The macro environment is made up of 6 unmanageable external factors. These factors influence an organisations determinations, concern and fiscal schemes every bit good as its overall public presentation. These factors are: Economic, Demographic, Social Cultural, Natural, Technological, and Political.

3.2 Demographic environment:

We Will Write a Custom Essay Specifically
For You For Only $13.90/page!

order now

The demographic factor covers subjects such as age, gender, day of the month of birth, mean household sizes and so on

.Population Growth

The United States has experienced a significant inflow of people. Within the last 10 old ages at that place has been an addition of over 33 million people, doing the U.S. the most to a great extent populated state in the universe. A steady but changeless population growing is expected for the following 50 old ages. We can anticipate an addition in the figure of American invitees at the Marriot Amsterdam. If the selling scheme is tailored in order to pull more off from Hotels such as the Hilton. The state of affairs in Europe is different than in the USA.

The European Union has a sum

population of about 500 million

dwellers ( 27 provinces of the

European Union ) whereas Europe

has 732 million dwellers.

Within the following 40 old ages the

population is predicted to diminish

to about 630 million dwellers

in 2050.

This can be seen as a menace in the long tally because the impact on the industry is that the volume of the market will shrivel as the entire resident population will shrivel.[ I ]

3.3Economic Environment

Among the importance of people who make up markets is the importance of their buying power, degree of employment, GDP, and rate of rising prices which is determined by the economic environment. Both GDP growing rates increase on a low, but steady degree. Due to the recession, it is likely that negative growing rates occur within the following five old ages for both western economic systems. Recovery is predicted on a really low degree for the twelvemonth 2012.

India in comparing has a rather low GDP at the minute, but is predicted to catch up with large stairss of over 100 % per decennary. With yearly GDP growing rates of 6 to 10 per centum during the last decennary India is one of the universe fastest turning economic systems. The latest recession barely hit the state but recovery is predicted to take topographic point more quickly, deeply and on a far higher degree than in western economic systems.


The rising prices is an of import index

for buying power in an economic system.

Symptoms of rising prices are increasing monetary values and

hence consumer ‘s diminishing buying power.[ two ]

Credit crunch

By mid-2008 the fiscal crisis turned out as a consequence of the economic bend down, the sub-prime mortgage crisis and the prostration of the lodging market.[ three ]

The prostration of the lodging market led to a bank prostration ensuing in a monolithic liquidness crisis. This became a worldwide job: the ongoing recognition crunch. Stock markets crashed worldwide. The recognition crunch is impacting concern every bit good as consumers.[ four ]

To reason, this is a menace for any company because consumers are losing their buying power in the EU, US, Japan and UK. Besides that, consumers are more careful with their money because they want to salvage it in instance that they will lose their occupation due to the economic crunch.

Salvaging rate

The salvaging rate reveals penetrations of the disbursement forms

of one state dwellers. This figure shows the

personal salvaging rate of the USA, Canada, UK and Germany.

Due to cultural differences the salvaging rate of Germany

and other European states is traditionally higher than

those in Anglo Saxon influenced states.

The more interesting development is the addition

of the salvaging rate in all four states after the twelvemonth 2007. This is caused by the recognition crunch and the undermentioned recession. During times of economic downswing people tend to salvage money. They are going dying about their occupations and the hereafter. The addition of the salvaging rate is a possible menace because peoples passing precedence lies on indispensable goods and services instead than on luxury points. The chief market would be for concern invitees and “ babe boomers ” who do non mind passing some excess money in order to hold the amenitiess they have become used to.

Income degree of the mark markets

States vary greatly in degree and distribution of income and industrial construction. Our analysis is concentrating on industrial economic systems and their consumers. These economic systems are seen as rich markets for all kinds of goods and services.


From 1993 up to 2009 the unemployment

rates for every bit good the EU, UK as for US

are increasing and diminishing

through the old ages. Increasing

unemployment rates are for each

company a menace because when consumers

free their occupations their buying power

is diminishing.[ V ]

The unemployment rate will average

9.2 per centum in 2009, 9.6 per centum is 2010 in the USA.

