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Marriott Corporation, 1978 Annual Report
Image 17
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Marriott International, Inc.. Marriott Corporation, 1978 Annual Report - Image 17. 1978. Hospitality Industry Archives, Conrad N. Hilton College of Hotel and Restaurant Management, University of Houston. University of Houston Digital Library. Web. September 20, 2019. https://digital.lib.uh.edu/collection/hiltonar/item/828/show/804.

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.. (1978). Marriott Corporation, 1978 Annual Report - Image 17. 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/828/show/804

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, 1978 Annual Report - Image 17, 1978, Annual Reports from the Hospitality Industry Archives, Hospitality Industry Archives, Conrad N. Hilton College of Hotel and Restaurant Management, University of Houston, accessed September 20, 2019, https://digital.lib.uh.edu/collection/hiltonar/item/828/show/804.

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, 1978 Annual Report
Creator (LCNAF)
  • Marriott International, Inc.
Publisher Marriott International, Inc.
Date 1978
Description Marriott Corporation Annual Report for the year ending on July 31, 1978.
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 17
Format (IMT)
  • image/jpeg
File Name hiltonar_201609_049_017.jpg
Transcript Contract Group Ahead of '77, But Catering to U.S. Airlines Hit by Changes in Industry > U.S. In-Flite wrestles with changes in airline menus. • International In-Flite profits advance; market share and margins improve. • Terminal and Highway Restaurants generate excellent results. • Food Service Management has '78 profit gain. • Terminal concession awarded at Honolulu International Airport. Contract Food Services had a mixed year but ended fiscal '78 with earnings up 8% and sales ahead 15%. Airline catering, the mainstay of this Group, also improved sales 15% on a worldwide basis. Profits from international operations were up strongly, and more than offset declines for U.S. In-Flite Services, which suffered setbacks during a trying year. Terminal and Highway Restaurants together doubled their operating income in fiscal '78. And Food Service Management showed a modest increase at year-end compared to 1977. U.S. Profits Reduced Fiscal '78 was difficult for U.S. In-Flite. Sales increased but profits declined. Profit margins were eroded by a series of unfortunate developments: • Food, labor and other costs increased sharply. • The worst winter on record closed northern airports at times, simultaneously reducing volume at other locations. • "No-frills" service by some airlines affected several of the largest domestic flight kitchens. • A strike suffered by a major customer hurt fourth quarter earnings. Airlines Change Menus Above all, results were penalized severely by changes in the airline industry's meal requirements. While airline passenger load factors rose dramatically in 1978 thanks to steep airfare discounts, meals ordered by the carriers were downgraded to a large extent. A new focus was put on easier-to- serve, lower-cost snacks rather than full meals. Many of the new food orders, unfortunately, involve substantially more labor-intensive preparation. As a result, traditional meal-pricing formulas— structured basically on food costs more than on labor content—do not permit a fair return. Consequently, Marriott's margins were reduced. Fair Returns Required The solution to the problem rests in renegotiation of marginal or unprofitable arrangements with clients. Marriott In-Flite is working closely with its airline customers at this difficult time, and some success has already occurred. To help offset the difficulties, management has intensified its efforts to build sound volume and find solid efficiencies. Several new and profitable accounts were added in 1978; labor productivity in two major kitchens added in '77 was improved; and energy usage was cut. In-Flite Services received the Association of Energy 15