Marriott International today released their third quarter results and the markets were not impressed. The stock was down 6% in after-hours trading at the time of writing this piece. It seems that hotel customers were not booking with Marriott at the level Mr. Sorenson was hoping for while the Marriott platform was being “stabilized” (read more here).
Marriott did not meet their revenue target and lowered their guidance for the fourth quarter. Profit for the quarter was up however. Basically fewer people were booking Marriott rooms in the quarter (did this come as a surprise to anyone?).
You can access Marriott’s main site here.
Here’s the press release with financial data from Marriott:
Here is the current Marriott property count:
And we found an interesting snippet:
Isn’t it interesting that the occupancy rates in this quarter are down and Marriott also estimates that the fourth quarter is not quite what their earlier estimates were?
Here is the the daily Marriott stock chart:
Quite a drop in the after-hours trading.
Here is a “short list” of some merger related issues that we identified and could have something to do with the falling revenues:
- SPG Data Integration Issues (Report Yours Here)
- It’s Monday & SPG Side Doesn’t Have Access To Booking Systems
- What Was Marriott Thinking & Trust Left?
- Update: Mr. Marriott’s Office Of Consumer Affairs (Customer Relations Escalation) Can No Longer Be Reached Via Phone
- RANT: New SPG Number & Consequences
- Marriott Make A Green Choice-Program Points Earned Cut By 67% At Starwood Hotels
- Marriott Rewards Travel Package Downgrade & Attachment Troubles
- Reader Email: Marriott Cheated Me John!
- Reader Rant: SPG Award Reservations Canceled & Points Gone?
- Marriott’s Starwood Priority? Get The Bible & Book Of Mormon To 300,000 Rooms!
- Reader Question: “That’s nice, we are Marriott.” – Where To Go?
- Reader Email: Going insane with Marriott (Cannot Login & Password Reset Done 30 Times)
- How To Contact Marriott Rewards & SPG During These Difficult Times (Without Being On Hold For Hours)?
- Reader Question: Why No Coverage Of Marriott’s Lies Towards Their Elite Customers?
- Marriott & SPG Program Merger Two Weeks Later (Report Your Issues!)
- SPG Account Update: Gained 10 Nights For 2018 & Lost 50 Lifetime Nights
- Reader Question: Lounge Access As Platinum Amenity At Legacy SPG Brand Past Merger?
- Reader Question: SPG Platinum Amenity Gone After Merger ? (When Lounge Is Closed)
- Reader Email: Marriott & SPG Booking Woes!
- Marriott Rewards Pulling A Fast One With SPG Best Rate Guarantee Claims
- Marriott “Green Choice” Or Greedy Choice? (Housekeeping Hours Cut)
- Marriott / SPG Platinum Elite Amenity: Breakfast vs Mediocre Points Credit – What To Choose?
- Reader Email: SPG/Marriott Merger Problems Rant!
- Marriott & SPG Ambassadors Moving From 200 To 300 Clients?
- One Month After Marriott Rewards & SPG Merger Blunder (Report Outstanding Issues)
- Reader Question: SPG/Marriott Merger – Still Don’t Have Correct Lifetime Platinum Premier Elite Status?
- Reader Email: The Marriott/SPG Gets Worse – Status Dropped From Reservations?
- Reader Question: Trouble Contacting Marriott Rewards & Where To Go?
- Reader Email: Is Marriott The New Black Hole? (Ambassador Program Issues)
- Marriott & SPG Merger Madness Continues: Hotels Losing Guest Stay History & Some Status
- NYT: “Marriott’s Merger of Hotel Rewards Programs Tests Members’ Loyalty”
- Marriott Rewards Deceives Members On Points To Miles Conversions
- Employee Strikes Now Affecting 23 Marriott Hotels Around The US (Book Away!)
- Reader Email: Marriott Rewards Award Disaster & Customer Service Of No Help!
- Marriott Rewards Email Alert: Points Expiring In 23 MONTHS!
- Reservation Management Function On SPG App & Website (Marriott Skin) Now Entirely Useless
- Marriott CEO Sorenson: “(Program Merger) Little Bit More Bumpy Than We Anticipated”
- Marriott Rewards (SPG) Points & Stay History Gone For A Week?
- Reader Email: Shambolic Marriott Rewards Customer Service
Perhaps these softer occupancy rates have something to do with the merger mess that have made booking and dealing with Marriott and legacy Starwood properties at times impossible and very time consuming. Some have likened it to beating your head against the wall.
Marriott CEO Mr. Sorenson has tried to play down all the issues with the program merger that has plagued many members and properties ever since August 18th. Perhaps this is no longer just “noise around the edges” (read more here) as he most recently put it.
Customer service has been an utter mess and many members have been actively booking and staying away from Marriott-affiliated hotels including myself. Business travelers don’t have time to waste with non-working websites or with customer service that take hours to resolve simple issues.
It is not difficult to have gains in short term profitability by cutting corners but you can only fool people for so long.