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MARRIOTT INTERNATIONAL: DEPLOYING AI


ACROSS HOTEL BRANDS IN SINGAPORE
For any company that is being disrupted by digital, it’s important that they not just be able to
recognize if there’s a potential threat to its existing business; the bigger challenge is, how and
what do you change to make the transition from where it is to where it needs to be?
- George Corbin, Marriott International’s Former Senior Vice President of Digital 1

It was March 2022. Jay Joie, a management intern at Marriott International Inc (Marriott) was
preparing a presentation on AI trends in the hospitality industry to present to a group of senior
managers. She had done a thorough research on Marriott’s Artificial Intelligence (AI) efforts so far,
and the opportunities in the hotel industry in Singapore, and highlighted the key points in her
presentation for her management team to help deliberate over possibilities. Marriott was one of the
pioneer international hotel chains that focused efforts on digitalisation, especially in guest-facing
technologies. One of its first forays was in virtual reality in 2015, when it launched “VRoom Service''
allowing guests to “order inspiring virtual reality experiences to their rooms''.2 This service offering
was created in collaboration with Samsung Electronics America and piloted in New York and
London.

In 2016, the company set up a Hotel Innovation Incubator called M Beta at Charlotte Marriott City
Center, which served as a testing ground for innovative ideas such as keyless entry and digital
experiences in its fitness studios.3 Subsequently, Marriott partnered with Legrand and Samsung in
2017 to launch the industry’s first Internet of Things (IoT) hotel room to explore concepts that could
potentially elevate the guest experience, improve design efficiency and advance Marriott’s global
sustainability efforts.4

In Asia, Marriott teamed up with Alibaba Group in a joint venture to pilot its facial recognition check-
in technology with Fliggy, Alibaba’s travel service platform. Marriott aimed to offer a seamless and
convenient check-in alternative for tech-savvy Chinese travellers, who had shown a preference for
facial recognition technology.5 The pilot kicked off in July 2018 at two hotel properties in China -
Hangzhou Marriott Hotel Qianjiang and Sanya Marriott Hotel Dadonghai Bay.

Following Marriott’s acquisition of Starwood Hotels & Resorts Worldwide, the hotel group
leveraged on Starwood’s investments in machine learning and IoT to adopt a “mobile-first” mentality
and provide personalised guest experiences. 6 Nevertheless, Marriott acknowledged the need to
empathise with consumers and understand their wants as well as pain points before rushing to the
next tech frontier.7

This case was written by Professor Hannah H. Chang, Emerlyn Ng, Joyce Chua, Matthew Blower, Sarah de Souza and
Tiffany Gwee at the Singapore Management University. Preparation of this business case was supported by the Ministry of
Education (MOE), Singapore, under its Academic Research Fund (AcRF) Tier 2 Grant (MOE2019-T2-1-183). Any opinions,
findings and conclusions or recommendations expressed in this material are those of the authors and do not reflect the views
of the Ministry of Education, Singapore. The case was prepared solely to provide material for class discussion. The authors
do not intend to illustrate either effective or ineffective handling of a managerial situation. The authors may have disguised
certain names and other identifying information to protect confidentiality.

Copyright © 2022, Singapore Management University Version: 2022-05-10

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SMU-22-0016 Marriott International: Deploying AI Across Hotel Brands in Singapore

Marriott was the largest international player in the hospitality industry, with a massive presence
worldwide. As at early 2022, most of its innovations had been conceptualised, tested and deployed
outside of the Singapore market. For instance, by leveraging natural language understanding and
machine learning, Marriott launched a chatbot, ChatBotlr, for its Aloft hotel brand to manage an
array of guest requests via text message in 2017. Early findings showed that two-thirds of Aloft
guests interacted with ChatBotlr, with a service response time of 5 seconds.8

With the emergence of mobile integration and IoT, AI was expected to deliver approximately US$13
trillion in additional global economic activity by 2030. 9 As the second-largest player in the
Singapore hotel industry, where there was growing demand and support for AI-powered services,
Marriott was faced with an opportunity and challenge as to whether it should deploy customer-facing
AI in key hotel brands present in the local Singapore market.

Which hotel brand/s in the Singapore market could Marriott deploy front-facing AI solutions in, and
why? Which front-facing AI solutions would fit with the chosen hotel brand/s? What were some
concerns and considerations Marriott would have to keep in mind when deploying the AI solutions
in the hotel/s?

