Contribution of Hospitality Industry to Economies

This document discusses the different business types in the hospitality industry and the diverse product range offered. It also examines the range of functional and operational departments in the selected hospitality business. Furthermore, it discusses the contribution of the hospitality industry to national, local, and international economies.

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Unit Title and
Number: The Contemporary Hospitality Industry (Unit 1)
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18/01/2020
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1

The Contemporary
Hospitality Industry
Unit 1
2

Table of Contents
Introduction......................................................................................................................................3
TASK 1............................................................................................................................................3
P1: Explore different business types in the hospitality industry and diverse product range that
is offered.................................................................................................................................3
P2: Examine the range of functional and operational departments in the selected hospitality
business...................................................................................................................................4
P3: Discuss the contribution of the hospitality industry to national, local, and international
economies...............................................................................................................................5
TASK 2............................................................................................................................................7
P4: Investigate the range of various operational roles in the hospitality industry..................7
P5: Examine skills that are part of the hospitality industry....................................................7
TASK 3............................................................................................................................................9
P6: Asses The political, economic, social, technological, legislative & environmental factors
that posses impact on the development of organization.........................................................9
P7: Undertake SWOT analysis for hospitality business and review the decision-making
process..................................................................................................................................11
TASK 4..........................................................................................................................................12
P8: Analyse the implications of present and potential trends of the hospitality industry with a
range of examples.................................................................................................................12
CONCLUSION..............................................................................................................................14
REFERENCES..............................................................................................................................15
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Introduction
The hospitality sector is covering many different industries that include food, drink, and
accommodations. The role played by the hotel industry is very crucial in the development of
hospitality provision. Presently there is an analysis based on the hospitality industry so that there
can be an informed decision made regarding different challenges that may exist in the industry.
Presently there is an analysis based on Hyatt hotels that is one of the biggest hotel chains having
approx 750 hotels across different parts of the world (Yu, and et. Al, 2020). There is an analysis
of the various sectors that are part of the hospitality sector and different operational and
functional departments. There is also an analysis of operational rules to examine the different
functions that are part of the hospitality industry.
TASK 1
P1: Explore different business types in the hospitality industry and diverse product range that is
offered
The hospitality industry includes the service industry that consists of different services like
hotels, restaurants, and tourism that are part of the hospitality sector. With the changes taking
place in globalization and technology the industry has grown very fast in recent times some of
the different business types that are part f the hospitality sector are mentioned below:
Accommodations :
While traveling from one destination to another people generally require places for staring and
lodging. It includes a morel, hotel, or an establishment with more than one-half of dwelling units
that are used on regular basis (Lugosi and Jameson, 2017). There is the inclusion of customary
amenities & facilities as part of their operations.
Suites:
hotels are offering suites as a part of upscale accommodations. It includes many known brands
such as Ritz, Hyatt, intercontinental, four seasons, etc. The key features are that they are part of
the luxurious accommodation of the hotel.
Resorts:
These are a type of amenities that includes recreational and entertainment amenities. It is a
commercial establishment that is operated by a single organization. It includes various types of
services such as food, drink, entertainment, shopping, and sports.
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Beach resort: It is a full service holiday lodging facility that is located at seaside with
accessibility to private beach. The beach is the primary focus of such tourists. Beach resorts are
offering a wide range of services & amenities that includes recreational and entertainment
activities.
Ski resort: It is a resort that is developed for snowboarding, skiing, winter sports, these ski
resorts are towns or villages that are part of common ski areas and destination resorts.
Hotels: Hotel is a establishment that is providing lodging facilities on short term basis. It is a
area that is providing facilities inside a hotel room that ranges from basic guest services. It is
customer decorated, includes child care, conference, event facilities etc. there are some industry
standards that are set up offering full service accommodations, on site restaurants etc. Smart
hyde park view, Tan hill Inn, Hilton London bank side are examples of hotels.
Motels: Motel is a hotel designed for motorists that is having parking area. It is a term that is
regarded to as Motel consisting of single building with connected rooms doors facing parking
lot, common area with series of small cabins. It is generally individually owned though motel
chains also exist.
Fine dining: Fine dining restaurants are the full service restaurants that are with specific
dedicated meal courses. It includes décor with high quality materials with establishment having
rules of dining and visitors are expected to follow.
