Marriott CEO bullish on long-term growth in travel and hospitality

[EXCLUSIVE]

There was a time not too long ago when the future of travel seemed bleak.

Anthony Capuano, President and CEO of Marriott International [MARRIOTT INTERNATIONAL]

With ever-evolving technology connecting everyone everywhere, spending hours in crowded airports and planes crammed with screaming babies seemed like an unnecessary hassle.

Even Bill Gates hypothesized that more than 50 percent of business travel would disappear in the post-corona era.

He couldn't have been more wrong.

Marriott International, the world's largest hospitality company, reported a record year in 2023, posting a 31% year-over-year increase in net income to $3.08 billion and adding more than 550 properties worldwide. did.

JW Marriott Hotel Seoul in Seocho-gu, southern Seoul [MARRIOTT INTERNATIONAL]

The company currently has approximately 8,800 offices in 139 countries and territories. A brand portfolio of over 30 brands, including mid-range to luxury goods, extended stays and home rentals. With over 200 million members, we are the travel industry's largest customer loyalty program.

Despite flying's struggles, Marriott International President and CEO Anthony Capuano is bullish about the future of travel, saying the number of travelers taking to the skies is likely to be a temporary hit due to pent-up demand post-pandemic. He said the price was just too high. Instead, the coronavirus has proven to be a long-term boost to business and leisure travel.

“Before the pandemic, we were seeing a shift from spending on hard goods to spending on experiences, especially among younger consumers, but the pandemic served to accelerate that trend across all demographics. It seems like it was,” Capuano told Korean Central News Agency. Held every day on February 26th at JW Marriott Hotel Seoul in Seocho-gu, southern Seoul. “This desire to spend money on experiences is a fundamental change, and one that I think is quite permanent.”

Anthony Capuano, president and CEO of Marriott International, spoke to Korea JoongAng Ilbo on February 26 at the JW Marriott Hotel Seoul in Seocho District, southern Seoul. [PARK SANG-MOON]

Capuano said Marriott is betting that China will continue to gain altitude, noting that only 40% of international air traffic to and from the country has recovered.

“This suggests there is still meaningful upside and the outlook for global travel remains compelling.”

Therefore, the company's strategy for the new year will be even more important.

“Bill Marriott, our chairman and CEO for almost 40 years, will readily tell you that his favorite word in the English language is 'More!'” Capuano said. . “Simply put, I want to get as much out of your travel wallet as possible. We believe we can do that by providing the right products for every trip and purpose, wherever you want to go. I am.”

Southeast Asia's first Edition Hotel opened in Singapore last year. [MARRIOTT INTERNATIONAL]

The company currently has approximately 3,400 hotels and 573,000 rooms in its global development pipeline.

Approximately 12% of these will open in the Asia-Pacific region, excluding China.

“[Asia Pacific ex-China] “This is one of our most dynamic regions, with the strongest revenue and net unit growth of any region in the world,” Capuano said. The company operates more than 560 hotels and residences in the region.

In South Korea in particular, the company owns real estate in regional cities such as Seoul, Suwon, Sejong, Busan, Daegu, Daejeon, Incheon, Seongnam, and Jeju.

Marriott operates 34 hotels across South Korea. The photo is of Courtyard by Marriott Sejong in Uijin-dong, Sejong City. [MARRIOTT INTERNATIONAL]

“We currently have 34 hotels in operation and 12 more in the pipeline.” [for Korea]'' Capuano said. “We knew we had a great footprint here in Seoul, but the fact that we're flying our flag in the secondary market nationwide is really exciting and it makes us more attractive to other brands. This is what distinguishes it.”

He added: “There was a time when many global conglomerates focused their energy almost exclusively on China and India. We took a different approach. Of course, these two important To ensure aggressive growth in the market, we have invested significant resources, but not to the exclusion of other markets in the region. And as a result of that focus, we have It has become the largest brand and company in the market.”