Marriott and the Overall Competitive Landscape

Overview of the Hospitality Industry

In 2018, the size of the global hotel industry was US$600.49 billion, growing at an average rate per
year of 7% since 2014.10 The COVID-19 pandemic had slowed this growth, with the recovery of the
industry expected to take place only in 2023.11 Economy and midscale hotels were performing better
during the pandemic than luxury hotels, with more guests and lower operating costs.12 However, a
positive outlook for the global travel and tourism (T&T) sector existed, and its direct contribution to
the world’s GDP was expected to reach US$4,065 billion in 2029.13

As a key international business hub, Singapore’s strength in hospitality was in visitor arrivals, with
a Compound Average Annual Growth (CAAG) rate of 6.7% from 2008 to 201814 and a peak of 19.1
million in 2019.15 However, the onset of the pandemic saw a sharp fall in visitor arrivals by 71.4%
and tourism receipts by 68.2%.16

Overview of Marriott International Inc.

Marriott was one of the world’s leading hospitality service providers. In 2016, Marriott merged with
Starwood Hotels & Resorts Worldwide, valued at US$12.2 billion, which made it one of the largest
hotel chains in the world. Marriott operated approximately 5,400 hotels internationally, making up
over 918,000 rooms, with almost 515,000 rooms in the pipeline.17 It typically focused on the upscale
and luxury segments, thus allowing it to charge higher prices in comparison with its competitors.

Marriott operated hotels in North America, Europe, the Middle East, Africa, Asia-Pacific, the
Caribbean and Latin America. In view of COVID-19’s impact, its total revenue fell to US$10.57
billion in 2020, after increasing to US$20.97 billion in 2019 from US$20.76 billion in 2018.18

Marriott represented 8.2% of Singapore’s hospitality market in 2020 - making it the second-largest
player in Singapore, up from 7.4% in 2019. Its portfolio of mainly luxury and upscale hotels included
the Ritz-Carlton (2.7%), the Westin (1.4%), JW Marriott (1.3%), St. Regis (1.2%), Sheraton (1.0%)

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SMU-22-0016 Marriott International: Deploying AI Across Hotel Brands in Singapore

and W Hotel (0.8%) with the percentages representing the share of revenue held by each brand in the
overall Singapore hotel market.19

Key Players in the Hospitality Industry

Global
As at 2020, Marriott made up 9.2% of the global market, with Hilton Worldwide Holdings Inc
holding 5.6% of the market, Intercontinental Hotels Group Plc with 3.8%, AccorHotels Group with
2.3%, and Wyndham Worldwide Corp with 2.1%20.

Singapore
Amongst the hotel brands in Singapore, 72% were international.21 The key market players included
AccorHotels (Swissôtel), Marriott (The Ritz-Carlton), Las Vegas Sands Corps (Marina Bay Sands),
InterContinental (Holiday Inn) and Shangri-La International Hotel Management (Shangri-la). 22
Singapore’s hotel investment market peaked in 201923, but with the fall in visitors due to COVID-
19, hotel room revenue S$811 million (US$ 586)24 declined 58.5% year-on-year (YoY).25

Competitive Landscape

Marriott’s closest competitor in Singapore’s hospitality industry was the AccorHotels Group
(Accor).26 Accor’s strength lay in its diverse brand portfolio with varying service ranges, pricing
strategies and unique brand images, enabling it to serve multiple consumer segments and bring in
various revenue streams for the company.27 Accor segmented and positioned its hotel brands in
terms of luxury, premium, midscale and economy offerings. In Singapore, brands that fell under the
luxury segment were the Raffles, Swissôtel, Sofitel, and Fairmont hotels. Novotel and Mercure fell
under the midscale segment and the Ibis brand under the economy segment.

Intercontinental Hotel Group’s (IHG) brand portfolio was more focused on the midscale segment
with a lower proportion of brands in the city centre.28 IHG had a presence in the luxury and upscale
hotel segment through its InterContinental brand; however it was heavily focused on the mid-market
hotel segment with the Holiday Inn brand, which IHG defined as “upper-mid-scale” - over 60% of
its global revenues were generated from this segment.29 The company’s brands in Singapore include
InterContinental Singapore, Holiday Inn, Crowne Plaza Changi Airport and Six Senses.

Shangri-La International Hotel Management Ltd (Shangri-La) had a smaller presence in Singapore’s
hospitality industry when compared to Marriott and Accor. It positioned its Shangri-La hotel and
Shangri-La Rasa Resort & Spa as their luxury offerings, while Hotel JEN Tanglin and Hotel JEN
Orchard Gateway were their offering for millennial and business travellers. They also offered a long-
term stay option at the Shangri-La Apartments.

Marina Bay Sands (MBS), a subsidiary under Las Vegas Sands Corps’, stood out from the
international hotel chains as it did not operate a portfolio of brands across different chain scale
segments; instead, it focused on providing luxury and upscale hospitality services through a single
brand.

Marriott's Segmentation of Hotels and Customer Profiles

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SMU-22-0016 Marriott International: Deploying AI Across Hotel Brands in Singapore

Following Marriott’s merger with Starwood, the company launched a new segmentation that
combined Starwood’s leading lifestyle brands and international presence with Marriott’s Luxury and
Select service tiers, creating a more comprehensive brand portfolio.

