Marriott Splits into Four Separate Parts

by Jessica MCILHINNEY on November 19, 2009

The global recession has been particularly harmful to the travel and tourism industry.  With occupancy rates down in hotels, many were left looking for new and innovative ways to reduce costs and increase profits.  Some major hotel chains have looked for ways to tighten up and de-centralize their operations so that costs would become more manageable, as well as more focused on the needs of particular areas.  Marriott International is one hotel chain that is undergoing a massive transformation.  The hotel giant announced that it is undergoing a restructure of its corporate side which will split the company into four autonomous divisions.  In addition the Ritz Carlton will be brought into the fold after formerly standing alone for many years.

Although the hotel giant admits that the changes have not yet been set in stone, they do not foresee massive job loss as a result, in fact, a spokesperson for the hotel said that they felt job loss would not be high because of the transition.  Each of the four factions will have its own president and operate separately from the other branches, even though they will still be under the Marriott flag.  Each will handle its own sales and marketing as well as finance and revenue management.

Marriott claims that the best way for them to manage finances was to let the four branches operate independently so that decisions could be made based on the needs of the particular branch, needs which may not apply to the entire organization.  Marriott says that the changes will only be internal and that the guest will not even realize it has occurred.

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