Marriott Hotels Case Summary

Marriott hotels have been faced with a lot of tradeoffs dealing with their customers for the last few years. The demand of the hotel rooms is usually high and the booking rates are usually high. The problem with the situation comes when the people who have booked the hotels fail to show up or cancel their reservations before their actual arrivals. This usually means a reduction in the revenues collected by the hotel facility. In order to minimize the effects of revenue reduction in the organization, the manager is faced with the decision of making the profitability index high through increasing the number of loyal customers and making optimal choices on the customers to consider for reservation. The time series forecasting technique would be best suited in carrying out the forecasting of historical data in order to draw relevant conclusions in the study. The expected conclusions in the study related with the forecasting technique used should rely on the extracted findings.
Marriott is a business hotel and therefore, the full occupancy of the hotel on …show more content…
Considering the cost to be incurred when a customer fails to get a room and they had booked, the firm would consider absorbing the return customers (Pereira, 2016). However, for the customers who are not return customers, they were supposed be offered with transport services to other hotels and offer gratuity to them. For the return customers who made more than 45 appearances in a year in the hotel, they were supposed to be offered with $200 cash and two free stays for the next times they visit Marriott hotels. That shows that the costs incurred in making that decision is high. In order to reduce the cost incurred in the decision which is supposed to be made, then the hotel facility has to consider taking the reservations to the people who have Marquis