Globalization is defined as a series of trends of social changes leading to a transition of a local, territorially closed social organization into a social organization of the global type. Indeed, there is observed increasing interdependence of nations, interpenetration, and sometimes merging of national economies into the integration frameworks.
Globalization has become an essential feature of the modern real-world system, one of the most influential forces that determine the course of our planet’s development in all the spheres. The current research will be studying the impact of globalization on the development of the contemporary hotel management industry, and in particular, on Marriott International Inc.
Today, the processes of global development, under which the structures of national production and finance have become interrelated, are accelerated due to the increasing number of implemented external transactions. Globalization is affecting all the regions and sectors of the global economy, and fundamentally alters the relationship between external and internal factors in the development of national economies. None of the national economies, regardless of the size (large, medium, small) and level of development (developed, growing or transitional), can any longer be self-sufficient, based on existing factors of production, technology and capital requirements (Lechner, 2009). No state is able to efficiently create and implement economic development strategies, without taking into account the priorities and standards of behaviour of key world economic activities.
The hospitality industry is today one of the biggest booming industries of the world economy, also highly exposed to the ongoing globalization trend. This happens largely due to the modern social, economic and political progress; mainly because of the fact that over the past few years, tourism has become available to the general population and the borders between countries are vanishing in the globalized world. Simultaneously with the increase in the total number of tourists, tourism infrastructure and its main component – the hotel sector – has received noticeable development (Wahab and Cooper, 2001). Over the centuries, the hotel business has undergone a variety of models: from family ownership to participation in the international hotel networks (Bowie and Buttle, 2004; Yu, 1999). Nowadays, an example of the most effective ownership in tourism is the creation of global hotel corporations, which is further considered as the main framework of this analysis.
Global character of the contemporary hotel management, working with people, technology, reservations, booking, training in business management and much more, is an integral part of the hospitality industry worldwide. In this research, the main tasks lie in a) examining the ways of the formation of international hotel corporations (networks); b) assessing the current state and ways of the development of the largest hotel companies in the world on the example of Marriott, Inc.; c) analyzing the influence of hotel corporations on the international market of hotel services and their main advantages; d) describing the prospects of entering the international hotel corporations and future directions of their activities.
According to Bowie and Buttle (2004) and Yu (2009), in terms of globalization, the main trends in the contemporary hospitality industry are:
– The extension of the interests of hotel business for products and services previously provided by enterprises in other industries (e.g., catering, leisure, entertainment and exhibition activities );
– The development of a democratic hospitality industry, promoting the improvement of access to hotel services for mass consumers from the countries with different standards of living;
– The increasing specialization of the hotel business, which allows it to be more focused on certain segments of consumers according to different parameters;
– Internationalization and concentration of the hotel business;
– The personification of service and complete concentration on the demands and needs of clients;
– Widespread introduction of new communication and information technologies, allowing in-depth and systemic economic diagnosis;
– Introduction of new technologies in the business strategy of hotel enterprises, in particular the widespread use of the Internet to promote the hotel product and services all over the globe.
Further, this dissertation will be focusing on the main tasks of the hospitality industry, which include the creation of competitive advantages and competitiveness; creation of a stable customer base through the ability to find the client segment in the global competition; finding and creating new ways and strategies of development in the contemporary conditions; constant updating of the policies taking into account the dynamic market of hotel services.