On September 13th, at the 2024 China International Fair for Trade in Services (CIFTIS), Marriott International Group released its achievements in brand effect, loyalty membership program, and sustainability.
Marriott International Group is an old friend of the China International Fair for Trade in Services (CIFTIS) and has made multiple appearances at the fair. Meanwhile, as the earliest international hotel group to enter the Chinese market, Marriott International has been deeply rooted in the Chinese market for 50 years, witnessing and accompanying the growth and development of the Chinese hotel industry.
Regarding the achievements of Marriott International Hotel in the Service Trade Fair, the development of the loyalty membership program, and market competition in the hotel industry, a reporter from China Business News conducted an exclusive interview with Tian Qingyao, Vice President of Marketing, Communication, Senior and Selected Brands of Marriott Greater China, at the service trade fair.
Old friend of the Service Trade Fair
China Business News: As an "old friend" of the China International Fair for Trade in Services, Marriott International Group has appeared on the stage of the fair multiple times. What is the promoting effect of the fair on the development of the hotel industry?
Tian Qingyao: The China International Fair for Trade in Services is a platform for cross industry communication. As a representative of the cultural and tourism industry, Marriott International Group has the responsibility to share our insights into new trends in the cultural and tourism accommodation industry on this platform.
In recent years, the demand of travelers has shifted from "arrival" to "experience", and the integration of culture and tourism has given rise to the "travel+" business model. New travel preferences such as traveling with food, sports events, concerts, etc. have been favored.
By participating in the China International Fair for Trade in Services (CIFTIS), we are able to engage in cross industry exchanges, learn more about new technologies and directions, and further integrate the gains with our own hotel business, thereby launching more personalized products and experiences for travelers and members.
China Business News: The theme of this year's Service Trade Fair's cultural and tourism services special topic is "Technology Empowers New Culture and Tourism, Creativity Leads New Life". Based on this theme, what highlights and achievements will Marriott International Group release?
Tian Qingyao: Adhering to the theme of cultural and tourism services and industry development trends, we have three areas of achievements to showcase, namely brand side, customer loyalty program, and sustainable development.
In terms of brand, currently, consumer demand is showing a diversified trend, with different demands for business travel, parent-child travel, high-end leisure, etc. Marriott International Group has conducted brand segmentation for different customer groups. Especially for the younger generation of consumers, selected service brands Moxy and AC have been introduced.
Brands that have been deeply cultivated for many years are also constantly iterating and upgrading, such as Sheraton, the hotel brand that the group first entered the Chinese market. In July this year, Sheraton unveiled its 100th hotel in the Chinese market in Lanzhou. After continuous renovation, it has created a contemporary "open shared space" for guests, which fully meets the needs of business travel and leisure vacation from hardware to services.
In terms of loyalty membership programs, Marriott Traveler has been established for 5 years, with a global membership of over 210 million. In recent years, Marriott Traveler has been continuously exploring opportunities for cross industry cooperation, establishing broader strategic partnerships, and launching a series of exciting activities, including becoming the only "honorary sponsor" of the Shanghai Rolex Masters event in the hotel industry for the next three years. In the golden autumn of October, it will bring exclusive viewing experiences to members, and have the opportunity to participate in the Marriott Traveler Master Class led by Zhang Zhizhen and interact closely with star players.
In terms of sustainable development, we are well aware that green economy, green consumption, green travel, and the cultural and tourism industry are closely related. Currently, Marriott International Group has made sustainable development a company strategy, integrating it into various aspects such as daily operations and procurement supply chain. For example, 88 hotels in the Greater China market have installed solar energy systems to help provide water and power supply to some areas of the hotels; The group has also obtained sustainable certification for 98 hotels in the Greater China market.
Hotel Core Competitiveness - Loyalty Membership Program
China Business News: What is the significance of the loyalty membership program for the development of the hotel industry?
