Being the market leader in leisure travel, Marriott holds strong position in global luxury hospitality market. This article analyzes Marriott marketing strategy, and discusses each marketing mix element, including- Marriott produce, pricing, place and promotion strategy.
1. Company overview
Marriot offers the most powerful portfolio in the global hospitality industry. Established in 1927, Marriott has expanded its operations to more than 139 countries. The company is headquartered in Maryland, USA. Currently, Marriott has 30 brands with more than 8,000 properties around the world.
2. Marriott Marketing Strategy
Marriott has successfully sustained its leadership position despite the intense competition. The strong brand name and innovative marketing strategy are two key factors behind the Marriott’s enormous success.
This article analyzes Marriott’s marketing strategy by applying 4-P marketing mix model:
2.1. Marriott products
2.1.1. Marriott product mix
Marriot offers a wide product mix. It offers four product categories- luxury, premium, select, and longer stays.
Wide variety enables the Marriott to target diverse customers with different budgets and travel needs.
2.1.2. Marriott target market
Marriott target market is diverse. It targets different customers through different brands. Following table shows how each brand targets a different customer segment:
| Marriott executive stay (Residence and Townplace suits) | Suits travelers seeking longer stays |
| Ritz Carlton and W Hotels | Luxury travelers |
| Courtyard | Over the road travelers |
| Sheraton | Vacationers, people on honeymoon and business travelers |
2.1.3. Marriott unique selling point
Superior offerings with wide variety and excellent customer service are three key unique selling points of Marriott. Being world’s one of the largest hotel chains, Marriott offers an extensive portfolio with varying prices.
2.1.4. Marriott latest additions
Marriott plans to add 35 new luxury hotels by the end of 2023. Key brands that are fueling the business growth include:
• Ritz Carlton (lead through innovation)
• St. Regis (the Vanguard spirit)
• W Hotels (expanding to iconic destinations)
• EDITION (rapid growth in top destinations).
2.1.5. Key success points
Large product variety. Marriott overpowers Hilton on variety as well as number of properties. Hilton offers only 18 brands compared to Marriott that offers 30 brands with a mix of luxury, mid-scale and budget hotels.
The exceptional guest experience delivered consistently across all brands, through all channels, and in all locations.
Quickly launch new brands under varying themes to meet needs of current and new customers from diverse backgrounds
2.2. Marriott pricing
2.2.1. Pricing strategy
Marriott uses a mix of competitive and demand and supply pricing strategy. Recently, Marriott started giving tough competition to Airbnb by entering in shot-rental market. The company charges competitive prices (comparable to Airbnb), and is renting 60,000 properties in 75 countries.
Airbnb is a well-established player in short-rental market. Have a look on Airbnb SWOT analysis to know more about Marriott’s short-term rental competitor.
2.2.2. Pricing transparency
As per Washington Post, Marriott has successfully integrated transparency in its pricing tactics, which was not present before. Consumers now clearly know all pricing options available at beginning of trip planning.
2.2.3. Pricing flexibility
Marriott offers a variety of price options that meet the needs of diverse customers. This pricing flexibility directly influences the Marriott’s RevPAR. Following graph shows Marriott is able to make higher RevPAR than Hyatt:
Source: Visible Alpha
2.2.4. Lower fees
Marriott charges lower fees than its core competitors- Hyatt and Hilton, as depicted in following graph:
Source: Nerd-Wallet
2.2.5. Key success points
Wider variety with a greater choice of price points are available to Marriott customers. It expands the market reach, increases booking conversions, and positively influences the RevPAR.
Success lies in offering the right product to right customers at right time
Set pricing by considering the demand and supply, competitors, and customer behavior
2.3. Marriot place / distribution
2.3.1. Distribution strategy
Another key reason behind the Marriott’s success is its distribution strategy. Marriott strategically chooses the locations for all its hotels that naturally attract the guests. Mostly, Marriott hotels are located near supermarkets, highways or airports.
• Business people will prefer hotels near airports
• Tourists will prefer hotels near supermarkets
• Travelers will prefer hotels near highways
2.3.2. Marriott growth strategy
Marriott adopts multi-channel distribution strategy. It adopts both- direct and third party distribution strategy to reach the target market. In 2019, Marriott partnered with Expedia to optimize its distribution model.
Marriott finds the distribution partners that have industry leading technology and offer enterprise level services. Recent partnership with Expedia eliminated the inefficiencies and complexities in Marriot’s re-distribution model.
2.3.3. Number of locations
From 2009 to 2021, Marriott has successfully expanded its operations by opening hotels at new locations around the world:
Source: Statista
Here is another graph that shows the Marriott’s locations in different countries:
Source: Statista
2.3.4. Marriott Expansion plans
Marriott plans to expand its business operations to the Middle East by opening new hotels in Middle Eastern region. Other than Middle East, Marriott eyes at India, Dhaka and Colombo to achieve the expansion objectives.
click here to know how Marriott is expanding its operations in emerging markets.
