Hyatt Hotels: Operational and Strategic Analysis in Hospitality Sector

This report provides a comprehensive analysis of the contemporary hospitality industry, with a specific focus on Hyatt Hotels. It begins with an introduction to the hospitality sector, outlining various types of businesses such as lodging, food services, and the relationship between travel, tourism, and hospitality. The report then examines operational and functional departments, including organizational structures, and discusses the industry's contributions to local, national, and international economies. It delves into diverse operational roles within Hyatt Hotels, such as division managers, security, front office, housekeeping, and maintenance. The report further explores essential skills required in the hospitality industry, along with current skills shortages. It also assesses the political, economic, social, technological, legislative, and environmental factors affecting the industry, along with a SWOT analysis. Finally, the report appraises current and potential trends in the hospitality sector. The report concludes by emphasizing the impact of the changing business environment on the hospitality industry and the importance of tools like SWOT and PESTLE analysis.

The Contemporary
Hospitality Industry

INTRODUCTION...........................................................................................................................3
TASK 1............................................................................................................................................3
P1. Different types of business in hospitality sector..............................................................3
The hospitality industry:.........................................................................................................3
P2. Examine a choice of operational & functional departments............................................4
P3. Discus the input made by hospitality industry to local, national & international economies
................................................................................................................................................6
TASK 2............................................................................................................................................6
P4. A variety of different operational roles in the hospitality industry..................................6
P5. Examine the skills required in hospitality industry & present skills shortages................7
TASK 3............................................................................................................................................8
P6 Assess the political, economic, social, technological, legislative and environmental factors
that affect the development of organisations operating within the hospitality industry.........8
Covered in PPT.......................................................................................................................8
P7 Undertake a SWOT analysis for a hospitality business and review how this can inform the
decision-making process........................................................................................................8
Covered in PPT.......................................................................................................................8
TASK 4............................................................................................................................................9
P8 Appraise the implications of current and potential trends in the hospitality industry
providing a range of specific examples..................................................................................9
Covered in PPT.......................................................................................................................9
REFERENCES................................................................................................................................1

INTRODUCTION
Hospitality sector is regarded as combination of various services like accommodation
transportation travelling event planning. It is a business Industry that is growing very fast and it
is very easy to access the changing Trends and preferences in this industry because of much new
development that is taking place across world. Present report is based on Hyatt hotels that is one
of the biggest hotel chains and they have a cross 750 Hotel that are located in different parts of
the world (Kim, and et. al, 2018). There is discussion of different sectors of hospitality sector and
water range of functional and operational departments. There is also discussion of diverse
operational rules and examination of the skills that is required to perform various functions in the
hospitality industry. Pestle and SWOT analysis is a tool that is used for the purpose of making a
detailed assessment of internal and external business environment.
TASK 1
P1. Different types of business in hospitality sector
The hospitality industry:
Hospitality industry consist of the service industry and includes services like tourism, hotels,
restaurants are part of hospitality industry. With changes in technology and development like
concept of globalisation this industry has grown very fats in recent times.
The hospitality industry concept industries and some of them are discussed below:
Lodging- Accommodation:
The sector of hospitality industry consists of a luxury Hotels resorts & campgrounds. Service is
related with providing accommodation and this is importance of every hospitality industries.
Hyatt hotel is a type of accommodation hotels that is offering budget staying service sto their
target segment of customers.
Lodging:
While people are travelling from one place to another they need a place to stay. This refers to
People booking rooms and Lodges for the purpose of their stay.
Suites:

Hotel Sector is offering luxury suites it consists of formal socks of staying and also expensive
rooms compare to regular room services.
Resorts:
This type of accommodation is very popular among Travellers it helps in bringing a person close
to nature and providing them necessary break from normal routine work.
Food services establishment consists of below categories:
1) Quick service establishment:
It refers to the commercial food service restaurants at a competing for customers who are looking
for drink snacks and meals.
2) Catering business:
Food catering services for special occasions ranging from birthday parties to weddings and all
such small events.
3) Full service restaurants:
These are typical restaurant that consists of eateries featuring course meals, food services and
drinks. It ranges from casual dining to fine dining restaurant.
Relationship between travel & tourism and hospitality sectors:
Travel and tourism industry is a very wide Sector is a wide part of hospitality industry and it
consists of several key players like Airlines trains Cruise ships and other crew members (Jung
and Yoon, 2018). Travel and tourism is not limited to leisure but it consists of both informal and
formal types of travelling like for business education purposes holidays entertainment and these
related purposes.
P2. Examine a choice of operational & functional departments
Hierarchy organization Structure:

Organisation structure there is various types of positions that are already define and it comes
according to the hierarchy of individual positions. This system is Use for defining different
number of positions and distribution of responsibility and authority.
There are some benefits of hierarchical organisation structure:
1) Authority: It is organisation structure in which people possess clearly defined authority and
responsibility relationship. There is clear discussion of who is responsible and accountable to
whom.
2) Centralisation: This organisation structure is used for maintaining a degree of centralisation
(Kandampully, Zhang and Jaakkola, 2018) . It is helpful for development of important Strategies
and making critical decisions that are defined by leaders in organisation.
3) Communication: It is one of the biggest advantages of a writer organisation structure in
which communication can be quite effective and each individual is aware of their role is helping
in smooth functioning of the reporting system.
Functional organization Structure:
It is a very common organisation structure that is dividing the organisation according to different
functions.
Specialisation: Structure of organisation is used for defining the task according to their level of
expertise. There is following up of specialisation structure where organisation is divided based
on different functions performed by the employees like Human resource, marketing, finance,
research and development etc.
Simple: It is a structure in which functions are performed according to specialized needs of
every functional department.

P3. Discus the input made by hospitality industry to local, national & international economies
Hospitality sector is developing very fast and their contribution approximately 10% of the GDP
across world. They are growing very fast and developing because of the multicultural
atmosphere. They have able to build regional National and international culture exchange. The
sector is also contributing towards National local and global economy.
It has been recorded that there are approximately 700 million tourists who have moved across
different global boundaries in the year 2019. It is also analysed screen annual development of
4.9% in the hospitality sector (Gupta, 2019). They are also offering approximately 10%
employment to people, in UK it constitutes to 2.5 million people. Brands like Pizza Hut
McDonalds and Burger King have developed contribution to different economy of a country.
They have also help people in raising their living standards.
According to the reports of British hospitality Association more than 500000 workers are
working presently in the hospitality sector in UK. International tourism is also representing 7%
of the total exports of world and 30% of the service Exports.
TASK 2
P4. A variety of different operational roles in the hospitality industry
There are some departments that are part of Hyatt hotel and there are diverse operational
roles that are performed in the organisation for operations of business. The description of various
operational roles in present organisation mentioned below:
Role of division manager- It is related to performing the supervision function in front
areas of a hotel. There is a requirement of ensuring communication so that they are able to serve
their guests in an effective manner. It also helps in maintaining accountability and handling for
the purpose of purchasing, staffing and budgeting. It helps in supervision of their monthly plans,
department payroll & accessibility control.

Role of security- It is known for security guard who has diverse roles like tourists and
safety of their staff workforce. It is also taking care of external and internal premises.
Roles of Front office or receptionist- They are allotting rooms and registering guests. It is
also coordination of guest services, keeping information, accounts of arrival and determination of
credit. It is helping in offering all the information related to hotel, getting attention on attractive
points of a particular organisation (Pham, Tučková, and Jabbour, 2019). They are also
responsible for accomplishing all the requirements related to accounting statements and financial
arrangements.
Roles of Housekeeping- There must be checking of all the cleanliness practises and all
major functions that are related with problems faced by their guests are responsibility of the front
office departments. This department has the responsibility to make sure that there is hygiene and
clean environment for increasing the satisfaction level of their customers.
Role of maintenance- These are accountable for administrative activities, this department
in Hyatt has the responsible for supporting all the core business activities. There is assuring
safety of visitors
P5. Examine the skills required in hospitality industry & present skills shortages
There are certain skills that are required in the hospitality industry and are highly related with
each individual that is willing to be part of this industry. There are many different types of
functional and operational divisions that is arising because of the primary and secondary
activities of this hospitality sector. The functions have particular skill requirement and several
rows that are mentioned below:
1) Problem solving skills:
There is requirement of certain Skills for the purpose of performing operational functions. There
are many complexities and issues that are faced by the customers who are treated as guest by the
hospitality organisation (Litvin, Goldsmith and Pan, 2018). There is a requirement of specific
department who opposes the responsibility to solve all the issues that arise in the course of
checking till the person is taking out from their hotel. If all the issues and complaints are time
please call then it leads to hire satisfaction level of a individual for a particular brand.