The prediction norm for 2011 is 8.9

per centum and for 2012 8.7 per centum is forecast.

The lifting unemployment rate is a menace for the Hospitality industry in that consumers are more likely to salvage their money than spend it when unemployed. Even if they want our services they do non hold the fiscal resources available to them.

3.4 Social-Cultural Environment

Corporate societal duty ( CSR ) was developed as a type of ego ordinance. Typically incorporate straight into the concern theoretical account of the corporation. The premiss is that the corporation that has integrated with CSR will conform to certain pre-determined “ norms ” of society when prosecuting in concern. The “ norms ” would change from legal, societal, ethical, moral, environmental every bit good as an addition in concern over the assorted elements of the populace. Elementss such as, but non limited to ; the community as a whole, clients and employees. Although this “ moral concern ” construct appears to be sound CSR has come under changeless unfavorable judgment. Many claim the “ moral ” facet of CSR is nil more than a facade, leting these companies to, in fact, exploits the state of affairs at manus.

The psychological consequence of terrorist act is besides a factor we have to maintain in head. The frequence of traveling is decreased by this happening factor.

3.5 Natural factors

Macro factors are those factors that the company can non act upon itself, but these factors can surely hold a great impact on how the company is will execute. The Marriott hotel in Amsterdam lies in the centre of the Netherlands with a sea clime. This means that all twelvemonth round the conditions will be mild with no utmost summer or winters. While these factors might non straight act upon the public presentation of the hotel, others can. When looking at the volcanic eruption, which took topographic point in the thick of April 2010, air hoses cancelled all flights and riders were stranded. While this at foremost presented a roar in tenancy due to stay-over ‘s, the long tally presented jobs as many meeting were cancelled. This presented a ruin in gross ; fortuitously jobs were solved after 2 hebdomads when the eruption ceased. The hotel can of class ne’er to the full predict certain fortunes but after this experience should be prepared for it.

Besides weather factors that will set force per unit area on concern, the tendency is switching towards bring forthing eco-sustainable concern. Producing and running your concern in a nature friendly manner.

When looking at the cordial reception industry we can give illustrations as non excessively rinsing linen, utilizing soap dispenser, recycled paper/pens, spliting rubbish, light detectors, particular heating systems, laundry detergent.

3.6 Governmental

Due to comparatively recent events there has been a major force impacting the cordial reception industry. Of class due to the “ shrinking universe ” phenomenon concern travel has become more and more of a necessity but recreational travel has dropped well. “ In cordial reception, even before the onslaughts the image did n’t look good. Harmonizing to Smith Travel Research, U.S. hotel tenancy was 61.9 % year-to-date through June 2001, a bead of 2.7 % compared to the same period of 2000. RevPARs declined 0.4 % to $ 58.99. Preliminary figures indicate that tenancy rates and RevPARs were down 2 % -4 % in August of this twelvemonth, compared to August of 2000 ( Smith Travel Research ) . ” Another strong political force which will impact the Marriot is the increasing world-wide attitude towards smoking. Presently, the Netherlands has an attack of merely specialized countries or little, private constitutions are permitted to let smoke in their premises. Smoking in public topographic points or train/bus Stationss is besides prohibited. By offering a specialized and separate country ( the Cigar Bar ) there is a greatly increased likeliness of pulling a larger client base. This is due to providing to a larger client base demographic.

3.7 Technology

Bettering productiveness is the chief end of engineering. Especially for information engineering ( IT ) . In surveies there is proved that there is a relationship between IT investings and the productiveness and public presentation of the concern. Due all the new engineering that has appeared over the old ages. Front office applications, eating house and banquet direction systems, and guest-related interface applications. We assume that these rapid alterations in engineering will go on. seven

3.8 Decision


US dollar exchange rate for Euro will drop by 5 % in 2011.

10 % addition of energy monetary values in 2011.

Smoking prohibition.

Rapid alteration in engineering


Small growing in European economic system of 1 % in 2011.

Slow recovery of US economic system and rise of GDP of 2 % in 2011.

Corporate market in Europe will demo a growing of 2 % -5 % .

