Marriott CEO: Business is Strong, Layoffs Are a Shift

Marriott International's CEO, Anthony Capuano, recently shared some good news. Despite laying off over 800 corporate workers, he believes the company's business is solid. The hotel chain's growth is looking up, with a 3% increase in worldwide revenue per available room (RevPar) in the third quarter. This happened even though RevPar in China, one of their biggest markets, dropped by 8%. Capuano sees a brighter future, with more hotel deals signed in the first half of 2024 than ever before in China. He thinks this shows that people and businesses in China are confident about the future of travel and tourism. Domestic tourism in China is picking up again, and tourists from other countries are visiting more than they did before the pandemic. This is great news for Marriott, which made more money from group travel earlier this year. Capuano calls group travel the " shining star" of their business right now. The company added 9 million new members to its loyalty program in the third quarter, bringing the total to 219 million. This success is thanks to the work of hotel staff and new partnerships with companies like Uber and Starbucks. The layoffs aren't just about saving money. Capuano says they're part of a plan to make Marriott more efficient. He wants to move decision-making power from the global headquarters to the local offices. This will make the company more flexible and able to respond quickly to changes in the market. Most of the job cuts will be at the corporate level, so guests at Marriott hotels won't notice any changes in service. The hotel chain is also expanding into new markets. They're planning to add more midscale hotels, which are a bit cheaper than their usual luxury options. This is a smart move, as it opens up their services to a wider range of customers.

Actions