Marriott’s segmentation was presented by two overall styles of hotels - Classic and Distinctive, and
further differentiated by three quality tiers - Luxury, Premium and Select. The Luxury tier was
Marriott’s highest-end tier, offering “bespoke and superb amenities and services”.

The Premium tier was Marriott’s upscale and midscale selection offering “sophisticated and
thoughtful amenities and services”. The Select tier was Marriott’s more economical selection that
offered “smart and easy amenities and services” (Refer to Exhibit 1 for an Overview of Marriott’s
Brand and Market Segmentation in Singapore).

In Singapore, brands under the Luxury and Premium tiers had a stronger presence as compared to
brands belonging to the Select tier, where the hotels’ differentiation strategy was heavily skewed to
the luxury and upscale segments.

General Target Markets for Marriott’s Key Brands

Marriott’s key hotel segments in Singapore included their Classic and Distinctive styled brands in
the Luxury and Premium tiers.

As a proxy indicator of Marriott’s target market by geography, Indonesia, Mainland China, Australia,
India and Malaysia were Singapore’s top five international visitor-generating markets in 2020,
followed by the UK, Japan and the US. These markets represented 49% of total international visitor
arrivals in the same period. In terms of visitor arrival trends, travellers aged 25-34 represented the
largest demographic visiting Singapore in 2020, followed by those aged 35-44, and 45-54 years old
(refer to Exhibit 2 for Demographic information and purpose of visit of visitors).30

In terms of nationalities of guests, hotels in Singapore were most frequented by Chinese and
Australian travellers, followed by Singaporeans looking for a staycation, then visitors from the UK,
the US, and Japan followed closely behind, with a minority of travellers coming from other Asian
countries like Malaysia, South Korea, Indonesia, and India.31

Marriott’s Classic Line

Marriot’s Classic line featured more timeless brands with legacy architecture, formal service, and
traditional amenities.32 These brands sought to provide time-honoured hospitality for the modern
traveller (refer to Exhibit 3 for Breakdown of hotel market share by retail value).

Classic Luxury
Based on Marriott’s brand segmentation, the Ritz Carlton, St Regis and JW Marriott brands aligned
in their positioning to provide “legendary”, “exquisite immersive” and “enriching” experiences that
were thoughtfully crafted by the hotel to meet luxury travellers' refined tastes.

There were more similarities than differences between the hotels under the Classic Luxury segment.
Each of the hotels offered tailored packages and top-class services and amenities for families with
young children. Couples were also catered to, with each hotel giving suggestions for a romantic
weekend getaway and offerings for couples. Weddings were also a main service provided by each
hotel with all offering luxurious venues, catering, and honeymoon experiences. These hotels also

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SMU-22-0016 Marriott International: Deploying AI Across Hotel Brands in Singapore

catered to companies looking to host events, meetings, and parties, in addition to business travellers
looking for a luxurious stay.33

Visitors were typically between the age of 30 and 65, and wealthier than the average traveller.
Wealthier Asian travellers expected a certain standard of luxury throughout their stay, and preferred
unique experiences over the tried-and-tested vacation. They were often also more comfortable with
interacting with AI, if it improved the service.34 Older travellers were less tech-savvy than their
younger counterparts; however, many still adopted new technologies at high rates.35 This group
often travelled to relax, and see family and friends, and also valued high quality accommodations.36

Other hotel brands in Singapore that targeted a similar customer segment were Marriott’s Classic
Luxury line including The Fullerton Hotel, Intercontinental Singapore, and Grand Hyatt Singapore.

Classic Premium
Based on Marriott’s segmentation, Marriott Hotels (Singapore Marriott Tang Plaza) and Sheraton
(Sheraton Towers) were categorised under the Classic Premium line. This segment blended
traditional hospitality offerings with premium amenities and services.

The Marriott Hotels brand focused on providing moments of inspiration for guests, through
“sophisticated spaces and experiences that keep the mind balanced, sharp and inspired”.37 The brand
had also partnered with TED to offer experiences that fuelled curiosity and sparked imagination,
through in-room content and live events (e.g., curated TED Fellows salons, talks, and masterclasses).

The Sheraton brand was Marriott’s most global brand with a strong brand awareness worldwide; the
brand was positioned as “a point of connection for millions of travelers”. As the brand’s site
mentioned, “Where the World Comes Together” and “The Best Work Is Done Together”, Sheraton
sought to serve as a connection point between colleagues, friends and family in over 70 countries
worldwide, with a wide range of venues and spaces for guests’ meeting and event needs.

