Hyatt Hotels SWOT Analysis

This assignment presents a comprehensive SWOT analysis of Hyatt Hotels. It identifies the company's internal strengths and weaknesses, as well as external opportunities and threats impacting its performance. The analysis considers factors such as online marketing strategies, technological advancements, economic conditions, and legal regulations within different markets.

Running head: MACRO AND MICRO ANALYSIS OF HYATT HOTELS CORPORATION
Macro and Micro Analysis of Hyatt Hotels Corporation
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1MACRO AND MICRO ANALYSIS OF HYATT HOTELS CORPORATION

2MACRO AND MICRO ANALYSIS OF HYATT HOTELS CORPORATION
Table of Contents
The Macro context.....................................................................................................................2
Political..................................................................................................................................2
Economical.............................................................................................................................2
Social......................................................................................................................................2
Technological.........................................................................................................................2
Environmental........................................................................................................................3
Legal.......................................................................................................................................3
The Micro context......................................................................................................................3
Threat of new entrants............................................................................................................3
Bargaining power of the suppliers.........................................................................................3
Bargaining power of the customers........................................................................................4
Intensity of competitive rivalry..............................................................................................4
SWOT Analysis.........................................................................................................................4
Strengths.................................................................................................................................4
Weakness................................................................................................................................4
Opportunities..........................................................................................................................5
Threats....................................................................................................................................6
References..................................................................................................................................7

3MACRO AND MICRO ANALYSIS OF HYATT HOTELS CORPORATION
The Macro context
Political
The famous Hyatt regency falls under the category of the best elite and luxury groups
of hospitality industry (Tanford et al. 2016). It has build up an immense leading position in
the hospitality sector with the help of political support that has enhanced its overall business
over the years. It has its own specific interpersonal corporate level policies that are politically
supporting the different governments around the world. It pays a huge sum of money to
various governments as import duties and thus, it adds up great finance to the GDP of the
different governments.
Economical
Accomplishment of the concatenation and assorted trade names worldwide has made
the Hyatt regency stronger than ever on its economical factors.
Social
Hyatt regency is widely known for its guest relationship. The hotel provides services
to each customer segment ranging from leisure seeking guests to the travelers. It serves
majority of its gross towards the Hyatt foundation that helps and serves the other
communities in intense demands and therefore, it is acquiring societal value to itself. The
Hilton accords a batch of gross to ‘Hilton Community Foundation’, which serves the guest
community in demand and this is acquiring societal duty to the Hyatt regency.
Technological
The IT group of the Hyatt regency works effectively in order to supply a long-run
engineering solution, which is cost effectual as well as efficient while backing up the request
of the concerns (Nofitasari and Nofitasari 2016). The rate of technological diffusion, the cost
structure in the lodging industry, the value chain structure in the service sector and the impact

4MACRO AND MICRO ANALYSIS OF HYATT HOTELS CORPORATION
of the technology on the product offerings are influencing the Hyatt Hotels Corporation in
several different ways.
Environmental
The different environmental standards have an impact on the overall profitability of
the Hyatt Hotels (Cortese and Sahli 2015). Weather; change in climate; recycling of the hotel
wastes; attitudes of the hotel staffs towards the ecological products and renewable energy; air,
water and environmental pollution regulation; and waste management in the service sector of
the hotel are the major environmental factors that are affecting the Hyatt hotels.
Legal
The legal factors that have an impact on the Hyatt hotels are data protection law,
health and safety law, anti-trust law in the lodging industry and the overall in the country
(Hwang and Chang 2016). With the same, the discrimination law, intellectual property law,
employment law and the e-commerce and consumer protection law also have a great
influence on the overall business of the Hyatt Regency.
The Micro context
Threat of new entrants
 The emergence of new entrepreneurial players in the market
 Entrance of the international competitors in the new and attractive domestic market
 Threat of Substitute products
 Video-conferencing
 Changes in the technology that in turn is demanding for more accommodation
Bargaining power of the suppliers
 Availability of enough finance for the hospitality projects

5MACRO AND MICRO ANALYSIS OF HYATT HOTELS CORPORATION
 Availability of skilled management and employees
 Competitiveness of the food and beverage suppliers; ancillary services and of the
energy and utilities
Bargaining power of the customers
 Dependency on the fundamental accounts and intermediates, who supplies volume
business and negotiate the lower prices
Intensity of competitive rivalry
 Large number of independent players are present in the hotel industry (Jones et al.
2016)
 Increase in competition
 Emergence of larger hotels and motels operators
SWOT Analysis
Strengths
 Differentiated and well illicit approaches are used
 Decentralized and well organized construction
 There is a varied choice of service skills in the organization as well as employees.
 There is a strong status of the Hyatt regency in the external as well as internal
competitive market.
 There are enthusiastic, talented and highly valued personnel in the Hyatt management
who are extremely proficient and aggravated as well.
Weakness
 There is a high need for investment in the new technologies.

