Is Marriott Clever Enough...
#1
Original Poster




Join Date: Dec 2003
Location: Redondo Beach, CA USA
Programs: UA 1KMM, Bonvoy LTE, HH D, Hertz Plat, Avis PC
Posts: 4,040
Is Marriott Clever Enough...
OK, all these threads complaining about service cutbacks while Marriott keeps rates high got me to thinking.
What if this is a deliberate business strategy? Suck up a few years of low occupancy to weed out all the freeloaders (for lack of a better term) whose loyalty is so tenuous that they'd jump ship over a free breakfast. Weed out those who will stay anyplace in town if the nightly rate is $5 less. Weed out those who have come to expect more than the published T&C for elite treatment.
What will be left will be three classes of traveler. One, the person who isn't even a member of a frequent guest program and who just stays wherever their business, conference, or vacation takes them. Two, the die-hard Marriott loyalist who sticks with them through all the changes. And three, the new customer who switches to Marriott because they (having never seen the flush years) see a solid product for the money. Can they then turn that into a sustainable customer set moving forward into the future?
All the nickel-and-dimers will have jumped ship to Hilton or Starwood or whatever, leaving concierge lounges less crowded (and those who are in the lounge are less likely to be the hoard-it-all types). These customers will be used to paying for things like weekend breakfast, parking, internet, etc. and don't mind the extra charges. And when the economy comes back, Marriott can ramp up the level of service (nicer spreads in the lounge, for example) which will thrill their customers--the same ones who are already high-paying, high-tolerance guests. At that point, Marriott may be able to claim a position in the market higher than their current competition in terms of service quality, positioning themselves as a Ritz-Carlton-lite chain.
Just thinking...
What if this is a deliberate business strategy? Suck up a few years of low occupancy to weed out all the freeloaders (for lack of a better term) whose loyalty is so tenuous that they'd jump ship over a free breakfast. Weed out those who will stay anyplace in town if the nightly rate is $5 less. Weed out those who have come to expect more than the published T&C for elite treatment.
What will be left will be three classes of traveler. One, the person who isn't even a member of a frequent guest program and who just stays wherever their business, conference, or vacation takes them. Two, the die-hard Marriott loyalist who sticks with them through all the changes. And three, the new customer who switches to Marriott because they (having never seen the flush years) see a solid product for the money. Can they then turn that into a sustainable customer set moving forward into the future?
All the nickel-and-dimers will have jumped ship to Hilton or Starwood or whatever, leaving concierge lounges less crowded (and those who are in the lounge are less likely to be the hoard-it-all types). These customers will be used to paying for things like weekend breakfast, parking, internet, etc. and don't mind the extra charges. And when the economy comes back, Marriott can ramp up the level of service (nicer spreads in the lounge, for example) which will thrill their customers--the same ones who are already high-paying, high-tolerance guests. At that point, Marriott may be able to claim a position in the market higher than their current competition in terms of service quality, positioning themselves as a Ritz-Carlton-lite chain.
Just thinking...
#2
Join Date: Jun 2008
Programs: AA Lifetime Platnum, Marriott Lifetime Platnum
Posts: 48
Marriott Clever enough?
No --not a chance.
#3


Join Date: Oct 2005
Location: ORD, MDW or MKE
Programs: American and Southwest. Hilton, Marriott, IHG - whichever is rated well and cheapest
Posts: 6,570
I don't really get the end game here.
#4
Suspended
Join Date: Sep 2004
Location: USA
Programs: UA/CO(1K-PLT), AA(PLT), QR, EK, Marriott(PLT), Hilton(DMND)
Posts: 9,538
Interesting thought, but why would MR have given everyone and their dog Platinum for 2009, even those who stayed only a few nights in 2008 (but who had been Platinum in the past?).
#5
Join Date: Dec 2003
Location: Pasadena,Ca.,US.
Programs: AA, Delta, United, SPG plat, Hyatt dia
Posts: 7,140
Their ingenious plan for the domination of the hospitality world
during a time of unprecidented budget cuts in the corporate world and tightening of personal spending.When every single hospitality dollar is in competition.
Marriott is a publicly traded company.And Shareholders would never go for a plan which puposely alienated business=any business these days.
There is one more catagory=the Marriott apologists/blind loyalist(" high-paying, high-tolerance guests")who fails to see that Marriott is showing nothing but disdain for its frequent guests and best customers and yet is willing to give Marriott money anyway.
during a time of unprecidented budget cuts in the corporate world and tightening of personal spending.When every single hospitality dollar is in competition.Marriott is a publicly traded company.And Shareholders would never go for a plan which puposely alienated business=any business these days.
There is one more catagory=the Marriott apologists/blind loyalist(" high-paying, high-tolerance guests")who fails to see that Marriott is showing nothing but disdain for its frequent guests and best customers and yet is willing to give Marriott money anyway.
Last edited by bigguyinpasadena; Feb 9, 2009 at 7:36 am
#6
Join Date: May 2005
Posts: 1,338
Don't give Marriott credit at all. It all comes down to greed with poor business insight. When you are the hotel brand known for its quantity of rooms over quality, you don't keep your rates high while alienating your most frequent customers via your reward program and lack of amenities.
I'm extremely disappointed that my newly acquired Platinum status (110 nights) means absolutely nothing these days due to the sheer number of PLT-lites and the way Marriott treats us. All we really get is 20% extra in points this year as well as an "upgraded room" that is only a room on the CL floor(s) (note use of plural as a floor above or below is considered by Marriott to be just as good.
).
I'm extremely disappointed that my newly acquired Platinum status (110 nights) means absolutely nothing these days due to the sheer number of PLT-lites and the way Marriott treats us. All we really get is 20% extra in points this year as well as an "upgraded room" that is only a room on the CL floor(s) (note use of plural as a floor above or below is considered by Marriott to be just as good.
#7
A FlyerTalk Posting Legend
Join Date: Dec 2000
Location: Potomac Falls, VA
Programs: AA Plat 2MM, MR Gold, Avis Pref
Posts: 41,109
you're nuts if that iswhat you are thinking
where are all these travelers going to come from? all these travelers are just going to appear who've never seen any FS hotels benefits before and think they are getting a deal. even over five years thats never going to happen..
wow
where are all these travelers going to come from? all these travelers are just going to appear who've never seen any FS hotels benefits before and think they are getting a deal. even over five years thats never going to happen..
wow
#8




