization. The quarter also included a $15 million unfavorable

impact associated with deferred compensation compared to the 2008 quarter (offset by a similar

decrease in the provision for taxes) and $5 million of certain litigation expenses. Excluding these

items, general, administrative and other expenses for the third quarter of 2009 declined 25

percent compared to the third quarter of 2008.

(LOSSES) GAINS AND OTHER INCOME totaled a loss of $1 million and included a $5

million impairment charge on an investment partially offset by $3 million of gains on the sale of

real estate and a $1 million gain on the extinguishment of debt. The prior years third quarter

gains totaled $7 million and included $2 million of gains on the sale of real estate, a $2 million

gain from the sale of the companys interest in a joint venture and $3 million of returns from

joint venture investments.

INTEREST EXPENSE decreased $6 million in the third quarter primarily due to lower interest

rates on short-term borrowings and lower debt balances partially offset by lower capitalized

interest associated with construction projects.

ADJUSTED EQUITY IN (LOSSES) EARNINGS totaled an $11 million loss in the quarter

compared to $2 million in earnings in the year-ago quarter. Losses in the 2009 quarter primarily

reflected losses in four joint ventures and the impairment of one investment.

NET LOSSES ATTRIBUTABLE TO NONCONTROLLING INTERESTS, NET OF TAX

totaled $3 million in the quarter compared to $10 million in the year-ago quarter.

52


53/76

BALANCE SHEET

At the end of third quarter 2009, total debt was $2,660 million and cash balances totaled

$130V million, compared to $3,095 million of debt and $134 million of cash at year-end 2008.

COMMON STOCK

Adjusted weighted average fully diluted shares outstanding totaled 366.3 million in the

2009 third quarter compared to 368.0 million in the year-ago quarter. The remaining share

repurchase authorization, as of September 11, 2009, totaled 21.3 million shares. No share

repurchases are planned in 2009.

On August 6, 2009, the Board of Directors declared the issuance of a stock dividend

payable on September 3, 2009, to shareholders of record on August 20, 2009. For periods prior

to the stock dividend, all share and per share data in our condensed consolidated financial

statements and related notes have been retroactively adjusted to reflect the stock dividend.

FOURTH QUARTER 2009 OUTLOOKS

While Marriott typically provides a range of guidance for future performance, the current

global economic and financial climate continues to make predictions very difficult. Therefore,

the company is unable to give its typical guidance. Instead, the company is providing the

following assumptions which it is using for internal planning purposes. For the fourth quarter,

the company assumes North American comparable system wide hotel REVPAR declines of 13 to

16 percent. For comparable system wide hotels outside North America, the company assumes

REVPAR declines of 16 to 18 percent on a constant dollar basis. Total fee revenue could be

$310 million to $320 million. Owned, leased, corporate housing and other revenue, net of direct

expenses, could total $15 to $20 million.

In the fourth quarter, the company assumes Timeshare sales and services revenue, net of

direct expenses, will total approximately $15 million, including a note sale gain of approximately

$10 million to $15 million. Fourth quarter Timeshare contract sales could total $185 million to

$195 million.

53


54/76

The company anticipates that general, administrative and other expenses will total about

$185 million to $190 million in the fourth quarter of 2009, a roughly 20 percent decline from the

adjusted 2008 fourth quarter amount.

Based upon the above assumptions and a 38 percent tax rate, adjusted diluted EPS from

continuing operations attributable to Marriott shareholders for the 2009 fourth quarter could total

$0.20 to $0.23.

The company expects investment spending in 2009 will decline by more than 50 percent from

2008 levels to approximately $325 million to $375 million. This investment spending estimate

includes $145 million to $155 million for capital expenditures and maintenance capital spending,

$20 million to $30 million for net timeshare development, $90 million to $100 million in new

mezzanine financing and mortgage loans, $35 million to $45 million for contract acquisition

costs and $35 million to $45 million in equity and other investments (including timeshare equity

investments).