The Marriott Hotels and Sheraton brands targeted both business and leisure travellers (also
sometimes known as ‘bleisure travellers’), to whom it provided traditional and premium amenities,
in line with its Classic style. The Marriott Hotels brand placed extra emphasis on business travellers;
guest rooms were described as “redesigned...to be a space to work, relax, reflect and be your best
self”. The Sheraton brand focused on the Millennial, Gen X and younger corporate audience groups.
In Singapore, both Marriott Tang Plaza Hotel and Sheraton Towers were located close to the city
centre, providing convenient access to local attractions and unique culinary experiences for leisure
travellers, while offering premium meeting and event services, as well as executive lounge access
privileges to cater to business travellers’ needs.38 Based on TripAdvisor reviews, business travellers
contributed the largest number of reviews for both Marriott Tang Plaza Hotel and Sheraton Towers
as compared to other traveller types such as families and couples.

Overall, business travellers in Asia (from China, Singapore, India, Indonesia, Japan, etc.) were
gaining more autonomy in terms of hotel selection, and their choices were increasingly influenced
by their own leisure travel experiences and social media. With increasingly flexible travel policies,
Asian business travellers had a greater propensity to combine business and leisure travel as compared
with other regions. 39 For business travellers in Asia, location near work, efficiency-enhancing
facilities (e.g., high-speed Wi-Fi) and value for money were the top three priorities when selecting a
hotel.40

In terms of country differences in customer profiles, Singaporean business travellers were the most
unwilling to use digital products, with most citing the sentiment that if the technology does not work

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SMU-22-0016 Marriott International: Deploying AI Across Hotel Brands in Singapore

perfectly, they do not bother with it, whereas Chinese and Indian business travellers were the most
comfortable with using technology in hotels.41

Other hotel brands in Singapore that targeted a similar customer segment as Marriott’s Classic
Premium line included Studio M Hotel, Crowne Plaza Changi Airport, Novotel, and Sofitel
Singapore City Centre.

Marriott’s Distinctive Line


The hotel chain’s Distinctive line comprised brands that reflected a unique and contemporary hotel
experience, featuring more avant-garde architecture, engaging services and modern amenities. These
brands sought to provide memorable experiences with a fresh perspective and personality (refer to
Exhibit 4 for Company profiles of key hospitality players).

Distinctive Luxury
W Singapore - Sentosa Cove was under Marriott’s W Hotels line. W Hotels by Marriott was an
“iconic lifestyle brand that boldly colours outside the lines of luxury”, combining the “personality
and cutting-edge style of a boutique hotel with distinct positioning”. The W Experience was fuelled
by its passions around unique fashion, art, design and music (refer to Exhibit 5 for Characteristics
of a Boutique hotel).

W Singapore was located on Sentosa Island, a place that was home to many of Singapore’s key
attractions such as Resorts World Sentosa (RWS), Universal Studios (USS), Adventure Cove
Waterpark, the S.E.A Aquarium and multiple popular beaches. It deemed itself a “luxury resort hotel”,
and “an oasis of modern luxury for business travellers, vivacious staycationers and sophisticated
globetrotters”. This 7-floor 240-room hotel boasted a state-of-the-art gymnasium, one of Singapore’s
largest outdoor pools and up to eight meeting and event spaces with world-class audio-visual
facilities. The hotel’s design was bold and loud - with a mixture of LED light installations, curated
music and bright colours awaiting guests at every turn. W Singapore was also known for its signature
“Whatever/Whenever Service” - the hotel’s attempt at personalising the guest experience 24/7. The
services ranged from helping plan proposals to throwing surprise birthday parties.42

In 2019, Sentosa Island saw approximately 18.8 million visitors, including visitors to RWS,
Singapore’s first integrated theme park and casino. Since its opening in 2010, visitor numbers to
Sentosa had more than doubled compared to 2009.43

In general, W Hotels by Marriott was a design-led, contemporary lifestyle brand that seemed to target
younger, more affluent consumers.

According to the General Manager at W Kuala Lumpur, Christian Metzner, W’s overall target
audience was “someone who is unafraid to stand out, a rule-breaker and a scene-stealer”, and the W
guest “does not merely follow trends, but rather sets and redefines them”.44

Other hotel brands in Singapore that targeted a similar customer segment as Marriott’s Distinctive
Luxury line included One°15 Marina Sentosa Cove, Amara Sanctuary Resort Sentosa and Capella
Singapore.

