Airbn-Beat Marriott to It

Breaking Down their ABN

In performing an Asset Boundary Narrative analysis, we deconstruct Marriott to determine what internal components may be driving their decision making.

  • Prominent global real estate (properties)
  • Strong legacy brand and distinct sub brand portfolio
  • Top notch hospitality customer service / loyal staff
  • Worldwide training program
  • Comprehensive reservation system
  • Comprehensive back office system
  • Equity / Cash
  • Licensing agreements (Flag)
  • Copyrights and Trademarks
  • Properties in certain locations that fit legacy brand & portfolio market
  • Properties where our competitors are
  • Minimum standard of service across portfolio
  • Specific property type — min and maximum room count, development, location and structural requirement
  • Property must fit the brand identity
  • Must create memorable experiences to create brand loyalty
  • We cater to high end and business travelers
  • We are premium

What’s the value in an asset?

No question Marriott has a valuable brand and is rich in assets. They are a traditional, long standing hospitality company. However, their portfolio has a few ‘generic’ brands that don’t entirely fit the legacy Marriott brand identity. They simply saw a need in the market and strategically took advantage of it to serve a larger base of clientele — heads in beds = $$$.

Marriott missed a significant diversification opportunity.

Their worldview clearly should fit a dynamic landscape, however in action more so fits the legacy brand, not so much a changing world.

Should Marriott’s board be worried?

Probably not. Airbnb won’t bankrupt them. Marriott will be around for years to come and continue on as a successful hospitality brand servicing a large customer segment. Airbnb targets leisure travelers, while Marriott’s ‘lane’ is business, resort and high-end. Marriott is focused on the property and the service, all which must be in their control to maintain standards for their brand. Going into the sharing market presents uncertainty and risk that would be challenging to mitigate due to control of the property being relinquished and not having to abide by strict brand standards.

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Amit Baria

Amit Baria

Entrepreneur | Investor | Thought Provoker.