2010 OUTLOOK

As in 2009, the company is unable to provide its typical guidance for 2010. Instead,

Marriott is providing the following assumptions, which it is using for internal planning purposes.

For the full year 2010, the company expects the business climate, particularly the pricing

environment, to remain difficult. For worldwide comparable system wide hotels, the company

assumes full year 2010 REVPAR will be flat to down 5 percent (on a constant dollar basis) with

performance strengthening over the year. The company expects REVPAR in international

markets to show greater relative year over year strength than North American markets.

The company expects to open 25,000 to 30,000 rooms in 2010 as most hotels expected to

open are already under construction or undergoing conversion from other brands. Given these

assumptions, full year 2010 fee revenue could total $1,050 million to $1,110 million. The

company estimates that, on a full-year basis, one point of worldwide system wide REVPAR

impacts total fees by approximately $10 million to $15 million pretax.

For its timeshare business, the company assumes 2010 timeshare contract sales could be in line

with 2009 levels.

54


55/76

The company expects to adopt FAS 166 and 167 at the beginning of 2010, which will

impact its accounting for securitized timeshare loans. Assuming the consolidation of the existing

portfolio of securitized loans, the company expects assets to increase by $950 million to $1,025

million, liabilities to increase by $1,020 million to $1,120 million, and shareholders equity to

decline by $70 million to $95 million. Pretax earnings in 2010 would increase by $30 million to

$50 million as a result of the accounting change, but no change in cash flow is anticipated.

The company expects its 2010 general and administrative costs to be modestly higher

than in 2009. As part of its ongoing budget process, the company continues to evaluate its

timeshare earnings outlook and investment spending estimates for 2010. Based on its preliminary

outlook for 2010, excluding the impact of FAS 166 and 167, the company anticipates continued

meaningful reductions in debt levels in 2010.

55


56/76

CHAPTER 4

MARRIOTT E-BUSINESS STRATEGY

4.1 Web Sites & E-Business System:

Design a user friendly web portal to enhance customer service and thereby increase the customer

retention and attract new customers.

1990: Through IT services can be made easily accessible & boost revenues

Need of a single-point interface for all customer transaction

1996: Very Basic Web Site launched very user friendly

Functionalities: Hotel Directories, Reservations, Meeting Planner, Travel Agent

Realization and Suggestion Box

Unique Features: Meeting Planners and Travel Agent

1998: Siebel Systems, CRM vendor engaged. Investment: $70MM over 2 year period

"Take care of your employees and they'll take care of your customer J.W.MERRIOTT

We wanted same system globally so we could execute our VISION consistently around the

world Michael Dalton, Sr. VP, Corporate Sales.

56


57/76

4.1.1 The E-Business Strategy

Marriotts e-business strategy aimed at transforming itself from a property-focused to

customer focusedcompany Previously, Marriott measured its financial performance on the

basis of the revenues earned for each of its individual property.

The e-business strategy emphasized on increasing revenues earned per customer.

The four key objectives of the e-business strategy included serving customers proactively,

personalizing the service offerings according to the needs and preferences of the customers,

enhancing brand loyalty and awareness, andcross-selling...

4.1.2 The Website and E-Business System

The websites home page had five main icons including hotel directories, reservations,

meeting planners, travel agents and a suggestion box.

The hotel directories section had details such as the name of the hotel, the address and phone

numbers of all the hotels in the Marriott chain across the world.

Clients could select the city and the hotel where they wanted accommodation, on the screen.

4.1.3 INFORMATION TECHNOLOGY USAGE:

Web Site Enhancements: Based on Sales, Customers, & Operations input enhanced the

Web Site.

Technology Upgrades: Remains to be Leader in technology throw usage of latest and fasteravailable infrastructure in it segment.

Department of Work & Family: Addresses the home and work balance issues

Staff Skills: Marriots approach is not to focus on skills instead on the attitudes & behavior

technology thru usage of latest and fastest available infrastructure in its segment.

57


58/76


59/76

4.2 The Benefits:

In 1999, Marriott earned revenues of$150 million from online bookings through its website.