Pub: Pub is a go to one or public houses that can be transitive or informal to publish.
Bistro: Bistro is a small European style restaurant.
Cafe: A cafe is a type of restaurant that is serving coffee and tea in addition with other light
refreshments that includes snacks and baked goods. It is a known casual social environment
where people can be find reading magazines, newspapers, playing board games, studying,
chatting.
Food and beverage in the hospitality industry
Food and beverage is one of the biggest factors that is part of hospitality industry. Different
services that are part of this sector include preparation of food presenting it to customers. Fine
dining fast casual and other casual dining are some of the different types of restaurant that are
part of this sector.
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Mc Donald: Mc Donald is a American fast food brand that was founded in the year 1940. It is
one of the largest restaurants in Chennai at a serving approximately 69 million customers across
100 countries.
KFC: KFC is also an American fast food brand that is having its headquarters in Kentucky. It is
second largest restaurants in after McDonald’s with having 22,000 location across 150 countries.
They are specialising in the fried chicken. It has developed from being a roadside restaurant to a
complete restaurant franchise in concept.
Entertainment in the hospitality industry
Entertainment in hospitality industry: Entertainment is one of the important part of hospitality
industry. There are many different types of tourism destinations that includes museums theme
parks theatres zoo and other that are part of entertaining tourist.
Disneyland: Disney land includes to theme parks that is Disneyland resorts in California and
Anaheim. It includes a theme park that is designed in supervision of Walt Disney. It is having
different activities that are part of a theme park with 726 million approx visitors since its
opening.
British museum: British museum is located in London England that is a public institutions
having dedication to human history culture and art. It includes the permanent collection of
approx 8 million works that is among the comprehensive and largest collections during the
British Empire. It is used for documenting the story of human culture that is ranging from earlier
times to the present scenario.
Caravan and Camping
Caravan & Camping
The outdoor hospitality sector consists of different campgrounds recreational vehicle parks
beauty campaign and the caravan parks. The sector is presently driven by different types of
customers who are willing to escape from the city distraction and for socialising with their
families; sometimes it includes digital detox and being close to nature. According to the
information that is provided by the great British tourism survey conducted in England, there has
been 4.5 million camping and caravanning holidays that have been taken by the British residents
in the first half of year 2015 and that has been for average 3.7 nights.
Non-commercial
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Non commercial food service operators are supplying food to different businesses educational
institutions and other governmental organisations. Non commercial food services are also
regarded as contract food services. Apart from this non commercial catering is a subject of
offering seems on and bumps as part of commercial catering.
Example: Compass groups: it is a British multinational contract food service brand that is having
its headquarters in England. It is one of the largest contract food services companies that is
employing approximately 500,000 people and is listed on London stock exchange also is a
constituent of FTSE 100 index.
P2: Examine the range of functional and operational departments in the selected hospitality
business
Operational departments:
There are certain operational departments that are part of the hospitality business as mentioned
below:
Front desk services: Front desk department in the hospitality business includes employees
having constant contact with guests (Lee, Lee, and Dopson, 2019). These departments are
responsible for handling and taking all the bookings. In Hyatt, there is detail-oriented there is a
meeting of exact needs according to the requirement of guests.
Housekeeping departments: the main aim is to keep the rooms tidy and clean. In his
housekeeping team is responsible for each detailing in rooms such as for cleanliness or keeping
the toiletries stocked.
Food production department: It is the department in Hyatt hotel that is responsible for the actual
production of food items.
Functional departments in Hyatt hotel:
There are some of the functional departments that are part of Hyatt hotel as mentioned below:
Account department: It is responsible for the financial activity in hotels (Dunning, 2019). In
Hyatt, the accounts department has to perform the functions related to baking activities,
preparations of financial and operating data so that there can be the preparation of financial
statements.
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Maintenance: In this, there is the presence of the best quality of electronics and utilities to
prevent malfunction and break. In today's present times there is a need to work according to the
responsibility assigned to executives as part of their front desk services.
Security departments: This department is responsible for performing functions related to the
safety and security of hotel visitors, guests and employing people to ensure the security of all the
guests.
Human resource department: The HR department of a hotel has to perform the following task
that includes designing jobs, developing personal specifications project of responsibilities, usage
of appropriate media, hiring of competed individuals.