Distinctive Premium As part of Marriott’s brand differentiation strategy internationally, the Westin
brand’s unique value proposition was to offer “innovative, well-being programming and revitalizing
amenities”, while the Autograph Collection and Tribute Portfolio were positioned more as boutique
and independent hotels. With an emphasis on showcasing “unique perspectives on design, craft and
hospitality”, the Autograph Collection consisted of hotels that were hand-selected, ranging from

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SMU-22-0016 Marriott International: Deploying AI Across Hotel Brands in Singapore

boutique to luxury. In the same vein, the Tribute Portfolio targeted the independent spirit, and was
described by Marriott as “an exceptional collection of independent hotels and resorts with unique
personalities and spirit”.45

The Westin had a particular focus on health and wellness. They prided themselves in having beds
that provided restorative sleep, a relaxing spa and a 24/7 sports gym. Located in one of the
commercial buildings in the Marina Bay district, the Westin targeted both business and leisure
travellers. There were a total of 10 event spaces (11,248sq feet in total) - with the largest Grand
Ballroom capable of hosting up to 600 persons.

All the Autograph Collection and Tribute Portfolio hotels in Singapore fell under the ‘boutique’ hotel
category, which includes hotels that were service-focused, design-oriented, upscale and offered a
trendy and unique experience.46 These hotels were often small and did not contain more than 100
rooms.47 These hotels targeted guests who valued the experience of local culture and heritage, as
well as those who appreciated history, design, art and architecture.

For instance, Duxton Reserve from Marriott’s Autograph Collection was proud of its “echoes of 19th
century elegance reimagined in the historic heart of Singapore” and its location - a row of heritage
shophouses with award winning designs restored by acclaimed British designer Anouska Hempel.
The Vagabond Club from Marriott’s Tribute Portfolio had a keen focus in art and culture. According
to them, their concierge team “is available to help (guests) experience Singapore like a local, with
insider knowledge to help (them) find the best local sights and activities to suit (their) taste”.48

Marriott’s general target market for its boutique hotels included travellers who were looking for
unique experiences, or travellers “looking for something a little bit off the beaten trail”.49 These
travellers were mostly individualists who preferred diverse, one-of-a-kind experiences that
independent hotels offered. They revelled in more experiential travel, disliking cookie-cutter or
impersonal hospitality environments.

Internationally, many hotel chains including Marriott had developed more independent boutique
style offerings to capture the rising consumer demand from millennial travellers. The millennial
consumer profile consisted of independent and informed travellers, who valued authentic travel
experiences (such as cultural appreciation, “living like a local”, independence) over possessions and
commoditized products.5051 In Singapore, millennial travellers were willing to pay more for unique
experiences, while exhibiting deal-seeking behaviours to make the most out of dollars spent.52

Millennials were found to be less apprehensive about turning to technologies such as AI to curate
travel experiences. Based on research conducted by OgilvyRED (2018)53, 63% of respondents were
comfortable interacting with AI to research and book travel services. They were also more
comfortable with technology compared to previous generations; 47% of the millennial respondents
were interested in having an online shop assistant for advice while they browsed, compared to 42%
of Gen X’ers and 34% of Baby-boomers.54

Other hotel brands in Singapore that targeted a similar customer segment as Marriott’s Distinctive
Premium line include M Social, Hotel JEN, YOTEL, and Andaz by Hyatt Group.

Digital Transformation of the Hospitality Industry

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SMU-22-0016 Marriott International: Deploying AI Across Hotel Brands in Singapore

Digitalisation had been one of the major trends changing society and business in the near and long-
term future55, including the shift to digitalisation in the hospitality industry. Tech-augmented hotels
were not new to the industry, with 75% of global travellers claiming to have stayed in hotel rooms
that had smart devices. 56 In the hospitality industry, digitalisation presented opportunities for
businesses to expand market reach, increase growth, improve operational efficiencies and sharpen
their competitive edge.57

Despite the shift toward digitalisation and tech-augmentation, the current AI utilisation rate of the
travel and tourism sector was low (approx. 4%) as compared to other sectors (approx. 5-14%).58 This
was despite estimates that the travel industry had the most to gain from AI technologies, with an
estimate of 128% of potential incremental value of using AI.59

Digitalisation of the hospitality industry had been accelerated by the pandemic, with more industry
players investing in smart solutions as part of their recovery strategies for safer travel and to regain
public confidence.60 Increasing consumer receptivity towards new technologies had thus encouraged
the push for AI solutions such as chatbots to facilitate contactless services.61

In Singapore, an emerging trend that was shaping the hotel industry was the increased usage of digital
technologies and in turn AI, had led to higher expectations for personalised experiences and
convenience among consumers.62 Hotels were encouraged to innovate to drive operational efficiency
and provide unique and bespoke experiences for guests, while saving costs.63 This was in line with
the nation’s push for digitalisation to capitalise on the digital economy, which had the potential to
contribute up to US$10 billion to Singapore’s economy by 2021, according to an IDC study
commissioned by Microsoft64.

