Strategies in Action - Hospitality Industry

Solution Preview

THE TWO INNOVATIONS ARE MARRIOT INTERNATIONAL ESCAPE PACKAGE AND HILTON HOTELS CORPORATION HHONORS REWARD PROGRAM
Marriott Escape Packages offer unique opportunities for different travelers. For example, Escape!® Dining
A room to relax in. Dinner and breakfast for 2. The "eat your heart out" Escape
Marriott International, Inc., incorporated in 1997, is a worldwide operator and franchiser of hotels and related lodging facilities. The Company's operations are grouped into five business segments: Full-Service Lodging, Select-Service Lodging, Extended-Stay Lodging, Timeshare and Synthetic Fuel. In the Lodging business, which includes the Full-Service, Select-Service, Extended-Stay and Timeshare segments, the Hoteldevelops, operates and franchises hotels and corporate housing properties under 13 separate brand names. It also develops, operates and markets Marriott timeshare properties under four separate brand names. The Hoteloperates or franchises 2,632 lodging properties worldwide, with 482,186 rooms as of year ended December 31, 2004. In addition, it provides 2,504 furnished corporate housing rental units. Its Synthetic Fuel operation consists of interest in four coal-based synthetic fuel production facilities two of which are located at a coal mine in Saline County, Illinois, with the remaining two located at a coal mine in Jefferson County, Alabama. Three of the four plants are held in one entity, and one of the plants is held in a separate entity.

Full-Service Lodging

The Company's Full-Service Lodging brands are Marriott Hotels & Resorts, Marriott Conference Centers, JW Marriott Hotels & Resorts, The Ritz-Carlton, Renaissance Hotels & Resorts and Bulgari Hotels & Resorts. Marriott Hotels & Resorts (including JW Marriott Hotels & Resorts and Marriott Conference Centers) is the Company's global flagship brand, primarily serving business and leisure travelers and meeting groups at locations in downtown, urban and suburban areas, near airports and at resort locations. Marriott full-service hotels is a quality tier brand, with most hotels typically containing from 400 to 700 rooms, Internet access, swimming pools, gift shops, convention and banquet facilities, a variety of restaurants and lounges, room service, concierge lounges and parking facilities. Many Marriott resort hotels have additional recreational and entertainment facilities, such as tennis courts, golf courses, additional restaurants and lounges, and spa facilities.

HILTON HHONORS
Hilton HHonors® is the only guest reward program that lets you Double Dip® to earn both HHonors points and airline miles for the same stay with your choice of more than 55 airline partners -- at any of more than 2,700 Hilton Family hotels.
Hilton Hotels Corporation (Hilton), incorporated on May 29, 1946, is engaged in the ownership, management and development of hotels, resorts and timeshare properties, and the franchising of lodging properties. The Company's hotel brands include Hilton, Hilton Garden Inn, Doubletree, Embassy Suites, Hampton, Homewood Suites by Hilton and Conrad. Hilton is also engaged in various other activities related or incidental to the operation of hotels. Hilton operates in three principal business segments: Hotel Ownership; Managing and Franchising and Timeshare. As of December 31, 2004, its system contained 2,259 properties, totaling over 358,000 rooms. Of these properties, Hilton owned an interest in and operated 115 hotels, leased seven hotels, managed 206 hotels owned by others and franchised 1,900 hotels owned and operated by third parties, which included the Company's 31 timeshare properties that it managed or franchised. All of these properties are located in the United States, with the exception of 16 hotels, in which Hilton owns an interest and/or manages, and 55 hotels that it franchises. As of December 31, 2004, Hilton managed (and in some cases, partially owned) hotel properties in Belgium, Egypt, England, Hong Kong, Indonesia, Ireland, Mexico, Puerto Rico, Singapore, Thailand and Turkey. It also franchised hotel properties in Canada, Colombia, Costa Rica, Dominican Republic, Ecuador, Mexico, Peru, Puerto Rico and Venezuela.

In April 2004, the Hotelcommenced management of the Hilton Omaha in Nebraska. During the year ended December 31, 2004, Hilton sold five Doubletree hotels located in Arizona, California and Oregon. During 2004, pursuant to a joint venture with Hilton International Co., Hilton commenced management of new Conrad hotels in Bali, Indonesia, and Miami, Florida.

Hotel Ownership

The Hotel Ownership segment derives earnings from wholly owned, majority-owned and leased hotel properties and earnings from unconsolidated affiliates (primarily hotel and other real estate joint ventures). As of December 31, 2004, Hilton owned a majority or controlling financial interest in and operated 50 hotels, representing 31,068 rooms. The owned hotels include the 1,416-room Waldorf-Astoria, the 1,980-room Hilton New York, the 2,860-room Hilton Hawaiian Village, the 1,240-room Hilton Waikoloa Village, the 1,908-room Hilton San Francisco, the 1,544-room Hilton Chicago, the 1,639-room Palmer House Hilton, the 1,119-room Hilton Washington and the 1,616-room Hilton New Orleans Riverside. Hilton leases the land, upon which 11 of its owned hotels are located.

THE CRITERIA USED FOR TO ASSESS THE SUCCESS OF THE INNOVATIONS
Reducing Time-To-Market
Introducing new and improved products on a faster schedule is the path to success. Given finite budgets and resources, the challenge becomes how to best allocate, coordinate, plan and track the diverse programs and resources involved in product development and introduction. Done wrong, market windows are missed. Done right, more products come to market sooner, with revenue growth following right behind.
People, Portfolios and Commitments
Virtually all Global 2000 enterprises employ state of the art development and data management tools. Many have attempted to standardize on focused NPD methodologies. However, an increasing number of leading edge companies are realizing that this is not enough. In fact, they need to manage their people, product portfolios and commitments with the same rigor and system support that they apply to the rest of their operation
NPD Comes Into Play
This is where New Product Development enters the picture. By managing the critical areas of product development and introduction cost and spend, ...