Raise Price to Improve Revenues and Margins
CHOICE 1 OBJECTIVE: RAISE PRICE WITH NO CHANGE IN PERFORMANCE AND COST
CHOICE 2 ISOLATE SEGMENTS: CUSTOMER SEGMENTS WHO REQUIRE A SPECIFIC PRODUCT SYSTEM COMPONENT
CHOICE 3 COMPONENT: SET OR RAISE MINIMUM PURCHASE REQUIREMENTS
| No. | SIC | Year | Notes |
| 1 | 4512 | 2004 | Marriott has become an industry leader by whipping troops into line, including hotel owners while treating customers with a soft touch. The company offers franchises to hotel owners. They have seen steady recovery while luxury rivals have floundered. Hotel owners under Marriott pay the industry's highest fees and must use Marriott-controlled suppliers. Those suppliers often do not pass along discounts to individual buyers. Owners also complain of over billing for marketing and restaurant-concept research. Despite a willingness to undermine owners by building another hotel near by, most owners feel that they do better under the banner than they could elsewhere; 55% want the lodging giant to manage the next hotel they are buying or building. |
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