The deployment of AI solutions did not come without its risks. The hospitality sector, in particular,
already dealt with a variety of security vulnerabilities from external elements (e.g., mobile payments,
sharing biometric information, live chats, online concierge services, etc.) as well as internal elements
(e.g., stock supply control, points of sale, etc.). The sector also managed huge volumes of personal
data, vulnerable in a number of different ways to cyberattacks.65

These risks included issues of data safety and privacy 66, loss of the “human touch”, alienating guests
who were not comfortable with using technology, leading to customers’ lack of trust 67 as well as
complications that could possibly arise when the AI was not advanced enough.

AI in the Hotel Industry

AI utilisation in the hospitality industry had grown as a result of advancements in computer science
and technology, and included typical services such as virtual chatbots and service robots. McKinsey
Global Institute expected that around 70% of companies would adopt at least one type of AI
technology by 2030, with less than 50% having fully deployed these five AI categories: computer
vision, natural language, virtual assistants, robotic process automation, and advanced machine
learning.68

The hospitality industry in Singapore had seen an uptake in AI deployments to meet customer
expectations for seamless and hyper-personalised experiences, streamline operations, improve
pricing strategies and adopt sustainable practices.69 The Singapore Tourism Board (STB) and the
Singapore Hotel Association’s (SHA) Innovation Committee were jointly driving the Smart Hotel
Technology Roadmap to accelerate growth of the hotel industry in Singapore.

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SMU-22-0016 Marriott International: Deploying AI Across Hotel Brands in Singapore

Possible AI solutions to deploy

Chatbots (Digital Concierge)


Unsurprisingly, chatbots were becoming increasingly popular. As users recognised chatbots as a
means to facilitate seamless communication with companies, the chatbot market revenue worldwide
was expected to grow more than 10 times by 2027.70

In the hotel industry, chatbots had been deployed in front-end operations as digital concierges to deal
with customer queries (e.g., food/travel recommendations, restaurant bookings, etc.) and
housekeeping needs. However, the use of chatbots could result in disappointment if guests’ queries
and problems were not addressed well. AI-powered chatbots were not able to understand complicated
questions or detect the nuances of language such as sarcasm, humour or irony, which often caused
frustration and misunderstanding.71

Hotels in Singapore that had implemented AI-powered chatbots as part of their front-end services
include Andaz, Pan Pacific, Marina Bay Sands and Four Seasons Regent Hotel.

Automatic Check-in and Out


A common scenario when checking into a hotel would involve the hotel guest arriving and heading
to the front desk, getting their details manually checked and keyed into the system, the front-desk
staff handing over the key/s to the guest’s room/s and the staff attending to any needs and enquiries
the guest had. Based on research, guests were often disappointed when the check-in process was
inefficient or delayed by more than 5 minutes. To mitigate this, hotel players had turned to AI
solutions to automate the check-in process. Most AI-enabled automated check-in and out services
came in the form of a kiosk within the hotel or a phone application. These services used machine
learning, facial recognition, artificial neural networks, optical character recognition technology to
help make the process smooth, accurate and efficient.

The global pandemic had encouraged more hotels to implement contactless check-in services which
integrated facial recognition and thermal detectors as part of their recovery strategies. In some
scenarios, this enabled guests to skip the front desk and autonomously access their rooms through
digital IDs and mobile keys.72

Hotels in Singapore that had implemented AI-enabled automated check-in and out process as part of
their front-end services included Grand Park City Hall Hotel, Amara Singapore and Marina Bay
Sands.

Service Robots

AI had enabled service robots to improve their abilities to provide efficient human services in
contemporary hospitality and augment manpower shortages. 73 Service robots were defined as
“system-based autonomous and adaptable interfaces that interact, communicate and deliver services
to an organisation’s customers”.74

From attending to housekeeping needs (e.g., independently delivering towels and amenities to hotel
rooms) to interacting with customers (e.g., guests can “use” robots to answer queries and get
recommendations), service robots were able to perform multiple functions relating to front-end
operations. These robots could make use of ML, NLP, simultaneous localization and mapping
(SLAM), computer vision, and robotic process automation technology, depending on what functions
they serve. In Singapore, hotels that used service robots employed them mostly for housekeeping
duties.

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SMU-22-0016 Marriott International: Deploying AI Across Hotel Brands in Singapore

Hotels in Singapore that had implemented AI-powered service robots as part of their front-end
services included Hotel JEN, YOTEL, M Social, Studio M and Sofitel Singapore (City Centre).

Other than the AI solutions above, many had also ventured into other possibilities of AI. This
included hotels integrating more AI capabilities or increasingly advanced AI into existing solutions
they already had.

Customer Perception and Reception towards AI Solutions

Chatbots (Digital Concierge)

Of the 72.2% of positive reviews about chatbots, the sentiment that emerged across the board was
that customers enjoyed being able to book facilities, order room service, or explore the hotel from
the palm of their hand. Often in reviews, customers would cite that they were happy that they could
access and book facilities using the Facebook messenger app that digital concierges often used as a
medium to interact with guests. Positive reviews would also cite that they enjoyed how fast and
convenient these digital concierge services were (refer to Exhibit 6 for sentiments of customers
towards different AI solutions).

