![\"\"](\"https:\/\/d3.harvard.edu\/platform-rctom\/wp-content\/uploads\/sites\/4\/2017\/11\/OTAs.jpg\")
<\/a><\/a>Today\u2019s focus: A more agile service supply chain<\/u><\/h4>\n
In hotels, services that need to be customized to individual guests have historically involved layers of middlemen in the service delivery chain. Since 2015, Marriott has been attempting expedite services through its use of the Marriott MobileApp to directly deliver information from operating systems to the guest [4].<\/p>\n
For instance, checking into a room typically requires two transfers of information: from the operating system to the front desk, and from the front desk to the consumer. Marriott Mobile Key \u2013 now offered at 30 properties \u2013 eliminates the middle step of this chain by allowing the guest to check in remotely and use their phone as a key, bypassing the front desk [5]. Similarly, the app\u2019s Mobile Requests feature allows guests to request on-property amenities and services specific to their own needs with no intermediary interaction; even highly custom requests can be communicated using the app\u2019s 2-way chat feature [6].<\/p>\n
Marriott hopes to use machine learning and AI to improve the quality of customization: for instance, tailoring recommendations provided over the 2-way chat feature based on the guest\u2019s profile and historical stay behavior [7]. Thom Kozik, VP of Global Loyalty at Marriott, told Skift: \u201cWhether it\u2019s posted information on social media or shared locations \u2014 we can make more attuned suggestions to you later this year. It\u2019s all about data and how we can use machine learning to go one step further\u201d [8].<\/p>\n
By hosting value-add features on owned technology channels like the MobileApp, the company can restrict a tangible benefit to guests who book direct. By using machine learning to improve execution with increased stays, the company can also motivate guests to maximize share of wallet with Marriott.<\/p>\n While Marriott has made significant strides at the global corporate level, I believe the company should turn its focus to advancements at the property level.<\/p>\n For app-enabled features like Mobile Key, the company has now created a platform for flexibility and control by the end consumer. A key short-term investment the company should now make is in scaling up paired technology at properties to respond to this demand. The 30 properties capable of using Mobile Key represent less than 1% of 6,000+ global Marriott hotels, suggesting most of the opportunity to move the needle still lies in the future [11].<\/p>\n In the medium-term, providing deeper personalization requires access to information about each guest\u2019s interactions with the entire Marriott ecosystem, enabled by integrated technology systems. As the company prepares to merge with Starwood Hotels and Resorts, it must carefully manage the significant risk that visibility could decrease due to the IT challenges inherent in combining two systems and databases [12].<\/p>\n Once the merger is complete, the company will still be left with the challenge of bringing more aspects of guest insight into its mainframe technology platform. Today the platform integrates several facets of guest insight \u2013 e.g. booking and Marriott Rewards data; however, in order for it to be truly effective I believe it should bring in other verticals such as spa or food and beverage [13, 14].<\/p>\n Going forward, my primary questions involve the extent of investment these technological changes will require. Which customization initiatives should be scaled up, in the context of limited technology budgets? Considering the holistic and long-term nature of these programs\u2019 intended impact, how can the company best measure ROI to make informed investment decisions?<\/p>\n (789 words)<\/p>\n …<\/p>\n [1] Jill Barthel et al., \u201cOTAs \u2013 a Hotel\u2019s Friend or Foe? How Reliant are Hotels on OTAs?\u201d HVS Global Hospitality Report (July 2015), HVS International, Business Source Complete, EBSCO, accessed November 2017.<\/p>\n [2] Ibid.<\/p>\n [3] David Eisen, \u201cArne Sorenson on why Marriott\u2019s success is never final,\u201d Hotel Management, February 28, 2017, http:\/\/www.hotelmanagement.net\/development\/arne-sorenson-why-marriott-s-success-never-final<\/a>, accessed November 2017.<\/p>\n [4] Alex Samuely, \u201cMarriott expands mobile requests as keyless room entry takes flight,\u201d Mobile Marketer, November 18, 2015, https:\/\/www.mobilemarketer.com\/ex\/mobilemarketer\/cms\/news\/strategy\/21718.html<\/a>, accessed November 2017.<\/p>\n [5] Marriott International, \u201cMobile Check-In,\u201d http:\/\/mobileapp.marriott.com\/#check-in<\/a>, accessed November 2017.<\/p>\n [6] Chantal Tode, \u201cHow Marriott is using mobile messaging to transform visiting a hotel,\u201d Mobile Marketer, May 15, 2015, https:\/\/www.mobilemarketer.com\/ex\/mobilemarketer\/cms\/news\/messaging\/20443.html<\/a>, accessed November 2017.<\/p>\n [7] Deanna Ting, \u201cWhat Marriott Learned from Starwood\u2019s Loyalty and Digital Expertise,\u201d Skift, February 13, 2017, https:\/\/skift.com\/2017\/02\/13\/what-marriott-learned-from-starwoods-loyalty-and-digital-expertise\/<\/a>, accessed November 2017.<\/p>\n [8] Ibid.<\/p>\n [9] Ibid.<\/p>\n [10] Connie Rheams, \u201cWinning Strategies for Personalizing your Guest Experience,\u201d Hotel Business Review<\/em>, n.d., http:\/\/hotelexecutive.com\/business_review\/1708<\/a>, accessed November 2017.<\/p>\n [11] Marriott International, \u201cAbout Marriott,\u201d http:\/\/www.marriott.com\/marriott\/aboutmarriott.mi<\/a>, accessed November 2017.<\/p>\n [12] Deanna Ting, \u201cMarriott CEO: Technology is the Biggest Risk in the Starwood Merger,\u201d Skift, May 9, 2017, https:\/\/skift.com\/2017\/05\/09\/marriott-ceo-technology-is-the-biggest-risk-in-the-starwood-merger<\/a>, accessed November 2017.<\/p>\n [13] Marriott International, \u201cHotel Development,\u201d https:\/\/hotel-development.marriott.com\/?stop_mobi=yes<\/a>, accessed November 2017.<\/p>\n [14] \u201cRethinking the Current State of Hotel Technology,\u201d September 22, 2017, Skift, https:\/\/skift.com\/2017\/09\/22\/rethinking-the-current-state-of-hotel-technology\/<\/a>, accessed November 12, 2017.<\/p>\n [A] \u201c20 Years of OTAs: How They Transformed the Hotel Industry,\u201d December 13, 2016, Represent Asia News, http:\/\/representasianews.com\/20-years-of-otas-how-they-transformed-the-hotel-industry\/<\/a>, accessed November 2017.<\/p>\n [B] Marriott International, \u201cMobile Check-In,\u201d http:\/\/mobileapp.marriott.com\/#check-in<\/a>, accessed November 2017.<\/p>\n<\/a>Looking forward: The next frontier of enabling technology<\/u><\/h4>\n