Digital Media for Tourism and Hospitality Assignment 2022

STUDENT DETAILS
DIGITAL MEDIA FOR
TOURISM AND HOSPITALITY

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Executive Summary
In this assignment, discussion will be made regarding the Hyatt Corporation. Situational
analysis will cover two aspects of environment that are internal and external environment.
Internal environment will be explained through SWOT analysis while external environment
of the digital marketing strategies will be explained through Porter’s five forces and PEST
analysis. Apart from this, Hyatt Corporation utilizes various digital marketing strategies such
as position strategy, digital marketing mix, key performance indicators for measuring the
performance, etc. In this resort, it is concluded that Hyatt should adopt the utilization of
Artificial Intelligence (AI) in the business operations. This will also help them adopting
automation in their various digital marketing strategies.

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Table of Contents
Introduction................................................................................................................................3
Situational Analysis...................................................................................................................4
Internal environment..............................................................................................................4
Resource and capabilities analysis.........................................................................................4
External Environment............................................................................................................7
Porter’s Five Forces...........................................................................................................7
PEST analysis.........................................................................................................................9
Digital marketing strategies.....................................................................................................11
Revenue model strategy...........................................................................................................13
Target market strategy..............................................................................................................15
Position Strategy......................................................................................................................16
Social Media strategy...............................................................................................................17
Digital marketing mix..............................................................................................................18
Digital metric evolution...........................................................................................................20
Conclusion................................................................................................................................21
Recommendations....................................................................................................................22
References................................................................................................................................23

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Introduction
Digital Marketing is the promoting of items or administrations utilizing digital platform, on
the Internet and cell phones. It includes the showcase of advertising and some other
computerized medium (Baltes 2015). Digital Marketing is frameworks dependent on the web
that can transmit product value from maker to the terminal shopper by advanced systems.
Selected hotel industry is “Hyatt Hotel”. Hyatt Hotels Corporation is an American worldwide
accommodation organization that oversees and establishments lavish lodgings, resorts, and
get-away properties. In this report, there will be discussion about the situational analysis
which includes internal and external environment conditions. Apart from this, discussion will
be made about the digital marketing strategies, position strategies, digital marketing mix,
digital metric evaluation, revenue model strategy and in the end the recommendation will be
marked.

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Situational Analysis
Situational Analysis means gathering of strategies that Hyatt Hotel use to investigate their
internal and external conditions. SWOT analysis, PEST analysis and Porter five forces
investigation helps the Hyatt Hotel in making the effective conditions (Bhandari and Bansal
2018).
In increasingly evolving world, Hyatt industry need to comprehend their internal and external
conditions at the higher priority than at any other time. To have a productive and practical
vital arrangement, the organization needs to have a compelling internal and external
condition.
Internal environment of the Hyatt Sydney about their digital marketing plan will be explained
through resources and capability analysis. External environment will be explained through
Porter’s five forces and PEST analysis.
Internal environment
Resource and capabilities analysis
This analysis is used by the Hyatt group to analysis the strength and their inner capabilities.
This analysis helps them in developing their digital marketing strategies. Mainly, for any
organization financial liquidity, assets and their human resource department are the three
prime resources. In below section, financial resources of the company will be considered in
VRIO analysis:
Valuable: Hyatt’s financial resources are valuable because they have huge financial liquidity.
In 2018, the company have $108 million as the cash funds showing in their balance sheet
(Kingsnorth 2019).

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Rare:
Their financial resources are rare too because of the management’s position to hold liquid
assets. Apart from this, they have properties located at the rare locations in 54 different
countries.
Imitability:
The company have large cash inflow which is not imitability because management uses
various strategic financial control methods which are only limited to the Hyatt residency.
Organize to capture value:
There financial resources are organized and financial resources are directly under the control
of top-level management. There organized resources include their market position. As, the
Hyatt Hotels Corp is currently trading at $71.70 in NYSE.
Resources analysis can be divided into three parts:
 Tangible
 Human Resource
 Intangible
Tangible: This includes the financial and physical resources of the hotel. Financial resources
include their marketing financial standing and monetary liquidity. They have the total asset of
$7.67 billion. Physical resources or assets includes their hotel properties, plants, machineries,
etc. The group have 777 properties in 54 different countries (Bhandari and Bansal 2018).
Human Resource: They have more than 45,000 working employees and in the year 2017,
they have got the award of “America’s best employer” by Fortune Magazine (Chaffey and
Chadwick 2019). Human resource of the hotel is the representative of the group.

