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surveys case study and need support to help me learn. i am attaching a sample paper of "ZOOM" COMPANY case study taking that paper as example and need same paper with "MARRIOT HOTELS " company case study and no palagarism. NAME OF THE PAPER SHOULD BE vaddenaveen.DOC Requirements: 2 papers SAMPLE STRATEGY MODEL ANALYSIS PAPER INFO 6790 Ecosystem Analysis Zoom Communications GIP: Goal: Zoom provides frictionless video communication environment to encourage professional interaction. Industry: Online video technology. Product: Meetings. INDUSTRIES / PLAYERS: (Needed: 4+ industries and 3 characteristics for each industry) Network Provider ¥ AT&T and Zoom collaborated to give customers clear audio and video for communication, which can accommodate thousands of participants at once, and allow seamless embedding of third-party applications within Zoom meetings, enhancing collaborative features to increase productivity in virtual and hybrid workspace. (AT&T Intellectual Property, 2021) ¥ Zoom is designed to run in 3G, 4G/LTE, WIFI or a wired connection regardless of what internet provides customer uses. It is suggested to have a minimum range of 0.6-1.5Mbps for Zoom to function basic tasks such as a one-to-one video calls with uploads and downloads. (BuyTVInternetPhone, 2022) ¥ Zoom utilizes Lumen Technology’s fiber network to strengthen and provide exceptional quality video communication platforms, where they help organizations grow in secure conditions. (Lumen Technologies, 2020) Hardware and Software ¥ Zoom allows customers to join a meeting in a web browser, although with limited services, without downloading any plugins or software. This feature doesn’t require the customers to sign-in to a zoom account, however they need to identify themselves and are subject to require permission from the host. (Zoom Video Communications Inc, 2021) ¥ As businesses have relied on Zoom for communication, Zoom has partnered with Lenovo’s ThinkSmart to feature devices that area designed to handle the Zoom meetings. (Lenovo Tech Today, 2022) ¥ “Zoom delivered by Lumen” allows organizations to shift to cloud environment efficiently and securely, making the video-first Zoom platform virtually accessible from anywhere. (Lumen Technologies, 2022) ¥ Canva offers extensive choices of virtual backgrounds for Zoom meetings, to reinforce the meeting’s quality with professional atmosphere no matter where participants are working from. (Canva, 2021) 2 Information Technology ¥ Zoom technical experts are available 24/7 at customer’s disposal to provide support and solutions. (Zoom Video Communications Inc, 2022) ¥ Zoom’s architecture allocates the intelligent agents in customer’s devices to effectively encode and decode depending on the performance of customer’s technology, network speed and stability, etc. (Zoom Video 2021 Annual Report, 2021) ¥ Zoom allows users to enhance the security of their meetings by giving them option to enable or disable feature to only let authenticated participants to join their meeting. (Zoom Video Communications Inc, 2022) Banking and Finance ¥ Zoom accumulated a revenue of over $2.65 billion in 2021 from its cloud-based platform, that provides unified communication services. (Vailsherry, 2022) ¥ While, basic Zoom meetings are free, it comes with limited functionalities. An individual or an organization can purchase additional plan with extended functionalities for as low as $14.99/month/license. (Zoom Video Communications Inc, 2022) ¥ Zoom facilitates its users with wide range of payment options, that has made it easier for users to manage their subscriptions. It also allows users to pay manually or put their account on autopay. (Zoom Video Communications Inc, 2022) ECOSYSTEM MODEL: Consumers Information Technology Hardware and software Banking and Finance Network Provider 3 RELATIONSHPS: Network Provider 1. With information technology: AT&T’s teleconference reservation provides an exclusive URL, which helps users access reliable video and audio conferencing at supported devices. (AT&T Intellectual Property, 2019) 2. With consumers: In a geographically distributed infrastructure, where people from all over the world are relying on Zoom communications to fulfill their professional and personal interactions, proper network connection will let customers access Zoom’s cloud platform from anywhere. (Zoom Video Communications Inc, 2020) Hardware and Software 1. With information technology: Zoom’s performance and user experience depends on the interoperability of their platform across all devices and