Environmental Analysis for Park Hyatt Melbourne

This article provides an in-depth analysis of the environmental factors affecting Park Hyatt Melbourne, including the external and internal environment. It discusses the competitive analysis, commercial partners, market and consumer research, and segmentation and targeting strategies. The article also highlights the opportunities and threats faced by the hotel and provides a SWOT analysis. The target market of Park Hyatt Melbourne includes leisure, corporate, and conference segments, with a focus on the MICE market. The article concludes with key performance indicators to measure success.

Contemporary Hotel
Marketing

Environmental Analysis
This means analysing the environment in which organisation is operating and factors
affecting the organisation. Environment of organisation consist of different factors in which
organisation operates (Meredith and et.al., 2016). There are two types of environment for Park
Hyatt Melbourne that are external and internal environment.
External Environment
This environment exists outside organisation and affect operations and activities of the
organisation. Factors of this environment are-
Pestle analysis
Political
Policies and practices of government
and their effect on the operations
and success of the company
Reduction in corporate taxes is from
27.5% to 26% is helpful for
dealing with impact of Covid-19
Decrease in travel due to travel
restriction has reduced travel to
99% and this subsequently
affected occupancy rate in Park
Hyatt Melbourne
 Government policy for supporting
organisations for wages to
workers is also suitable for Park
Hyatt Melbourne
Economic
Interest rates, consumer price index,
exchange rates are some of the are
some of the elements of this factor
Recession has significantly affected
financial soundness of organisations
Due to present times productivity of
organisations has highly reduced
In relation with employment of
spending millennial it has increased
from 5.1% to 10%
Social
Due to social distancing and impact of
disease perception of people have
changed
People in present times are getting more
social media savvy and this is why
they are more likely to socialise
through such mediums than meeting
Technological
Increasing use of technology and
virtual meetings is also likely to
affect demand of MICE services
and this affect business to Part
Hyatt Melbourne
This also involve readiness of Park
Hyatt Melbourne to be ready to
accept payments technically and
adopt to contactless payment
methods
Preparation of Park Hyatt to maintain
hygiene of high level is also part
of this factor
Legal
Discrimination and equality laws for
everyone involves unbiased
treatment for everyone
Laws for health and safety and this also
involved ban for operating Park
Hyatt Melbourne
Environmental
Non-functioning of Park Hyatt has
caused reduction is different types of
waste and also reduced pollution
Maintaining environmental safety and
contribution in environmental
sustainability is also part of this
environment
Customers are also attracting towards
the organisations maintaining
environmental safety and
sustainability

Social and Cultural
Competitive Analysis
Competition is another important factor in external environment of the Park Hyatt
Melbourne (Gonçalves, 2018). Competition refers to those organisations who are also trying to
get share in the profit and revenue of the industry. Concerned with competitors of Park Hyatt
Melbourne it can be considered that its competitors are other 5 Star category hotels operating in
Melbourne city. Some of the competitors of Park Hyatt Melbourne are The Langham Melbourne,
Grand Hyatt Melbourne, Sheraton Melbourne Hotel and some others (Gutiérrez-Martínez, and
Duhamel, 2019). These are some of the competitors and in relation with the city in which Park
Hyatt Melbourne is operating it is capital city and second most populous city in Australia and
this is the reason that hospitality industry of Melbourne city involves significant number of
competitors with all kinds of organisations providing hospitality services.

Features Grand Hyatt,
Melbourne
The Westin,
Melbourne
Marriott,
Melbourne
Intercontinental,
Melbourne
Rooms &
Loyalty
Program
550 rooms
Trip advisor
ranking-42
260 rooms
Trip advisor
ranking- 10
166 rooms
Trip advisor
ranking- 17
253 rooms
Trip advisor ranking-
64
Restaurants
Collins Kitchen
Ru-co
Lobby Lounge
Bistro Bar
Allegro
Restaurant
The Lobby
Lounge
Room Service
The Essence
Elements Lounge
& Bar
Country Bred on
Lonsdale
Rooms Service 24
Hours
Bluestone Wine
Lounge
Market Lane Bar
Alluvial Restaurant
Merchant
Hotel
Facilities
Indoor Heated
Pool
Italian Marble
Bathrooms
15 Innovative
Meeting Rooms
Wellness Center
Lap Pool
Westin workout
Fitness Studio
10 Event Rooms
Fitness Center
Indoor heated
saltwater pool
11 Meeting Rooms
Private Limousine
Doctor on call
Local
Attractions
Longrain
National Gallery of
Victoria
Bourke Street Mall
Eureka Skydeck 88
The Lyall Spa
Albert Park Golf
Course
St Kilda Beach
Sea Life
Aquarium
Chinatown
Melbourne
Museum
Federation Square
Shine of
Remembrance
Victorian arts
center
Chinatown
Melbourne Museum
Federation Square
Shine of
Remembrance
Victorian arts center