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Capability analysis.
Intangible: It includes the reputation and goodwill of the hotel. As the business is in the
hospitality industry. They provide excellent customer satisfaction and they have strong
market presence. It is treated in the segment of luxury segment (Damian 2016).

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External Environment
Porter’s Five Forces
Porter's Five Forces centres around that how Hyatt Hotels Corporation can manufacture a
supportable method in their digital marketing strategies. Directors at Hyatt Hotels
Corporation cannot just rely upon utilizing Porter Five Forces to build up a vital situation yet
in addition they can analysis for opportunities in entire Services segment.
Threats of new entries:
Threats from the new entry in the premium hotel segment, threaten the company that their
market shareholding might get affected. However, entry in the luxury segment is limited to
huge monetary requirement (Fuchs 2017). The threat of new entries is low for the Hyatt
Residency.
Power of suppliers:
Hyatt Hotels Corporation always make plan for networking with the service providers that
can provides material at the low prices. The general effect of higher provider haggling force
is that it brings down the general benefit of Lodging. The threat from the power of suppliers
are high.
Bargaining power of buyers:
Hyatt Residency belongs from the luxury segment. No customer thought for the price
bargain. Buyer also excepts for the supreme quality rather than the thinking for bargaining
the price (Gudivada, Rao and Paris 2015). The threat from bargaining power of buyers are
low.
Threat from substitute products or services:

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There are low substitutes accessible for the Hyatt Hotels Corporation works. Relatively, firms
creating inside the business wherein Hyatt Hotels Corporation works sell at a lower cost than
substitutes, with sufficient quality. This implies purchasers are more averse to change to
substitute items. This implies the risk of substitute items is frail inside the business (He, Fang
and Du 2014). The threat from bargaining power of supplier is high.
Rivalry among the existing players:
For Hyatt, many rival players are existing in the global market. Their rivalry decreases the
prices of their rooms and other services which put adverse effect on the overall profit of the
hotels. This process a high threat.

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PEST analysis
Political Factor:
Political factors affect such as the level of corruption in the country, trade regulations,
taxations rates, mandatory employee benefits, industrial safety. All these factors also play
important role in deciding the digital marketing policies of the company. As they have to take
care about the national policies related to the advertising media (Holliman and Rowley 2019).
For example: due to the trade regulations if United States restricts the trade practices with
Singapore then the company is require to adopt new guidelines.
Economic Factor:
In this part of the PEST analysis, macro-economic condition will be discussed. Hyatt
Corporation have to suffer from the inflation rate, interest rate, aggregate demand, aggregate
investment, etc. Before evaluating any form of digital marketing strategy, the company have
to decide about the economic environmental condition that will help them in deciding about
the future threats that may impact the performance of the business. For example: In Australia,
minimum wages for the workers $719.20 per week. So, the company is legally bound to
provide minimum this amount to an individual worker (Chaffey and Chadwick 2019).
Social Factors:
Social factors include the demographic and knowledge level of the population. Class
structure and thinking level of the society. Gender roles, social conventions, environmental
consciousness, leisure interests, etc. The management of the company decides their digital
marketing strategy on the basic of demographic condition and other social factors conditions
of their targeted audience (Järvinen 2016). Hyatt also have to modify their advertisement
strategies as per the cultural region of the country. For example: Hyatt is going to establish

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their branches in Afghanistan thus they need to chose appropriate marketing strategy that
should not affect the social cultural dimension of the area.
Technological factor:
Hyatt Corporation is now planning for inventing the use of artificial intelligence in many
programs of the hotels. The use of artificial intelligence is succouring the hotel in conducting
the operations effectively and efficiently.

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Digital marketing strategies
Digital marketing strategies involves the series of actions that help the Hyatt Corporation in
accomplishing their goals related to the online marketing channels. These strategies are
design by the marketing management team of the company which includes the paid,
promotion, owned media, campaign, etc.
 SEO:
In search engine optimization, they start a process with the objective that they need to
bring more and more user traffic on the webpage of Hyatt Corporation. SEO helps in
providing better ranking to the website. It also involves the HTTPS format (Holliman
and Rowley 2019).
 Marketing on YouTube:
Hyatt specially invites the youtuber who have large followers in the hotel and provide
them free package for the luxury stay. YouTube post their full day spend video on
their YouTube channel (Killian and McManus 2015). In this way, the company
promotes their customer service of their hotel over the YouTube through the medium
of talented Youtubers.
 Social media marketing:
Social media marketing tactics includes when the company keep posts the latest
updates and information on their own social media page. The Hyatt residency have 2
million followers on their Instagram official page (Kingsnorth 2019).
 Email marketing:
In the email marketing, the marketing team of the company send emails to the
audience who’s email address is listed in the contact book of the company. In these

