Inside Marriott's India Strategy: From Moxy Debut to Embracing Smaller Cities

30.08.2023 - 16:11 / skift.com / Peden Doma Bhutia / Ranju Alex

Marriott, the leading hotel company in India, is set to introduce its 17th brand in the country — Moxy.

This move was recently announced by Ranju Alex, Marriott’s area vice president for South Asia, during the launch of India’s first-ever co-branded hotel credit card by Marriott in partnership with HDFC Bank.

“Our brand entries reinforce our commitment to South Asia. It is a high potential region for us and Moxy as a brand will bring a bold, new and unconventional hotel experience to this dynamic market. It will be our 17th brand to launch in the region across markets such as Bengaluru, Mumbai and Chennai with an anticipated opening planned for the first quarter of 2024,” Alex said.

Marriott International now has 31 brands globally with a 32nd on its way. (Read Skift’s explainer on Marriott’s brands.)

The impact of the Covid-19 pandemic has caused a major shift in Marriott’s approach to business, showing the importance of diversification. That’s behind the introduction of the Ritz Carlton yacht and the imminent launch of the Moxy brand in India.

In Alex’s words, it isn’t enough to just be the largest hospitality company, “We aspire to be the most favorite travel company of the world.”

Alex emphasized that loyalty is a key part of Marriott’s business model. In the highly competitive landscape of the hospitality industry, a loyal guest base can be an important asset.

The hotel has 186 million members enrolled in the Marriott Bonvoy loyalty program, and Alex underscored that Marriott will continue to foster its relationship with members in India, where around 4.5 million guests are part of the program.

Marriott’s strategic expansion into India’s tier two and tier three cities is in response to changing consumer behavior, partially created during the pandemic.

These cities have been experiencing a surge in growth, driven by rising middle-class aspirations and changes in consumer preferences.

Alex noted that while tier one cities house the majority of Bonvoy members, the real growth potential lies in tier two and tier three cities.

Alex said that unlike bigger cities in the country, hotels in smaller cities did not have to reduce rates during Covid.

Alex said these towns have surprised Marriott with their appetite for food and beverage. The company aims to capitalize on this potential by tailoring its offerings to meet the distinct preferences of consumers in these areas.

Marriott has undertaken a substantial shift to place greater emphasis on elevating its food and beverage offerings to cultivate loyalty.

Alex cited an example of Marriott’s Shillong property, which achieved profitability within its first month of operation due to the strong demand for food and beverage services.

The company has also