IT Department: IT department in hotels have to perform the function of supporting all the
different Information technology systems. This department have to regulate all the activities that
are associated with information technology. It includes managing of back office systems,
computer networks, telephone systems across different functional departments of the
organisation.
The interrelationship between various functional and operational departments:
Purchase department: The purchasing department is also regarded as the procurement
department. In Hyatt, this department of a hotel is responsible for the organization to ensure
access to the best quality of resources that includes raw materials, required raw materials, and
equipment to achieve a competitive process in order to enable a high amount of operational
efficiency (Xu and Martinez, 2018).
Marketing department: The marketing department of the hotel has to perform a number of tasks.
Such as performing the market research for the development of new services and performing
some promotional activities for carrying on the function of formatting marketing campaigns.
Such as, there is the development of a digital marketing campaign (Filimonau, and Delysia,
2019). So, that there can be approaching to the target segment of customers in a more creative
and differentiation manner.
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There is a high amount of interrelationship that is the presence between various operational and
functional departments in various hospitality brands.
HR and operational departments: Such as human resource department managers have to make
regular communications with other departments in terms of the required skill sets in employees
according to which further job descriptions and personal specifications are prepared.
Marketing and Front desk departments: Bothe these departments have to coordinate with the
marketing department to analyze the customer complaints and the changing preferences so that
further promotional campaigns are focussed on specific demands of customers only.
From the above discussed different operational and functional departments are assisting
Hyatt in performing the overall functions further achieving of laid mission & vision of the
organization.
P3: Discuss the contribution of the hospitality industry to national, local, and international
economies
National economic contribution-
United Kingdom: The hospitality sector is representing 700 businesses that is employing approx
3.2 million people and is serving of 10 percent of employment in UK, 6 percent of organizations
and also contuses 5 percent of GDP. According to an analysis made by the office of national
statistics the hospitality recruitment platform ADIA the entire industry has grown by 6 percent
every year. The whole turnover of companies gave achieved 98 billion pounds t the UK GDP in
year 2017. That is from 92 billion pounds in year 2016 and 86billion pounds in year 2015. There
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are many brands that are offering food services and accommodation facilities under 20 percent in
a time of last five years that ahs lead to increase in 169,235 in year 2013 (Hospitalitynet, 2018)
Local economic contribution
Scotland region: in the Scotland region there has been tourist pending that is generating 12
million pounds according to the economic activities. It includes the Scottish supply chain and
also contributing to 6 billion pounds to the GDP. This is representing 5% of the total GDP in
Scotland. The tourism industry is also supporting for generating jobs approximately to a number
of 217000 in the year 2015. Further this has been accounted for 8.5 % of the total employment
percentage (The Scottish Government 2020).
International economic contribution:
Caribbean region: In Caribbean reason there has been a contribution of 59 billion US dollars to
the GDP in the year 2019 by the tourism and the travel sector. Among all the different listed
Caribbean Islands, Cuba and Dominican Republic there has been a highest contribution by the
sector. 14.3 billion US dollars is contributed by the Dominican Republic. On the other hand
Cuba has been contributing 10.8 billion dollars. Overall contribution by the tourism sector to the
GDP has been 58.9 billion US dollars. Further there has been an increase of 29.5 percent in 2019
as compared to year 2010.
Franchising: It is an aspect that has grown significantly in the hospitality sector especially in the
case of restaurants and hotels. Various big hospitality brands such as McDonald's, Hilton, Hyatt,
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holiday inn, are examples of brands that are using franchising as a method for the purpose of
global expansion.
Contribution to national and international economies: franchising is supporting the national
GDP of countries through millions of dollars in terms of products, services. The local economy
can be benefitted by providing the franchisee jobs, tax dollars & higher community involvement.
Hyatt Hotels Corporation is having its headquarters located in Chicago and is a leading
hospitality brand with a portfolio of 13 premier brands. They are working towards operating
subsidiaries by developing and managing based on the use of franchising & licensing to provide
ownership under their brand name (Our Brands, 2021).
