{"id":122172,"date":"2024-11-05T02:32:56","date_gmt":"2024-11-04T19:32:56","guid":{"rendered":"https:\/\/hotvideos24.online\/?p=122172"},"modified":"2024-11-05T02:32:56","modified_gmt":"2024-11-04T19:32:56","slug":"marriotts-new-100m-cost-cutting-strategy-changes-coming-to-your-2025-stay","status":"publish","type":"post","link":"https:\/\/hotvideos24.online\/?p=122172","title":{"rendered":"Marriott\u2019s New $100M Cost-Cutting Strategy: Changes Coming To Your 2025 Stay"},"content":{"rendered":"<p> <script async src=\"https:\/\/pagead2.googlesyndication.com\/pagead\/js\/adsbygoogle.js?client=ca-pub-3711241968723425\"\r\n     crossorigin=\"anonymous\"><\/script>\r\n<ins class=\"adsbygoogle\"\r\n     style=\"display:block\"\r\n     data-ad-format=\"fluid\"\r\n     data-ad-layout-key=\"-fb+5w+4e-db+86\"\r\n     data-ad-client=\"ca-pub-3711241968723425\"\r\n     data-ad-slot=\"7910942971\"><\/ins>\r\n<script>\r\n     (adsbygoogle = window.adsbygoogle || []).push({});\r\n<\/script><br \/>\n<\/p>\n<div id=\"\">\n<h2 class=\"entry-title\">Marriott\u2019s New $100M Cost-Cutting Strategy: Changes Coming To Your 2025 Stay<\/h2>\n<p class=\"entry-meta\">\n\t\t\t\t\t\t\t\t <span class=\"entry-author\">by <a class=\"entry-author-link\" href=\"https:\/\/viewfromthewing.com\/author\/viewfromthewing\/\"><span class=\"entry-author-name\">Gary Leff<\/span><\/a><\/span> <time class=\"entry-time\" datetime=\"2024-11-04T09:59:39-07:00\">on November 4, 2024<\/time>\t\t\t<\/p>\n<p><!-- .entry-meta -->\n\t\t\t<\/div>\n<div>\n<p>Marriott missed profit estimates for the third quarter and lowered its full-year earnings guidance. So they went into their third quarter earnings call this morning prepared to show investors that they were going to do something about it: cost-cutting, specifically $80 to $90 million in \u201cgeneral and administrative cost savings\u201d beginning in 2025, noting also that this would be translating into cost savings to owners and franchisees.\n<\/p>\n<p>This can grow to $100 million. Now, they haven\u2019t detailed where the savings will come from and the category of \u2018general and administrative\u2019 or \u2018G&amp;A\u201d sounds innocuous enough \u2013 like they might all be at the corporate level and won\u2019t affect the customer \u2013 but not so fast.  Here\u2019s CEO Anthony Capuano,<\/p>\n<blockquote>\n<p>We\u2019re looking at efficiencies and savings that we think will have clear benefits to the owners. We\u2019re looking at every facet of our engagement with them. And we expect to have some tangible saving opportunities identified for them in the very near future.<\/p>\n<\/blockquote>\n<p><img decoding=\"async\" src=\"https:\/\/i0.wp.com\/viewfromthewing.com\/wp-content\/uploads\/2016\/02\/IMG_7758.jpg\"\/><\/p>\n<p>The changes Marriott will be making involves <i>every facet<\/i> of what Marriott requires of owners. In the past Capuano has talked about driving hotel owner savings expressly in terms of giving less to the customer <a href=\"https:\/\/viewfromthewing.com\/marriott-ceo-bonvoy-and-breakfast-its-all-about-hotel-owner-costs\/\" target=\"_blank\" rel=\"noopener\">like spending less money on breakfast for guests and not putting alarm clocks in rooms<\/a>.  <\/p>\n<p><img decoding=\"async\" src=\"https:\/\/viewfromthewing.com\/wp-content\/uploads\/2024\/08\/sheraton-waikiki-elite-breakfast.webp\"\/><\/p>\n<p><img decoding=\"async\" src=\"https:\/\/viewfromthewing.com\/wp-content\/uploads\/2021\/07\/img44.jpg\"\/><\/p>\n<p>When he\u2019s spoken about the Bonvoy program being less generous than Starwood Preferred Guest used to be, he simply said <i>but we have more rooms<\/i> (\u201cwe hope that breadth of choice, whether it be brands or geography, is a bit of a mitigating factor\u201d).  Also, a new property management and loyalty platform rolls out next year.<\/p>\n<p>Marriott reported that the Bonvoy program had over 219 million members at the end of September.  <u>This is not active members, and remember that people aren\u2019t mostly joining for the points or elite benefits<\/u>.  Marriott \u2018pays\u2019 members with a ~ 2% discount on room rate for joining the program, so people join in order to book a room.  The more hotels and rooms they have, the more people join the program, which lets them keep marketing to past customers.<\/p>\n<p>\t<!-- \/1019006\/BoardingArea_DynamicContent --><\/p>\n<p>They highlighted that they now have co-brand credit cards to sell in 11 countries, and that Bonvoy members can redeem for a Starbucks coffee.  So there\u2019s that.<\/p>\n<p>And they\u2019re shifting growth at the lower-scale, though the success of their most premium properties continues to drive their revenue growth (since each room night in a luxury property is worth more fees to them than in a low-end one). 30% of rooms growth in the third quarter came from conversions.  