With 30 brands and more than 8,000 hotels in 139 countries, Marriott International is, without a doubt, the largest hotel benchmark in the world. For this reason, its strategic vision of the sector serves as a reference for the rest of the companies. In this interview, its Sales Director for EMEA analyzes how the chain has lived in recent years and how it is preparing for the future.
Neal Jones is the strategic leader of Marriott in the area of Consumer Operations, which includes brand management, marketing, digital, sales, revenue and loyalty.
For this reason, its profile is ideal for analyzing how the hotel giant has lived in recent years and how it plans the future.
—During the pandemic, many hotel chains made risky decisions to emerge stronger. Could you tell us about some of the strategies that Marriott carried out and that are now bearing fruit?
—At the height of the pandemic, in April 2020, we had more than 70% of our hotels closed. The financial impact on our business was more severe than 9/11 and the 2008 financial crisis combined.
From the first warning signs of this unprecedented event, we took a number of steps to adapt and strengthen the business, including significantly reducing costs and improving liquidity. We were forced to make some tough decisions, but we had to protect our business for the long term.
Remembering now those first weeks of the pandemic, it is difficult to understand that our company found itself in a situation so different from the current one. While we knew there would be significant pent-up travel demand in the aftermath of the pandemic, it has been encouraging to see how quickly travelers have returned to our hotels.
By June, RevPAR in all regions outside of Asia-Pacific had more than fully recovered to pre-pandemic levels, bringing June global RevPAR 1% above 2019 levels.
Global occupancy for the month rose to 71%, just 5% points below pre-pandemic levels, with impressive global ADR up 8% from the same month in 2019.
—Undoubtedly, Europe has spearheaded the recovery of RevPAR and ADR. Did you expect such an explosive summer?
—The pandemic forced people to rethink their priorities, and by not being able to travel, many people have developed a new appreciation for travel, or it has taken on greater meaning and importance.
Our second quarter results were extraordinary and reflected this pent-up demand for our portfolio of 30 brands around the world. Europe experienced the fastest RevPAR recovery of all our regions this year, due to a strong return from international travel.
With borders open across Europe, overnight stays by international guests more than doubled in the region from Q1 to Q2. While leisure travel has undoubtedly driven the recovery so far, we are also seeing demand return from groups and business travelers, albeit at a more moderate pace.
—Has the distribution of the cake changed in terms of direct reservations and those from OTAs or bedbanks?
—Our scale and breadth of distribution gives us a huge advantage over the competition. With more than 169 million members worldwide, Marriott Bonvoy, our comprehensive travel program, allows us to connect directly with and inspire high-net-worth travelers around the world.
Members who book directly can earn and redeem points seamlessly at all 30 participating hotel brands, including more than 8,100 hotels in 139 countries and territories, as well as our Homes & Villas rental offering.
Marriott Bonvoy is our competitive advantage. It’s the foundation of everything we do and brings customers directly to Marriott again and again.
—As you say, loyalty programs have become a fantastic tool to boost direct booking. Tell me a little more about this Bonvoy, what benefits do travelers get who become loyal Marriott?
—Marriott Bonvoy’s 169 million members who book directly receive free Wi-Fi, mobile check-in and lower rates. Also, as I was saying, members earn and redeem points at all of our hotels and rental homes.
To drive member penetration and deepen loyalty, we also offer exciting experience-driven campaigns and give our loyal members access to experiences that can’t be purchased through Marriott Bonvoy Moments.
These Moments allow our guests to create memories, forge new connections and enjoy incredible once-in-a-lifetime experiences.
Marriott Bonvoy will continue to debut Unique Moments encompassing incredible music, sports, cultural and culinary experiences, in new locations around the world throughout the remainder of 2022 and into 2023.
In addition to hotel events, Moments also include unique experiences through Marriott Bonvoy’s long-standing relationships with the NFL, the Mercedes-AMG Petronas Formula 1 Team, Manchester United and London’s O2 Arena.