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emails, the company also send information about various offers and promotional
event.
 Paid-ads:
The company is also engaging in taking advantage through the paid ads promotion.
The money needs to list their advertisement on google or on YouTube, in return they
receive the huge traffic.
 Marketing automation:
Marketing automation is a significant component in an advanced advertising strategy.
Over 91% of the hotel industry, they are currently saying that automation is critical to
their prosperity because it can start the loop where the system will create a artificial
marketing cycle (Lamberton and Stephen 2016).

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Revenue model strategy
Their revenue model strategy includes 3 steps:
1. Creating customer values:
By creating greater customer values, Hyatt residency is creating loyal customer base
for them. Expanding inhabitancy rates and income by improving client experience is
the primary objective of Hyatt Residency. To accomplish these outcomes, the
company is continuously organizing training and development session for their
employees. This revenue strategy model helps the company in generating huge
turnover at the end of their financial year (Leeflang, et al. 2014). It further has two
main elements:
 Satisfying existing need of the consumer:
Customer excepts for the luxury segment from the hotel because they are
ready to pay the premium prices.
 Creating new needs for the customer and satisfying them:
The management is continuously focusing on developing the needs of the
consumers and add innovation in the property like more advancement in spa
facilities, new machinery in gym centres, including new dishes from around
the globe, etc.
2. Marketing:
The marketing model of the company includes the achievement that are incorporated
by their digital marketing team. Through the marketing segment of the revenue
marketing strategy, they mainly compress on the brand reputation and online
promotions. It has been noted that the intervention of the digital marketing tactics has
shown the increment of 13.77% revenue increase from the last year. In the year

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ending 2018 the revenue of the Hyatt Corporation was stand at $4.45B (Bhandari and
Bansal 2018).
3. Selling:
The company sells their room on both platforms online and offline. Guests have the
option to book the hotel directly on the online platform and guests can also take the
direct check inn in the hotel. In the online platform, hotel sells the hotel services
through many brokers. For fascinating the guests towards them, brokers provide the
hotel at the great discounts (Leeflang, et al. 2014).

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Target market strategy
 Strong brand reputation in the market:
Hyatt (NYSE: H) positioned 10th at the list of Reputation Institute, Australia and it
was bested by three other hotel networks, including Marriott International, which
positioned No. 5, Intercontinental Hotels at No. 8, and Wynn Resorts at No. 9.
The Reputation Institute utilized the opinion of 57,000 guests in evaluating to
quantify view of organizations dependent on seven elements: Innovation,
administration, citizenship, working environment, execution and customer service. It
helps the company in forming their appropriate digital marketing strategies (Chaffey
and Chadwick 2019).
 Targets the luxury class of society:
Their targeting audience includes the people who belongs from the upper middle and
rich class. Their digital marketing strategies helps them in analysing group of people
who are ready to pay the high prices in return of the great and luxuries customer
service (Stead and Hastings 2018).
 Targets tourists and business professionals to conduct meeting in the Hyatt hotels:
Since 1957, Hyatt has been devoted in the hospitality industry. There properties are
the great way for an individual or group to conduct meetings, parties, enjoying luxury
stays, enjoying great customer service, etc (Taiminen and Karjaluoto 2015).

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Position Strategy
Hyatt Hotel stands on the axis of high quality with high prices. As already discussed, this
hotel corporation lies in the luxury customer segment. Consumers are ready to pay prices
whatever the hotel charges, customer only except for great quality and great customer
service. Through this positioning mapping, they decide what they should include in their
digital marketing strategies. For example: Marketing management of the company can decide
that they lie in the high cost, high quality axis of market positioning map. Now, they can
conclude that they need to target the upper middle class and rich class societies through their
digital marketing tactics (Stead and Hastings 2018).
High Cost
High Quality
Low Quality
Low Cost
Marriott
Hilton
Hyatt

