As even the largest players are forced to contend with unprecedented levels of disruption thanks to COVID-19, Marriott has announced mitigation plans that outline a number of strong measures to minimize the impact of coronavirus. This swift, decisive action should stand the company in good stead, says GlobalData, a leading data and analytics company.
Rheanna Norris, Associate Analyst at GlobalData, comments: “Marriott is in the fortunate position of having large cash reserves and has just under 50% of its $4.5bn revolving credit facility left to tap into. This is a huge advantage for Marriott as it attempts to overcome the inevitable financial hardship caused by COVID-19.”
Marriott’s strong brand image, across 30 brands in 130 countries, will work in its favor and enable loyal customers to return safely to travel while making the most of the company’s feted loyalty scheme. Marriott is the second largest hotel chain in the world. This brand and market power puts Marriott in prime position to cope with the impact of the coronavirus, compared to other competitors.
Norris concludes: “It has been predicted by Marriott’s CEO that the impact of COVID-19 on the travel and tourism industry will be worse than 9/11 and the 2008 recession combined. However, the hotel industry has advanced since these times, with technologies and tools in place to adapt to external impacts.”