operating systems and support all third-party applications. Zoom Communications might not function properly if they are not able to sustain good relationship with third party organizations and congregate their platforms and solutions. (Zoom Video Communications Inc, 2022) 2. With consumers: Zoom integrates consumers into building new products and services, such as backgrounds for videos and co-creates with consumers. (Canva, 2021) Information Technology 1. With hardware and Software: To reduce crowding and network failure, Zoom spread its servers across 17 data centers around the world. (Kominers, 2020) 2. With consumers: IT organizations put the security in place for Zoom to securely provide reliable services to its customers and employees. (Kominers, 2020) Banking and Finance 1. With network provider: Zoom intends to retain their profits and earnings to invest and contribute to the further development of the products they offer. (Zoom Video 2021 Annual Report, 2021) 2. With consumers: Zoom’s flexible pricing model helps them receive utmost customer satisfaction. They give customers complementary features such chat-box with meeting product. (Kominers, 2020) 4 BIBLIOGRAPHY: ¥ AT&T Intellectual Property, (2021). Keep employees connected and contributing, wherever they work in the U.S. Retrieved from https://www.business.att.com/content/dam/attbusiness/infographics/ATT-Conferencing-with-Zoom-Infographic.pdf ¥ Zoom Video Communications Inc, (2020). Zoom and Lumen Partner To Deliver Enhanced Collaboration Experience. Retrieved from https://investors.zoom.us/news-releases/news-release-details/zoom-and-lumen-partner-deliver-enhanced-collaboration-experience ¥ BuyTVInternetPhone, (2022). Retrieved from https://www.buytvinternetphone.com/blog/internet-speed-need-for-zoom ¥ Zoom Video Communications Inc, (2021). Getting started with the Zoom web client. Retrieved from https://support.zoom.us/hc/en-us/articles/214629443-Getting-started-with-the-Zoom-web-client ¥ Lumen Technologies, (2020). Lumen and Zoom combine technology and collaboration platforms to deliver an amazing experience. Retrieved from https://news.lumen.com/2020-11-23-Lumen-and-Zoom-combine-technology-and-collaboration-platforms-to-deliver-an-amazing-experience ¥ AT&T Intellectual Property, (2021). Communicate better with clear audio and video. Retrieved from https://www.business.att.com/content/dam/attbusiness/briefs/zoom-meetings-with-att.pdf ¥ Reviews, (2021). What Internet Speed Do I Need for Zoom? Retrieved from https://www.reviews.org/internet-service/zoom-technical-requirements/ ¥ Lenovo Tech Today, (2022). Smarter rethinks collaboration. Retrieved from https://techtoday.lenovo.com/us/en/thinksmart-for-zoom ¥ Lumen Technology, (2022). Retrieved from https://www.lumen.com/help/en-us/ucc/zoom.html ¥ Zoom Video Communications Inc, (2022). Retrieved from https://community.zoom.com ¥ Zoom Video Communications Inc, (2022). Retrieved from https://support.zoom.us/hc/en-us/articles/360037117472-Configuring-authentication-settings-and-profiles ¥ Vailsherry, (2022). Zoom Video Communications, Inc. - Statistics & Facts. Retrieved from https://www.statista.com/topics/8249/zoom-video-communications-inc/#topicHeader__wrapper ¥ Zoom Video Communications Inc, (2020). Retrieved from https://explore.zoom.us/docs/doc/Zoom%20Connection%20Process%20Whitepaper.pdf ¥ Kominers, (2020). Zoom Video Communications: Eric Yuan’s Leadership during COVID-19. Boston: Harvard Business School Publishing. ¥ Zoom Video Communications Inc, (2021). Zoom Video 2021 Annual Report. 9-618-017 REV: NOVEMBER 15, 2018 Professors Chiara Farronato and Gary Pisano prepared this case with the assistance of Y. Max Wang. It was reviewed and approved before publication by a company designate. Funding for the development of this case was provided by Harvard Business School and not by the company. Leila and Brandon Cormier are fictional. HBS cases are developed solely as the basis for class discussion. Cases are not intended to serve as endorsements, sources of primary data, or illustrations of effective or ineffective management. Copyright © 2017, 2018 President and Fellows of Harvard College. To order copies or request permission to reproduce materials, call 1-800-545-7685, write Harvard Business School Publishing, Boston, MA 02163, or go to www.hbsp.harvard.edu. This publication may not be digitized, photocopied, or otherwise reproduced, posted, or transmitted, without the permission of Harvard Business School. CHIARA FARRONATO GARY PISANO Marriott International: The Next 90 Years Leila and Brandon Cormier sat in the kitchen of their