Business Units or Product Lines

Marriott International operates through several product lines including its flagship Marriott Hotels, luxury brands such as Ritz-Carlton and St. Regis, mid-range brands like Courtyard and Fairfield Inn, extended-stay offerings such as Residence Inn and TownePlace Suites, and all-inclusive resorts and vacation rentals under brands like Homes & Villas by Marriott International.

Business Models for Each Product Line

Marriott generates revenue primarily through franchising and managing hotels, where it earns fees based on a percentage of the revenues or profits of the hotels operated under its brands. Its major expense categories include marketing and sales expenses, personnel compensation for managed properties, loyalty program costs, and general administrative expenses.

Future Opportunities for Growth

Growth opportunities for Marriott include expanding its presence in emerging markets, increasing its portfolio of luxury and lifestyle brands, capitalizing on the demand for all-inclusive and vacation experiences, and enhancing its digital capabilities and loyalty programs to increase direct bookings and customer engagement.

Potential Major Risks

Key risks include geopolitical uncertainties affecting travel, economic downturns reducing consumer spending on travel, increased competition from other global and local hotel chains, disruptions caused by pandemics or natural disasters, and potential cyber security threats impacting customer data or operations.