Licensing: these are regarded as the number of regulations that are required for the purpose of
starting and operating a business. It includes various regulations that have to be adopted for the
objective of starting a renowned or a hotel. For this, there is a requirement for certain rules and
criteria for the purpose of the mating of validity. In the case of the hospitality industry licensing
is an aspect that has contributed towards employment and innovation while contributing towards
UK trade. It is playing a very important role in commercializing new technologies and the
development of new products and services.
Contribution to national and international economies: Look for information of McDonald
Franchising.
TASK 2
P4: Investigate the range of various operational roles in the hospitality industry
There are certain operational roles that are part of the hospitality industry that are performed by
human resource managers according to the functional departments as mentioned below:
There are different operational and functional roles that a part of a hospitality business
organisation. It includes major operational departments, housekeeping department, food and
beverage service department, food production department and the front office department. Apart
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from these department hotels also possess different functional department such as HR
department, accounting department, marketing department and finance department.
Operational department:
Housekeeping department: Housing keeping department is processing a direct impact on the
overall guest experiences. The main function of this department is to ensure that all the common
areas restrooms lobbies, hallways and different public areas are properly cleaned and usable.
Housekeepers have to ensure that there is cleaning of rooms when the guest is checking out.
Housekeeping department is mainly responsible for maintaining high standards of cleanliness
and neatness in the organisation.
Food production department: Food production department is also sometimes known as kitchen
department in common languages. These departments are responsible for the preparation of food
items. It includes kitchen porter chef and other kitchen managers who perform most important
job roles. This department have to ensure that the cooking takes place in a hygienic and with
proper address to safety rules.
Food and beverage service department: Food I prepared in the kitchen but for the drinks there is
proper bar facilities that are part of every hospitality organisation. In this the main responsibility
of Food and beverage service department is to provide all the facilities of foods and drinks
according to the requirement of guests.
Front office department: Front office staff is responsible for ensuring that guests are properly
welcome in a professional and friendly manner. For this front office staff has to properly deal
with the gas so that they are not facing any type of issues. If there are any types of complaints
that have to be timely address by this department.
Functional departments
Marketing department: In hospitality organisations marketing is related to evaluating the
customer requirements. It helps in for the performance of promotional strategies according to
such change in customer demands. Market research helps in evaluating the customer demands
and needs so that there can be development of services accordingly. Further there is development
of new services carrying out of advertising, sales promotion activities, effective campaigns by
the marketing department.
Human resource department: Human resource department of a hotel have to perform various
activities. It includes designing of jobs, developing of job responsibilities, development of person
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specification, advertising jobs, on appropriate platforms and for the hiring and training of new
organisations to fill the vacancies.
Accounting department: It is one of the important departments of a hotel as they have to
perform the functions of cost controlling credit control building dealing with tax issues,
formation of financial statements, managing of payroll system, budgeting and budgetary control
functions. Apart from this there has to be proper compliance with relevant laws that is one of the
important responsibilities of the accounting and finance department.
Security department: The security department of a hotel have to perform the function of
ensuring proper security of guest’s visitor’s employee’s day users who are visiting hotel.
Purchasing department: The purchasing department is sometimes also recorded as procurement
department. This department of hotels have to ensure that organisation as able to access all the
quality raw materials equipment and other products at competitive prices to enable its effective
functioning.
Interrelationships:
Function and operation department have a strong interrelationship as they are highly
dependent on each other. For instance the front office department have to provide all the
information related to special requirements of visitors the room type and size that is evaluated.
Marketing department has to further design the overall promotional offers and advertising
strategy in connection with the finance department who formulate the healthy budget of hotel.
The housekeeping department has also to work in close association with the safety and security
department internally to the safety and security department. Food and beverage department are
working in connection with the purchasing department to properly exchange the information
that is requirement of raw materials and other aspects. Human resource department has to
analyse the overall department based on the requirement of skills in the organisation to perform
specific functions.
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P5: Examine skills that are part of the hospitality industry
There are certain specific skill sets that are essentially required to perform the functions assigned
for the objective of performing the roles & responsibility that are assigned in the context of the
hospitality industry:
Operations managers: the specific roles of operations manager include formulation strategy,
improvement of performance, procurement of material and resources. It requires skillsets just
like that is a leader who has to manage and lead teams. So that there can be the right amount of
mentorship that is provided to the team members that can lead towards enhancing the quality of
customer services and implementation of best practices across different levels.