Join Date: Feb 2007
Location: Suburban Philadelphia
Programs: Marriott Lifetime Plat, IHG Gold
Posts: 3,393
Marriott is teetering on running their hotel like it's an airline. Peeve off your bread and butter customers in order to get a nickel extra.
#9
Original Member

Join Date: May 1998
Location: Tampa, FL
Programs: AAMM & PLT; UA Gold, DL Silver, Marriott LT Titanium Elite, Hilton Diamond, Hertz #1 Gold Club
Posts: 1,592
#10


Join Date: Oct 2001
Programs: LTP, PP
Posts: 9,107
Don't give Marriott credit at all. It all comes down to greed with poor business insight. When you are the hotel brand known for its quantity of rooms over quality, you don't keep your rates high while alienating your most frequent customers via your reward program and lack of amenities.
I'm extremely disappointed that my newly acquired Platinum status (110 nights) means absolutely nothing these days due to the sheer number of PLT-lites and the way Marriott treats us. All we really get is 20% extra in points this year as well as an "upgraded room" that is only a room on the CL floor(s) (note use of plural as a floor above or below is considered by Marriott to be just as good.
).
I'm extremely disappointed that my newly acquired Platinum status (110 nights) means absolutely nothing these days due to the sheer number of PLT-lites and the way Marriott treats us. All we really get is 20% extra in points this year as well as an "upgraded room" that is only a room on the CL floor(s) (note use of plural as a floor above or below is considered by Marriott to be just as good.
Original premise is crazy.
The problem with most corporations is that enough is never enough. A fair return for the risk and assets invested quickly goes out the window when more bucks can be extracted at peak times when everything is going right. Then they get used to the greed and have to exceed the previous quarter's earnings to keep the stock market happy. So now they are holding on against hope and reluctant to return to a more normal pricing structure.
#11
Suspended
Join Date: Sep 2004
Location: USA
Programs: UA/CO(1K-PLT), AA(PLT), QR, EK, Marriott(PLT), Hilton(DMND)
Posts: 9,538
We all know people who didn't make the 75 night minimum in 2008, but still received Platinum status for 2009 - some missing that figure by double digits!
I don't know what the criteria may have been, but I know of three colleagues who fall into the above description.
I don't know what the criteria may have been, but I know of three colleagues who fall into the above description.
#12
Join Date: Feb 2006
Location: up front or in a suite!!!!
Programs: all the big ones.. no LCCs for me
Posts: 1,064
can I get some of what the original post was smoking
#13
Join Date: Apr 2005
Location: LAX, SFO
Programs: Delta GM, Lifetime Marriott Platinum, Avis Preferred
Posts: 1,634
Well said.
Original premise is crazy.
The problem with most corporations is that enough is never enough. A fair return for the risk and assets invested quickly goes out the window when more bucks can be extracted at peak times when everything is going right. Then they get used to the greed and have to exceed the previous quarter's earnings to keep the stock market happy. So now they are holding on against hope and reluctant to return to a more normal pricing structure.
Original premise is crazy.
The problem with most corporations is that enough is never enough. A fair return for the risk and assets invested quickly goes out the window when more bucks can be extracted at peak times when everything is going right. Then they get used to the greed and have to exceed the previous quarter's earnings to keep the stock market happy. So now they are holding on against hope and reluctant to return to a more normal pricing structure.
#14
Join Date: Apr 2005
Location: LAX, SFO
Programs: Delta GM, Lifetime Marriott Platinum, Avis Preferred
Posts: 1,634
#15
Join Date: Nov 2007
Programs: DL GM, WN AL/CP, UA Silver, Marriott Lifetime Titanium
Posts: 1,483
To the OP: No, I just think they wanted to remove liabilities (MR Reward points are liabilities) off their balance sheets.