San Francisco apartment contemplating the options for their annual New Year’s Eve getaway. Leila, a management consultant with a heavy travel schedule, went right to the Marriott website to peruse the options. “I’m thinking The Ritz-Carlton on Central Park would be awesome.” After a few more clicks, she added, “Ooh, wait, the Prince de Galles, a Luxury Collection hotel in Paris, would be even cooler. And with all these points we can cash in, it might not even cost us that much.” Brandon, a software engineer in a well-known tech firm, had other ideas. “The Ritz-Carlton or the Prince de Galles are great, but I was kind of thinking we could try something different this year. How about we get a private apartment in New York or Paris through Airbnb? Look, here’s one right here. Gorgeous. It’s in a nice little residential neighborhood. View of the Eiffel Tower. And look here . . . You can even book a private cooking class.” Leila countered, “Room service, clean sheets, concierge . . . How do we even know how clean this place is? With a hotel, you know what you’re getting. No bad surprises.” Brandon sighed, “But that’s exactly the problem. No surprises. I want a different experience. I want to live like a real Parisian for a few days. I might even buy a beret.” Leila smirked, “I might consider it if you promise no beret!” Senior leaders at Marriott International, the world’s largest hotel operator, were well aware that conversations like the Cormiers’ were happening more frequently. While prices and occupancy were at all-time highs and demand for Marriott rooms showed no signs of abating, few could miss the changes afoot in the industry. Travelers now had a much broader palette of choices. Through online travel agencies like Expedia or Booking.com, they could quickly compare alternative hotel offerings and read detailed evaluations by previous travelers. Platforms like Airbnb were dramatically expanding the offerings of home-sharing rentals. And like the Cormiers, many travelers were looking for more than a hotel. They wanted a complete experience. Stephanie Linnartz, Executive Vice President and Global Chief Commercial Officer, commented: We have to learn from our competitors. For example, we asked, What do people love about home-sharing? What we found is that they love the local authentic experience that For the exclusive use of v. boppana, 2023.This document is authorized for use only by venkata sathya sai jashwanth boppana in INFO 6790 Spring 2023 taught by Donald Amoroso, Auburn University from Jan 2023 to Apr 2023. 618-017 Marriott International: The Next 90 Years 2 comes from staying in someone’s house or apartment and cooking in their kitchen. So, the question for us is how to provide a local authentic experience with all the safety and security of a hotel. We have a couple of initiatives in this direction. Our joint venture with PlacePass, for instance, gives Marriott guests access to a whole array of curated experiences just about everywhere we operate a hotel. When you book through Marriott, you are automatically set up on PlacePass and are presented information about events, activities, and experiences related to the places you are going, and you can book them directly. We are also experimenting with new formats—like our Element brand—that make a hotel feel more like a residence. Ron Harrison, Global Design Officer, commented that adapting to a changing competitive environment was nothing new to Marriott: Marriott’s history is one of constant evolution and innovation. Bill Marriott, Sr. started in 1927 with a root beer stand, and then got into restaurants. From there, the company got into inflight catering. And then finally, in 1957, Marriott opened its first hotel. We later innovated our operating model around an ‘asset-light’ concept where we provided the management and others invested in the physical facilities. We have the longest-running loyalty club for hotel guests, and in 2017, Marriott International was selected by Fast Company as one of the World’s 50 Most Innovative Companies. So, change and innovation are in our DNA. Marriott International—History John Willard Marriott and his wife, Alice Sheets Marriott, opened an A&W root beer stand in Washington, DC, in 1927. Borrowing recipes from the Mexican Embassy, Alice began making chili and tamales, and the Marriott’s humble root beer stand evolved into a full-fledged restaurant known as the Hot Shoppe. In 1928, Marriott opened two additional Hot Shoppes, one of which became the first drive-in restaurant on the East Coast. In 1937, while busy expanding Hot Shoppes into a chain, Marriott