Marketing Essentials Assignment : Park Hyatt Sydney Hotel

Running head: MARKETING
Services Marketing
Name of the Student:
Name of the University:
Author’s Note:

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Executive Summary
This present report deals with the audit process in the context of Park Hyatt Sydney Hotel. Three
major areas such as the customer retention, employee management, and service communication
are taken to complete the audit process. From the analysis, it has been received that for the
service organization it is crucial to improve the customer satisfaction level to maximize the
customer loyalty. On the other hand, pricing and quality of the food play an important role in
customer retention process. Internal service communication is done by using staff meeting and
the external service communication is done by using the internet. Therefore, the HR department
of this organization faces challenges regarding the implementation of policy, employee retention
and high rate of turnover. Therefore, the HRM uses software to manage the employee activity in
this organization.

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Table of Contents
Introduction......................................................................................................................................4
Background of the study..................................................................................................................4
Discussion of the Three audit areas.................................................................................................5
Customer loyalty and retention....................................................................................................5
Retention and defection management in Park Hyatt Sydney Hotel............................................7
Service communication process including the internal and external communication.................8
People Management.......................................................................................................................11
Discussion of the human resource management process in Park Hyatt Sydney Hotel.............11
Current challenges of HRM department in Park Hyatt Sydney Hotel.......................................12
Conclusion.....................................................................................................................................14
References......................................................................................................................................15

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Introduction
Service marketing is associated with the customer relationship and customer values. This
focuses on a particular service or product of an organization. However, the service is increasing
rapidly in the global economy, which leads the business organization to improve their service
marketing strategy (Wirtz and Lovelock 2016). On the other hand, service marketing differs
from the marketing goods in term of intangibility. Service marketing is considered as the
specialized branch of the marketing in an organization. Both businesses to consumer and
business to business services are categorized within the service marketing. To enhance the
service marketing proper strategy needs to be developed. This study focuses on the hospitality
sector to explain the service marketing process. Park Hyatt Sydney is a popular hotel in Australia
that has different divisions. In this study, the food and beverage division is selected to evaluate
the customer loyalty and retention, service communication and people. These three audit areas
are the major areas that need to be addressed properly to evaluate the service marketing process
in this organization.
Background of the study
Park Hyatt Sydney Hotel belongs to the hospitality industry. It is a five-star hotel in
Australia. It offers various types of amenities and facilities include suits, banquet, bar faculties,
room, roof top pull and outdoor facilities. This company was established in 1990. This hotel is
present in Sydney. Park Hyatt Hotel has also subsidiary Hyatt corporation (Hyatt.com 2018).
This organization provides high-quality service to their customers. They focus to retain and
improve their customer loyalty. Maximum customers of this organization are tourists as well as
the foreign customers. Sydney is a good business place and tourist place in Australia. Thus,
many foreigners come to this place, which is a big reason of increasing number of foreign
customers in Park Hyatt Hotel. This is five-star hotels thus, there are major competitors that
create a big threat to this organization. Amora Hotel and Shangri La Hotel Sydney are the two
major competitors of Park Hyatt Sydney Hotel. These two hotels are five-star hotels and provide
a similar type of service to the customers. Hence, there is a challenge of product substitution in

