TOURISM MARKETING PRINCIPLES

                       Executive Summary

An evaluation of tourism marketing strategy published by Marriott International is made, encompassing external and internal assessments. Porter’s Five Forces reveal high competition and buyer and supplier powers, with high barrier entrance. The STP analysis shows Marriott's segmented approach to luxury, mid-scale, and budget travellers. Marriott prefers differentiated marketing, where it positions itself as an upmarket, customer-oriented brand. Recommendations moving forward involve increased digital marketing, sustainability, an investment in AI-enabled customer experiences, and loyalty programs. Technology and strategic expansion will help Marriott remain its leadership in the hospitality industry while adapting to market changes, including trends and customer expectations.

 

 

 

 

 

 

 

 

 

 

 

 

 

 

                                Chapter One

             An Introduction that Defines Tourism                                 Marketing Concepts

 

Tourism marketing is a strategic framework for promoting destinations, hospitality services, and travel-related experiences to put tourism in the limelight to attract visitors. The report intends to analyse the tourism marketing strategies for Marriott International Inc. at the forefront of the global hotel chain. The external and internal business environment will be assessed via the framework of Porter’s Five Forces and the STP (Segmentation, Targeting, and Positioning).

The report has the following structure:

● Chapter 2 deals with the company background of Marriott.

● Chapter 3 deals with analysing external environments through Porter’s Five Forces.

● Chapter 4 consists of an internal STP strategy analysis of Marriott.

● Chapter 5 deals with recommendations and conclusions.

 

 

                                   Chapter Two

                    Background of the Company

 

2.1. Overview of Marriott International Inc.

Founded in 1927 by J. Willard Marriott as a root-beer stand in Washington, D.C., Marriott International Inc. has since evolved into a global supervisor in the hospitality industry. Over the decades, it has grown into one of the world’s largest hotel chains, with operations in more than 8,000 properties around 139 countries (Marriott, 2025). Marriott works a portfolio of thirty distinct brands, from budget accommodations to ultra-luxury hotels. Notable brands include JW Marriott, Sheraton, Westin, and St. Regis, catering to a wide spectrum of travellers. The company gives utmost importance to providing excellent customer service, innovation, and sustainability to thrive globally.

2.2. Marriott in the Tourism Industry

Marriott is significantly invested in the tourism sector, providing multiple accommodation offerings for all types of travellers, be they business or leisure. From budget-friendly options like Courtyard by Marriott to The Ritz-Carlton and The Luxury Collection as the upper echelon, Marriott has embraced a lot brands (Gryshchenko et al. 2022). Digital transformation, strong Bonvoy loyalty schemes, and coordinated partnerships with airlines and travel agencies are some key areas that would keep the company ahead of its competitors. Finally, the developments in sustainable tourism and personalized guest experiences only add strength to its position in the market.

 

 

 

                                Chapter Three

                              Internal Analysis

 

3.1. Industry Rivalry

The hotel industry presents a fierce competition, with global players, quite proved such as Hilton, Hyatt, and Accor competing against one another. Marriott, therefore, faces price, service quality, and even brand loyalty competition significantly. Maintenance, salary, and branding hold too much of a high fixed cost in an industry that practically forces a company to keep guests transient to keep any profitability (Buhalis et al. 2023). This competition is further fuelled by low switching costs to customers, where visiting travellers can easily find other options based on price, location, or amenities.

3.2. Supplier Power

The Marriott has a wide and diverse supply ranging from real estate developers to food beverage vendors, from technology providers to hospitality services firms offering in supply chain. Though the company enjoys very fine relationships with its suppliers, it cannot ignore the potential risks that could occur due to the local ties between supply chains and its dependence on them (e.g. economic downturns, geopolitical disruptions, and even global crisis events such as pandemics) (Nyanga et al. 2020). Long availability and increased costs for construction materials, labour, and energy create significant operational cost burdens for Marriott. Furthermore, an entire range of technology providers supplying digital booking platforms and property management systems, along with cybersecurity solutions, function as linchpins on which the successful operation of the company is drawn. The company has a monopoly over suppliers due to its huge size and global presence (Inkson and Minnaert, 2022).