2.3.5. Key success points
All hotel chains opened at strategic locations
Wider reach to the target market
Strong international presence
2.4. Marriott promotion
2.4.1. Marriott promotion mix
Marriott uses a mix of traditional and online promotional tools to advertise its brands. However, it’s more inclined towards the digital side. Marriott has a well-established website that creatively showcases all its products, and makes booking process easier for the visitors.
Here is the Marriott slogan:
• Travel brilliantly
• It’s the Marriott way
Attractive promotional schemes, strong presence over social media and loyalty program with special benefits for guests help Marriott maintain a loyal customer base.
2.4.2. Key promotional mix components
Three most important components of Marriott’s promotional mix are:
• Well-designed website
• Strong social media presence; user-generated content; collaboration with famous influencers
• Bonvoy loyalty program
2.4.3. Marriott marketing budget
In 2020, Marriott spent around $77 million in advertisements, and in last year, it spent $100 million on advertisements in TV, print and digital media.
Marriott spends heavily on social media marketing to interact with young travelers. Recently, Marriott run campaign with 27 TikTok influencers to promote the new properties. Marriott is also actively present on Pinterest, Snapchat and Twitch.
M Live presents another innovative social media marketing tactic that Marriott uses to engage with guests. The Marriott social media staff actively monitors the reviews that guests post during their stay, and sends them surprise gifts. It helps hotel generate positive e-WOM over social media.
Marriott’s innovative marketing strategy is considered one of its core strengths. To know more about Marriott’s strengths and weaknesses, click here.
2.4.5. Marriott App marketing
When building its application, Marriott looked at the theme parks and other creative industries to understand how they can creatively interact with the visitors, and differentiate its app from the competitors.
Source: Hotel Management
2.4.6. User generated content
A key reason behind success of Marriott’s marketing strategy is that is relies on the user generated content. Recent research shows that more than 80% of the Millennials use social media while making travel decision, and derive strong influence from user generated content.
Marriott has successfully implemented many online advertising campaigns to creative positive e-WOM, and drive bookings.
2.4.7. Influencer marketing
Marriott hires social media influencers to promote its brand among Millennials. For instance, Marriott partnered with the Snapchat influencers, and asked them to make Snapisodes features Marriott’s new luxury properties:
Source: Ad-Week
2.4.8. Events and sponsorships
Marriott invests heavily on sports sponsorships. It has partnered with Indian Premium League, English Premium League, and National football and baseball league, which bring a lot of value to its sports programs.
2.4.9. Loyalty programs
Marriott offers one of the biggest loyalty program, named ‘Marriott Bonvoy’. The loyalty program covers all 30 brands across different price points, ranging from economical options to luxury properties.
Marriott Bonvoy competes directly with Hilton’s ‘Honors points’ program. Customers like Marriott’s loyalty program more than Hiltons. Marriot offers 0.8 points per cent, whereas, Hilton offers 0.6 points per cent.
2.4.10. Coupons and promotional discounts
Marriott frequently offers the promotional discounts and coupons to increase the booking conversions. Here is a glimpse of latest Marriott promo codes:
Source: Business Insider
2.4.11. Key success points
• Well-integrated marketing strategy offering seamless customer experience
• Innovative social media marketing tactics
• Partnership with famous influencers to promote the brand
• Loyalty program better than competitors
3. Recommendations
• Launch more brands under ‘budget friendly’ category
• Offer more concierge services to compete competitors like Airbnb
• Spend more on the influencer marketing activities to create positive e-WOM
• Expand more into middle-eastern region
• Maintain focus on the digital media to interact with Millennials
• Maintain focus on the user generated content, and content marketing to capture attention of young customers
• Arrange exciting events over social networking sites to drive customer engagement
4. Conclusion
To conclude, Marriott holds strong competitive positioning. Its marketing strategy plays key role behind the brand success. Marriott’s growth is primarily driven by its wide portfolio, pricing flexibility, strategically located properties, and innovative social media marketing strategy.
To know more about Marriott, have a look on Marriott SWOT analysis
5. References
Elliott, C. (2022, August 24). Whatever happened to those resort fees everyone hates? Washington Post.
Ritucci, J. (2021, October 13). Hotel Stocks Now Valued Higher Than Before Covid-19.
Qubein, R. (2023, January 4). Hyatt vs. Marriott: Which One Is Best in 2023? NerdWallet.
Expedia Group Signs Industry-First Agreement to Become Optimized Distributor of Marriott International Wholesale Rates. (2019, September 17). Marriott International Newscenter (US).
Marriott hotels worldwide 2021 | Statista. (2022, April 22). Statista.
Statista. (2022a, April 22). Number of Marriott International properties worldwide 2016-2021, by region.
Marriott International. (n.d.). Advertising Profile | See Their Ad Spend! | MediaRadar.
Marriott upgrades Bonvoy app. (2021, February 10). Hotel Management.
Tables, S. (2021, May 5). Why Marriott’s Marketing Strategy Is Above the Rest. Social Tables.
Johnson, L. (2017, March 30). Marriott Rewards Is Giving 4 Influencers Spectacles to Make Buzzy Snapchat Stories.
30% OFF Marriott Discount Codes March 2023. (n.d.).
