- Marriott International is re-platforming major systems and investing in its technology infrastructure with a focus on how it will affect associates, guests, owners and franchisees, Marriott President and CEO Anthony Capuano said during the company’s Q1 2023 earnings call, for the period ending March 31.
- “From an associate perspective, particularly, our future workforce is a workforce that has grown up opening an iPhone box with the understanding that there are no instructions and that technology will be intuitive," Capuano said, according to a Seeking Alpha transcript. “The design of our future technology will be similarly intuitive.”
- Amid the planned transformation efforts, Marriott plans to spend around $150 million above its usual technology spend this year, Capuano said in a February earnings call.
As Marriott invests in technology, it has also welcomed new tech executives among a slew of leadership changes in February.
The company appointed Drew Pinto as EVP and chief revenue and technology officer, and Peggy Fang Roe changed roles to become EVP and chief customer officer, responsible for developing customer experience through data, AI and innovation.
The appointments followed two executive departures: Stephanie Linnartz, who moved from the company’s president to Under Armour’s CEO, and retiring group president of the company’s international division Craig Smith. Capuano said in February the leadership revamp would help the company become more nimble and effective in driving strategies.
The company expects its technology spending to yield benefits over time as it works in-house to implement new technologies and taps third-party providers for specific services.
“This is really a recognition that we view the digital experience and the experience for our customers and for our associates on the systems that they interact with the company as being of critical importance over the next few years, or really, forever,” Leeny Oberg, Marriott CFO and EVP, development, said during the company’s Q4 2022 earnings call in February according to a Seeking Alpha transcript.
Capuano anticipates the technology investment to improve customer and employee experience, as well as boost revenue.
New technologies are expected to help the company improve its profit margins thanks to the associated operating efficiencies, Capuano said during the company’s Q1 2023 earnings call. When new systems roll out, guests will have access to products and services, such as food, beverage, spa or golf, at a single click.
“We think that represents a very meaningful revenue upside,” Capuano said.