Digital Media for Tourism and Hospitality: Hyatt Corporation Report

This report provides a comprehensive analysis of the digital marketing strategies employed by the Hyatt Corporation. It begins with an executive summary, followed by a detailed situational analysis, including internal and external environment assessments. The internal environment is evaluated through a SWOT analysis, examining strengths, weaknesses, opportunities, and threats, and the external environment is assessed using Porter's Five Forces and PEST analysis to understand competitive forces and macro-environmental factors. The report then delves into Hyatt's digital marketing strategies, encompassing SEO, social media marketing, email marketing, and paid advertising, as well as marketing automation. It examines the company's revenue model, including customer value creation, marketing efforts, and sales processes. The report concludes with recommendations for improvement, particularly the adoption of Artificial Intelligence (AI) to enhance business operations and automate digital marketing efforts. The analysis also considers tangible, human, and intangible resources and capabilities of the company.

STUDENT DETAILS
DIGITAL MEDIA FOR
TOURISM AND HOSPITALITY

Digital Marketing 1
Executive Summary
In this assignment, discussion will be made regarding the Hyatt Corporation. Situational
analysis will cover two aspects of environment that are internal and external environment.
Internal environment will be explained through SWOT analysis while external environment
of the digital marketing strategies will be explained through Porter’s five forces and PEST
analysis. Apart from this, Hyatt Corporation utilizes various digital marketing strategies such
as position strategy, digital marketing mix, key performance indicators for measuring the
performance, etc. In this resort, it is concluded that Hyatt should adopt the utilization of
Artificial Intelligence (AI) in the business operations. This will also help them adopting
automation in their various digital marketing strategies.

Digital Marketing 2
Table of Contents
Introduction................................................................................................................................3
Situational Analysis...................................................................................................................4
Internal environment..............................................................................................................4
Resource and capabilities analysis.........................................................................................4
External Environment............................................................................................................7
Porter’s Five Forces...........................................................................................................7
PEST analysis.........................................................................................................................9
Digital marketing strategies.....................................................................................................11
Revenue model strategy...........................................................................................................13
Target market strategy..............................................................................................................15
Position Strategy......................................................................................................................16
Social Media strategy...............................................................................................................17
Digital marketing mix..............................................................................................................18
Digital metric evolution...........................................................................................................20
Conclusion................................................................................................................................21
Recommendations....................................................................................................................22
References................................................................................................................................23

Digital Marketing 3
Introduction
Digital Marketing is the promoting of items or administrations utilizing digital platform, on
the Internet and cell phones. It includes the showcase of advertising and some other
computerized medium (Baltes 2015). Digital Marketing is frameworks dependent on the web
that can transmit product value from maker to the terminal shopper by advanced systems.
Selected hotel industry is “Hyatt Hotel”. Hyatt Hotels Corporation is an American worldwide
accommodation organization that oversees and establishments lavish lodgings, resorts, and
get-away properties. In this report, there will be discussion about the situational analysis
which includes internal and external environment conditions. Apart from this, discussion will
be made about the digital marketing strategies, position strategies, digital marketing mix,
digital metric evaluation, revenue model strategy and in the end the recommendation will be
marked.

Digital Marketing 4
Situational Analysis
Situational Analysis means gathering of strategies that Hyatt Hotel use to investigate their
internal and external conditions. SWOT analysis, PEST analysis and Porter five forces
investigation helps the Hyatt Hotel in making the effective conditions (Bhandari and Bansal
2018).
In increasingly evolving world, Hyatt industry need to comprehend their internal and external
conditions at the higher priority than at any other time. To have a productive and practical
vital arrangement, the organization needs to have a compelling internal and external
condition.
Internal environment of the Hyatt Sydney about their digital marketing plan will be explained
through resources and capability analysis. External environment will be explained through
Porter’s five forces and PEST analysis.
Internal environment
Resource and capabilities analysis
This analysis is used by the Hyatt group to analysis the strength and their inner capabilities.
This analysis helps them in developing their digital marketing strategies. Mainly, for any
organization financial liquidity, assets and their human resource department are the three
prime resources. In below section, financial resources of the company will be considered in
VRIO analysis:
Valuable: Hyatt’s financial resources are valuable because they have huge financial liquidity.
In 2018, the company have $108 million as the cash funds showing in their balance sheet
(Kingsnorth 2019).

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Rare:
Their financial resources are rare too because of the management’s position to hold liquid
assets. Apart from this, they have properties located at the rare locations in 54 different
countries.
Imitability:
The company have large cash inflow which is not imitability because management uses
various strategic financial control methods which are only limited to the Hyatt residency.
Organize to capture value:
There financial resources are organized and financial resources are directly under the control
of top-level management. There organized resources include their market position. As, the
Hyatt Hotels Corp is currently trading at $71.70 in NYSE.
Resources analysis can be divided into three parts:
 Tangible
 Human Resource
 Intangible
Tangible: This includes the financial and physical resources of the hotel. Financial resources
include their marketing financial standing and monetary liquidity. They have the total asset of
$7.67 billion. Physical resources or assets includes their hotel properties, plants, machineries,
etc. The group have 777 properties in 54 different countries (Bhandari and Bansal 2018).
Human Resource: They have more than 45,000 working employees and in the year 2017,
they have got the award of “America’s best employer” by Fortune Magazine (Chaffey and
Chadwick 2019). Human resource of the hotel is the representative of the group.