3.3. Power Buying

The hospitality business captures a wide range of clientele, including leisure travellers, businesspeople, event planners, and corporate clients. Increasing buyer power on the part of the customer is another negative effect of the growing importance of online travel agencies (OTAs) like Expedia and Booking.com that allow customers to assess prices between suppliers and find alternative lodging (Gallo et al. 2021). The commission fees that OTAs charge could potentially reduce the profit margin for Marriott. The company, however, counters this drawback by encouraging direct bookings through its Marriott Bonvoy loyalty program. In exchange for their loyalty, members receive help from exclusive benefits and better rates.

3.4. Threat of New Entrants

Entry into the hotel industry has a daunting barrier because of the high capital investment to develop property, secure regulatory approval, and show the brand. Smaller, boutique hotels and alternative lodging services such as Airbnb continue to threaten competition for the giant; however, Marriott is still strong with brand recognition, a wide pool of loyal customers, and economies of scale (Valeri and Baggio, 2021). It does not allow a new player to compete on a par with its established reputation, international presence, and robust infrastructure.

 

3.5. Threat of Substitutes

Substitutes like Airbnb, vacation rentals, and budget hotels are posing an increasing threat. However, Marriott distinguishes itself by offering consistent quality, superior service, and an extensive loyalty program that often makes brand-switching unattractive to frequent travellers.

 

 

 

                              Chapter Four

                           External Analysis

 

4.1. Segmentation

Marriott International adopts a total strategy for market segmentation that reaches as far as all types of potential customers a company could create(Bhasin et al. 2017). The company designs its various brands to target that specific sub-market from understanding consumer behaviour and preferences. The segmentation strategies that Marriott deploys include geographic, demographic, psychographic, and behavioural ones.

Geographic Segmentation

Marriott is a global company working on the international family cities with suburb and resorts. It has made its business across over 139 countries and hence can provide an audience for the traveller (Baggio and Valeri, 2022). For the corporation's business travellers, hotels are built strategically in business-focused regions; for long-stay travellers, hotels are proved in the suburbs; and for pleasure-oriented tourists, scenic resorts are built.

Demographic segmentation

If they discuss the demographic segmentation of Marriott, that segmentation can be subdivided by age, income, occupation, purpose of travel. Important segments have been:

● Business Travellers: All such professionals and employees from various organizations who look for premium service for meeting spaces, high-speed Wi-Fi, and business lounges.

● Luxury Seekers: Persons with high net worth who search for premium services, exclusive experiences, and luxury accommodation usually found in The Ritz-Carlton and JW Marriott brands (Sigala et al. 2024).

● Budget-Conscious Tourists: These customers are directed at these kinds of customers where budget-interested constructs are offered along with facility packages through brands like Fairfield Inn & Suites or Moxy Hotels.

Psychographic Segmentation

Marriott is targeting psychographic customers since it has a variety of offerings to cater for lifestyle preferences, values, and interests. Some of the psychographic segments are:

● Experience Travellers: Prioritizing the travel experience rather than just a travel place, including brands such as The Luxury Collection and Autograph Collection (Arcese et al. 2021).

● Eco-Traveler: Consumers who look for sustainable and environmentally responsible accommodations at the same time being catered through sustainability initiatives and LEED-certified hotels.

Behavioural segmentation

Marriott places the customers under different segments based on travel behaviour and buying behaviour.

● Frequent travellers: The Marriott Bonvoy loyalty program targets those who regularly book stays and expect reward points, exclusive deals, and membership rewards.

● Business vs Leisure Travellers: Business travellers need amenities and premium value, while leisure tourists have different priorities such as relaxation, amenities, and local or real experiences.

4.2. Targeting Strategy

Marriott pursues a differentiated marketing strategy in which this company focuses on serving and meeting the needs of many groups of guests (Buhalis et al. 2022). Overall, it has over 30 brands available, each designed to meet the tastes and demands of a precise group of travellers.

● Luxury Market (HNW Individuals): High-end travel accommodation with personal concierge services and world-class dining options are offered by Ritz-Carlton, St. Regis, and JW Marriott to affluent travellers.

● Mid-Scale Business Travellers: Courtyard by Marriott and Sheraton cater to business executives who need comfort, function, and business-ready amenities.

● Affordable Travellers: These will include Moxy Hotels and Fairfield Inn & Suites, which are great yet cheap style lodging to a more youthful audience that places a premium on price rather than aesthetics (Nuryyev et al. 2020). Marriott, therefore, crosses all consumers through more diverse portfolios, not compromising brand equity.