2) Effective communication skills:
For working in hospitality industry communication skills is a very important requirement. This is
the sector that requires employees who have adequate skills of communication and they are able
to make proper communication with their customers. Especially in case of the marketing
department there is requirement of such effective communication skills in order to attract
maximum customers.
3) Multi tasking skills:
Each employee has to perform several rows at a particular point of time. for example in Hyatt
hotel the front office department has to perform all activities that is related with helping a
customer to check in and at same time solving all the requirements complaints that are arising in
course of their stay (Norum, 2018). Apart from this if there is also any other difficulty ideal gas
that has to be dealt initially by the front office department only.
4) Language skills:
There are individuals who are coming from different parts of the world and their causes diverse
language and different types of background. If employees will be aware and have capacity to
understand different languages then it becomes easy to communicate with a particular customer
and they also feel very satisfied to find a person who understands what they are willing to
communicate. In Hyatt there are policies made by the management to ensure that they are having
employees from different cultural background and there is proper inclusion of diversity
workforce.

TASK 3
P6 Assess the political, economic, social, technological, legislative and environmental factors
that affect the development of organisations operating within the hospitality industry
Covered in PPT.
P7 Undertake a SWOT analysis for a hospitality business and review how this can inform the
decision-making process
Covered in PPT.
TASK 4
P8 Appraise the implications of current and potential trends in the hospitality industry providing
a range of specific examples
Covered in PPT.

CONCLUSION
From above discuss it can be analysed that hospitality industry is affected largely because of the
changing business environment and scenario in the external macro environment. They are
offering different types of services like entertainment transportation accommodation food and
much such type of related services. Operation department of this organisation has to perform
functions like security maintenance and the functional department have to handle special
functions like accounting human resource marketing. They are offering large number of job
opportunities and helping in maximization of the value of organisation at local National and
across all different levels. There are many tools like SWOT analysis and pest analysis that help
in understanding the impact of external and internal environment on touch hospitality
organisation.

REFERENCES
Books and Journals
Norum, R., 2018. From welcome to well... come: the mobilities, temporalities and geopolitics of
contemporary hospitality–commentary to Gill. Fennia-International Journal of
Geography, 196(1), pp.111-117.
Litvin, S.W., Goldsmith, R.E. and Pan, B., 2018. A retrospective view of electronic word-of-
mouth in hospitality and tourism management. International Journal of Contemporary
Hospitality Management.
Pham, N.T., Tučková, Z. and Jabbour, C.J.C., 2019. Greening the hospitality industry: How do
green human resource management practices influence organizational citizenship
behavior in hotels? A mixed-methods study. Tourism Management, 72, pp.386-399.
Gupta, V., 2019. Talent management dimensions and their relationship with retention of
Generation-Y employees in the hospitality industry. International Journal of
Contemporary Hospitality Management
Jung, H.S. and Yoon, H.H., 2018. Understanding workplace bullying: Its effects on response and
behavior in the hospitality industry. International Journal of Contemporary Hospitality
Management, 30(3), pp.1453-1471
Kim, H.L. and et. al, 2018. The effects of corporate social responsibility (CSR) on employee
well-being in the hospitality industry. International Journal of Contemporary Hospitality
Management.
Kandampully, J., Zhang, T.C. and Jaakkola, E., 2018. Customer experience management in
hospitality. International Journal of Contemporary Hospitality Management.
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