mis vaibhav
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Introduction to Tourism
Tourism is the world's largest civilian industry and accounts for nearly fourteen percent of the world's
GDP. Its growth, economic significance and potential are phenomenal across the globe; although yet
to be exploited to its maximum capacity. Directly or indirectly, it is all set to change business
propositions in manufacturing as well as services sector. As a quasi-manufacturing activity, tourism
is contributing immensely in terms of both earnings and employment across nations.
Be it domestic or foreign in nature, its largesse to the target destinations helps not only economically
but also in the evolution of civilized societies sharing a cosmopolitan ambience of culture. The
advancement in Information Technology- particularly the arrival of the Internet - has further
expanded the scope of tourism to global markets. Online tourism, as its natural corollary has emerged
to occupy a central place in tourism marketing. Due to its sheer potential, online tourism has become
a buzzword uttering out from almost every tongue that speaks of tourism. The present form of the
Internet; particularly the World Wide Web has only been inexistence since 1992 and there is only adecades time to draw any inferences out. Further, literature which examines internet and tourism has
only recently emerged. Although it is rapidly becoming a growing topic of research, the information
on the websites seems to be the only rescue for the researchers. At the same time, it forewarns and
forearms the marketers of tomorrow about its importance as future mode of acquiring information
and purchase of tourism products and services.
Online Tourism
Online Tourism has been defined as a new form of travel product distribution where a
supplier/service provider offers products/services mainly through the medium of Internet to a group
of customers, irrespective of their physical location (Singh 2003). Online tourism equips a tourist,
tour operator or travel agent for convenient exchanges using electronic medium. User groups globally
are finding online technologies supportive indecision making for availing tourism products and
services. Even in its introductory stage, Tourism Industry has largely been benefited by online
tourism in certain countries. It has been found that a strong network of online technologies helps in
developing an environment of spontaneity and convenience. Customized websites, value-added
services, focused marketing, easy-to-use self-service tools, and sophisticated contact-center solutions
attempt to provide higher user-awareness, accessibility and autonomy. This further provides severalways to build loyalty. Online Tourism has caused several changes in the tourism industry out of
which the main impact has been on the interrelation between service providers and traditional
intermediaries. It has offered Tourists, across the globe, a tool to express their needs, to seek details
on destinations, facilities, availabilities, prices, geography, and climate information for diverse
tourism products and services. Moreover, it has given an upper hand to travel agents while looking
for information or details about tourists, market trends, service providers, destinations, facilities,
availabilities, prices, tour packages and also in maintaining direct contacts with their partners. With
its virtue, it has become increasingly convenient for tourism offices to search for industry trends, size
and nature of tourism flows, policies, and plans for the developmental concerns.
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LIST OF TOP 10 HOSPITALITY COMPANIES ACROSS THE
GLOBE
1) Intercontinental Hotels Group (IHG)
2) Wyndham Hotels Group (WHG)3) Marriott International4) Hilton Hotels Corporation5) ACCOR Hotels6) Choice Hotels International7) Best Western International8) Starwood Hotels and Resorts Worldwide9) Carlson Hotels10)Global Hyatt Corporation
MARRIOTT INTERNATIONAL
Introduction
Marriott International, Incorporations is a leading lodging company with more than 3,000 launched
properties in the United States and operates in more than 65 countries in the world. It was formed in
1993 whenMarriott Corporationsplit into two companies, Marriott International andHost Marriott Corporation..
Marriotts hotels include 10 brands. Among them there are brands such as Renaissance Hotels with
flagship of Marriott Hotels & Resorts, also brands as Fairfield and Marriott Vacation Club
International, Towne Place Suits, JW Marriott Hotels and Resorts, Residence INN and Courtyard.
(Marriott International, Inc., 2009). The Ritz-Carlton Company is a luxury chain of hotels that was
owned in April 1995, is also under the head of Marriott International (Funding Universe,2009).The
Marriott International is headquartered in Bethesda (USA), and has 146,000 employees worldwide. It
is ranked as the most admired company in the hospitality industry. The Company has also been
recognized by the U.S. Environmental Protection Agency (EPA, 2007)) with the 2008 Sustained
Excellence Award.
Five force Business Model Marriott International
According to the Ibis World database, Marriott International Inc is the leading player in the global
hotels and motels industry; employing about 137,000 people in about 69 countries. In order to further
understand the nature of competition in this industry one should first examine its external
environment; more specifically the forces that drive it. The five forces model that shall be analysed is
comprised of buyer power, supplier power, threat of new entrants, threat of substitutes and degree of
rivalry.
1.
