Tourism and Hospitality Management

This document discusses the macro and micro context of Hyatt Hotel in Australia, including a PEST analysis and SWOT analysis. It explores the political, economic, social, and technological factors affecting the hotel industry. The document also analyzes the strengths, weaknesses, opportunities, and threats faced by Hyatt Hotel.

Running head: TOURISM AND HOSPITALITY MANAGEMENT
TOURISM AND HOSPITALITY MANAGEMENT
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Introduction
Hyatt Hotel, Australia is one of the most famous hotels. The hotels comprises of elegant
restaurant with a place for eatery, a bar, roof top pool and other attractive arrangements. The
company has many characteristics including service sectors like inseparability of production and
consumption. The cost of running a hotel is fixed rather than variable. Hyatt Hotels Corporation
is a hospitability company wide range of international operations. The company has developed a
tradition of innovation during its history span of 55 years. The company has its franchise, own
and has developed portfolio of hotels, resorts and other established hotels (About.hyatt.com.
2019).
Discussion
Macro context:
Pest Analysis
Political: The political and legal issues faced by the business are changes in the government
policies, rules and regulations (Bowie et al. 2016). Due to political instability, it diverts the
tourists and visitors unwilling to visit the place which in turn affects the profitability of the
business organization. These changes affect the business organization.
Economic: The changes in the economic condition and the hotel room supplies sometimes result
in volatility in results for the franchisors, managers and owners of the hotel properties (Arif and
Hossin 2016).

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Social: The demand for the hotel rooms is subjected to the effects of seasonality and is
geographically specific. The demand varies from property it property and among the different
countries by various external environment factors like the climate, the holidays in schools and
colleges, the cultural and religious festivals, events and sports, change in the tastes and
preference of the people (Bowie et al. 2016). The beach reports are more popular in the summer
months, and the city business hotels have lower activity levels (Evans 2014). The economic
factors like increase and decrease of demands based on seasonality and vacation affects the costs
and profitability of the hotels and resorts.
Technology: The constant growth in technology and advancement of technologies has significant
impact on the hotel operations. Advanced technology needs to be implemented time to time to
meet the needs and demands of the customers. In order to maintain its competitiveness it has to
invest heavily on technology which impacts the profitability of the hotel.
Micro Context
Intense competition exists in B2C markets for hotel guests and visitors and competition
lies in B2B markets for the management, vacation ownership properties, franchise agreements
and branded residential properties (Gustavo 2013). Hyatt Company faces stiff competition in
every segment of the industry. The principal competitors of the company include, the other
operators, the well established resorts and other popular brands. The company also faces stiff
competition from smaller chains as well and other local and independent operators. However,
as mentioned by Hwang and Chang (2016), the lodging operators have wide reach gloablly and
offer products similar to that of Hyatt hotel corporations are limited in the market. Hyatt hotel
corporations involve in both ownership of properties and the franchising to third party owned

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properties (Ivanov 2014). The company earns and grows with its earnings, management and its
franchise agreements. This results in high overall returns on its investments. The company
targets the high income group people and provides high quality customer service. Hyatt hotel
corporations allows its company to pursue diversified streams of revenue which enables the
company balances the advantages and risks with the lines of business (Hwang and Chang 2016).
The company’s expertise and experience in the field provides flexibility to the company which
enables the company to evaluate growth opportunity for the business across its vast lines of
business. Owning the hotel properties allows the company to capture full benefit of increase in
operating profits during its high demand for the hotel rooms (Patiar 2016). Hyatt hotel
corporations manages the operational costs and its capital.
SWOT analysis
Strength:
Hyatt hotel corporations are a successfully increasing company since its establishment. It
has the most attractive and creative approaches in the hotel outlets throughout the globe. Hyatt
hotel corporations s a leading and has highly profitable venues which is an added advantage to
the company as it creates demand for the hotel properties (Evans 2014). It has multicultural
experienced staff and management which is an additional strength for hotels and enables
potential growth in the highly competitive market.
Weaknesses:

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The quality and standard maintained and controlled has to be same for any of its branches
across the globe. However, if a branch of Hyatt affect by any reason it affects the other branches
as well. Another weakness of Hyatt hotel corporations is mostly seasonal, the demand for which
increases and decreases (Patiar 2016). Therefore, during the off season the activity level of the
hotels remains low, the hotel rooms remains empty which in turn affects the company.
Opportunity
Hyatt hotel corporations utilizes its funds and capitals for smoothly targeting their targets, it
increases the company’s focus on franchising. The company has increased fame and brand name
therefore they have the opportunity to earn more and serve more visitors (Gustavo 2013). It has
an opportunity to expand their services in other continents. The earning pattern of the people is
an added opportunity for the business.
Threats:
The major threat faced by Hyatt hotel corporations is political instability. It is a big issue
that is faced by many hotels. Political instability has affected the hotel. The company pinches
their operations with various lows and regulations including the tax policies, trade policies, and
health and safety laws (Patiar 2016).
Conclusion
Therefore, from the above analysis it can be concluded that Hyatt hotel corporations
continued its long term growth since its establishment. However, it faces political, regional and
economic difficulties. The company has the most creative and attractive approaches which is an

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opportunity. The macro and micro environment context has been analyzed. The strength,
weakness, opportunity and threats of the company have been analyzed.

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References:
About.hyatt.com. (2019). Hyatt.com. [online] Available at:
https://about.hyatt.com/en/hyatthistory.html [Accessed 9 May 2019].
Arif, T.M.H. and Hossin, M.Z., 2016. A comparative analysis of internal and external
environments between Hotel Hyatt, UK and Hotel The Cox Today, Cox’s Bazar,
Bangladesh. IOSR Journal of Humanities and Social Science, 21(6), pp.13-22.
Bowie, D., Buttle, F., Brookes, M. and Mariussen, A., 2016. Hospitality marketing. Routledge.
Evans, A., 2014. Members' benefits. Governance Directions, 66(7), p.444.
Gustavo, N., 2013. Marketing management trends in tourism and hospitality industry: facing the
21st century environment. International Journal of Marketing Studies, 5(3), p.13.
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, Boston, MA.
Ivanov, S., 2014. Hotel revenue management: From theory to practice. Zangador.
Patiar, A., 2016. Costs allocation practices: Evidence of hotels in Australia. Journal of
Hospitality and Tourism Management, 26, pp.1-8.