6MACRO AND MICRO ANALYSIS OF HYATT HOTELS CORPORATION
 The organizational structure of the Hyatt hotel is only reconcilable with the present
business model. This is creating limitation in the expansion of the product segments.
 The day inventory of the Hyatt regency is higher than that of its competitors.
 Though the Hyatt regency is a leading organization in its respective industry, still, it
has undergone several challenges towards moving for the other product segments
along with its existing culture.
 Hyatt regency is unable to confront the challenges that are presented by the new
entrants and it has gradually lost the small market shares in the low categories. It has
to build and develop the mechanism of internal feedback directly from the sales team
to counter the challenges that it is facing.
Opportunities
 New trends in the behavior of the customers have the potential to open up new
markets it. It will provide tremendous opportunity for the Hyatt hotels for building
new revenue streams as well as it will build diversity in the categories of the new
products.
 The online channel will bring up new customers for the hotel. Hyatt hotels have
invested a huge amount of finance into the online platform and this in turn has opened
up new sale channels for it. The company can make use of this opportunity in
knowing its customer segments better as well as serving their needs and requirements.
 Increase in the customer spending and economic uptick is a great opportunity for the
Hyatt hotels for increasing its market share and capturing new customers (Nieves,
Quintana and Osorio 2016).
 New technologies give an opportunity to the Hyatt Hotels for practicing the
differentiated pricing strategy in new markets. This will help the company to maintain
loyal customers along with great services and value oriented propositions.

7MACRO AND MICRO ANALYSIS OF HYATT HOTELS CORPORATION
Threats
 A growing strength of the local distributors is presenting a threat in some of the
markets since the competition is reimbursing high margins for the local distributors
(Fraj, Matute and Melero 2015).
 Different countries have different liability laws and the Hyatt Hotels may be subject
to different liability claims that have changed the policies in those markets.
 Hyatt regency can face lawsuits in the upcoming years.
 New environmental regulations could serve as a threat for the Hyatt hotels as it could
be a threat to specific existing categories of product (Tan, Wan and Qiu 2017).

8MACRO AND MICRO ANALYSIS OF HYATT HOTELS CORPORATION
References
Cortese, C. and Sahli, M., 2015. Environmental Practices and Hotels’ Performance: an
empirical analysis of the accommodation sector in Dubai. The Environment People Nexus in
Sustainable Tourism: Finding the Balance, p.118.
Fraj, E., Matute, J. and Melero, I., 2015. Environmental strategies and organizational
competitiveness in the hotel industry: The role of learning and innovation as determinants of
environmental success. Tourism Management, 46, pp.30-42.
Hwang, S.N. and Chang, T.Y., 2016. Formulating Management Strategy for International
Tourist Hotel Using DEA. In Data Envelopment Analysis (pp. 289-316). Springer US.
Jones, P., Jones, P., Hillier, D., Hillier, D., Comfort, D. and Comfort, D., 2016. Sustainability
in the hospitality industry: some personal reflections on corporate challenges and research
agendas. International Journal of Contemporary Hospitality Management, 28(1), pp.36-67.
Nieves, J., Quintana, A. and Osorio, J., 2016. Organizational knowledge, dynamic
capabilities and innovation in the hotel industry. Tourism and Hospitality Research, 16(2),
pp.158-171.
Nofitasari, I. and Nofitasari, I., 2016. Strategi Pemasaran Pada Hotel Bayt Kaboki Kuta
Bali (Doctoral dissertation, Universitas Udayana).
Tan, H., Wan, F. and Qiu, P., 2017. Transformation and Rebirth of Chinese Brands: A Case
From the Hotel Industry. Journal of Teaching in International Business, 28(2), pp.116-129.
Tanford, S., Tanford, S., Shoemaker, S., Shoemaker, S., Dinca, A. and Dinca, A., 2016. Back
to the future: progress and trends in hotel loyalty marketing. International Journal of
Contemporary Hospitality Management, 28(9), pp.1937-1967.