<i>Courtyard by Marriott</i>: Designing a Hotel Facility with Consumer-Based Marketing Models

TLDR

Marriott employed conjoint analysis to design the Courtyard by Marriott hotel chain. The study produced guidelines for market segmentation, service positioning, and facility design that enabled the successful test marketing and national launch of Courtyard by Marriott, reshaping Marriott’s product‑development process and facilitating subsequent lodging innovations.

Abstract

Marriott used conjoint analysis to design a new hotel chain. The study provided specific guidelines for selecting target market segments, positioning services, and designing an improved facility in terms of physical layout and services. Based on these strategy and design recommendations, Marriott developed the Courtyard by Marriott concept, which it has successfully test marketed and subsequently introduced nationally. The effectiveness of the study and associated processes also changed Marriott's approach to new product development. Marriott has since developed additional lodging and related products successfully using similar procedures.