noticed that passengers flying out of Washington’s Hoover Airport were carrying lunch boxes on board. This gave him an idea, and Hot Shoppes began to deliver boxed lunches to air passengers. Later, Marriott expanded this concept to become the world’s leading provider of airline meals.1 The company went public in 1953. Bill Marriott, Sr. opened his first hotel, the Twin Bridges Marriott Motor Hotel, in Arlington, Virginia, in 1957. When his son J.W. Marriott, Jr. (“Bill”) became president of the company in 1964, the company owned only four hotels. With the rapid expansion of travel ushered in by both the interstate highway system and growing air travel, Bill saw great potential in expanding the company’s hotel operations, but his father was opposed to adding debt. Despite this constraint, by 1975 the company had 36 hotels (Exhibit 1). Unfortunately, the expansion of the company’s hotel business, growing restaurant operations, and entry into the theme park business strained its balance sheet. With the company’s cash flow depressed by a recession, in 1976 the company issued $22 million in equity. A year later, it announced the sale of seven hotels to an insurance company, subject to long-term management agreements. Entering into management agreements allowed the company to control hotel operations, participate in the significant 1 “COMPANY NEWS: Marriott to Sell Air Catering Unit,” New York Times, July 12, 1989, http://www.nytimes.com/1989/07/12/business/company-news-marriott-to-sell-air-catering-unit.html. The Air Catering Unit was sold in 1989 to Caterair International, a group of private investors. For the exclusive use of v. boppana, 2023.This document is authorized for use only by venkata sathya sai jashwanth boppana in INFO 6790 Spring 2023 taught by Donald Amoroso, Auburn University from Jan 2023 to Apr 2023. Marriott International: The Next 90 Years 618-017 3 earning potential of each hotel, and, relieved of the capital investment of each hotel, grow more rapidly (Exhibit 1). In Marriott’s 1977 annual report, the company summarized its new asset-light strategy: Marriott’s long-term program to increase return on investment produced another year of significant activity. Emphasis on management rather than ownership of hotels, redeployment of marginal or non-earning assets, and application of stringent new ROI criteria for all projects will benefit 1978 and later years […]. Soon more than 50 percent of our hotel rooms are expected to be under management agreements. Bill further accelerated the growth of Marriott’s lodging business by expanding the portfolio of brands to focus on different segments of the market. The first addition to the Marriott family of brands was Courtyard by Marriott in 1983. The following year they added JW Marriott, and in 1987 they added Fairfield Inn & Suites and purchased Residence Inn. Brand proliferation continued steadily through the next 30 years, and by 2015, there were 19 brands under the Marriott umbrella, ranging from luxury (The Ritz-Carlton, Bulgari Hotels & Resorts, JW Marriott) to upscale (Marriott Hotels, Courtyard by Marriott, Residence Inn by Marriott) to midscale (Fairfield Inn & Suites, MOXY). Bill Marriott, Jr. retired as CEO in 2012, remaining Chairman of the Board. Arne Sorenson became the third CEO in the company’s history, the first non-family member to run Marriott International. In 2016, Arne led the acquisition of Starwood Hotels & Resorts, which brought the total number of Marriott brands from 19 to 30, doubling its presence outside of the U.S., and making Marriott the largest hotel company in the world (Exhibits 2, 3, and 4). In 2017, the Marriott family still held nearly 20% of outstanding Marriott shares, which made them the largest shareholder. At the time, Marriott’s lodging management and franchise business was highly profitable. Its overall profitability had been positive since the aftermath of the 2008 financial crisis (Exhibits 5 and 6). Excluding the impact of cost reimbursements and including Starwood, company operating margins were around 45% in 2016, reflecting strong and growing management and franchise fee revenue, and slower growing general and administrative expenses. Marriott’s Business Model Under Marriott’s “asset-light” business model, the company owned relatively few hotels. Of the more than 6,000 properties around the world flying a Marriott International flag, slightly over 4,000 were franchises, and approximately 1,800 were operated by Marriott under a management agreement with third-party property owners.2 (For a breakdown of the 6,080 properties by brand and