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the context of Park Hyatt Hotel. However, Hyatt Hotel tries to provide first class facilities to the
customers.
This organization has long standing status for having an expertise and advanced
equipment. This is due to achieve advanced level of competencies and customer satisfaction.
Their mission is to provide uppermost eminence of values. To improve the customer loyalty and
to retain the customers by providing high-quality service is the major aim of this hotel. Their
marketing strategy focuses on the improvement of the brand value. Therefore, they show
responsiveness while formulating particular business requirement for their hotel operation. They
have a strong distribution channel to deliver the service to the customers. They aim to maximize
their revenue through their existing customers and to cover new clients by using distinctive
marketing approach. This organization targets both local and international customers to expand
their service (Newsroom.hyatt.com 2018). However, maximum revenue of this organization
comes from the foreign clients. They focus on the culture of different people as well as to the
local culture to attract both foreign and local customers.
Discussion of the Three audit areas
Customer loyalty and retention
Customer loyalty is a sensitive part of any business. For the service organization, it is
crucial to improve the customer loyalty by using appropriate strategy. In the context of Park
Hyatt Sydney Hotel, their food and beverage division uses some specific strategy to cultivate the
customer loyalty. They have taken the customer experience improvement strategy. Customers
experience is crucial to increase the loyalty and the advocacy (Bir 2016). Customer loyalty is
associated with the customer satisfaction. In order to satisfy the customers, this organization tries
to provide superior customer experience. In Sydney maximum customers of the hospitality
industry are foreign and they want to pay more to gain a high level of customer experience. By
improving the customer experience this organization is able to reduce the chance of losing the
customers. Food and beverage division includes a huge number of customers. Thus, Park Hyatt
Sydney Hotel has developed an incentive plan to improve their customer loyalty. Maximum
foreign visitors look for the five-star hotel where they get proper accommodation. Incentive

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planning allows this organization to turn their new customers into loyal customers. Park Hyatt
Sydney Hotel offers leisure trip to their customers. Therefore, they offer a discount on direct
booking for the new customers. This influences the new guests to choose this hotel for their trip
to Sydney.
Development of hotel loyalty program is a big initiative for the hotels to retain and
improve the customer loyalty (Kandampully et al. 2015). Park Hyatt Sydney Hotel provides
hotel loyalty card to the customers. However, the guests of this hotel become active based on the
benefits that are offered by the loyalty card. Therefore, to retain the customers in their
organization Park Hyatt Sydney Hotel has taken a reasonable pricing strategy. They provide
high-quality service at reasonable rate. Low price and high-quality service is the key strategy to
retain the customers in an organization (Carr et al. 2016). It is important for the hotels to offer a
reasonable price to increase the number of the customers. For the foreign visitors, premium price
is good, however, to cover the local customer reasonable price for the service is crucial. Park
Hyatt Sydney Hotel has taken an initiative to prioritize the guest experience in their organization.
For this purpose, they update their staffs. They connect their guest via online. They share
messages regarding events and popular hangouts in the hotel. This creates interest among the
guests and they want to take service from this organization. As a result, the customer loyalty is
enhanced in this hotel. However, to retain the customers it is crucial for the hotels to understand
the need of the customers (Ennew et al. 2015). Park Hyatt Sydney Hotel has taken feedback
collection strategy. This enables them to understand the current need of both local and foreign
customers. Therefore, this organization tries to connect with their guest always. This strategy
helps them to remind their guests about their service and their organization.
Park Hyatt Sydney Hotel tries to manage their customer retention and customer loyalty
process properly. However, some issues often arise to their management process that needs to
mitigate. However, they offer a discount to the customers on direct booking via online only.
Hence, people who books indirectly do not get this discount offer. However, equality should be
maintained in customer loyalty process (Bir 2016). Therefore, often the staffs of this hotel only
focus on the foreign customers while collecting the feedbacks. Hence, it is necessary for the
staffs to give priority to the local customers and identify their needs. Their incentive plan is not
managed properly as it focuses only premium clients. It is crucial to focus both new and old