The 16.7% of negative reviews all cited that the chatbot was extremely “user-unfriendly”, and were
dissatisfied that they could not make changes or modify their existing bookings or reservations
through the digital concierge. One of the negative reviews also found that requesting services through
messenger was impersonal, and said that they preferred to talk to staff in-person. In the 11.1% mixed
reviews, customers often said that they were a bit frustrated at the time they took their request to be
processed (mostly room-service related). One reviewer was annoyed at having to sign-in to Facebook
to use the chatbot.

Automatic Check-in and Out

The positive reviews of automatic check-in/out systems cited that they liked how fast and efficient
the processes were with the AI solution. They also found the process futuristic, modern and easy.

The negative reviews focused on the lack of human quality, with guests often disappointed that after
a long flight they had to check themselves in. One reviewer said: “The automated check-in makes a
cold welcome without the human interface”. Another reviewer also cited that they felt uncomfortable
using the self check-in due to privacy concerns. This was because the kiosk faced a public area with
passers-by and personal information like full name, date of birth, address, and picture of the passport
photo page was visible on screen while checking-in. Finally, the third most commonly expressed
sentiment was that the self-check in was often difficult to use and needed assistance from staff, which
made guests feel like the solution was meaningless as the staff could check them in themselves.

(6.3) Service Robots

Looking into the positive reviews of service robots in more detail, it was observed that customers
liked robots bringing them gifts and they often found the robots very cute and that the robots were
popular with guests’ children.

The 2% of reviews that had a negative reaction to the service robots each cited a different emotion.
The first thought was that the service robots that delivered toiletries to the room were too slow and

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they felt a human could do this task more quickly. The second expressed that by using robots, the
hotel was forsaking quality service for quantity, that it seemed the hotel was forsaking the customer
for profits. Of the 4% of mixed reviews, there were three different ideas expressed for why they felt
the solution was not completely positive. Two reviews felt as if the robot butlers were quite slow in
taking the elevator and that it bothered them when other guests would crowd around the robot inside
the elevator for a picture. One review expressed dissatisfaction that the robot butler at a hotel was
not working, even though they were looking forward to being served this way and had asked the
hotel specifically for this type of service.

Conclusion

In a world where there was a growing demand for AI-powered services, Marriott was now faced with
an opportunity and challenge as to whether it could deploy customer-facing AI in the three key hotel
brands present in the local Singapore market.

Which hotel brand/s in the Singapore market should Marriott deploy front-facing AI in? Why? Which
front-facing AI solutions will fit with the chosen hotel brand/s and why? What were some concerns
and considerations Marriott would have to take in mind when deploying the AI solutions in the hotel/s?

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EXHIBIT 1: OVERVIEW OF MARRIOTT’S BRAND AND MARKET SEGMENTATION IN


SINGAPORE

Source: “Our Hotel Brands”, Marriott, https://www.marriott.com/marriott-brands.mi, accessed 14 April 2021.

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EXHIBIT 2: DEMOGRAPHIC INFORMATION AND PURPOSE OF VISIT FOR SINGAPORE-


BOUND TRAVELLERS

Period: Jan 20 - Dec 20

Period: Jan 20 - Dec 20

Traveller types of Marriott Hotels by segment


Source: TripAdvisor

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EXHIBIT 3: BREAKDOWN OF HOTEL MARKET SHARE BY RETAIL VALUE (INTERNATIONAL


AND SINGAPORE)

Company Share by % Retail Value RSP (International)

Company Name 2019 2020

Marriott International Inc 9.2 9.2

Hilton Worldwide Holdings Inc 5.7 5.6

InterContinental Hotels Group Plc 3.8 3.8

AccorHotels Group 3.0 2.3

Wyndham Worldwide Corp 2.1 2.1

Others 76.2 77.0

Total 100.0 100.0

Company Share by % Retail Value RSP (Singapore)


Company Name 2019 2020

AccorHotels Group 12.3 10.8

Marriott International Inc 7.4 8.2

Las Vegas Sands Corps (Marina Bay Sands Pte 9.7 7.6
Ltd)

InterContinental Hotels Group Plc 6.5 5.3

Shangri-La International Hotel Management 3.5 4.4

Millennium & Copthorne Hotels Plc 3.6 3.9

Hyatt Hotels Corp 2.9 3.7

Meritus Hotels & Resorts 3.2 2.4

Mandarin Oriental Hotel Group Ltd 1.6 2.2

Hilton Worldwide Holdings Inc 2.2 2.2

Jin Jiang International Co Ltd 1.2 1.0

Four Seasons Hotels Ltd 1.0 1.0

Pan Pacific Hotels Group Ltd - 0.8

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Others 44.9 46.5

Total 100.0 100.0

Source: Euromonitor (2020)