Estimates for the year 2000 indicated that every month, the website received three millionhits, making it one of the largest viewed websites in the US hospitality industry.

By 2002, the website emerged as a money-spinner for Marriott with online sales of $1 bn.

On August 25, 2003 Marriott was given the prestigious CIO-100 award and became the only

company in the hospitality industry win the award for the fourth time.

Marriott was also ranked as the most admired company in the lodging industry in 2003 by the

Fortune magazine.

Fortune magazine selected Marriott on various criteria such as innovativeness, quality of

Management, employee talent, use of technology, social responsibility, financial soundness,

long-term value and quality of products and services

59


60/76

4.3 Marriott International Case:

(This case discusses the customer-focused e-business strategy ofMarriott International (Marriott), a

world leader in the hospitality industry and franchisor of a broad portfolio of hotels and related

lodging facilities.

Founded by J. Willard Marriott, the company is now led by son

J.W. (Bill) Marriott Jr.

Today, Marriott International has about 3,150 lodging properties located in the United States and 67

othercountries and territories.

In year 2003, it had a network in excess of2,600 operating units in the US and a workforce of 145,000

employees, spread over 65 countries across the world.

Marriotts diverse portfolio of popular hotel brands included leading brands such as Marriott, JW

Marriott,Renaissance, Ramada International, Courtyard,Residence Inn, and The Ritz-Carlton,

among others.

Delighting Customers

Since its inception, Marriott has focused on providingexcellent customer service. The company

offeredpersonalized services to its clients, whom it referred to as itsguests.

It had introduced several innovative technologies and implemented them even before its

competitors did. For instance, in the 1980s, the company launched Marriott Automated

Reservation System for Hotel Accommodation (MARSHA), a totally new concept of hotel

reservation in the hospitality industry at that time.

Marriott made continuous improvements in its business processes in its efforts to delight its

customers. In 1998, the company adopted an e-business strategy to reorient itself to serve its

customers better.

The company was operational zing a strategy to switch over from a decentralized property-

orientation to a centralized customer-orientation in its services.

60


61/76

CHAPTER 5

PROJECT IMPLEMENTATION

5.1 Data Analysis:

On the basis of questionnaire I have analyze the response of 50 respondents and try to put

analysis in tabular form. In this I will deal with questions one by one.

1 Are you regular customer of Marriott?

(A) Yes

(B) No

45

50

5

10

15

20

25

30

35

40

45

50

YES NO

NO

YES

61


62/76

According to [Graph: 1] that most of the customers were regular customer of Marriott hotel.

They use hotel frequently on time. One of the important reasons of using Marriott hotel was

their e-business strategy and customer relationship.

2 When you visited hotel last time?

(A) Last Week

(B) Last month

(C) Last 6 month

(D) Last Year

(E) More than 1 Year

According to [Graph: 2] that customer of Marriott hotel used on different time period. In that

survey customer used Hotel like this, 5 customers used Hotel since last week, 15 customers

62


63/76

used hotel since last month, 10 customers used hotel since last 6 months, 15 customers used

hotel since last year and 5 customers used hotel since more than 1 year.

3 Are you using online services of Marriott?

(A) Yes

(B) No

According to [Graph: 3] that maximum customer used online service of Marriott hotel. 40

people believed that Marriott online services are good and they provide fantastic online

services while 5 people did not like online services.

63


64/76

4 If yes which service you like most?

(A) Advance Booking

(B) Mail Services

(C) Room information

(D) Message services

(E) Mobile alert

According to [Graph: 4] that customers who like to used online services they preferred

different types of services. Marriott provides different services to customer. Customers using

different services according their test and preference.

64


65/76

5 Are you satisfied with online booking?

(A) Yes

(B) No

According to [Graph: 5] that Marriott online booking service is good and 46 people would

like to used online booking. While 4 people didnt like it out of 50 peoples.

65

8/9/2019 Marketing of services useing unabler e-business stra

Documents

Marketing of services useing unabler e-business strategy of MARRIOTT WAY