10 % addition of Chinese travellers in 2011.

International touristry in the Netherlands will turn 5 % .

Rapid alteration in engineering

Micro Environment

4.1 Market construction

Marriott hotel has a monopolistic competition, which means that the company faces a big figure of houses each holding a little proportion of the market portion and somewhat differentiated merchandises. The chief demand for the Marriott hotel is leisure and concern invitees.


Cleavage Amsterdam The Netherlands

Business transient 53 % 36 %

Leisure single 22 % 37 %

Tour groups 8 % 7 %

Conference 12 % 15 %

Others ( crew ) 5 % 5 %

Entire 100 % 100 %

Business Transient:

Based on the undermentioned premises and information the Marriott can anticipate an addition of concern transients compared to the old old ages. The chief points are as follows:

10 % growing in 2010 in produced gross of ASEAN ( Thailand, Indonesia, Malaysia, Philippines, Singapore, Brunei, Burma ( Myanmar ) , Cambodia, Laos and Vietnam ) , India, Turkey and Brazil.

UK ‘s GDP economic system expects to lift 2.7 % and economic system is retrieving easy. ( hypertext transfer protocol: // )

American economic system expects a rise in GDP of 2 % and economic system is retrieving easy.

European economic system will turn in 2011 with 1 %

The above information shows that the economic systems in the major sections for the Marriott are increasing. Therefore, companies will hold to direct their employees once more on concern trips.

One downside of this premise is lessening of the US dollar exchange rate of 5 % . Therefore particularly the American concern invitees will be more so monetary value sensitive and expect to hold more service included ( e.g. cyberspace ) . However as we are anticipating that the British lb is increasing in 2011 we can presume that the British invitees ( 20 % of invitees remaining at the Marriott Amsterdam ) will go on to go.

Individual Tourists:

Based on the undermentioned premises and information received the Marriott can anticipate an addition of Individual Tourists compared to the old old ages. The chief points are as follows:

EU citizen are expected to hold a growing of 5 %

Expected growing of short interruptions and weekend trips to metropoliss.

As the GDP in the USA and UK are expected to lift, it can be assumed that it will hold a positive correlativity on the criterion of life of citizens of that state. Merely the US market will non increase enormously as the exchange rate for the US dollar will diminish by 5 % . However the British Pound is expected to lift compared to the Euro.

Conference Participants:

Based on the premise and information received the Marriott can anticipate an addition in conference participants compared to the old twelvemonth. The chief point is as follows:

The same grounds as for concern transients can be used to explicate the addition of conference participants section. Companies are expected to bring forth more goods and hence will go to and carry on once more trade show, conferences, meetings etc.

Tour Groups / Other Ratess:

Based on the undermentioned premise and information received the Marriott can anticipate a lessening in Tour groups and other rates compared to the old twelvemonth. The chief ground is as follows:

As we are anticipating a rise in the concern transient, leisure guest, conference participants the Marriott will non be able to sell as many suites through the discounted channels. Therefore the suites sold to Tour groups will be less.


Based on the undermentioned premises and information received the Marriott can anticipate an addition in contract rates compared to the old twelvemonth: The chief ground is as follows:

In twelvemonth 2010 the produced gross was far above the expected budget. As Marriott Corporate Office is pressing the hotels to set a focal point on they contract rates we can anticipate once more an addition in this section. However Marriott Corporate Office advises the Hotels non to dismiss the rates less than 25 % of the mean day-to-day rate ( otherwise the caput office needs to be contacted for blessing ) .

4.2 Distribution Channelss:

Business Transient

Individual Tourists

Conference portion.

Tour Groups


Social media

25 %

10 %

50 %

25 %

50 %

Central Reservation System

34 %

32 %

40 %

20 %


27 %

10 %

30 %

Travel Agent

2 %

15 %

10 %

25 %

30 %

Hotel Website

12 %

17 %

20 %

3rd party web sites

16 %

Social media is a really effectual manner of distributing, due to the snowball consequence. Direct Gross saless by the hotel are of class besides really of import. The Central Reservation System of the Marriott is besides used to administer itself so are the Global Distribution System, Travel Agents ( via GDS ) , the Hotel Website and Third Party Websites ( Expedia etc )

4.3 Internal fiscal determinations:

Internal fiscal determinations consist of fiscal determinations made within the Marriott concatenation or the Marriott hotel Amsterdam itself, or fiscal chances within the company. The failings and strengths are besides a portion of this. Marriott International as a stakeholder has more general aims and ends sing ecology, human rights, stockholder equity.

