September 19, 2007
Marriott International Inc.stock and business outlook
I don't usually write about stocks here, but I thought this article on Marriott International Inc. was worth a mention.
It might be a case of good for shareholders but bad for customers though:
While Marriott used to rely on third-party sites such as Expedia.com to sell rooms online, the lodging company discovered that by pitching the rooms itself, it could save money, raise prices and increase earnings.Now if Marriott prefers selling on its own website because it gets to raise prices, what's in it for consumers? Nothing more than rewards points?Earnings will climb to $1.93 per share this year and $2.32 in 2008, Donnelly estimates.
To attract guests, Marriott created incentives to book through its Web site, awarding points that can be redeemed for free rooms. The points can't be earned on third-party sites like Hotels.com and Orbitz Worldwide Inc.'s Orbitz.com.
Anyway, if you're an investor the article is bullish:
The shares will climb an average of 27 percent over the next year, according to analysts surveyed by Bloomberg. Profit this year is predicted to surge 29 percent, the biggest increase in four years, to a record $781 million.I guess someone has to benefit from Marriott raising their prices when they sell rooms via their own website... Posted by James Trotta at September 19, 2007 12:27 PM | TrackBack
send inf on travel.
Posted by: kathy at September 19, 2007 2:17 PMRaising prices can increase profits only if customers continue to pay. Smaller hotels have seen a rise in customer base in the last year (http://www.thestreet.com/s/smaller-hotels-reaping-bigger-rewards-for-developers/newsanalysis/sbmanagement/10379484.html?puc=_tscs) and if the prices go up this rise will more then likely continue. I was treated poorly by The Fairfield Inn Marriott Deptford New Jersey and suffered a loss at the hands of the hotel and their insurance company. Their customer service should be trashed as it does not serve the customer to complain to them. Marriott could charge 10 dollars a night I will never stay at their hotels again until they stand up to the plate and correct "the case of the missing laptop" They need to address the issues from employment to customer real time relations. The theft of a Laptop from a locked hotel room with the only key opening that door being housekeeping and that housekeeper getting a lawyer instead of cooperating with the police. While Marriott hotel managers, insurance company and customer service all play blind deaf and dumb instead of settling this at the cost of 1,299 dollars is just another straw that will break the travelers back.
Ray126@cablespeed,com
Posted by: MakesNoCents at September 23, 2007 1:24 AM