Buyer Power:In the global hotel and motel industry a primary strength a player has to
have in order to flourish is strong brand recognition. A strong brand recognition not only
http://en.wikipedia.org/wiki/Marriott_Corporationhttp://en.wikipedia.org/wiki/Marriott_Corporationhttp://en.wikipedia.org/wiki/Marriott_Corporationhttp://en.wikipedia.org/wiki/Host_Marriott_Corporationhttp://en.wikipedia.org/wiki/Host_Marriott_Corporationhttp://en.wikipedia.org/wiki/Host_Marriott_Corporationhttp://en.wikipedia.org/wiki/Host_Marriott_Corporationhttp://en.wikipedia.org/wiki/Marriott_Corporation -
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aids in attracting first time customers, but it also entails repeat business since switching costs
can be trifling in this industry. Price competition alone is not a good stimulator of this force,
yet innovation undeniably is. Companies are always trying new ideas to capture a diversified
set of consumers, ranging from the middle class to the premium segment. By utilizing new
styles of design to superior facilities, such as gyms, spas, even integrated golf complexes, avast fragmented group of consumers can be captured through an increase in the value they
receive.
2. Supplier power: Due to the fact that this industry is very labour intensive, the playerswithin it have to take on effective strategies to bargain. The degree of quality and accessibility
of the suppliers equipment and services are a primordial part for the success of a company.
Hotel managers usually have to rely on technology and advanced systems to manage, analyse,
and locate good prospective properties that will complement the hotels profitability. Since
most of this technology is acquired through separate suppliers, their bargaining power is
considerably strengthened.
3. Threats of new entrants: This industry is very influenced by tourism and travel trendswhich create prime opportunities for competitors to enter the market. Even though there has
been an economic downturn globally, the expectations for the hotel industry continue to be
positive and growth is most likely going to continue throughout the year. The threat of new
entrants appears to be stronger in the Asia- Pacific region specially, as the number of tourists
continues to grow and new flight pathways are unveiled. In this industry new entrants may
surge as small, independent sole proprietors, yet the likelihood of their success is uncertain. In
order to sustain revenue growth in the premium market, where the highest profitability is
usually found, a large scale of initial capital is required; this can present itself as a strong
deterrent to new entrants.
4. Threat of Substitutes: Substitutes for this industry include alternative types of lodging,such as RVs, camping, even informal visits to friends and family. Even though these
substitutes do exist, and switching costs may be low, they usually do not provide the same
utility as a hotel does. The basic function of a place to stay may be fulfilled by substitutes, but
the added benefits, such as restaurants and spas, are better provided by hotels. The threat of
substitutes may exist in this industry, yet it is no match for an entity with a strong brand
equity that provides customer satisfaction
5. Degree of Rivalry: The threat of rivalry for this industry can be considered moderate dueto mostly financial and logistical factors. Most of the hotel industrys key players are large
branded chains, yet there are a large number of independent companies currently in the
industry. The larger chains have a powerful competitive advantage by being able to use their
higher level of revenues to diversify into other businesses. On the other hand smaller
companies have to struggle to devise strategies of survival and innovation, which can be a
complicated task. The capital availability key players have allows for a higher degree of
global diversification; insulating them from volatile market conditions.
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Information Technology at Marriott International
Marriott transforms key finance processes, XEROX ERP CASE STUDY
(The lodging leader develops scalable platform)
Snapshot
The Challenge
Inefficient, redundant processes for Accounts Payable
and Claims Management
Reliance on paper-based workflows
Time-consuming paperwork diverted associatesfrom core tasks
Transition to a Shared Services Centre and newERP
software
The need for optimised processes to sharpen the
focus on core competencies and support global
grow
We wanted to control costs, operate
more efficiently and help our associates
spend more time enhancing the guest
experience. Xerox helped us achieve
these goals.
Clay Hall, Senior Director
Information Resources
Marriott Shared Services
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The Results
Automated work processes for data andinformation; 4x processing capacity
Increased efficiency and productivity
Optimised costs, improved financialreporting
Better cash flow and supplier management
More effective approach to risk management, compliance
Delivered to strict Service Level Agreements
Enhanced customer and associate satisfaction
Improved environmental sustainability
Marriott International DeployedSiebel ebusiness Applications
Marriott International Enhances
Customer Loyalty and Boosts Profitability
Measuring Customer Value: While customer service has always been associated withMarriotts
brand name, the company has always measured its success byhotel occupancy rates. To achieve higher revenue per customer, Marriott sought to implement an
The Solution
Strategic partnership with Marriotts
Information Resource organisation
A single, scalable services platform to
support Marriotts growing global needs
Solutions that integrate easily with
Marriotts ERP and claims processing
systems
Re-engineered workflows based on digital
documents and automation
Outsourced mailroom, imaging and
content management services with
guaranteed turnaround times
Wewere looking for an innovative
Company that could help us compete
globally and grow and expand. We
found the right partner in Xerox. Its
been a beneficial relationship from day
one.