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Social Media strategy
Social media marketing strategy of the hotel corporation includes four kind of tactics:
 Facebook marketing strategy:
Through their Facebook official account, supervisor or marketing managers
consistently upload new posts and share pictures about the customer testimonials,
customer experience, post pictures of the properties, new innovation, etc. Through
this all, they cover the large number of audiences on their Facebook account.
 Instagram marketing strategy:
Hyatt corporation have over 1million followers on their Instagram page. In Instagram
they also use the influence marketing technique. It means they target those people
who have large number of followers and make collaboration with them for promoting
their hotel properties and related services (Todor 2016).
 Twitter marketing strategy:
Over their official twitter account, they raise the issues which keeps the corporation
highlighted in the industry. Hyatt take the advantage of enhancing their market
presence by using the advance level of digital marketing strategy.

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Digital marketing mix
 Product:
Hotel property, resorts, luxurious room, suite, spa centers, gym, etc. are the products
of the company that they offer in the market.
 Price:
They use the primum price strategy which allows them to charge the high prices from
the customers.
 Place:
Hyatt corporation have the properties located at the best location in the world.
Currently, the hotel operates in 54 different countries and they have strong market
presence (Tuten and Michael 2017).
 Promotion:
The company various promotional strategies it includes online promotion methods as
well as offline promotion methods. The company also uses the digital marketing
strategies for fascinating the large number of audiences through the medium of
internet (Choudhari and Bhalla 2015).
 People:
Human resource of the Hyatt is their greatest asset. Employees of the hotel need to go
through the training and development session in order to attend expertise in providing
customer satisfaction (Todor 2016).
 Process:
They target the tourist who look for the luxury segments. They further analyse the
competitive strategies of their competitors.
 Physical evidence:

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It includes the decentralized structure and their physical asset including properties,
resorts, etc (Chaffey and Chadwick 2019).

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Digital metric evolution
Digital Marketing Metrics and KPIs are the programs or indicators which helps the company
in judging the performance of their digital platform. Through these indicators marketing
manager of the company decides whether their digital promotion or advertiser tools are going
in appropriate direction or not. Apart from this, below indicators only provide an overview to
the management. It has been advised that the company should also includes consumer
feedback as the top most indicator (Parekh, Kapupara and Shah 2016).
Below are the metrics which are used by the Hyatt residency:
 Cost per lead
 Website traffic leads
 Returning visitors
 Online conversion rates
 Brand awareness
 Customer lifetime value
 Cost per click

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Conclusion
It has been concluded that Hyatt Corporation lies in the luxury segment of the hotel industry.
They use various digital marketing tactics to accomplishment their goal. Digital marketing
developing strategies includes revenue model strategy, target market strategy, position
strategy, social media strategy, digital marketing mix and digital metrics or key performance
indicators. From SWOT analysis it is concluded that the company have properties at prime
locations which is the strength for the company. Porter’s five forces has defined that threats
from new entries in market is low while threat from another premium hotel line is high. The
digital key performance indicator for the company are cost per lead, analysis of average
traffic, etc. In this report, 7P’s of digital matrix are also considered and from 7P’s it is
concluded that the Hyatt have products which includes their luxuries room, suite, resorts, etc.
Place matrix includes their hotel location in 54 different countries. Price matrix includes their
strategies for charging high prices. Promotion includes their digital promotion methods for
fascinating the large number of audience, etc.

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Recommendations
Below are the two recommendations which will help the corporation in implementing the
digital marketing tactics.
 Use of artificial intelligence:
The company should incorporate the utilization of AI in the daily practices. AI will help
the business in minimizing their operation time and will also improve their process
quality. Major drawback of the AI is that the company have to remove a minimum
percentage of their human resource. This can create the situation of unemployment
(Bhandari and Bansal 2018).
 Utilization of robots:
Hyatt should develop the robots for conducting initial steps such as cleaning the floor,
washing the dishes, serving the glass of water, giving greeting to the guests, etc. All this
work will shift the load from the human resource (Kingsnorth 2019).
 Need to improve their digital matric:
Currently, the company is using the digital metrics for measuring their performance.
However, they need to develop more effective key performance indicators in order to
obtain more accurate results.
 Require more digital matric:
The company also need to adopt new methods or digital matric parameters to judge or
evaluate their performance through the digital marketing media. Digital marketing
helps the company in incorporating effective online promotional and advertising
methods. Apart from this, it is very crucial that the company have the reliable or strong
key performance parameters to judge their digital marketing performance because it
helps the organization in getting the idea of their online market standing.

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