Tourism and Hospitality Management

Running head: TOURISM AND HOSPITALITY MANAGEMENT
TOURISM AND HOSPITALITY MANAGEMENT
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TOURISM AND HOSPITALITY MANAGEMENT
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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TOURISM AND HOSPITALITY MANAGEMENT
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