Specific skill sets: Strong negotiation skills are necessary to ensure that there is optimum
utilization of available resources in the organization. In Hyatt operational managers have to
perform the function of analyzing the external and internal environment so that customer needs
can be anticipated in advance so that further formulation of strategies is done according to such
specific demands (Zwaal, 2021).
Front office managers: These managers are allotted functions that are related to coordinating
with guests, keeping updated information, the track record of arrival, and further in Hyatt key
responsibilities of a front office manager include managing & training of concierge, receptionist
teams, night auditors. To ensure that the front desk provides a friendly and professional service
for their customers.
Specific skill sets: Strong negotiation skills are necessary to ensure that there is optimum
utilization of available resources in the organization. In Hyatt operational managers have to
perform the function of analyzing the external and internal environment so that customer needs
can be anticipated in advance so that further formulation of strategies is done according to such
specific demands (Zwaal, 2021).
Housekeeping managers: Housekeeping managers have to supervise the room attendants,
cleaning function checking of rooms according to specific standards. Stocking and ordering of
cleaning equipment, room and linen suppliers, checking of damages, faults arranging of repairs,
performing routine maintenance work. They have to also perform the function of checking for
damages, faults, managing costs, budgets, helping room attendants.
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Specific skill sets: the skills required for housekeeping managers include techniques of
motivating team members by possessing knowledge related to different motivational theories that
can be practically applied in organizations. Further, there is a need for effective communication
skills so that staff can be influenced and motivated at the same time. The high amount of
knowledge for sensitization and safety policies with overseeing staff performance on a daily
basis so that checking of rooms and common areas can be done regularly.
Skill gaps in the hospitality industry: With the changing times there have been many skill gaps
that are part of the industry. Such as there is more requirement to focus on adaptability situation
with the development of hard skills that include the technique of budget management,
production, logistics management, human resource management, and project management. In
specific areas such as operations management, these skills are compulsorily required because
there is no particular area that is covered by such managers but their job role is diversified to
many other functional departments of hotels.
Solutions
Training and Retaining: Training and retaining of employees is one of the important solutions
that can be used for dealing with the present skills shortage. It may be a time-consuming process
but it can help in solving the issues of skill gaps. There can be managerial and supervising
training programs that can be developed to provide proper cultural awareness and creation of a
work environment.
Direct hiring from campus is also a good solution by offering them with flexible working
opportunities and solving the short-term issues of organisation.
In year 2019 Travelodge has been hiring 3000 students and providing them option to work
flexibility with their studies.
With the brexit there have been high amount of uncertainty that have to be dealt by the UK
hospitality sector. In UK, different hospitality organisations required for skilled immigrants to
deal with the present shortage of skill.
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TASK 3
Asses The political, economic, social, technological, legislative & environmental factors that
posses impact on the development of the organization
PESTLE analysis is a tool that is used for the purpose of making a detailed evaluation of
the external factors. In the context of the hospitality industry, these factors are changing very fast
so there is a need to focus on the way they are affecting the internal functioning of such
hospitality brands. Presently there is an analysis of the way such factors are posing an impact on
the overall functioning of Hyatt:
Political factors: the government is having a stronghold over the changing nature of the
hospitality industry. Such as there have no traveling restrictions by the government that has
resulted in no movement of people across borders since there has been impacting of the COVID
pandemic (Nandonde, 2019). This situation has resulted in a negative impact on the business of
the hospitality industry. Hyatt has also been affected in a negative manner as since March 2020
with the situation of lockdown across different parts of the world there has been no business and
revenue generation on part of this hospitality brand.
Economic scenario: the present UK is having robust real property laws and contacts are very
secure. There has been a long history of applying the law of fairly business disputes. The present
judicial process is also very fair, reliable, and connected. There have been certain isolated
instances of corruption that are leading to investors having identified corruption of some public
officials. The impact of the covid pandemic has resulted in a negative impact on the economic
scenario. Such as there has been slower economic growth because there is a reduction in the
personal disposable income of people which has resulted in a threat for the hospitality industry.
For hospitality brands like Hyatt have been affected by this situation because there has been a
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constant reduction in the way people are perceiving safety in hotels related to the reduction in
recreational traveling (Irawanto, 2017).