geography, see Exhibit 4.) For properties operated under a Marriott management agreement, Marriott International was responsible for hiring, training, and supervising the managers and staff needed to run the hotel. Third-party investors, such as real estate investment funds, private equity firms, or real estate developers (Exhibit 6), made the capital expenditures needed to build or purchase and maintain the property. As part of the management agreement, Marriott was able to impose specific standards on the physical appearance, design, and condition of the property. For new hotel projects, Marriott competed for management contracts or franchise agreements with other hotel operators such as Hilton International. Several factors were important to property owners in selecting an operating or franchise partner, 2 In the vast majority of these “management contract” hotels, Marriott held no ownership interest in the properties. But in approximately 100 of these properties, Marriott invested as a joint venture partner with third-party investors. For the exclusive use of v. boppana, 2023.This document is authorized for use only by venkata sathya sai jashwanth boppana in INFO 6790 Spring 2023 taught by Donald Amoroso, Auburn University from Jan 2023 to Apr 2023. 618-017 Marriott International: The Next 90 Years 4 including the reputation of the brand, the quality of the partner’s operating and management processes, the loyalty of its customer base, and the financial terms of the agreement. On average, Marriott legacy brands earned a 13% revenue-per-available-room premium over competitor hotels in the same markets.3 Under a typical management agreement, Marriott earned two types of fees: a base management fee calculated as a percentage of revenue—usually around 3%—and an incentive management fee calculated as a percentage of hotel profits—usually around 20%–25% of operating cash flow above the owners’ priority—i.e., a minimum threshold that owners would keep to themselves.4 Marriott was also reimbursed for the costs of procuring food, supplies, and other services. Management agreements usually lasted for 20 or 30 years, with options to renew for up to 50 years or longer.5 For franchised properties, direct operating responsibility fell to the franchisee. Marriott provided access to its brand, reservation system, and operating procedures, but the franchisee was responsible for hiring and employing staff and for day-to-day management. Under a franchise agreement, Marriott imposed strict standards on the quality of physical facilities, cleanliness, appearance, and customer service, and it conducted regular audits to ensure franchisees were in compliance. Failure to comply with Marriott standards could lead to the loss of a franchise license. Under the franchising agreement, Marriott earned a royalty fee that was usually 4–6% of room revenue and 2–3% of food and beverage revenues. Franchisees also reimbursed Marriott for centralized operations such as reservations, marketing, and advertising. In general, Marriott used the management contract model for its luxury brands (such as The Ritz-Carlton and JW Marriott) and franchised its upscale and midscale brands (such as Marriott Hotels, Courtyard by Marriott, and Fairfield Inn & Suites). The franchising model was also more prevalent within the U.S. and Canada, with 80% of Marriott International hotels being franchised, compared to abroad, where only 28% of hotels were franchised. (Exhibit 4 shows a breakdown of hotel properties by ownership.) Marriott’s Loyalty Programs While customer loyalty programs date back to the 1700s, they became a critical feature of the travel industry in the 1970s with the advent of airline frequent flier clubs. Marriott launched its first loyalty program, Marriott Honored Guest program, a predecessor to Marriott Rewards, in 1984. As of 2017, it remained the longest-operating loyalty program of its kind. In 1997, Marriott became the first hotel operator to allow its members to both earn and redeem points across all the brands in its system. As of 2017, Marriott had three customer loyalty programs: Marriott Rewards, which included The Ritz-Carlton Rewards, and Starwood Preferred Guest (SPG), which came with the recent acquisition of Starwood. The total number of loyalty program members had surpassed 100 million after the merger, up from 54 million in 2015 (Exhibit 7). While the Marriott and Starwood programs were administratively separate, Marriott enabled members to transfer points across programs. In 2016, Marriott Rewards members purchased slightly more than 50% of the room nights booked within Marriott. Rewards points were only granted when guests booked directly with Marriott, either by phone, the web, or the Marriott mobile app. Loyalty 3 Marriott International annual reports. Marriott Analysts Day Conference, March 2017, New York. 4 “Why Hotel Giant Marriott Is on an Expansion Binge as It Fends Off Airbnb,” Fortune, June 14, 2017. 