Strategic Planning for the Hospitality Industry - Desklib

This report discusses the importance of strategic planning in the hospitality industry, with a focus on Hyatt hotels corporation. It presents creative business strategies for the current organization strategy to remain competitive and analyzes different performance metrics to evaluate employee performance. The report also highlights the critical success factors and key performance indicators that are essential for achieving organizational goals.

Strategic Planning for the
Hospitality Industry

TABLE OF CONTENTS
INTRODUCTION...........................................................................................................................3
MAIN BODY...................................................................................................................................3
Discussing the important factors for Hyatt hotels corporation...................................................3
Presenting creative business strategies for current organization strategy to remain competitive.
.....................................................................................................................................................5
Analysing different performance metrics....................................................................................7
CONCLUSION................................................................................................................................8
REFERENCES..............................................................................................................................10

INTRODUCTION
Hospitality sector has been grown in recent years due to the increasing population and
demand of tourism among different class of people around the world. Thus, through proper
strategic planning the firm would be able to gain competitive advantage in different markets.
Further, the present report is based on Hyatt Hotel corporation that is international brand
providing hospitality services across different regions and is headquartered in Chicago.
Moreover, the study will analyse different factors that are required to implement successful
strategies within the organization so that goals could be achieved easily. Also, various creative
business strategies will also be identified so that the current strategy of business could be
implemented successfully in the future. Lastly, different performance metrics along with
identifying the critical success factors related in measuring the organizational performance will
also be discussed in detail under this report so that better efficiency could be derived in due
course of time.
MAIN BODY
Discussing the important factors for Hyatt hotels corporation.
Strategic planning is very important so that goals of the firm could be achieved in
systematic manner. Further, such type of planning helps the firm in setting the priorities through
optimum utilization of resources and people. Thus, the company is able to set realistic goals,
build stronger teams and solve major problems of the firm. Further, introducing the strategies in
timely manner is very essential as it helps the firm in gaining the competitive advantage over the
others (Kemp , 2018). Moreover, through best strategic planning the firm would be able to avoid
the future risks and organization would move in right direction in achieving certain objectives.
Also, with the changing business environment it is necessary that every business firm analyse the
current needs of the customer and bring strategies that will allow the firm to stand in the market.
Further, in the hospitality industry that has grown during the recent times due to increasing
population it is essential that various operational, business and corporate level strategies are
developed so that purpose of the organization could be defined.
In context of Hyatt hotels corporation company is aiming to develop and maintain the
strategy of providing personalized customer experience so that brand value of the firm could

be established in new growth platforms (Hyatt focused on driving asset light growth, 2019).
Furthermore, serving the customer in the best possible manner would help quoted firm in
increasing the brand loyalty and would also result in delivering superior hotel performance
among its target customers. Also, to implement the above strategy there are several factors that
Hyatt need to consider that are as follows:
Commitment to the strategy: It is very important for all the employees and staff members'
that they are highly committed and dedicated for above strategy that need to be implemented
within the workplace (Yeniaras and Kaya, 2021). Thus, employees need to accept the new
business policies and stay motivated so that problems are not occurred during the strategy
implementation and if any than corrective measures could be taken on time.
Creating environment for strategy succession: This is also the key factor that need to be kept
in mind by the firm so that few things does not go wrong and change at the workplace could be
adopted in more focused and well-defined manner. Also, best environment by Hyatt hotel would
be only be created when there is proper communication among the supervisors and workers,
clarity in the goals is maintained and better accountability for the work is done.
Aligning strategy with organization culture: In any firm there are various different targets
that need to be accomplished within specified time frame. Hence, it is important that to deliver
the best customer experience as part of the strategy it is essential that factor such as organization
culture is identified so that valuable insights would allow the firm to make changes in various
operational departments in its working so that additional costs are not incurred and best results
are delivered within the given time frame (Prange and Hennig, 2019).
Ability to measure progress: For hotel like Hyatt corporation it is essential that this factor is
taken into consideration so that growth of the company could be measured in terms accurately in
terms of strategy that is implemented at the workplace. Also, measuring the progress of strategy
helps the firm in identifying the areas that are working ineffectively and so that more training
programs could be organized for better future working.
Aligning with organization structure: This is the factor helps the firm in getting in knowledge
about current organization structure so that strategy could be introduced at the workplace in well-
defined manner. Further, if structure of the firm is very complex than different policies need to
be designed by the firm at each level so that specific goals could be set for each department
towards achieving the final objective of the strategy.

