DataAnalytics of the Marriott Hotel

DataAnalytics of the Marriott Hotel

Dataanalytics is a branch of science that deals with the investigation ofsummarized data with the primary objective of developing inferencesand conclusions concerning the collected information. Thismethodology has been applied in various industries, and the outcomehas facilitated better decision-making processes as well asimprovement in management, service delivery and profits. Apparently,the hotel industry has quite a substantial amount of data which hasnot been exploited accordingly [ CITATION Kel09 l 1033 ].Due to this under-utilization, hoteliers have not been able toincrease their collections and also improve efficiency. This paperlooks at the Data analytics aspects of the Marriott Hotel in anin-depth manner.

Marriotis renowned for its application of returns management program in itsoperations, especially in booking. Implementing an analytic approachis a process that may not be easy to kick off. This is because itsuse can be perceived as a move that leaves everything in the hands ofthe analytic process. However, as time passed, other organizationsbegan to use the methodology hence making others feel morecomfortable and confident with it. As such, this group has developeda system composed of predictive analytics that is overseen by anexternal consultant. This later led to increased commitment by theworkers. The implementation process takes time before results can beseen. Somewhere along the way, the employees responded positively tothe truth and sincerity to evidence that was presented by this tool[ CITATION Kel09 l 1033 ].By sticking to the metrics, the administration was able to turnthings around for the better.

Apparently,the predictive modeling method of data analytics had been previouslyused in the pricing area, and it was established that an extension toother sections of the Hotel would suffice. The replication of asimilar model to the hospitality industry was rolled out in anescalating manner. Beginning from small and growing steadily saw ahuge success. Data analytics is therefore not something that is doneonce and left alone. The functions of an organization or institutionneed to be monitored and evaluated to make sure that new solutionshave been provided exponentially [ CITATION Lau11 l 1033 ].

MarriottInternational in the form of an extension known as Group PricingOptimizer has come up with valid ways in which sales can beappropriately maximized from all the potential customers. The pricesthat the clients are charged are determined by price elasticitymodels that are obtained from the particular market segment. In thisparticular process, the analysis involves a review of the previousprocedures as well as the advanced techniques that indicate maximumrevenue gains for the Hotel. Furthermore, there is an auxiliarycritique tool that works for measuring the extent to which the levelof success has been achieved.

Pricingeffectiveness has increased considerably since the implementation ofthis functionality. For instance, in the year 2007, the profitmargins were tremendously increased to about 46 million USD incomparison to the previous year 2006 [ CITATION Chr16 l 1033 ].Similarly, the effectiveness was also experienced in the followingyear 2008. At the end of the day, the tool facilitates therecommendation of rates that the sales people have to comply. In thecourse of the transactions, the clients will pay for these servicesand in this way, the hotel manages to achieve its ultimate goals.This package not only facilitates the quick responses and the finelytuned rates, but it also facilitates efficient communication betweenmanagers and the sales team. In this way, the discount ranges andbargaining levels to win more bookings, and inform aboutthe local current conditions. For instance, it helps to identifyfactors that may not be friendly to the customers such as highprices. If the rate`s too big for the client, or the rooms are fullybooked, then a schedule can be provided that spells out thealternative dates and hotels for such situations.

Duringperiods of recession, rates are usually lowered. Due to thisphenomenon, it is important for institutions to develop the rightmeans to bounce back to profit making. The lifting of rates,therefore, requires a system that has been well planned andimplemented without any possible errors that may jeopardize the stateof events. A management tool is known as the Retail Pricing Optimizer(RPO) [ CITATION Lau11 l 1033 ].This instrument takes into consideration the most important factorswhich include an analysis of the situation in a market drivenapproach. Toexpand revenue management capabilities, data must be obtained andanalyzed to determine the various business trends and theirconditions. Later, strategies and policy guidelines are developed tomaximize the existing circumstances in a way that benefits theinstitution as a whole. It is quite evident that the elasticity ofthe model used is the primary driver towards ensuring that prices areelastic. It also makes an accurate diagnosis on the ongoing services[ CITATION Chr16 l 1033 ].For example, the tool may provide correct information concerningwhether the pricing of rooms has beendone appropriately or if there are other avenues of increasing therates.

Thelaunch of such a program involves training and testing of theanalytic program to ensure that the managers and the sales teamcompletely understand how it works and also interpret theinformation. This methodology not only works for an individualentity, but also to different extensions in various locations. Forinstance, the tool might prompt the lowering of rates for a hotellocated in San Juan may have the recommendation to lower the rateswhile another Marriott constituent in a separate place mightacknowledge the proposal to increase the charges.

Theimplementation of the recommendations is done in various ways, forexample, the reduction of rates for those who have been identified asregular members. This facilitates the provision of better services inexchange for loyalty to the Hotel. The plan also provides anorganizing tool that outlines the various destinations and theirrespective cost. This enables the potential customers do comparativeanalysis and select a plan that is affordable and convenient.Improving the online booking is one of the services that weredetected to be not effective. This setback needs to be correctedusing useful measures. Usually, the data comes in regularlyconcerning the ongoing activities, and the subsequent explorationshave to be performed periodically [ CITATION Lau11 l 1033 ].


TheMarriott Hotel is one of the institutions that have embraced the useof analytics to improve the general structure, function and servicedelivery to the customers. Having a strong base in this fieldimproves not only sales and profits but also increases demand fromclients and fosters a spirit of commitment of the employees.Apparently, the use of data analytics has proved to be a successfulinstrument for the group of Hotels. We must not fail to realize thatthis process must always be ongoing to ensure that the changingeconomics and the shifting needs of the customers have been detectedearly and taken care of as soon as possible.


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