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guests while giving an incentive plan. Therefore, this organization offers online booking process
to improve the customer loyalty. However, there is lack of smooth booking process. By using
innovative way in the online booking process this organization can use mobile apps, self-check-
in and keyless entries. This will make the brand sophisticated and improve the service process of
the food and beverage division by retaining the customers.
Retention and defection management in Park Hyatt Sydney Hotel
Customer retention and reduction of customer defect are the two major parts of the
hospitality industry. As commented by Ascarza et al. (2016), to gain a new customer is five
times expensive than retaining old customers. Repeat purchase behavior of the customers is a
result of the customer satisfaction. For the management of Park Hyatt Sydney Hotel, it is crucial
to understand that the relation between the customer retention and the customer satisfaction.
However, the food and beverage section of a hotel plays a major role in retaining the customers
as if the guest get quality food in the hotel they become satisfied easily in comparison to other
services in a hotel. This hotel gives their concern towards the quality and the variety of the food
to retain their customers. Therefore, they also focus on the hygienic factors as maximum
consumers are health conscious in the recent years. On the other hand, foreign and local
customers come to this organization. The guests belong from different countries and different
cultural backgrounds. Thus, they have different preferences regarding the food. For this reason,
this organization focuses on the different needs of the guests to meet their food preferences. This
helps such hotel to retain the customers for a long time.
In order to manage the customer retention process, the hotels need to improve the
level of customer satisfaction (Rahimi and Kozak 2017). Park Hyatt Sydney Hotel has developed
a staff training program to deal with the customers. The staffs are trained to make effective
communication while people come in food and beverage division. Effective communication is
one and only way to understand the demand of the guests in a hotel. They have used high-quality
architectural design decorated the restaurant division properly, which makes a good impression
on the customers when they come to eat food in the restaurant. Park Hyatt Sydney Hotel has
generated social media communication with their customers to keep them in touch. On the other
hand, they give a discount on festive season in their food items. This retains the customers
belong from different cultural background.

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As argued by Hamilton et al. (2017), poor quality food and poor level of service in
the food and beverage division may lead a hotel to lose their customers. Customer defection rate
highlights the number of customers who leave a brand and go to the other competitors. In order
to expand the business in the global market and to improve the brand image Park Hyatt Sydney
Hotel focuses on the customer defection management. However, the defection rate is high in the
hospitality sectors. It has been received that the customers those come to hospitality sectors just
for the discount retain less in comparison to the customers those are attached with an
organization without any discount.
Park Hyatt Sydney Hotel tries out to the customers that are defected by their brand.
Maximum customer defection in Food and beverage division occurs due to low-quality service
and food type. In order to reduce the defection Park, Hyatt Sydney Hotel has maintained a highly
hygienic environment in their restaurant section. Identification of the reason of customer
defection is done by the marketers in Park Hyatt Sydney Hotel. Measurement of the cost of
retention vs defection is an effective tool of defection management (Hollmann et al. 2015). Park
Hyatt Sydney Hotel has found that poor quality service in their restaurant sector is the major
reason of customer defection. Thus, they improve the skill of the staffs as it can be done at a
reasonable price. This helps such organization to bring back their customers.
Service communication process including the internal and external communication
Communication is a crucial part of the hospitality sector. To increase the customer
satisfaction level in a hotel the staffs need to identify the needs of the customers (Mazzei 2014).
This can be done by using effective communication. Park Hyatt Sydney Hotel uses a specific
strategy to improve their internal communication process. Internal communication means the
communication with the staffs. They have established an employee portal through which the
staffs of food and beverage section can access all the guests' information. This increases the
performance level of the staffs. If any VIP guest comes to this organization the staffs can easily
gain the information of such person through their portal. As a result, they are able to prepare
food based on the culture and choice of this particular guest. As argued by poor communication
among the staffs create confusion and mistake (Lapointe and Beaudry 2016). As a result,
disengagement of the employees takes place.