Jeff Golding, Senior Director
Information Resources
Marriott Corporate
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eBusiness solution that managed customer touch points across all channels, establish a unified set of
customer data accessible by all customer-facing employees, and offer customers a highly
personalized experience.Based on a rich profile of information. With these goals in mind, Marriott
turned to Siebel Systems for its eBusiness solution, deploying Siebel Sales and Siebel Service to
approximately 3,000 employees globally.
Embracing the Customer: By using Siebel eBusiness Applications, Marriott is able to embraceits group customers in new ways. For example, in the past the
company had waited for its large corporate accounts to call to reserve rooms and did little to
proactively drive sales. Today, however, Siebel eBusiness Applications enable Marriott to collect and
consolidate information on all corporate accounts, manage contacts, and record leads and
opportunities. Marriotts sales teams now call corporate customers well in advance of trade shows
and conferences to book arrangements.
Building Brand Loyalty across Hotel Properties: Marriotts Siebel eBusiness solutionalso
helps the company build loyalty and
awareness across its 13 lodging brands. Before implementing Siebel eBusiness Applications
Marriotts sales force logged information in disparate databases based on the hotels or hotel groups to
which they were assigned. If a guest wanted to book a room at a hotel that was full, Marriotts
salespeople had no way of knowing whether another Marriott hotel in the same city was available.
Now, with Siebel eBusiness Applications in place, Marriotts salespeople have visibility of rooms
inventory at multiple Marriott properties and can easily book a customer in a different Marriott
property.
Cross-selling Additional Products and Service: Using Siebel eBusiness Applications,
Marriott has improved its ability to crossselladditional products and services inother ways as well. For example, sevenMarriott leisure hotels
now provide the Personal Planning Service, creatingpersonalized vacation itineraries for guests
well in advance of their arrival.
Benefits
Improves customer satisfaction
Improves profitability
Strengthens brand loyalty Increases sales to corporate accounts
Increases cross-chain sales
Marriott gains new edge in
project transparency, planning
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With HP Project and Portfolio Management Centre, executives are better
equipped to make strategic decisions on global priorities and resources
Project managers can focus on managing
Marriotts first full implementation of HP PPM was within Information Resources (IR), its
technology services organization. The project was extremely well received by Marriotts IR project
managers. HP PPM madeproject managers livesat Marriott easier by automating a lot of steps, they
no longer have to manually create risk and issue watch lists, or scope statements and work plans
because the tool creates them automatically using pre-defined templates. These benefits extend far
HP PPM has helped us improve our planning,
has increased visibility into our portfolio, and has
helped us better align our activities with our
corporate and IT strategies. And we now have a
single source of information on our entire
portfolio.
Leslie Scott, vice president, Information
Resources andEnterprise Project Management Office, Marriott
Snapshot of Case
Objective
Enable global view of corporate projects
to foster better strategic planning and
resource allocation; leverage automation
to drive project management efficiencies
ApproachReplace point project management
solutions with robust, full-featured
enterprise solution
IT improvementsAutomated project management tasks
drive efficiencies, free associates time to
focus on tasks that drive more business
value and take on more projects, which is
critical to the companys growth strategy
Business benefits
Executives have information they
need to make better decisions about
project planning and resource
allocation, ensuring the companys
projects are aligned with its business
goals and focus, and helping to
support its overall success as an
enterprise
Improved governance helps reduce
risk of non-compliance or securityissues, which could be costly to fix or
damaging to the companys brand
Time spent by project managers for
managing their projects and reporting
results reduce.
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beyond convenience: HP PPM frees project managers to focus on tasks that more directly contribute
to projects success.
Helping executives make the best possible decisions
HP PPM helps executives at Marriott to make the best possible decisions about what to do with thoseideas. They have the information they need to figure out where to best allocate resources.
As projects
are evaluated, if they dont align with Marriotts overall business strategy, they are tabled. This helps
keep the company focused and ensures it isnt misallocating precious budget dollars, while ensuring
that the project can be re-initiated later if the companys priorities change. And as Marriott and the
use of HP PPM grows, it will help ensure the company executives have visibility into other lines of
businessnot just the activities of their respective direct reports.
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