Capuano also highlighted growth in low-end rooms (City Express), \u201cwe had people banging on the door saying would you please announce the name so we can start signing deals.\u201d<\/p>\n<p>Capuano once said, \u201cWhen I die, they\u2019ll put the net-rooms growth number on my tombstone.\u201d Marriott will seemingly take a fee from any hotel, of any quality, diluting their brands in the process.<\/p>\n<ul>\n<li>When chains don\u2019t own their hotels, all they have of any value is the brand.<\/li>\n<li>Diluting the brand \u2013 taking fees from hotels that don\u2019t deliver a consistent experience or meet guest expectations \u2013 means taking revenue now, leaving guests feeling shortchanged and disappointed \u2013 and not coming back.<\/li>\n<li>Customers no longer trust the brand, and don\u2019t remain brand-loyal. Hotel chains lose their value.<\/li>\n<\/ul>\n<p><img decoding=\"async\" src=\"https:\/\/viewfromthewing.com\/wp-content\/uploads\/2022\/01\/waikiki-beach-from-marriott.jpg\"\/><\/p>\n<p>It\u2019s the Bonvoy program and brand reputation that allows the hotel chain to deliver customers to owners.  Owners call Bonvoy members \u201cleads.\u201d  The reason they pay Marriott is for access to customers, but that only works when customers understand and trust the Marriott value proposition. So diluting the brand to goose current performance means sacrificing future profitability.<\/p>\n<p>They\u2019re making changes so that owners don\u2019t have to spend as much, but they\u2019ve reassured investors that this won\u2019t come out of their end at corporate.  That means coming out of the guest experience.  And they\u2019re cutting costs across their own operation, too.  I don\u2019t see Marriott getting better for guests in 2025.<\/p>\n<style type=\"text\/css\"><![CDATA[\n\t\tbody.adhesion .pbs[data-pbs-position=\"sticky\"] .pbs__player {\n\t\t\tbottom: 107px !important;\n\t\t}\n\t\t@media (max-width: 767px) {\n\t\t\tbody.adhesion .pbs[data-pbs-position=\"sticky\"] .pbs__player {\n\t\t\t\tbottom: 67px !important;\n\t\t\t}\n\t\t}\n\t]]><\/style>\n<p><h3 class=\"related-title\">More From View from the Wing<\/h3>\n<\/p><\/div>\n<p><script async src=\"https:\/\/pagead2.googlesyndication.com\/pagead\/js\/adsbygoogle.js?client=ca-pub-3711241968723425\"\r\n     crossorigin=\"anonymous\"><\/script>\r\n<ins class=\"adsbygoogle\"\r\n     style=\"display:block\"\r\n     data-ad-format=\"fluid\"\r\n     data-ad-layout-key=\"-fb+5w+4e-db+86\"\r\n     data-ad-client=\"ca-pub-3711241968723425\"\r\n     data-ad-slot=\"7910942971\"><\/ins>\r\n<script>\r\n     (adsbygoogle = window.adsbygoogle || []).push({});\r\n<\/script><br \/>\n<br \/><div data-type=\"_mgwidget\" data-widget-id=\"1660802\">\r\n<\/div>\r\n<script>(function(w,q){w[q]=w[q]||[];w[q].push([\"_mgc.load\"])})(window,\"_mgq\");\r\n<\/script>\r\n<br \/>\n<br \/><a href=\"https:\/\/viewfromthewing.com\/marriotts-new-100m-cost-cutting-strategy-changes-coming-to-your-2025-stay\/\">Source link <\/a><\/p>\n","protected":false},"excerpt":{"rendered":"<p>Marriott\u2019s New $100M Cost-Cutting Strategy: Changes Coming To Your 2025 Stay by Gary Leff on November 4, 2024 Marriott missed profit estimates for the third quarter and lowered its full-year &hellip; <a href=\"https:\/\/hotvideos24.online\/?p=122172\" class=\"more-link\">Read More<\/a><\/p>\n","protected":false},"author":2,"featured_media":0,"comment_status":"open","ping_status":"open","sticky":false,"template":"","format":"standard","meta":{"footnotes":""},"categories":[5],"tags":[],"class_list":["post-122172","post","type-post","status-publish","format-standard","hentry","category-business","entry"],"_links":{"self":[{"href":"https:\/\/hotvideos24.online\/index.php?rest_route=\/wp\/v2\/posts\/122172","targetHints":{"allow":["GET"]}}],"collection":[{"href":"https:\/\/hotvideos24.online\/index.php?rest_route=\/wp\/v2\/posts"}],"about":[{"href":"https:\/\/hotvideos24.online\/index.php?rest_route=\/wp\/v2\/types\/post"}],"author":[{"embeddable":true,"href":"https:\/\/hotvideos24.online\/index.php?rest_route=\/wp\/v2\/users\/2"}],"replies":[{"embeddable":true,"href":"https:\/\/hotvideos24.online\/index.php?rest_route=%2Fwp%2Fv2%2Fcomments&post=122172"}],"version-history":[{"count":0,"href":"https:\/\/hotvideos24.online\/index.php?rest_route=\/wp\/v2\/posts\/122172\/revisions"}],"wp:attachment":[{"href":"https:\/\/hotvideos24.online\/index.php?rest_route=%2Fwp%2Fv2%2Fmedia&parent=122172"}],"wp:term":[{"taxonomy":"category","embeddable":true,"href":"https:\/\/hotvideos24.online\/index.php?rest_route=%2Fwp%2Fv2%2Fcategories&post=122172"},{"taxonomy":"post_tag","embeddable":true,"href":"https:\/\/hotvideos24.online\/index.php?rest_route=%2Fwp%2Fv2%2Ftags&post=122172"}],"curies":[{"name":"wp","href":"https:\/\/api.w.org\/{rel}","templated":true}]}}