Commercial Partners
Commercial partners refer to those parties and individuals who play important role in
successful operations and functioning of business organisation (Zsarnoczky, 2018). These are
suppliers and distributors of Park Hyatt Melbourne. Suppliers refer to those supplying required
material and resources to organisation in order to ensure that Park Hyatt Melbourne is able to
function effectively. There are several partners of Park Hyatt Melbourne because different
supplies and resources are supplied by different partners concerned with distributors of the Park
Hyatt Melbourne. They involve all those partners who are involved in distributing services of
Park Hyatt Melbourne. This distribution is in terms of distributing marketing and sales of Park
Hyatt Melbourne. These involve different agencies involved in selling services of Park Hyatt
Melbourne and also those that are involved in marketing and promotion of Park Hyatt Melbourne
(Wu and et.al., 2020). Distributors of Park Hyatt Melbourne also involve online platforms that
are selling services of Park Hyatt Melbourne.
Park Hyatt Melbourne is also subject to grants of government that are allowed to
hospitality industry as they are involved in and are part of tourism activities in Australia. In order
to make sure that organisation is able to attract customers from MICE market they can also
partner with these organisation and influence marketing efforts of Park Hyatt Melbourne (Wang,
Kitterlin-Lynch and Williams, 2018). This means effectively engaging with and influencing
marketing plan can help Park Hyatt Melbourne in attracting and getting customers from MICE
market.
Market and Consumer Research
In relation with this it is important to consider that increase that MICE is an emerging
market sector and is being highly valued by hospitality organisation. MICE sector is one of the
more rapidly growing market sector in Australian tourism. This is more favourable and possesses
several opportunities for Park Hyatt Melbourne (Smagina, 2017). The reason is that Melbourne
has been officially recognised as number one city in Australia to attract customers from MICE
market. This is the reason that highest number of attendees to International association meeting
have held in Melbourne. This is the reason that MICE market provides great opportunities for

Park Hyatt Melbourne. In these MICE activities meetings and conferences are comparatively
higher than others market segments in MICE.
Figure 1 MICE Industry
Global MICE industry is expected to reach $1439.3 billion by 2025 with a growing rate
of 7.6% CAGR.
Above discussion suggests that MICE market is one of the growing markets with
potential high demand and this is why this market has been targeted by Park Hyatt Melbourne
(Ramírez-Gutiérrez and et.al., 2017). In order to attract customers from the target market Park
Hyatt Melbourne will have to work closely with organisations managing and having association
with international MICE visitors. This is because national agencies and their association play
important role in attracting customers from this market.

Figure 2 Meeting Space in Park Hyatt Melbourne
Internal Environment
This is concerned with environment and factors of environment that are individual and related to
only Park Hyatt Melbourne.
Figure 3 Park Hyatt, Melbourne
This environment of Park Hyatt Melbourne exists within the organisation and this can be
analysed and understood with help of SWOT Analysis (Njuguna, Namada and Muchara, 2019).
This involves Strength, Weaknesses, Opportunities and Threats. SWOT Analysis of Park Hyatt
Melbourne is as follows-

Strength
 Effective and strategic location of the
property
 Strong portfolio and effective brand
recognition
 Efficient performance in new market
(suitable for MICE)
 Strong network for distribution
 Loyal customer base for the hotel
 Competitive prices
 High customer rating and positive
feedbacks of customers (Blockeel and
et.al., 2016)
Weaknesses
 Require technology investment
 Low brand differentiation
 Considerable scope in marketing
activities
Opportunities
 Increasing tourism activities
 Increasing and improving MICE
market present significant opportunities
to Park Hyatt Melbourne
 Changing consumer behaviour
 Attracting customers through efficient
use of online platforms
 Improving and focused marketing for
MICE Market
Threats
 Intense competition in hospitality
industry
 Political situations
 Threat because of Covid-19
 Health risk
 Increasing health consciousness
Organisational Chart for Park Hyatt Melbourne

Figure 4 Organisational Chart for Park Hyatt Melbourne
Segmentation & Targeting
Segmentation is concerned with identifying different customer group based on their
service requirements and their individual characteristics (Butters and Hubbard, 2019). Targeting
is concerned with identifying group and targeting them in order to attract them in order to buy
services of Park Hyatt Melbourne. Customer segments of Park Hyatt Melbourne include leisure,
corporate, conference. Organisation is targeting all these segments on the basis of their position
to buy luxury hospitality services. This is also because Park Hyatt Melbourne have different
services and product for different kind of customers. Potential target market focused by Park
Hyatt Melbourne is MICE market (Butters and Hubbard, 2019). There are several reasons to
target this market along with increasing demand from this and Melbourne being one of the city in
Australia to attract highest number of customers from MICE market.

corporate
Leisure
conference
Segmentation and Targeting by Park Hyatt, Melbourne
In this market, marketing goal of Park Hyatt Melbourne is-
“To maintain an annual MICE sales revenue of $1m from 1 July 2020 to 30 June 2021”
In order to achieve this marketing goal and in order to reach to these business guests directly
there are two ways through which Park Hyatt Melbourne can reach to its target market one is
business to business (B2B) and other is business to customers (B2C).
In order to reach through B2B Park Hyatt Melbourne can reach out to professional conference
organisers and event planners and attending big exhibitions that are MICE/Corporate and Leisure
exhibitions. Some examples of these include AIEM, and PAICE.
AIEM is concerned with Asia Pacific Incentives and Meetings Event, this is a leading
trade event for meeting and event industry in Asia Pacific reason and through this Park Hyatt
Melbourne can connect to many businesses across different nations and increase their visibility.

Figure 5 Meeting at Aime
PAICE refers to Pacific Area Incentives & Conferences Expo is also one of the event in
which different professionals in industry and organisations who are responsible for organising
their companies’ meeting come together. This is an attractive opportunity for Park Hyatt
Melbourne to attract customers from target market.
Other than this Park Hyatt Melbourne can also reach out to and contact with businesses that are
involved in providing service for meetings and organisations.
In order to attract customers direct through B2C approach organisation can go to procurement
manager of small and medium size companies to arrange event contracts.
Other than this Park Hyatt Melbourne should also ensure that their hotel is listed on Global
Distribution System (GDS) and Park Hyatt Melbourne can also contact to those event planners
and customers who previously have used services of Park Hyatt Melbourne. However in this
maintaining quality and customer loyalty play important role for attracting customers.

Figure 6 Global Distribution Syste.
KPI that Park Hyatt Melbourne can utilise to measure success are-
 Increasing feedback from customers and analyse their review and thoughts about services
 Increasing visibility of Park Hyatt Melbourne in target market

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