Introduction
In this scenario, Marriott International, Inc. is in need of revenue increase. “Marriott is an international hospitality company that operates and franchises hotels and lodging facilities. It primarily operates in North America. It is headquartered in Washington, DC, and employs about 151,000 people” Marriott has to find a different set of circumstances than what they have been doing the past. One way is to decrease the price of the product and hope to get more units sold. Another way of doing this would be to increase prices per unit and use that increase to increase for the up in revenue. In this paper, we intend to show how Marriott can do this most effectively.
Situation Analysis
Marriott needs to get more money coming in to create to amplification of revenue that is wanted. One way to do this would be to increase the price of the rooms. Now, in this situation raising the rates on their units will cause a drop off in total sales. Let’s say Marriott decided on a 10% increase in price for each unit. The company would really need to sell at least the same amount of rooms to make a true gain in revenue. In this situation, we will say that the company sold less than the same amount of rooms as before. This part would have failed. Yes, this could lead to some more revenue coming in, but not a great amount. The pricing increase would need to be more substantial and still bring in close to what the units sold number was before any increase in price was done.
Products, Services, Prices 3
Another way to try and get the revenue needed would be to decrease the price of rooms and hope to get more people in these rooms at this price. Marriott will try a 10% decrease in price per unit f ...