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Park Hyatt Sydney Hotel takes scheduled regular staff meeting before the 15
minutes of the dinner service. This allows the staffs to discuss about the evening menu and
information regarding the service delivery. This short meeting is beneficial for the organization
to engage their internal staffs. One of the major drawbacks of fifteen-minute pre-shift meeting is
short time communication (Yildiz 2015). However, the staffs do not get enough time to share
their feedbacks in meeting. Thus, Park Hyatt Sydney Hotel needs to develop full staff meeting
with the restaurant staffs to improve the level of communication. Park Hyatt Sydney Hotel takes
exit interview process to maximize the internal communication with the staffs. Exit interview is a
process that is conducted with the staffs while they are leaving an organization. This
communication process allows the organization to retain their employees by resolving any
workplace-related conflicts. By embracing digital tool is helpful to improve the internal
communication among the staffs in the hotel (Rittmaster and Piccionelli 2018). Park Hyatt
Sydney Hotel uses mobile messaging to improve the staff engagement in their food and beverage
section. Via mobile messaging they share information regarding the scheduling, menu
adjustment, and shifting process. They have used a mobile app, which allows the employees to
watch every news regarding the food delivery service instead of viewing them on kitchens'
whiteboard. Application of the digital technology in the internal communication process is an
effective way to enhance the communication process among the staffs of this organization.
Besides the internal communication development of proper external communication
is crucial for the hospitality industry. External communication is done with the suppliers,
customers, partners and the external agencies. Park Hyatt Sydney Hotel focuses on the limited
number of people to improve the communication process with the suppliers. As criticized by
Lapointe and Beaudry (2016), dealing with a large number of people hampers the ordering
process of the food and beverage section. This hotel has a specific key contact person, who deals
with the suppliers from the restaurant section. This reduces the miscommunication. Therefore,
continuous follow up and scheduling is done by using mobile call. It is important for the
restaurant division of a hotel to give an update to their suppliers regarding the demand of raw
materials. Therefore, stock maintenance is a big problem in the restaurant sectors as overloaded
and fewer amounts of raw materials hamper the inventory management. To reduce such
inventory management issue Park Hyatt Sydney Hotel tries to make a continuous communication
with the suppliers.

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Communication with the employees requires to be done properly to enhance the
external communication system. However, Park Hyatt Sydney Hotel uses the internet to make a
connection with the employees (Cornelissen and Cornelissen 2017). They use Facebook and
Linkedin as a social collaboration system to communicate with the customers. However, by
using these social media sites they are able to gain customer feedback and to update their new
service in food and beverage department. Therefore, they have created an online forum to
communicate with their customers. By using the mobile platform they are able to carry out this
online communication. This organization also uses text messaging to keep in touch with the
customers. This is the easiest and cost-effective way to enhance the communication process with
the customers. Apart from the customer communication with the business partners and the
external agencies can be done by using open discussion and meeting. However, from the above
analysis, it has been received that both internal and the external communication are done by Park
Hyatt Sydney Hotel through using digital media. Digital tool is a great way to communicate with
the external stakeholders and the internal stakeholders quickly. Therefore, this communication
process is inexpensive than other processes.
Figure 1: Service communication process

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(Source: Cornelissen and Cornelissen 2017)
People Management
Discussion of the human resource management process in Park Hyatt Sydney Hotel
Proper human resource management tool needs to apply in the hospitality sectors to
enhance the performance of the employees. However, Park Hyatt Sydney Hotel follows three-
stage processes while recruiting employees for their restaurant division. In this there stage
processes, they use written, experience analysis and a face to face interview. By using training
process HRM tries to improve the performance of the employees (Xanthopoulou et al. 2016).
Park Hyatt Sydney Hotel provides a three months training to their restaurant staffs to enhance
their performance level. On the other hand, performance management is another vital part of
HRM. Park Hyatt Sydney Hotel applies benchmarking tool to evaluate the performance of their
current staffs in the restaurant sector. Park Hyatt Sydney Hotel focuses on the various software to
manage their employees in their organization. As for example, they use Zoho People software to
manage the employees. This is a cloud-based software to manage the people in an organization.
By using this software such organization manages and organizes the employee data. Therefore,
iCMS software is also used by this hotel acquire the talent. This software provides an onboarding
platform to the HRM department to hire quality employees for their restaurant division. This
software includes career site research, social media distribution and job board posting.
In the competitive market iCIMS is popular software of HRM. Park Hyatt Sydney
Hotel needs more experienced and talented staffs to improve the delivery process in their food
and beverage section. This is completed by using this software. Use of CRM software to manage
the customers is an effective way for Park Hyatt Sydney Hotel. This enables such organization to
manage the customer relationship by establishing and effective communication via technology.
Payment is a vital area of people management (McDonald et al. 2017). In Park Hyatt Sydney
Hotel, the HRM department provides a fixed salary to their permanent staffs. On the other hand,
the temporary staffs get a salary based on their working hours in food and beverage department.
Online alert is given to the employees to respond to emergency service. In food and beverage
section often the staffs need to provide emergency service if any VIP guest comes. To deal with