5 Management agreements in the Middle East and Asia typically did not include the owners’ priority, and incentive fees were based on a straight percentage of hotel profits. For the exclusive use of v. boppana, 2023.This document is authorized for use only by venkata sathya sai jashwanth boppana in INFO 6790 Spring 2023 taught by Donald Amoroso, Auburn University from Jan 2023 to Apr 2023. Marriott International: The Next 90 Years 618-017 5 programs allowed Marriott International to accumulate information on the habits of frequent travelers. This gave Marriott an opportunity to follow through on this information during future guests’ stays. (For a breakdown of room nights booked by loyalty program members by chain scale, luxury through economy, see Exhibit 8.) In addition to hotel rooms, loyalty program members could redeem points for unique experiences on Marriott Rewards Moments and SPG Moments. Among the thousands of options, members could choose events such as concerts, sporting events, cultural activities, and cooking classes.6 Karin Timpone, Global Marketing Officer, enthused: One of my favorite examples is Coachella, the annual music and arts festival in California. In 2017 we sponsored Coachella, so we decided to set up elegant tents designed according to our different Marriott brands. There was a special space within the concert area, just for our loyalty members to enjoy. Members could bid points to stay at one of these tents. Being a member of our loyalty program not only gives you great stays at one of our hotels, but you also get access to a series of experiences you just cannot get otherwise. Guests earned points as they stayed at a hotel in the Marriott portfolio. The hotel forwarded to Marriott a percentage of the hotel revenue associated with that stay, enhancing Marriott’s cash flow. Whenever a guest used loyalty points to purchase hotel stays, Marriott International paid the hotel (or the experience provider) directly using a pre-determined formula that converted points into dollars. Thus, from a hotel owner’s point of view, it made little difference financially whether guests were paying for their stay with money or with points. From an accounting point of view, whenever a guest earned points, there was a concurrent cash inflow and a liability increase. Whenever a guest used points, there was a concurrent cash outflow and a liability decline. The Hotel Industry By the end of 2016, the hotel industry comprised over 177,000 hotels and 16.7 million rooms worldwide. Of those rooms, about 53% were affiliated with a major brand. Most hotel rooms were still concentrated in relatively few countries, with the top 20 countries accounting for over 80% of total rooms. Global annual hotel revenues were around $468 billion in 2016, 40% of which came from the U.S. 7 By the end of 2016, Marriott was the world’s largest hotelier. After the merger with Starwood, its portfolio included over one million rooms, a figure that was 46% greater than its closest rival, Hilton (Exhibit 2). Worldwide, the top five operators—Marriott, Hilton, InterContinental Hotels Group (IHG), Wyndham, Accor—controlled 24% of hotel rooms (Exhibit 3). Compared to other travel services such as car rental or cruise lines, where the top five companies controlled well over 80% of the market, lodging was significantly more fragmented. In the U.S., there were almost 55,000 hotels and over 5 million rooms in 2017. Out of all hotel rooms, 70% were affiliated with a brand, with the top five operators representing half of them. Marriott 6 “Marriott Rewards Moments,” https://www.moments.marriottrewards.com/ and “SPG-Starwood Preferred Guest moments, https://auction.starwoodhotels.com/, c2018. 7 “Statistics & Facts on the Hotel and Lodging Industry,” Statista, https://www.statista.com/topics/1102/hotels/. For the exclusive use of v. boppana, 2023.This document is authorized for use only by venkata sathya sai jashwanth boppana in INFO 6790 Spring 2023 taught by Donald Amoroso, Auburn University from Jan 2023 to Apr 2023. 