WASHINGTON, DC— In an effort to optimize its on-line presence and electronic sales, Marriott International has designated two new management positions to analyze various Internet distribution channels. The new employees, dubbed Internet channel managers, will market unsold room inventory via the Internet, examine the cost benefits of various travel websites and act as liaisons between on-line, third-party distributors and individual Marriott properties. “We’ve always had people managing electronic channels,” said Deborah McGrath, vp/e-commerce, sales and operations. “But as the e-world grows larger, we decided to hire managers to look at other web-based channels.” The new managers will track the financial benefits of various on-line intermediaries and determine which sites would be the most optimal distributors for Marriott’s inventory. In evaluating various travel websites, the new channel managers look at several factors, including the method used by a site to link to Marriott’s inventory— whether it’s through a GDS, Pegasus or a direct link— and if the website requires a direct link to Marriott’s internal reservation system. Then they must compare the investment cost of that link with the value of the potential sales booked through the intermediary website. They also analyze how each intermediary sells the available hotels rooms; who the website’s customers are; how the site has worked to build its brand name; and how many Internet users are logging on and booking via that specific travel site. In 2000 roughly 3.6% of Marriott’s total room sales were booked via the Internet, and about 75% of those sales were booked on Marriott.com, noted McGrath. The remaining 1% of Marriott on-line sales were booked via intermediary websites, and the majority of them came from four or five major on-line players, McGrath added. “As the Internet grew, we saw the rise in leaders in the industry,” she said, citing Priceline, Expedia, Travelocity and TravelNow as sites that have been most successful for Marriott. However, with the new Internet channel managers, McGrath hopes the company will be able to evaluate more on-line travel distributors, and hopefully form new profitable relationships. “We’re now going to be looking at more niche players,” she said. For example, Marriott has been interested in testing different opportunities with Last MinuteTravel.com for quite some time, but it “didn’t have anyone that could look at it carefully and test it,” said McGrath. The new channel managers will now evaluate these niche operators and measure whether they are “worthwhile,” she said. The Internet channel managers were appointed within the past month. They’ve already begun their work, and report to Lisa Fues, director/e-commerce, sales and operations. However, because the employees are not considered senior associates, and in an effort to avoid unnecessary phone calls from vendors, Marriott does not wish to disclose their names, according to a company spokesperson.