4.4 Public:

To cognize what the “ public ” or guests thinks of the Marriott hotel, they use: feedback signifiers, client reappraisals. The range the populace we make usage of selling and media runs.

The presence of Social Media is acquiring more and more of import and is already a successful selling tool. But merely the bad feedback on an on-line platform like Facebook, Twitter, MySpace etc will hold a large influence on client perceptual experience.

We assume that our populace has a good overall image of the hotel. We do non except complains because you ca n’t expect on everything.

4.5 Company:

F & A ; B shall go more co-ordinated in utilizing international Marriott constructs for mercantile establishments. Two constructs will be uniformly implemented in Marriott hotels worldwide: The Midtown Grill and The Cigar Bar, as these constructs are now regarded as a standard characteristic of our hotels by loyal invitees, particularly US invitees.

4.6 Rivals:

After analyzing and analysing the Amsterdam Marriott ‘s budget for the first instance assignment, in this chapter we will concentrate on the current and future market state of affairs and developments.

No invitees – no concern! Therefore the Marriott hotel has to cognize its rivals by difficult to be a measure in front and do usage of its advantages to derive an even bigger portion of invitees and increase gross every bit good as profitableness.

Competition can be differentiated into four chief signifiers:

merchandise signifier competition

merchandise class competition

general competition

budget competition.

In this assignment we will fundamentally concentrate on merchandise signifier competition every bit good as on general competition in footings of degree Fahrenheit & A ; b mercantile establishments.

In instance of the Marriott Hotel this means identifying and analysing rivals, which offer and present the same sort of merchandises and services.

Following features were used for the choice procedure of hotel rivals:



concern installations

high-quality inside

luxury atmosphere

The current merchandise competition consists of following hotels:

The Grand

Okura Hotel

Grand Hotel Amstel

The Hilton Amsterdam

Eden American Hotel

Since the Leidseplein offers more than 120 eating houses in close propinquity, it is instead hard to specify and analyse competition. In the instance of the Sorel ‘s Midtown Grill we chose viing eating houses offering similar culinary art and/or pulling the same clients.

Following features are involved for choosing direct eating house rivals:


culinary art


opening times

The competition consists of following eating houses at the Leidseplein:

Cafe Americain

Los Argentinos

Barbecue Castell

Hard Rock Cafe Amsterdam

Gauchos Amsterdam

4.7 Possible future hotel rivals:

Due to a retrieving world-economy and forecasted tendencies about “ travel behavior/ travel forms ” of states such as the USA, European, BRIC & A ; ASEAN states, nightlong corsets of concern and leisure invitees will increase in Amsterdam. As there is still sensitivity sing price-value ratio, particularly in the corporate concern, following hotels are possible new rivals in 2011.



Room Numberss



Eden Amsterdam Manor Hotel



Linneausstraat 89

1093 EK Amsterdam

March 2011

Conservatorium Hotel Amsterdam



Keizersgracht 62-64

1015 CS Amsterdam,

spring 2011


Dutch capital



Near to Centraal Station



City Inn



Oosterdoksstraat 4

1011 DJ Amsterdam

spring 2011

4.8 Market kineticss:

Interaction between hotel and degree Fahrenheit & A ; b sing demand and supply is efficient. But the alterations and the kineticss of the market is beyond control of the hotel. Because the hotel concern is non in an free ( unfastened ) market.

4.9 Decision:


Social Media

Possible future hotel rivals

Midtown Grill as a steak house to specific


Commission will be reduced from 3 % to 1 % .

Growth of fixed contracts.

Growth of conference and feasting section

Cigar saloon.


Social Media

Growth of concern section

Marketing Management 12e page 79