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Marriott Corporation, 1983 Annual Report
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Marriott International, Inc.. Marriott Corporation, 1983 Annual Report - Image 28. 1983. Hospitality Industry Archives, Conrad N. Hilton College of Hotel and Restaurant Management, University of Houston. University of Houston Digital Library. Web. December 4, 2020. https://digital.lib.uh.edu/collection/hiltonar/item/303/show/282.

Disclaimer: This is a general citation for reference purposes. Please consult the most recent edition of your style manual for the proper formatting of the type of source you are citing. If the date given in the citation does not match the date on the digital item, use the more accurate date below the digital item.

Marriott International, Inc.. (1983). Marriott Corporation, 1983 Annual Report - Image 28. Annual Reports from the Hospitality Industry Archives. Hospitality Industry Archives, Conrad N. Hilton College of Hotel and Restaurant Management, University of Houston. Retrieved from https://digital.lib.uh.edu/collection/hiltonar/item/303/show/282

Disclaimer: This is a general citation for reference purposes. Please consult the most recent edition of your style manual for the proper formatting of the type of source you are citing. If the date given in the citation does not match the date on the digital item, use the more accurate date below the digital item.

Marriott International, Inc., Marriott Corporation, 1983 Annual Report - Image 28, 1983, Annual Reports from the Hospitality Industry Archives, Hospitality Industry Archives, Conrad N. Hilton College of Hotel and Restaurant Management, University of Houston, accessed December 4, 2020, https://digital.lib.uh.edu/collection/hiltonar/item/303/show/282.

Disclaimer: This is a general citation for reference purposes. Please consult the most recent edition of your style manual for the proper formatting of the type of source you are citing. If the date given in the citation does not match the date on the digital item, use the more accurate date below the digital item.

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Compound Item Description
Title Marriott Corporation, 1983 Annual Report
Creator (LCNAF)
  • Marriott International, Inc.
Publisher Marriott International, Inc.
Date 1983
Description Marriott Corporation Annual Report for calendar year 1983.
Subject.Topical (LCSH)
  • Hospitality industry
  • Hotel management
  • Corporation reports
Subject.Name (LCNAF)
  • Marriott International, Inc.
Genre (AAT)
  • annual reports
  • business records
Language English
Type (DCMI)
  • Text
  • Image
Original Item Location Marriott Hotels Collection
Digital Collection Annual Reports from the Hospitality Industry Archives
Digital Collection URL http://digital.lib.uh.edu/collection/hiltonar
Repository Hospitality Industry Archives, Conrad N. Hilton College of Hotel and Restaurant Management, University of Houston
Repository URL http://www.uh.edu/hilton-college/About/hospitality-industry-archives
Use and Reproduction No Copyright - United States
File Name index.cpd
Item Description
Title Image 28
Format (IMT)
  • image/jpeg
File Name hiltonar_201609_055_028.jpg
Transcript Our extensive consumer research of this business revealed few surprises. It indicated clearly that most travelers in the moderate segment wanted: □ An attractive, comfortable, functional room. □ A relaxing, secure environment. □ A relatively simple restaurant with good food. TJ A well managed operation with friendly, helpful employees. □ All at an affordable price. The research also showed that most moderately priced hotels and motels in America did not adequately deliver these benefits. Many travelers in the moderate segment were dissatisfied. Therefore, our goal was to design a better product and support it with a specially designed, integrated "business system." This "system" would encompass operations, marketing, procurement, management information systems and management development. By mid-1981, the team had developed the basic concept framework for the product: □ Courtyard would be a tightly focused product which targeted transients, not groups, in the moderate price segment. □ The hotel would be 150 rooms or less, to maintain a residential feel and facilitate development in small pockets of demand. □ It would serve a limited breakfast, lunch and dinner. □ Courtyard would be a standardized product managed in "clusters," using computerization and market management teams to reduce operating costs and simplify property management tasks. Next, our architectural design and consumer research groups worked jointly to develop, test and refine the product. We borrowed from our experience and research in the luxury end of the market. Dozens of room sizes and layouts were tested to create a room with the feeling of distinct areas for sleeping, working, relaxing and bathing/ dressing. We found product features could be simple if they were well executed. These included individual room climate controls, large workable desks, phones usable at bed and desk, inside corridors and stairs, and extra security systems. By early 1982, consumer research indicated that our prototype had strong appeal, but we were not satisfied with the projected staffing levels and investment costs. The project team worked to simplify design, construction and operations. Unit investment levels and staffing hours were reduced by an additional 25%, with minimal impact on guest areas. Further research confirmed that this was an appealing and very competitive product for the middle market. In May 1982, the Board of Directors approved a test market consisting of five units in Georgia. The markets were carefully selected to maximize our learning about the product. We wanted to go against strong competitors and to test the product's appeal in a variety of site and market conditions. Marriott's hotel development resources have been used in the project, in anticipation of favorable test market results. The process of evaluating expansion markets and selecting sites is underway. Performance of the initial units, which opened in October 1983, has met our expectations. Moreover, we continue to search for opportunities to further reduce investment as well as strengthen product appeal. Other Business Development Courtyard is more than a new product in a test market. It reflects our management process and commitment to the development of new businesses within the company. This process begins with a climate which encourages "product champions." Peter Drucker has observed, "Money does not produce innovations; people do." We have a small group of full-time product champions within Marriott, and are working hard to create an environment in which anyone can feel free to propose a new idea. The company spends several million dollars annually on research and development for new business opportunities. Dozens of reasonable business propositions are analyzed in depth for every one or two that ultimately will be marketed. The process requires close, frequent interaction between each product development team and senior operating management. Planning at Marriott is not an "ivory tower" exercise. For competitive reasons, Marriott's policy is not to publicly discuss products under development. But beyond Courtyard, dozens of ideas have been carefully analyzed in the last two years. Several are in advanced stages of development. They promise to make a material contribution to our profitability during the 1990s. 26