There are a number of reasons why some people end up in a financial rut. For some it may be due to the length of their working experience and sometimes it is a simple case of bad luck. Regardless of the cause, as it comes to recognizing where the problem lies, they are naturally inclined to resort to one of the two primary methods of managing the money – spending it recklessly or saving it.
When it comes to spending it recklessly, this means lining the pockets of a wide range of items, from food to cigarettes to cars. This is not the best way to save money in the long run.
By contrast, Marriott rooms are rarely used to create a fortune. As such, it makes sense to look at the intrinsic value of a hotel instead of the ‘things’ that are stored in it. As a result, the vast majority of hotelier see a room as an investment and not just a use.
The hotel industry had been plagued by bad press when it came to this aspect – there were stories all over the world about people losing their life savings and all the things they would have been able to do with their money if they had invested in hotels instead. Marriott could not remain unscathed in the end, though – it did suffer a few of these stories and ultimately emerged with a winning case study.
It was Marriott that came up with the HBR Case Solutions hotel management system and the work on it was done in association with research firm, HBR. Through a combination of survey and research work, the HBR Case Solutions research team was able to gather the many reports that would provide the foundation for the hotel management software which came to be known as HBR Case Solutions. The system did, in fact, rank at the top of many surveys of hotel managers and the whole hotel industry.
The case study solution went on to demonstrate to the hotel industry how to make better hotel management decisions. Through an increased level of consistency, the system was able to identify trends which could be dealt with. And that is how they were able to lessen hotel losses and increase the value of hotels in the long run.
When Marriott was required to pay back to HBR, they did so by implementing their Case Study Analysis and forecasting tools to the management systems of all of its hotels. The only way that they could have actually paid back the amount demanded by HBR was if they had been using some of their own resources to provide the software solution.
HBR is now claiming that their case study solution is superior to the one being used by Marriott – but they did not choose that particular solution out of any particular bias towards one firm. Rather, it was the software that the firms used was very similar.
The three firms did, however, have very different strategies for achieving the solution they needed, but each was extremely effective in providing an improved solution. They may have not been able to use the same techniques, but the solutions were clearly much better.
While the systems used were not as advanced, they allowed the two firms to reach their goal of a solution which proved more effective than the global level of competition. As a result, they were all able to succeed in keeping their hotel companies afloat and in being successful.
Marriott rooms, while having to deal with a competitive market, has found a solution that fits its culture very well. Through the use of the principles put forward by HBR, it was able to successfully improve the quality of its business and thus increase the number of reservations it receives every year.