Marriott CEO Wonders Whether Aggressive Cost Cutting Will Hurt Recovery
Photo Credit: Marriott International on March 3, 2020 announced the opening of Johannesburg Marriott Hotel Melrose Arch and Marriott Executive Apartments Johannesburg Melrose Arch in Johannesburg, South Africa. Some hotels are still opening, but the pace has greatly slowed. Marriott International
Skift Take
Will hotel direct-booking campaigns be in play after the coronavirus crisis? That's a side issue that online travel agencies and hotels would love to have to deal with at some point. In the interim, they are facing more existential questions.
It's the gut-wrenching question that countless businesses both inside and outside of the travel industry are grappling with — how many employees do you furlough or lay off, and how deep should the cost-cutting incision be?
Trim too little and the company might have to do it again? Lop off too much spending and then perhaps competitors will take advantage or the recovery will be too difficult.
In a special call with analysts Friday, after releasing a video message to employees detailing cuts, Marriott CEO Arne Sorenson said he's losing sleep over whether the budget reductions will turn out to have been too severe.
Marriott is furloughing tens of thousands of employees around the world, and hundreds of managed and franchised properties are suspending operations. The chain expects to erase or delay one third of its previously planned $700-$800 milli