Additionally, to inspire travelers as they plan their vacations, Marriott Bonvoy recently launched its annual “Week of Wonders,” featuring a week of exclusive offers, opportunities to win free stays and amazing experiences. Access to these offers and exclusive experiences make the difference.
—But after living such a good summer, what do you expect for the fall and the coming months?
—We are watching the macroeconomy very carefully and planning for a number of different scenarios, but we still see no signs of a slowdown in global demand for accommodation.
Since the pandemic, we have seen consumer spending shift from goods to experiences and we remain optimistic about the resilience of travel.
We have some exciting new hotels scheduled to open before the end of the year, such as Dubai’s Marriott Resort Palm Jumeirah, located on the iconic Palm Jumeirah Beach, and 12|14 Stradom House, Autograph Collection, housed in a magnificent building in the 14th century steeped in history in Krakow, Poland.
—From a giant like Marriott, have you noticed much change in the way of booking? Do you book less in advance? Is cancellation free of charge more?
—We are seeing a new willingness of people to embrace the now and take action on those “bucket list” trips, seeking unique, remote and off the beaten path destinations. A repressed desire to travel, combined with a new flexibility when it comes to working or learning remotely, has resulted in travelers staying longer, mixing business trips with an added leisure stay.
We’re also seeing guests take a more thoughtful and purposeful approach to travel. They want to foster a deeper connection to the places they visit, learning about the people, history, food, and culture of a place, as well as seeking out experiences that focus on holistic wellness, as well as those that emphasize building of relationships.
—Marriott is something like the oracle where the rest of the hotels can look at each other. As a frontrunner in the industry, what would you advise smaller chains and even independent hotels to attract this new traveler?
—Millennials and Gen Z will fundamentally change the consumer landscape. They are driving a desire for more experience-oriented travel. In response, Marriott International is elevating travel by offering distinctive brand experiences suitable for any type of travel, with a new perspective on luxury and a deep understanding of the rapidly evolving expectations and aspirations of the global traveler.
Innovation has always been part of our DNA at Marriott. We adapt and bring new concepts to the market taking into account the needs and preferences of consumers, and we listen to our customers. We want to have a product for each type of customer and each type of trip.
We believe that the key to success is technology combined with empathy and the human factor. It’s more important than ever for us to lead the digital space, foster the spirit of innovation, and use technology in ways that allow us to deliver a personalized end-to-end customer experience.
Our Marriott Bonvoy app features help free our associates to have more meaningful interactions and spend more time with our guests—high tech and high impact.
However, we will never forget the importance of in-person service, ensuring our teams deliver service based on empathy and a deep understanding of our guests’ wants and needs.
—The pandemic has also served to boost technology. If as head of Sales and Marketing you had to choose three technological solutions or tools, which ones would you choose?
—An increasingly globalized and connected world has created a greater collective dependence on technology. Our guests want options like check-in and mobile key, view room menus from the convenience of their personal device, and the ability to contact your hotel without having to pick up the phone and call. That’s why guests interact with the Marriott Mobile app before, during and after their stay using our mobile request chat feature.
Our luxury properties are defined by bespoke services and superb amenities, and we believe technology can be used to deliver both. Our Marriott Bonvoy app features help free our associates to have more meaningful interactions and spend more time with our guests—high tech and high impact.
However, our focus is on making sure that, at the end of the day, our teams deliver service based on empathy and a deep understanding of our guests’ wants and needs.
“And finally, as the advance guard that you are, do you think that in the near future we will book or even ‘travel’ through the metaverse?”
—Late last year, Marriott Bonvoy was one of the first hospitality brands to create their own NFTs at Art Basel Miami Beach 2021, which was exciting to bring our extraordinary portfolio of hospitality brands and myriad experiences to this growing platform .
I believe that in the future the metaverse may allow us to virtually explore destinations from the comfort of our homes, but nothing can replace the physical experience of travel, full of social connections and everlasting memories that cannot be reproduced in digital space.