Marriott International’s Disruptive Technology Advantage

University of the People

BUS 5114: MIS and Technology

Dr. Predrag-Fred Mikanovic

September 19, 2023

 Marriott International’s Disruptive Technology Advantage

The Case

Marriott International is a multinational hotel company based in Bethesda, Maryland. Per the

company’s website, they own “31 brands and 8,500+ properties across 138 countries” (2023). Through a

series of wise mergers and acquisitions, the company has become a leader in the hotel industry. The 31

brands represent different price points and features. While some may overlap, the individual brands each

have a solid customer base.

During recent years Marriott has invested heavily in technology to improve guest offerings. The

company has developed and maintained a high-quality website. They have also developed a mobile app

that combines booking and the Bonvoy loyalty program.

Marriott’s Bonvoy loyalty program is used across all the company’s properties, including those

recently acquired. Marriott has made a point of quickly incorporating loyalty programs and granting

equivalent status to new customers. (Carson, 2019).

The hotel industry has been frequently seen as lacking sustainability. Per their serve 360 website

(n.d.), Marriott has developed a full-scale sustainability plan based upon the seventeen WHO sustainable

development goals.

Major Issues

Variety and Consistency

One of the challenges that Marriott must face is the repetition among some of their brands. For

example, a Sheraton branded property is very similar in price and amenities to a Marriott branded

property. To date they have maintained both brands. This is most likely due to brand loyalty for each of

the brands.

Technology
 The technology category is very broad. It includes everything for hotel management software, to

customer facing software such as the corporate website to automated door locks on guest room doors.

Coordinating this vast array of technical areas will always be a challenge. It is expensive, time

consuming, and fraught with potential problems.

Loyalty

Cultivating customer loyalty is a necessity for business. It is imperative that customers make an

effort to return to your business frequently. Within the world of hotels, customer frequency can be a

challenge. There are frequent business travelers who are highly sought after as well as less frequent

travelers who are still very important for business.

Sustainability

The hotel industry has been frequently seen as not sustainability friendly. Hotels are frequently

perceived as wasters of electricity and water. In addition, they are frequently criticized for poor treatment

of labor. Marriott is attempting to counteract this image through a clear sustainability plan.

Analysis

Disruptive Technology

“Disruptive technology is an innovation that significantly alters the way that consumers,

industries, or businesses operate” (Smith, 2022). Inventions such as the telephone, television, and smart

phone are all examples of disruptive technologies. Established companies are less frequently the source of

disruptive technologies than startups (Smith, 2022).

Consistency and Technology

 This is one area where Marriott has truly excelled. They have been able to integrate entire hotel

chains into the Marriott brand quickly and efficiently. From a customer standpoint, it appears seamless.

The integration of the Starwood brand exemplifies this. Customers were able to transfer all their program

status directly to Marriott. From a consistency standpoint, Marriott has created a common customer

experience across brands. This means the booking, check-in, and check-out process is the same regardless

of which property a guest visits. From a technology perspective, this is extremely difficult to accomplish

(Carson, 2019).

Loyalty and Technology

Part of maintaining loyalty is continuing to provide a product that is attractive to the customer.

Through innovative use of data analytics, Marriott can determine the features that are most desirable for

customers and what price point is ideal for those products and services. Much of this data can be gathered

from customers who voluntarily choose to use the company’s technology offerings online and through the

mobile app. Something as simple as knowing that a guest has entered a room due to a digital card swipe

can allow for marketing additional products such as room service or spa treatments.

Sustainability and Technology

Using technology to optimize processes for sustainability is key. The obvious point here is supply

chain management. By sourcing supplies locally, transportation costs can be reduced, and local businesses

can be supported. A hotel offers numerous other options for reducing their carbon footprint as well. Being

able to control lights and air conditioning when guests leave rooms can significantly cut costs and reduce

electricity waste (Close et al., 2023). Some of the technology projects being undertaken by Marriott, such

as smart light fixtures, make this more attainable (Walker, 2023).

Solutions and Strategies

I recommend that Marriott continue to invest in disruptive technologies. As people become more

accustomed to smart devices in their homes, it becomes logical for customers to expect the same type of
devices in their hotel rooms. Additionally, this technology makes it easier to achieve sustainability goals

because they can be controlled easily by the hotel when the guest is not present in the room. Technology

that makes it possible to tell when guests are present in the room is another extension of this process.

A second recommendation is that Marriott continue to invest in the loyalty program. The creation

of a robust loyalty program supported by exceptional technology has been a game changer for Marriott. I

would advise that the company continue to improve their loyalty offerings and maintain a simple,

effective app for customers. By making the loyalty program appealing, Marriott continues to gain insight

into customer habits and interests. This data can be used to further improve the company’s offerings.

Conclusions

Marriott may not be developing disruptive technologies themselves. However, they are

embracing these technological innovations as they come to market. Marriott did not invent smart locks or

smart light fixtures but including them in hotels should continue to be disruptive in the hotel industry.

Marriott should continue to invest in customer loyalty and other customer facing technologies to ensure a

state-of-the-art hotel experience.

 References

Carson, D. (2019, July 10). Marriott International commits to continued innovation in hotel guest-facing

technologies. Hotel Technology News. https://hoteltechnologynews.com/2019/07/marriott-

international-commits-to-continued-innovation-in-hotel-guest-facing-technologies/

Close, K., Faure, N., & Hutchinson, R. (2023, August 9). How tech offers a faster path to sustainability.

BCG Global. https://www.bcg.com/publications/2021/how-technology-helps-sustainability-

initiatives

Marriott. (2023). About Marriott International: Corporate Information. About Marriott International |

Corporate Information. https://www.marriott.com/marriott/aboutmarriott.mi#abcd-item-

8640b3fae9

Marriott International. (n.d.). Sustain - CSR. Marriott. https://serve360.marriott.com/sustain/

Smith, T. (2022, April 2). Disruptive technology: Definition, example, and how to invest. Investopedia.

https://www.investopedia.com/terms/d/disruptive-technology.asp

Walker, B. (2023, April 5). Inside Marriott’s Big Tech Investment Strategy. Hospitality Investor.

https://www.hospitalityinvestor.com/technology/inside-marriotts-big-tech-investment-strategy