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Capability analysis.
Intangible: It includes the reputation and goodwill of the hotel. As the business is in the
hospitality industry. They provide excellent customer satisfaction and they have strong
market presence. It is treated in the segment of luxury segment (Damian 2016).

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External Environment
Porter’s Five Forces
Porter's Five Forces centres around that how Hyatt Hotels Corporation can manufacture a
supportable method in their digital marketing strategies. Directors at Hyatt Hotels
Corporation cannot just rely upon utilizing Porter Five Forces to build up a vital situation yet
in addition they can analysis for opportunities in entire Services segment.
Threats of new entries:
Threats from the new entry in the premium hotel segment, threaten the company that their
market shareholding might get affected. However, entry in the luxury segment is limited to
huge monetary requirement (Fuchs 2017). The threat of new entries is low for the Hyatt
Residency.
Power of suppliers:
Hyatt Hotels Corporation always make plan for networking with the service providers that
can provides material at the low prices. The general effect of higher provider haggling force
is that it brings down the general benefit of Lodging. The threat from the power of suppliers
are high.
Bargaining power of buyers:
Hyatt Residency belongs from the luxury segment. No customer thought for the price
bargain. Buyer also excepts for the supreme quality rather than the thinking for bargaining
the price (Gudivada, Rao and Paris 2015). The threat from bargaining power of buyers are
low.
Threat from substitute products or services:

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There are low substitutes accessible for the Hyatt Hotels Corporation works. Relatively, firms
creating inside the business wherein Hyatt Hotels Corporation works sell at a lower cost than
substitutes, with sufficient quality. This implies purchasers are more averse to change to
substitute items. This implies the risk of substitute items is frail inside the business (He, Fang
and Du 2014). The threat from bargaining power of supplier is high.
Rivalry among the existing players:
For Hyatt, many rival players are existing in the global market. Their rivalry decreases the
prices of their rooms and other services which put adverse effect on the overall profit of the
hotels. This process a high threat.

Digital Marketing 9
PEST analysis
Political Factor:
Political factors affect such as the level of corruption in the country, trade regulations,
taxations rates, mandatory employee benefits, industrial safety. All these factors also play
important role in deciding the digital marketing policies of the company. As they have to take
care about the national policies related to the advertising media (Holliman and Rowley 2019).
For example: due to the trade regulations if United States restricts the trade practices with
Singapore then the company is require to adopt new guidelines.
Economic Factor:
In this part of the PEST analysis, macro-economic condition will be discussed. Hyatt
Corporation have to suffer from the inflation rate, interest rate, aggregate demand, aggregate
investment, etc. Before evaluating any form of digital marketing strategy, the company have
to decide about the economic environmental condition that will help them in deciding about
the future threats that may impact the performance of the business. For example: In Australia,
minimum wages for the workers $719.20 per week. So, the company is legally bound to
provide minimum this amount to an individual worker (Chaffey and Chadwick 2019).
Social Factors:
Social factors include the demographic and knowledge level of the population. Class
structure and thinking level of the society. Gender roles, social conventions, environmental
consciousness, leisure interests, etc. The management of the company decides their digital
marketing strategy on the basic of demographic condition and other social factors conditions
of their targeted audience (Järvinen 2016). Hyatt also have to modify their advertisement
strategies as per the cultural region of the country. For example: Hyatt is going to establish

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their branches in Afghanistan thus they need to chose appropriate marketing strategy that
should not affect the social cultural dimension of the area.
Technological factor:
Hyatt Corporation is now planning for inventing the use of artificial intelligence in many
programs of the hotels. The use of artificial intelligence is succouring the hotel in conducting
the operations effectively and efficiently.

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Digital marketing strategies
Digital marketing strategies involves the series of actions that help the Hyatt Corporation in
accomplishing their goals related to the online marketing channels. These strategies are
design by the marketing management team of the company which includes the paid,
promotion, owned media, campaign, etc.
 SEO:
In search engine optimization, they start a process with the objective that they need to
bring more and more user traffic on the webpage of Hyatt Corporation. SEO helps in
providing better ranking to the website. It also involves the HTTPS format (Holliman
and Rowley 2019).
 Marketing on YouTube:
Hyatt specially invites the youtuber who have large followers in the hotel and provide
them free package for the luxury stay. YouTube post their full day spend video on
their YouTube channel (Killian and McManus 2015). In this way, the company
promotes their customer service of their hotel over the YouTube through the medium
of talented Youtubers.
 Social media marketing:
Social media marketing tactics includes when the company keep posts the latest
updates and information on their own social media page. The Hyatt residency have 2
million followers on their Instagram official page (Kingsnorth 2019).
 Email marketing:
In the email marketing, the marketing team of the company send emails to the
audience who’s email address is listed in the contact book of the company. In these