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EXHIBIT 4: COMPANY PROFILES OF KEY HOSPITALITY PLAYERS IN SINGAPORE

a. AccorHotels Group
AccorHotels Group (Accor) was an international hotels group that was headquartered in France and
operates a number of branded hotels across all segments: budget, midscale, upscale and luxury.
Accor’s sales grew in all regions over 2017-2019, with Asia Pacific being the biggest contributor of
growth; however, this momentum was halted in 2020 as a result of the global pandemic. The impact
of COVID-19 had led to a reported 52.8% decline in revenue from Accor’s management and
franchise businesses, and a 40.2% decrease in revenue from its hotel assets business 75. Accor had
the largest company share in Singapore with 10.8% as of 2020, down from 12.3% in 2019. Their
Swissôtel brand takes up a retail value of 4.5%, Fairmont with 2.3%, and Sofitel with 1.3% in 2020.76
The company’s brands also include Raffles, Novotel, and Ibis. Accor announced its plans to
reposition itself as a lifestyle brand in Feb 2019, to provide more personalised experiences through
its new loyalty programme ALL, which stands for “Accor Live Limitless''.77

b. Marina Bay Sands Pte Ltd


Marina Bay Sands Pte Ltd (MBS) was a subsidiary of Las Vegas Sand Corp that provides hospitality,
entertainment, and meetings and events services. MBS had the third largest company share in
Singapore with a 7.6% retail value (RSP) as of 2020, down from 9.7% in 2019. The company’s total
revenue dropped 96.7% to US$23 million in the second quarter of 2020 due to the COVID-19
pandemic.78 Located along the Marina Bay waterfront, the integrated resort development had more
than 2,500 hotel rooms and suites, with a rooftop Sands SkyPark and an Infinity Pool. MBS also
caters to the business crowd through its extensive Meetings, Incentives, Conventions and Exhibitions
(MICE) facilities featuring advanced technology, exhibition halls and a convention centre that could
host more than 45,000 delegates.

c. InterContinental Hotels Group Plc


InterContinental Hotels Group Plc (IHG) was a global hospitality player based in the UK, and the
fourth largest player in Singapore with a 5.3% company share, down from 6.5% in 2019. A majority
of IHG’s revenue comes from the US market; however, the hotel group was expanding globally, with
a focus on mid-market hotel brands and in the Asia Pacific region where strong recovery from the
COVID-19 pandemic was observed.79 In FY2019, the hotel group reported a 6.7% increase in total
reported revenue (amounting to US$4,627 million) and a net profit margin of 8.3%.80

d. Shangri-La International Hotel Management Ltd


Shangri-La International Hotel Management Ltd (Shangri-La) was based out of Hong Kong with
hotels and resorts in Africa, Asia, Europe, the Middle East, North America, and Australia. In total,
this represents 4.4% of the Singapore hotel market in 2020, up from 3.5% in 2019, with their Shangri-
la brand taking 3.6% of the market and their Hotel Jen brand taking 0.8% of the market.81 From 2018
to 2019 occupancy rates increased from 80% to 82%, RevPAR also increased from US$175 to
US$179 during this period; however, total revenue from their Singapore hotel properties decreased
by 0.1% to US$236.7 million.82

Source: Various Sources

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EXHIBIT 5: CHARACTERISTICS OF A BOUTIQUE HOTEL

Source: HVS Research (2011)

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EXHIBIT 6: OVERALL INSIGHTS ON CONSUMER REVIEWS OF HOTELS WITH FRONT-


FACING AI DEPLOYMENTS

Source: Various Sources


The reviews that were used to construct the sentiments, described in Exhibit 6, were collected by the authors in
March 2021. These customer reviews are publicly available and listed on TripAdvisor, Google Reviews, Orbitz
Reviews and Expedia. The authors collected all available reviews for specific hotels based in Singapore, which were
identified to have implemented one of the three AI solutions. We used keyword search to collect all reviews that
mentioned either chatbots, automated check-in, service robots, or words related to the specific AI solution each hotel
implemented. A total of 356 reviews were collected, 48 mentioned chatbots, 97 mentioned automated check-in, 211
mentioned service robots. Additionally TripAdvisor allowed reviewers to state what type of traveler they were
(business, family, couple or solo).

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See Exhibit 3 for company profiles of key players in Singapore’s hospitality industry.
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32
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40
Ibid.
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Ibid.
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48
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62
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63
Ibid.
64
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65
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This document is authorized for use only by Mikaela Leyva in INTB 2205 (Spring 2023) taught by Kevin Chuah, Northeastern University from Jan 2023 to Jun 2023.

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