4.3 Perceptual Mapping

                                                       Figure 1: Perceptual mapping

                                                                      (Source: Self-created)

This perceptual map places Marriott International squarely in the Luxury and Premium zone, competing with the likes of well-known brands (Pongsakornrungsilp et al. 2022). Meanwhile, Hyatt Regency stands for the Upper Mid-range category and offers upscale services at a cheaper price point. Radisson Blu falls into the Mid-scale category, concentrating on affordability and quality, while Hampton by Hilton caters to the Basic and Budget market.

 

 

                            Chapter Five

             Future Development and Conclusion

 

The internal strengths of Marriott International are identified as having a strong global presence, customer segmentation strategy, and differentiated marketing approach, while the external part analysis of Porter’s Five Forces has revealed intense industry competition with considerable bargaining powers of suppliers and buyers, high entry commands, and a growing threat from substitute accommodations such as Airbnb. Internally, the STP analysis shows that the luxury, mid-scale, and budget brands offered by Marriott ensure that they can tap into diverse consumer segments. To sharpen the competitive edge, Marriott may consider investing in digital transformation in terms of AI customer service and personalized marketing. Growing sustainability programs and mid-scale brands in the developing markets will serve to strengthen growth. Marriott must focus on other aspects of enhancing loyalty programs, innovative customer experience, and innovative strategic partnerships to support dominance in the hospitality industry. So, to survive long-term in the fast-evolving tourism industry, Marriott must constantly respond to the winds of market dynamics and technological innovations.

 

 

 

 

 

 

 

References

 

Arcese, G., Valeri, M., Poponi, S. and Elmo, G.C., 2021. Innovative drivers for family business models in tourism. Journal of Family Business Management, 11(4), pp.402-422.

Baggio, R. and Valeri, M., 2022. Network science and sustainable performance of family businesses in tourism. Journal of Family Business Management, 12(2), pp.200-213.

Bhasin, H. (2017). 4 types of Market segmentation and how to segment with them?. [online] Marketing91.com. Available at: https://www.marketing91.com/4-types market-segmentation-segment   

Buhalis, D., Leung, D. and Lin, M., 2023. Metaverse as a disruptive technology revolutionising tourism management and marketing. Tourism management, 97, p.104-724.

Gallo, P., Dobrovič, J., Čabinová, V., Pártlová, P., Straková, J. and Mihalčová, B., 2021. Increasing the efficiency of enterprises in tourism sector using innovative management methods and tools. Social Sciences, 10(4), p.132.

Gryshchenko, O., Babenko, V., Bilovodska, O., Voronkova, T., Ponomarenko, I. and Shatskaya, Z., 2022. Green tourism business as marketing perspective in environmental management. Global Journal of Environmental Science and Management.

Inkson, C. and Minnaert, L., 2022. Tourism management: an introduction. Sage. Marriott, (2025). We Are Marriott International. Available at: https://www.marriott.com/marriott/aboutmarriott.mi.

Nuryyev, G., Wang, Y.P., Achyldurdyyeva, J., Jaw, B.S., Yeh, Y.S., Lin, H.T. and Wu, L.F., 2020. Blockchain technology adoption behavior and sustainability of the business in tourism and hospitality SMEs: An empirical study. Sustainability, 12(3), p.1256.

Nyanga, C., Pansiri, J. and Chatibura, D., 2020. Enhancing competitiveness in the tourism industry through the use of business intelligence: A literature review. Journal of Tourism Futures, 6(2), pp.139-151.

Pongsakornrungsilp, P., Pongsakornrungsilp, S., Jansom, A. and Chinchanachokchai, S., 2022. Rethinking sustainable tourism management: learning from the COVID-19 pandemic to Co-create future of krabi tourism, Thailand. Sustainability, 14(18), p.11375.

Sigala, M., Ooi, K.B., Tan, G.W.H., Aw, E.C.X., Buhalis, D., Cham, T.H., Chen, M.M., Dwivedi, Y.K., Gretzel, U., Inversini, A. and Jung, T., 2024. Understanding the impact of ChatGPT on tourism and hospitality: Trends, prospects, and research agenda. Journal of Hospitality and Tourism Management, 60, pp.384-390.

Valeri, M. and Baggio, R., 2021. Social network analysis: Organizational implications in tourism management. International Journal of Organizational Analysis, 29(2), pp.342-353.