Marriott International undergoes major restructuring

A major industry to fall prey to the debilitating effects of ongoing recession has been the hotel industry.

Many hotels have registered a steep decline in bookings; and are struggling to maintain their quality of service with minimum staff required. New and innovative ways for cost cutting measures have been implemented globally, and across hotel chains.

In a major shake-up implemented by Marriott International, operational authority has now been localized regionally.

The company has been restructured and divided into four main parts, based on geographic locations. Another primary reason for implementing the above change was the incorporation of the Ritz-Carlton brand into the Marriott fold.

Each autonomous division is now said to have its own president and resources. This decentralization of authority was done in order to reduce costs and to focus on the needs of each area locally.
Another benefit of this major restructuring plan laid down by Marriott International is that it avoids major reduction in staff. The jobs lost as a result is seen as significantly lesser.

Also stressed is the importance of having a president in charge of a particular geographic region. Each manager will be responsible for his own management and resources. Also under the management will be sales, marketing, finance and revenue management. All these heads will however be working under the Marriott International banner and will be held accountable for each region.

The main benefit of decentralization also is that each manager will be able to take on local problems that may be endemic to its particular region. However, assurances are being given that changes will be transparent and not visible to the guests.