Social trends: It is a factor that is related to the changing social trends of people with their
changing preferences. Such as with the covid impact people are willing for some higher safety
measures to deal with this saturation. For this, there has been a complete transformation in the
way Hyatt hotels have perceived the overall functioning of the hotel. The safety & well-being of
guests is the top priority of Hyatt in the present situation. They are continuously monitoring the
impact of the COVID 19 situation so that they can deal with the concern and questions of their
customers.
Legal requirements: It is related to the overall regulatory framework that is formed by the
government to use coverings, face masks while they are moving around with some expectations
based on the guidance and local laws. In Hyatt, there is a need to follow all the regulations that
are part of public areas it includes meetings, lobbies and event spaces, fitness centers that have to
be taken extra care of to ensure that there is proper safety of guests. Apart from this, the
regulatory, accounting, and legal systems are efficient and very transparent at the same time
(Islam, Mamun, and Amanullah, 2017). It is providing a high level of protection for different
industries and also the hospitality industry in terms of a well-defined rule of law. There have
been some measures by the government to main a few price controls that include emulating new
Zealand’s zero agriculture subsidies model after Brexit.
Technological factors: there has been a complete transformation in the way the hospitality
industry perceives the use of updated technology measures in their overall functioning. Traveling
websites have made it easier to make bookings and analyze the quality & level of services
offered by such brands by the reviews that are provided on such online websites. The digital
media sources have also completely transformed the way in which these are used as a source of
marketing & promotion means for organizations (Bees and Williams, 2017). Such as Hyatt is
focussing on the use of developing some of the social media campaigns that can lead to higher
customer engagement. The way people are reacting on such social media platforms has become
one of the most essential criteria to make future business decisions.
Environment factors: the global tourism and travel industry have experienced rapid growth
over the past few years that have resulted in 9.8 percent of the global growth of GDP as per the
figures of 2016. The sector is expected to grow by 4 percent in the coming time period after the
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post covid impact and the ext coming decade, there are increasing concerns over the impact of
climatic changes over the future global travel & tourism industry. Hyatt is part of the hospitality
industry that is highly susceptible and is affected y climatic ecosystems and patterns (Loureiro,
Guerreiro, and Han, 2021). These are the crucial factors that are affecting the way people are
making their travel decisions. With the changes in climatic conditions are escalating there are
serious business threats. Such as, Hyatt has to deal with issues of rising sea levels in coastal
areas. The present covid outbreak has transformed the way the hospitality industry perceives its
business. Further, the pressure of climatic change concern has to lead to leading global brands
like Hyatt to come up with various operating procedures and key project initiatives that are
aimed at reducing GHG emissions at various hotel properties across the globe (Hyatt:
Environmental Sustainability in Hospitality Industry, 2016).
Undertake SWOT analysis for hospitality business and review the decision-making process
SWOT analysis is a basic tool of making internal analysis that s used for the purpose of making a
detailed evaluation of the way different strengths, weaknesses, opportunities, and threats of a
hospitality brand can assist the organization in their long-run functioning. Presently there is an
analysis of SWOT analysis factors of Hyatt Hotels Corporation:
Strengths: Hyatt hotels possess a strong brand portfolio and having brand recognition
 They have been able to develop an extremely loyal base of customers,there is a presence
of exposure to various industries that includes hotel management, ownership, franchising,
and development.
 Hyatt hotels are having a dedicated customer relationship management department that is
assisting in the achievement of the high amount of customer satisfaction among their
present and future customer base.
 There has been a successful track record of integration of commentary organizations with
the help of mergers & acquisitions. There has been streamlining of operations for
building up of reliable supply chain.
Opportunities:
 There are many emerging hotel markets that can be an opportunity for expansion for
Hyatt hotels, can work towards the assessment of the light business model.
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 With the COVID 19 pandemic there has been a different base of customers having a high
amount of health consciousness. For such as there can be a focus more on the
development of some alternative measures of security and safety.
Weakness:
 The present organizational structure of Hyatt hotels is compatible with their existing
business model that is leading to limiting the overall expansion with the adjacent product
segments.
 Hyatt hotels have been facing challenges in moving to other different product segments
apart from their existing core business.
 There have been issues related to no proper integration of organizations because of the
high share of failures that are arising among the merging firms.
