Originally Posted by
DJ_Iceman
..... but I was merely postulating that it would be quite a bold strategy if it was... Anyway, here's the premise boiled down:
1) Marriott has become saddled with lots and lots of low-margin customers who demand all kinds of discounts while at the same time demand all kinds of premium treatment.
2) The economy has turned sour and both business and leisure travel are going to be down for awhile.
3) Rather than compete with the other chains to try and keep the fickle loyalty of their nickel-and-diming clientele, Marriott sees this as a time for some house-cleaning.
4) They blatantly cut back services, or at the very least go back to strict adherence to the published benefits of the rewards program. At the same time, they hold room rates high, far higher than properties of similar quality from other brands in the same area.
5) The penny-pinchers take their business elsewhere, probably (hopefully?) for good.
6) Marriott deals with low occupancy, thinking they're on solid enough financial ground to ride out the rough times anyway.
7) In the meantime, they solidify a client base who no longer fusses over every little charge or complains about benefits they're not really entitled to anyway like free breakfast on the weekend.
8) As economic conditions improve, they can do things like roll out the Griffin Club. This further cements their reputation as the upscale chain of choice for sophisticated travelers.
9) Marriott comes out of the recession sitting pretty, offering a higher-margin product than any of their competitors. They laugh at Hilton, Hyatt, and Starwood who now have to deal with all the guests who jump ship to save a few bucks.
There is absolutely no business sense in this post. To say that Marriott is weeding out "low margin" and "fussy" customers is laughable. My responses to each item.
1) Lots and lots of low margin customers requesting premium services??? What are you basing that off of or even talking about??? Your own personal experience. That is a joke. People/companies choose on price all the time. It doesn't matter the reason for their decision. How many Silvers paying GOV rates do you think are causing a stink to get in the CL? I would venture nil.
2) Uh, duh
3) Nickel and diming clientele?? They are called customers. Any revenue above your variable cost should be sought after under all circumstances.
4) You didn't really say anything here.
5) So what if the penny pinchers move their business? Don't you get that if the hotels aren't full, less services will be provided in the future as less revenue can cover amenities.
6) No, no, no. They aren't looking for low occupancy. Their business decisions may lead them to low occupancy, but as my response to #3 said, any revenue above variable cost should be sought after.
7) Do you really think this is what Marriott thinks? Really? That they are trying to weed "fussy" customers out. PUH-LEEZE. A customer that complains to the front desk or over the internet < 1% of customers.
8) Upscale chain of choice? That is laughable. People choose Marriott most times because of the number of hotels, familiarity with the brand, and one is usually where they travel. Very rarely is the Marriott the best hotel in a city (Ritzs don't count).
9) Baseless comment.