Tian Qingyao: The loyalty membership program is the core competitiveness of major hotel brands. Through the loyalty membership program, hotel groups can enhance guest operation capabilities, provide more personalized services for travelers, and help owners and hotels increase revenue.
For hotel investors, the execution ability of the loyalty membership program of the hotel group has an impact on the return on investment. Recently, the Shenzhen Nanshan Shuiyuan Garden Boutique Hotel under the group opened, and on the first day of opening, nearly 40% of the guests were Marriott Traveler members.
For consumers, becoming a member allows them to enjoy more exclusive benefits, such as free breakfast, executive lounge, etc. At the same time, when choosing to travel, it will make them more confident in choosing suitable brands to experience.
China Business News: How to create a competitive loyalty membership program?
Tian Qingyao: The loyalty membership program is the core of hotel brand business competition, and Marriott Traveler Home is the most important part of the group's customer strategy. It is also the hub that connects Marriott Group's 24 brands and more than 560 hotels in the Chinese market, effectively enhancing the stickiness between members and us.
To create a competitive membership plan, in addition to providing basic points and benefits, it is also necessary to establish an emotional connection with members. As a brand, Marriott Traveler Home also has its mission and vision - to help loyal members better connect with the world, destinations, and their life interests through Marriott Traveler Home.
We will work together with partners in transportation, finance, and lifestyle to create a great cultural and tourism experience and enhance the rights of our members. Previously, we collaborated with CITIC Bank to launch a joint credit card, ensuring that guests can earn points for their daily consumption.
The emotional connection between Marriott Traveler and its members focuses on four areas: lifestyle, entertainment, sports, and food. We will find leading partners in these areas to collaborate with. For example, in the field of sports, we have partnered with the Shanghai Rolex Masters to continuously deepen our cooperation in the tennis sector; In 2019, we also provided members with the opportunity to compete with table tennis national player Wang Nan; Marriott Traveler has also partnered with the Mercedes AMG Petronas F1 team to provide members who love F1 with the opportunity to witness speed and passion.
Interpreting the competition among mid to high end hotels
China Business News: Currently, in the Chinese market, both international and local hotels are focusing on the high-end hotel market. How do you view this situation?
Tian Qingyao: From a broader perspective, there are nearly 20 cities in China with a population exceeding 10 million. The urbanization process has led to the concentration of commerce and created demand for hotels. In addition, the construction of infrastructure such as our airport and high-speed rail has increased the convenience of people's mobility.
In addition, China's middle class group is the largest in the world, and there is great potential to explore in the consumption of leisure products. These factors collectively promote the layout of mid to high end hotels.
In terms of high-end hotel products themselves, compared to five-star and luxury hotels, there is less investment and a relatively shorter investment return cycle.
Usually, investors choose Marriott's mid to high end hotel brands based on several major advantages of the Marriott Group, including a high brand awareness, a strong business system, and excellent operational capabilities.
China Business News: Marriott's pace of opening stores in the Chinese market is also accelerating. With the expansion of scale, what work has been done? How to choose the destination for opening a store?
Tian Qingyao: The combination of appropriate brands, destinations, and homeowners effectively promotes healthy and rapid development.
In order to better meet the needs of Chinese guests, we have customized localized hotel design templates while expanding our hotels, integrating local culture while effectively reducing investment costs. This design template has been adopted by hotels such as Moxy, Four Points by Sheraton, and Wanfeng.
The rapidly developing convenient transportation network hub in China has given more possibilities for travel, and the connection of high-speed rail has created a "one hour living circle" for guests, expanding their living and travel radius. Marriott International focuses on tourist destinations and the layout of cities along the high-speed rail line. In 2024, several new hotels will be located along the high-speed rail line, such as the Four Points by Sheraton Huzhou Nanxun, the Four Points by Sheraton Xuancheng Jingxian, and the Wanfeng Hotel at Chuzhou High speed Railway Station.
Currently, China has become Marriott's second largest market globally, and we will continue to be optimistic about the potential of the Chinese market.