618-017 Marriott International: The Next 90 Years 6 operated just over 14% of hotel rooms in the U.S., Hilton just under 12%, and Wyndham, Choice Hotels International, and IHG around 8% each.8 Demand for hotel rooms typically followed broad economic cycles, while supply adjusted with some delay because new hotel projects took between three and five years from start to opening. For instance, during the financial crisis of 2008–2010, demand for hotel rooms plummeted. Initiation of new construction projects ground to a halt, while hotels already under construction opened in the worst years of the crisis. Since the end of the financial crisis, demand for hotels had been increasing rapidly, and in many places, it was outstripping the growth in supply (Exhibit 9). The economic rebound, particularly in the U.S., led to an increase in hotel projects. According to STR, an American company tracking demand and supply trends in the hotel industry, in 2017 the U.S. had 4,836 projects under contract, with an aggregate 583,028 rooms. Of the rooms under construction, 28% were associated with one of the Marriott brands. As a relatively high fixed-cost business, hotel profitability depended critically on its operating margins. Two metrics directly affected operating margins: occupancy rates (the number of rooms sold as a share of total available rooms) and average daily room rates (the average price for a booked room on a given day).9 Both occupancy rates and average daily room rates tended to vary significantly over the course of a week and over the year. While hotel occupancy rates averaged 75%, there were usually a few days per year in any given city when 95% or more of available hotel rooms were booked. These so-called “compression nights” typically coincided with city-wide special events (e.g., the Super Bowl) or large conventions for which many travelers needed hotel accommodations. Between 2011 and 2016 in the top 10 U.S. markets, compression nights were 4.9% of all nights, but accounted for almost 8% of total annual hotel revenues (Exhibit 10). This occurred because room rates were over 35% higher on compression nights than on regular nights for those cities.10 Weekends were more likely to experience compression nights in those cities, since 40% of compression nights occurred on Fridays or Saturdays. On weekends, rooms were mostly occupied by leisure travelers. (Exhibit 11 shows 2016 performance metrics for Marriott brands.) Over the last two to three decades, all leading hotel companies had invested extensively in deploying information technology (IT) to enable a variety of operating processes, from managing loyalty programs to managing hotel operations. Typically, IT projects were scoped and executed on an as-needed basis, with the IT organization operating as a service to individual business projects and functions. Each project was defined and justified with its own individual return on investment. Implementation was often accomplished in collaboration with external system integrators like IBM, Accenture and Deloitte. The resulting IT infrastructure was fragmented, with each functional organization, each hotel chain, and even individual hotels using systems that often relied on different generations of software and hardware. Despite some recent efforts, integration across information systems or across data bases was incomplete. 8 Casewriters’ calculations from STR data. 9 The third important metric in the lodging industry is revenue per available room—RevPAR. It is computed as the ratio of total daily revenue divided by the number of available rooms, or simply as the product of occupancy rate times average daily room rate. 10 Casewriters’ calculations from STR data. The cities included in the dataset are Austin, Boston, Chicago, Los Angeles, Miami, New York, San Diego, San Francisco, Seattle, and Washington, DC. For the exclusive use of v. boppana, 2023.This document is authorized for use only by venkata sathya sai jashwanth boppana in INFO 6790 Spring 2023 taught by Donald Amoroso, Auburn University from Jan 2023 to Apr 2023. Marriott International: The Next 90 Years 618-017 7 Evolving Competitive Environment Beginning in the late 1990s and early 2000s, the travel market experienced a number of significant changes associated with the growing ubiquity of internet-based commerce. Two of the most important changes were the rise of online travel agencies (OTAs) and the more recent emergence of home-sharing platforms like Airbnb. Online Travel Agencies In the late 1990s, the internet facilitated the growth of travel agencies that operated strictly online. Online travel agencies (OTAs)11 such as Priceline and Expedia enabled travelers to shop for and book hotels, flights, cars, and other travel-related services simply by browsing a webpage. OTAs exploded in popula