Thus, through considering the above overall key factors the firm would be able to deliver
the best of the customer experiences through introducing services that are different from the
competitors and thus it would help in attracting new customers and retain older ones through
efficient customer satisfaction that is essential for the growth of the business.
Presenting creative business strategies for current organization strategy to remain competitive.
Business strategies are essential so that all actions and decisions of the company are
directed towards the achieving the final outcome. Also, it defines the methods through which
goals of the company would be achieved easily. For current strategy of the Hyatt to deliver
personalized customer experience it is essential that certain business strategies are implemented
some of them are follows:
Differentiation: Through adopting this Hyatt need to identify those services and
practices that are unique and different from competitors' so that more value could be provided to
the customers. Further, such differentiation could be in form of changes in services provided,
adopting new technologies at the workplace, change in hotel design etc. so that requirements of
the company and guests would be met in the best manner. However, it is important that total cost
is estimated before implementing any change in the organization so that maximum revenues are
earned through such type of business strategy (Martinelli, Collard and Gamache, 2020) Also,
through this strategy it would help quoted firm in brining differences in the lives of the people so
that better positioning in the market could be done against its current competitors. Moreover,
differentiation strategy would not only attract new customer towards the firm and create brand
awareness but it will also help in exceeding the current customer expectations and desires
through collaborative social care efforts given by the employees of the Hyatt corporation. Also,
through providing continuous functional support and collecting regular feedbacks from the
customers the firm would able to make changes in the differentiation strategy that is also key
driver for long term success.
Price skimming: For organization like Hyatt that is working on international level this
business strategy would also help the firm to cover the initial costs that is involved in
implementing the targeted strategy in the UK market. Also, it would attract the customer to avail
services of the firm as there is belief that because of the high prices the services delivered by the
quoted firm are of high standards (D’Ely, Mota and Bygate, 2019). Furthermore, it can be
considered as marketing tool that will allow the firm in increasing the perception related to the

services that are offered by the firm. Also, this strategy would allow the firm to quickly recover
all the costs that is involved in delivering the best of the services. However, this strategy should
be used by the firm only for short period until the market is fully covered as customers would not
love to buy services at higher prices for longer duration when same services are offered buy the
competitors at lower prices. Also, such type of strategy would help the firm in creating and
maintaining the brand image in the market is ever-changing and complex. Furthermore, such
type of strategy would allow the firm in segmenting the market in better ways which will also
help in developing effective marketing channels for the future growth.
The Best online booking experience: This is also type of strategy that could be adopted
by the quoted firm so that better customer service could be delivered in short period. Also, this
strategy could be effectively implemented by the firm through introducing various offers and
discounts on the official online website of Hyatt corporation so that more customers are ready to
visit the hotel while conducting any trip in any part of the country. Further, this strategy could be
successfully implemented through combining the marketing efforts in a way that make people
aware about the certain new changes that are brought in the firm so that sales could be increased
to the greater level (Wright and et.al., 2019). Furthermore, it can be said that in current era where
most of the business firms are operating digitally this strategy would be helpful in acquiring
extra benefits of for the quoted firm and thus would help in generating maximum revenues. Also,
effectiveness of the firm could be improved through search engine so that people are able to visit
the website of the company in the most efficient manner. Also, this strategy would allow the firm
to collect the reviews on the current working of the firm in the cost effective manner. Thus, this
strategy is quite effective when Hyatt is focusing on delivering the needs of the customers in the
most efficient manner.
Guest reward strategy: This type of strategy could also be used by the firm when
greater demand and customers need to be generated for the firm. Also, this type of strategy could
only be developed when the customer needs are closely identified through market analysis or any
other methods (Biswas and et.al., 2018). Also, rewards could be given in the form of additional
discounts on booking twice in the months, rewards in form of coupons for each rating and
recommendations provided on the website of the hotel and much more. Thus, this strategy will
not only help in generating higher revenues but will also make the customers valued and will
generate