With more than 30 brands, Marriott hotels range from mid-range to luxury, extended stays and rentals. The photo shows a room at Thai Moxy Bangkok. [MARRIOTT INTERNATIONAL]

On his recent visit, Capuano made in-person stops at Marriott hotels in Seoul and Jeju Island.

“as [Marriott] “As we grew further away from Washington, D.C., there was always concern about how to maintain the strength of our corporate culture,” he said. “But the more I travel, the more I see that our culture is the strongest ever anywhere in the world. That was certainly my first impression over the last few days.”

Labor shortages and technology

But with accommodation booming, the hospitality industry is suffering from a talent shortage, especially as many furloughed workers due to coronavirus have yet to return. According to the Korean Hotel Association, five-star hotels in South Korea in particular saw a 21% decline in the number of employees between 2020 and 2022, with the number of employees per hotel going from an average of 238 to 187.

“We are doing a better job of explaining to people that Marriott, and the broader travel and tourism sector, is not just a place to go to work for a paycheck, but a dynamic industry in which to build a long-term career. There is a need,” Capuano said. “We have hundreds and thousands of great stories about people who started in hourly positions and now become general managers and executives.”

Capuano himself started out as a pop washer in the industry, and this year marks his 29th year with Marriott. Rajeev Menon, president of Asia-Pacific excluding China, who was also present at the interview, started as an intern before being accepted into the hotel's management training program.

While some hotels are relying on technology to fill labor gaps by installing kiosks and robots in kitchens and lobbies, Capuano said they can never fully replace human talent.

“At the heart of the hospitality business is people and serving them.”

Even when discussing the company's loyalty program, Marriott Bonvoy, Capuano emphasized that Marriott always strives to build an “emotional relationship” with its guests.

Last year, the company partnered with high-profile events such as the Taylor Swift Elas Tour, the Super Bowl and Formula 1 races to offer members free passes and special behind-the-scenes opportunities.

“Through these experiences, we are evolving our relationship with our members from a transactional relationship to a more emotional relationship,” he said.

NFL wide receiver Garrett Wilson will join Official NFL Hotel Courtyard by Marriott to unveil this year's Super Bowl Sleepover Suite at Allegiant Stadium in Las Vegas on February 8th. [AP/COURTYARD BY MARRIOTT]

ESG

Marriott is committed to achieving net-zero emissions by 2050 at the latest. In line with this global initiative, South Korean hotels with more than 50 rooms will remove all disposable toothbrushes, toothpaste and razors starting March 29th. aims to replace in-room single-use water bottles with water dispensers in 15 facilities in South Korea by the end of 2024. Currently, approximately 35 tons of plastic bottles are discarded annually at these facilities.

Marriott aims to replace in-room single-use water bottles with water dispensers at 15 of its properties in South Korea by the end of 2024. Currently, approximately 35 tons of plastic bottles are discarded annually at these facilities. [MARRIOTT INTERNATIONAL]

Individual hotels will also be able to track their carbon emissions, with a further push from companies that introduced new systems this year to better track sustainable practices at hotels in the Asia-Pacific region, excluding China, Menon said. The company is constantly coming up with new ideas to reduce waste.

For example, JW Marriott Jeju Resort & Spa works with a local orange farm to recycle 300 kilograms (660 pounds) worth of food waste. JW Marriott Hotel Seoul has introduced Lumitics, a food waste tracking system. It measures in real-time how much food is being thrown away and communicates that data to kitchen teams so they can better plan portions of different foods and minimize waste. I'll make it. .

Premium Suite with Spa at JW Marriott Jeju Resort & Spa in Jeju Island, South Korea [MARRIOTT INTERNATIONAL]

Marriott International also aimed to achieve gender parity in its global executive ranks by the end of 2025, but Mr. Capuano pushed the deadline forward to 2023, and as of December last year, the gender parity rate remained at just over 47%. Ta.

“We are confident that we will far exceed our goals by the original deadline of 2025.”

Written by Li Jiang [lee.jian@joongang.co.kr]