Competitive Analysis of Hyatt Hotels in Australian Hospitality Sector

Running head: HOSPITALITY AND TOURISM MANAGEMENT
HOSPITALITY AND TOURISM MANAGEMENT
Name of the Student:
Name of the University:
Author note:

1
HOSPITALITY AND TOURISM MANAGEMENT
Founded by Jay Pritzker in the year, 1957, Hyatt Corporation is recognized as one of the
most coveted hotel chains in the world. The organization’s mission statement revealed by their
annual report is to proficiently deliver exceptional experiences and services for their clientele
base(Hyatt.com 2018). The current business operations, performance and regulation of the
organization have facilitated this organization to attain a competitive advantageous position in
the hospitality sector (Bowie et al. 2016). The fundamental purpose of the following report is to
critically provide a comprehensive overview of Hyatt Hotel Corporation by focus on the current
and precise portrayal of the organization.
It has been observed that transitions in macro-environment factors tend to pose direct
impact on Hyatt Hotels Corporation thus STEEP analysis has been conducted in order to shape
the strategy and competitive position of the organization.
 Social Demographic Influences-Mutual ideologies, perceptions and attitudes of the
Australian populace serve a vital role in the way marketers engaged at Hyatt Hotels will
easily comprehend customers’ preferences and the way they design the marketing
information for hospitality consumers (Li, Wongand Kim2016).
 Technological Influences - Hyatt’s technology analysis incorporates understanding the
following impacts related to recent technological advancements by the company’s
competitors and the effect on value chain structure in the service sector of Australia
(Espino-Rodríguezand Gil-Padilla2015).
 Economic Influences - It is to note that while environment factors related to competition
norms tend to impact the competitive gains of the company. Hyatt can utilize Australian’s
economy factors related to growth rate, inflation rate and industry’s economic indicators
associated to hospitality sector progress rate in order to forecast the development the

2
HOSPITALITY AND TOURISM MANAGEMENT
growth trajectory of the organization (Bowie et al. 2016).
 Environmental Influences - Various markets reveal varied norms, regulations or
environmental factors which can impact the revenues of Hyatt in those segments. For
instance, Australia provides healthy taxation revenues to organizations which execute its
operations in the renewable sector(Laiand Hitchcock2015).
 Political and Legal Influences- Political factors serve a significant role in efficiently
determine factors which can pose impact on Hyatt Hotel’s long term profitability in
specific nation or market(Li, Wongand Kim2016). The organization must closely
evaluate certain factors prior its entrance or investment in Australian hotel sector.
These factors primarily include political steadiness and value of hotel sector in
Australian’s economy, legal framework for agreement enforcement, any forms of trade
regulations and tariffs associated to services(Enz, Canina and van der Rest 2015).
Any organization must efficiently evaluate before entering in sectors which might
exhibit the tendency result to the pilfering of the organization further hampering its
overall competitive benefits(Phillipset al. 2017). Hyatt must consider discrimination,
employment, health and safety legal frameworks of Australia.
Hyatt’s Five Forces Analysis for Service Industry
a) Threat of New Entrants- New entrants in hospitality sector brings innovation, improved
ways of executing things and enforces demands on Hyatt Hotels through economical
pricing strategy, reducing expenditure costs and offering new value propositions to its
customers(Bowie et al. 2016). The company has to sustain all these complexities and
establish effective obstacles to protect its competitive edge.
b) Bargaining Power of Buyers- The changing preferences and choices of consumers to