Analysing different performance metrics.
Performance metrics is defined as data and figures that are used by the organization to
measure certain behaviour, activities and performance of the employees at the workplace.
Further, with help of performance metrics individual is able to enhance the productivity in
specific time period. Moreover, there are various types of performance metrics that are used by
the firms so that better results could be derived in the future. Below is the list of ways through
which performance of the employees could be enhanced.
Graphic rating scale: These are mostly used so that employees relative performance and
behaviours could be measured relating to the specific areas (Lange, 2021). Further, such type of
behaviours are essential so that job efficiency could be maintained for longer time period.
Moreover, it can be in form of number scales, comment scales, mixed standard scale etc.
360 degree feedback: It is method that is widely used in those organizations that wants
to gather collective information based on performance of the individual. Also, here information
is collected from the seniors, subordinates, supervisors etc. so that individual would be able to
identify the key weak areas and thus would be able to improve performance in much better
manner.
Self evaluation : It is also popular method or technique that is helpful in evaluating the
self performance of employee and thus it would also be effective and useful in times when
organization has limited time (Canbek, Taskaya Temizel and Sagiroglu, 2021). Also, this
technique could be applied in form of questionnaire and multiple choice answers that have be
fulfilled by every individual employee during the certain time so that overall performance could
be analysed.
Management by objectives(MBO): It is type of process that is used by employees and
managers so that certain objectives could be established and thus performance could be
measured and evaluated on the basis of it. Thus, this technique gives clear understanding to the
employees about what goals need to be achieved and what is the process in achieving it. Further,
it helps in developing better communication and increase motivation of the employees to great
level.
Checklists: This is technique is also known as yes no where employees are asked to tick
the correct option based on certain questions regarding the performance. Moreover, through this
method certain deficiencies in employees regarding the skills and performance could be easily

identified (Eckerd and et.al., 2021). Also, through this technique it will able to identify those
employees that require extra training and knowledge so that future efficiency could be achieved.
Further, it can be said that through adopting this technique the employees would be able to focus
more on areas that are important for achieving certain organization goals.
Balance score card : It is type of performance metrics that is used to improve and
control various functions of the business. Moreover, this type of metrics is has four major
components that is financial, customer, internal analysis along with learning and growth
perspective so that organization vision and mission statement could be fulfilled in most effective
manner through its efficient employees.
However, from all of stated method of evaluating employee performance one thing that is
prior done in organization is defining key critical success factors so that employee works in
focused manner in achieving set firms target on given time. Moreover, it can be said that these
success factors are type of indicators for the firms overall achievement of certain objectives.
Some success factors could be skilled resources, user involvement, project management
expertise etc. Furthermore, in the process of analysing and evaluating the performances of the
employees there are also some key performance indicators that are used so that proper direction
could be provided to each individual towards achieving the final goals of the firm. Also, these
indicators are mainly devised so that maximum customer satisfaction and work efficiency could
be derived. Moreover, these indicators could be in form of financial, customer, process
performance metrics and much more (Gotin and et.al., 2018). Thus, it helps the business in
tracking the progress of the firm through using various software and analytical tools. Also, with
the help of the KPI the business is able to develop effective communication among different
levels of the firm. Further, these are very easy to devise and formulate in any organization
irrespective of the size. Moreover, through KPI organization are able to save time and increase
efficiency in managing certain business operations.
CONCLUSION.
From the above report it can be concluded that better strategies and planning would help
the Hyatt hotel to grow both nationally and internationality in specific period. Further, the report
had identified current strategy of Hyatt hotels in delivering personalized customer experience to
target customers through various key factors such as commitment, ability to measure progress,
and much more that would help in successful implementation. Also, the study had identified

importance of various creative business strategies such as differentiation, price skimming etc.
that would help Hyatt in achieving the set targets of the future strategy in most efficient manner.
Furthermore, the report had analysed the importance of developing the critical success methods
so that progress towards the achievement of certain objectives could be measured easily. Lastly,
the study had analysed some performance metrics such as checklists, management by objectives,
balance scorecard etc. as methods that would help the firm in gaining competitive advantage in
long run.

REFERENCES
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Martinelli, R., Collard, J. and Gamache, M., 2020. Strategic planning of an underground mine
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Wright, E. W. and et.al., 2019. A new scorecard for strategic planning. Journal of Business
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Yeniaras, V. and Kaya, I., 2021. Relational governance, strategic planning and firm
performance. Marketing Intelligence & Planning.
Online
Hyatt focused on driving asset light growth. 2019. [Online]. Available through:
<https://investors.hyatt.com/investor-relations/news-and-events/financial-news/financial-
news-details/2019/Hyatt-Focused-on-Driving-Asset-Light-Growth/default.aspx>