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this situation online alert is helpful for this organization. Based on the above discussion it has
been received that Park Hyatt Sydney Hotel focuses on the technology to manage the people
inside and outside of the organization.
Current challenges of HRM department in Park Hyatt Sydney Hotel
One of the major challenges of the hospitality sectors is a high turnover of the
employees (Coetzer et al. 2017). Park Hyatt Sydney Hotel has faced this challenge in the recent
years. Statistical data shows that the hospitality sectors have high turnover rate in comparison to
other sectors. The employees leave this organization due to the low compensation planning and
safety issue. However, employee turnover leads this organization provides proper delivery of the
food to their customers. Food and beverage section of a hotel needs more staffs to provide quick
service. In order to take the order, prepare high volume of food and to deliver this at the right
time this hotel needs more staffs. Hence, high turnover creates issues for the HR. Training
creates challenges for the HR. The staffs of the food and beverage division need proper training
to deliver excellent service to the customers. However, due to the low retention of the employee's
HR recruits more staffs in this hotel. Hence, for the new staffs training is crucial. Such training
often increases the cost of the business, which is a big issue for the HR in Park Hyatt Sydney
Hotel.
Maintenance of the employee documentation needs to be done properly otherwise it
may create a problem for the service personnel (Riccucci 2017). In Park Hyatt Sydney Hotel, HR
often fails to maintain the employee documentation due to their poor concentration. This can
lead such organization to face legal challenges. Policy implementation leads the HR to face
challenges in the hospitality sector. However, the HR personnel of Park Hyatt Sydney Hotel
faced challenges as the employees become resistant while introducing any policy in this
organization. Hence, implementation of a policy in an organization leads the HR personnel to
face high employee resistance. On the other hand, presence of inexperienced managers in the
restaurant department creates a big challenge for the HR in Park Hyatt Sydney Hotel. The
managers are often promoted however, they have not adequate knowledge. This hampers the
service delivery process in this restaurant division. On the other hand, this increases the
inefficiency of this department. However, the restaurant division includes expensive wine and
unlimited food. Hence, often the employees steal these foods. For HR it is often difficult to

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create a sense among the employees regarding the loyalty. Safety issue is another major issue of
food department in this hotel. The staffs show negligence to follow the safety rule. This creates
issue for the HR in this hotel.
The HRM department of Park Hyatt Sydney Hotel gives their effort in managing
such challenges. They have taken action by implementing policies regarding workplace safety. If
any employee avoids this policy they will get strict punishment. To retain the employee's HR
personnel has established a yearly performance appraisal program. This influences the
employees in their work. Appraisal program is a good management approach to retain the
employees and to reduce the turnover (Schenk 2017). On the other hand, by using effective
interpersonal communication strategy the HR is able to insist the staffs in their work.
Figure 2: Challenges of HR personnel
(Source: Riccucci 2017)

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Conclusion
The entire study focuses on the three audit areas in Park Hyatt Sydney Hotel. The
major areas include customer loyalty, service communication and people management. It has
been found that the restaurant department of this hotel gives high quality of food to the foreign
customers. By improving the customer experience this organization is able to retain their
customers. On the other hand, they give a discount to their customers to enhance the customer
loyalty. Therefore, both internal and external communications are carried out to retain the
employees and customers in this hotel. Moreover, the HRM department has used different
software to manage the employees within the organization. Despite this effectiveness, the HRM
department faces high turnover of and poor retention of the employees. To minimize such
challenges HR personnel has taken policies and good compensation planning.

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