 The marketing of Hyatt hotels is not according to the way desired by the present
customer base, such as there has been no proper sale of the unique selling proposition of
Hyatt hotels.
Threats:
 The no proper innovations strategies can create a situation where their loyal customer
base can switch to other competitor brands offering a high amount of innovation.
 There have been new environment regulations because of the Paris agreement in the year
2016 that is affecting threat for Hyatt hotels in terms of their existing product categories.
 The brand is operating across numerous countries that are leading to a high amount of
currency fluctuations in the present volatile climatic conditions across different markets.
SWOT Importance to Hyatt Hotel Managers
It is good to carry out SWOT when making important decision to minimise any micro and
macro factors that can affect the business from having competitive edge over their rivals and
creating some form of stability in the market place.
For instance, using their strength for availing of different business opportunities. The main aim
of Hyatt is to minimize the threats so that there can be a maximization of future opportunities.
The weakness has to be dealt with so that they are able to achieve a higher competitive
advantage in the coming time period.
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TASK 4
Analyse the implications of present and potential trends of the hospitality industry with a range
of examples
With the changing external environment, there has been a complete transformation in the way
different hospitality brands perceive their functions and operations (Kim and Jeong, 2018). It
becomes very important to make a detailed analysis to change as per the changing customer
expectations and references especially when organizations are part of the service industry. Such
as in the present scenario of Hyatt hotels there is an analysis of the way present trends are
affecting this brand and the ay future upcoming trends that will be going to affect the business
functioning:
Present business trends:
Safety and hygiene:
With the COVID pandemic, there has been a requirement for more safety measures so that there
can be high safety of customers.
Contactless payments: it is one of the biggest hospitality trends that are concern with the
deduction of friction & contactless payments. The contactless payments can be accepted that
leads to saving time and there is better sorting through cash. There has been the emergence of
Google pay and apple pay to carry a wallet.
Future trends in the hospitality industry:
Voice control and voice search: The use of voice search is becoming very common among the
present customer base of customers. Hyatt hotels have to focus on the structuring of the website
so that there can be featuring of proper voice results. Voice control is one of the upcoming trends
of the hospitality industry. Smart speakers are used for providing guests to answer questions and
responding to their voice results.
Robots in hotels & restaurant settings: There is a focus on automation of ranks according to
the hospitality trends where there is a need to be aware of robotics. Businesses, hotels, and
restaurants can use robots for greeting their customers and providing information that plays a
vital role in the security of the customers (Nadzharyan and Kudryavtsev, 2020).
In Hyatt hotels, robots can be used for carrying out the aspects of foodservice. It can be used for
dealing with customers to reduce close contact with customers.
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Chatbots: Chatbots are part of hospitality major trends that are linked with the customer services
that are delivering swift responses. In the hospitality industry, there is a need to focus on the
gathering of information related to specific customer queries (Cheah and Li, 2018). Such as in
the present scenario of covid 19 there have been a high amount of restrictions related to covid.
So there have to be timely responses that are to be provided to customers to address such
questions.
Virtual reality tours: virtual reality trends are one of the most exciting hospitality trends that
are leading to the development of potential hotel guests and restaurant diners to experience the
way surroundings can be like. In Hyatt hotels, there can be the development of measures related
to virtual tours and 360 videos that can assist customers in better understanding of the available
facilities. It provides a clear edge over other rivals part of this particular hospitality industry.
Above mentioned are the upcoming future trends that will go to affect the future functioning of
the hospitality industry.
Positive Impact to Hyatt Hotel
This trends will cost the hotel to carryout, but not doing them they will lag behind their
competitive and will lose business. And reputation of the hotel will be dented (bad publicity).
However, it will save money in the future when they carry out those change.
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CONCLUSION
It can be said from above mentioned different aspects that there is a need to change the
external environment situation has resulted in a higher requirement for businesses to focus on the
use of their existing strengths to avail the prevailing opportunities. PESTEL and SWOT analysis
are the two most important tools that are to be used for the purpose of making a detailed
evaluation of the external and internal functioning of a business. There are diverse product
ranges that are part of the hospitality industry and have to be evaluated according to the target
customer base. Further with the increasing competitiveness of brands, there have been a high
amount of skill gaps that have to be dealt with in order to have a skilled and potential workforce.
22

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