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Marriott International Legal Advice

In: Business and Management

Submitted By gdawg917
Words 932
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LEG 100
Business Law 1
Assignment
“Marriott International Legal Advice”
Gregory Budd
Professor John F. Rodgers
August 19, 2011

About Marriott International Marriott International Inc. is a leading worldwide hospitality company with hotels and resorts world-wide from USA to their recently opened property in Pune, India. Marriott strives to personalize each person’s stay through new and innovative ways. Marriott International has multiple brands under the Marriott name to include; The Ritz Carlton® Hotel Company, LLC, JW Marriott®, Bulgari Hotel and Resorts®, Edition TM (“Signature”), Renaissance Hotels, Autograph Collection, AC Hotels, Courtyard®, Fairfield Inn & Suites®, Springhill Suites®, Residence Inn®, TownePlace Suites®, Execustay®, and Marriott Executive Apartments. Marriott International also has a timeshare business which is positioned for further growth by the end of 2011. They are Marriott Vacation Club®, The Ritz Carlton Destination Club®, and Grand Residences by Marriott®. In total Marriott International lodging portfolio includes 3,545 properties and timeshare resorts comprising of 618,000 rooms in 70 countries and territories. Marriott International has several initiatives plan within the next 3 to 5 years. Marriott International’s biggest and continuously ongoing initiative is grater exposure in the global community by investing and protecting the world’s natural resources by “addressing environmental challenges through innovative conservation initiatives including rainforest protection and water conservation” (Marriott.com 2012). For example the “Nobility of Nature” program works with Conservation International to protect the source of fresh water in Asia for more than 2 billion people. (Marriott.com, 2012) and partnering with local governments for the Juma Sustainable Development Reserve Project which is trying to reduce greenhouse gases in the Brazilian Amazon due to deforestation (Climate-Standards.org, 2010).

Elements of Administrative law and its impact. As far as administrative law is concerned, Marriott International must comply with host country’s government laws in regards to environmental protection. They are allowed to impose a stricter code of adherence to their laws but they are not allowed to replace those laws with their own. Marriott International’s sincere commitment to the global community has enhanced their image worldwide and will only boost their relationship with the host nation with respect of future business endeavors (i.e. building and/or buying existing hotel properties.) Marriott International works hard at keeping their name synonymous with the enhancement of the global landscape and communities. They recently announced the building of a hotel in earthquake ravaged Haiti in hopes of, a) creating jobs to help stabilize the economy and b) return tourism back to Haiti. The diversity within the company is huge which has propelled them to become advocates in visa reform to push changes immigration system that would improve their ability to hire seasonal immigrant labor. Working with administrative entities such as U.S. Department of Commerce and U.S. Department of Homeland Security, they are trying to help change visa and entry systems and wait times for interviews.
Applicable Sales, Licensing and E-Commerce laws Marriott International extended their image of daily rate hotel stays to now include vacation time share, however, an increase in the use of third-party Internet services to book online hotel reservations has adversely impacted its business. Online travel booking agencies to numerous to count has seriously undercut the Marriott best price guarantee by underbidding their best lowest price, which has cut into profits for the hotel giant. They have entered into contracts with the more popular agencies, but there are too many lesser known agencies to fight them all. So this is viewed as an unavoidable but acceptable risk. Marriott International in some cases buys existing hotels and places the Marriott name on it. Those hotels are independently owned and are subject to franchising fees in addition to profit sharing. MARSHA is a global proprietary reservation system owned by Marriott. It is used by travel agents and e-Intermediaries. All reservations from call centers, Marriott.com, GDS or other electronic channels come through the same centralized reservation system, providing significant efficiencies. According to Marriott their reservation system to in 2009,: * Generated over 75 million new reservations * Produced over US $23 billion in revenue * Processed reservations for more than 176 million room nights * Grossed revenues of over US $100 million per day, an average of US $3,500 per second
MARSHA provides a low cost per transaction but, high revenues generated per call.
Recommendations
It is recommended that Marriott International continuously monitors ways to minimize threats. Travel intermediaries have evolved in ways to undercut prices offered by Marriott. Marriott should both provide exclusivity to major travel booking agencies and viciously pursue other Intermediaries that try to influence the price that they offer. MARSHA was internally developed so they own the intellectual property rights for it. Recommend that Marriott continue to explore more innovative ways to protect the environment. Environmental consciousness has and will always propel Marriott International into a greener global landscape.

References
Bagley, C. E., & Savage, D. W. (2010). Managers and the legal environment: 2010 custom edition (6th ed.). Mason, OH: South-Western Cengage Learning
Amazonas Sustainable Foundation 2008: The juma sustainable development reserve project: reducing greenhouse gas emissions from deforestation in the state of amazonas, brazil. Retrieved on August 19, 2012 http://www.climate-Standards.org/projects/files/juma/PDD_Juma_Reserve_RED_Project_v5_0.pdf
Conservation International (2010) Ccb standards: ccb projects. Retrieved on August 19, 2012 from http://www.climate-standards.org/projects/index.html
Marriott: Corporate social responsibility (2012). Retrieved on August 19, 2012 from http://www.marriott.com/corporate-social-responsibility/corporate-responsibility.mi
Marriott: Find your world, 2010 annual report (n.d.). Retrieved on April 19, 2011 from http://investor.shareholder.com/mar/default.cfm…...

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