Marketing Report: Analysis of Grand Hyatt Melbourne Strategies

This individual report provides a comprehensive analysis of the marketing strategies employed by the Grand Hyatt Melbourne hotel. It begins with an introduction to the hospitality industry and the importance of hotel marketing. The report then delves into a macro-environmental analysis using the PESTLE framework, examining political, economic, social, technological, and environmental factors influencing the hotel's operations. A detailed competition analysis follows, identifying key competitors such as The Westin Melbourne, Sheraton Melbourne Hotel, Melbourne Marriott Hotel, and Intercontinental Melbourne, and assessing their strengths and offerings. The report also explores potential commercial partnerships, suggesting collaborations with retail organizations like Tesco and Tourism Australia, as well as airline companies. Finally, the report touches on market and consumer research, emphasizing the dynamic nature of the hotel industry and the need to adapt to changing customer needs. The report concludes with a summary of the findings and references supporting the analysis.

INDIVIDUAL
REPORT

Table of Contents
INTROUDUCTION........................................................................................................................1
MACRO ENVIRONMENT.............................................................................................................1
COMPETITION ANALYSIS..........................................................................................................3
COMMERCIAL PARTNER ..........................................................................................................4
MARKET AND CONSUMER RESEARCH .................................................................................5
CONCLUSION................................................................................................................................6
REFERENCES................................................................................................................................8

INTROUDUCTION
Hospitality industry is very wide and due to this it is not easy to define hotel industry. It
is made up of that industry which offer effective food and accommodation services to people
who stay away from their home and also provide effective provision to people. In terms of this,
hotel marketing plays an important role which is helpful for the owners in terms of increasing
their bookings and revenues and for this, the prominent way for the hotel industry which is
capable to reach out to the potential customers and convey their USP, brand values and
significant reasons for the guests in terms of choosing to stay with them. Along with this, hotel
industry is dynamic in nature and for this, they need to survive in competitive world and due to
this, it is important for the hotel to oversee their business models and other marketing strategies
regarding the continuous change in the needs and requirements of customers (Jiang and Wen,
2020). In order to carry forward this report, Grand Hyatt Melbourne is considered which is a
multinational hotel that leads to manage brand portfolio of hotels and resorts and its headquarter
in Melbourne, Australia. In order to carry forward this report, situational analysis is conducted
and competitors are also identified to analyse the commercial partners. Furthermore, hotels need
to develop prominent marketing concept and also focus on the design of products and services
according to the needs and requirements of customers.
MACRO ENVIRONMENT
In terms of identifying macro environment, it include PESTLE analysis which is helpful
in analysing external factors that can become risk and barrier in the smooth running and
functioning of company. Furthermore, proper examination is useful in eliminating significant
risk factor and helps in finding ways to overcome risk. Few components are mentioned as under: Political and legal factors: Political stability is the basic requirement in terms of
successfully run an organisation. In terms of this, political factors influences the visitors
including business travellers and tourists visits for the country in terms of direct and
indirect ways. In terms of this, legal factors are about the rules and regulations that are
developed by the central, local and state government (Wang, Tsai and Tang, 2019). In
terms of this, basic laws are developed and followed by organisations which is helpful for
the members in order to understand the laws. For example, because of pandemic
travelling is ban on internationally and domestically and for this, both legal and political
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factors plays an important role for the business. Along with this, various restaurants need
to follow significant laws and close their outlets during lockdown. Moreover, changes in
tax rates for the food and room also impact the business condition of hotel in terms of
luxury segment and make significant marketing efforts regarding the change in marketing
strategies in terms of attracting maximum number of people. Economic factors: The national and international economic situation and other factors
the impact the various factors and functioning of Grand Hyatt Melbourne and it develop
because of purchasing ability of the products and services that are concerned with
recession, interest rates and so on. In relation with this, the income level of people is
influenced because of pandemic and for this various people lost their job due to economic
crises that affected because of certain extent in upcoming future (Yadav, Dokania and
Pathak, 2016). In terms of this, unemployment economic condition leads to influence the
purchasing power of customers and negatively influences the operational activities of
hotels. Social factors: This factor is influences because of current trends and changes within the
technology, government regulations, economy and so on. It leads to describe the sudden
changes that occur over a period of time and these modifications include changes in
income, interests, attitudes and so on. For example, consumers also become very health
conscious in terms of consuming healthy food and due to this, it leads to increases the
demand of vegetarian and these changes also leads to create opportunities for both
current and new products. Technological factors: This factor is fast disrupting in various industries and its effective
analysis leads to speed up the effective involvement of technology in the industry. As it
becomes the prominent factor in order to attract maximum number of people and
marketers also leads to observe the behaviour of consumers as per the products and
services. In relation with this, technology plays an important role in terms of influencing
the demand and supply of products and services and for this, Wi-Fi and internet facilities
are mandatory in hotels as it leads to attract customers and also offer online booking in
terms of eliminating various barriers and commission from online travel agencies
(Tanford, Shoemaker and Dinca, 2016). After adopting significant technology everything
becomes so easy as various websites has their rates and offer discounts in terms of
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attracting maximum number of people and also allow renowned chains but also consider
independent hotels for the worldwide platform.
 Environmental factors: It include various factors that influences the surroundings of
environment and also include certain industries that has significant impact on tourism,
agriculture, farming and so on. In relation with this, environmental analysis include
various factors considering global changes in climate, environmental offsets and so on.
Moreover, the environmental sustainability is maintained at the reasonable level for the
future generations (Baran and Galka, 2016). Furthermore, it leads to reduce carbon
footprints which can become biggest challenge for the brands and every business try their
level best in terms of enhancing the environmental conditions. For instance, Grand Hyatt
Melbourne use local wind and solar energy to support around 37% of their hotel
electricity and also has approximately 111 certified LEED and also use dispensers rather
than shampoo and conditioner bottles as it helps in eliminating plastic consumption.
COMPETITION ANALYSIS
The hospitality industry is most competitive industry as there are already various hotels
that are competing within the market and other accommodations are coming in the market. In
terms of this, current hotel businesses also apply for various strategies in terms of strengthen the
position in market. Furthermore, it is the evaluation of various hotels and services and products
in terms of strategic business growth. Moreover, in Australia the number of visitors leads to
increase around 9.5 million that increases around 2.4% in comparison to same period since past
years. In addition to this, increase in tourist leads to renowned chains which tends to open more
hotels in country.
In terms of this, competition is increases because of the opening of various hotels in the
city and for this, hotels need to change their marketing strategies from products as the demand of
customers and their experience (Alnawas and Hemsley-Brown, 2019). It leads to bring speed in
economic progression, as they cycle move from the commodity for the experience that leads to
offer products that are used. Along with this, competitive standards leads to allow hotel
management in terms of making effective marketing strategies to target their customers. Hence,
Grand Hyatt Melbourne can use SWOT analysis in terms of determining the strengths,
weaknesses, opportunities and threats and also identified that competition is faced by hotels in
terms of substitute products, brand and indirect sources.
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 The Westin Melbourne: Currently, Grand Hyatt Melbourne face competition from the
same brand considering the hotel industry and their offerings. In terms of this, Westin
Melbourne has around 500 spacious rooms considering 20 suites with quality offerings
and tech-savvy sanitary. Moreover, Westin Melbourne has amenities considering the
business centre, gym, free Wi-Fi, pool and spa facilities. In terms of this, the average
room rate is AUD350 per night. Sheraton Melbourne Hotel: It is located at the shopping centre that offer significant
advantages to the leisure and corporate travellers and in terms of this, hotel also offer
paid Wi-Fi in which maximum number of competitors tends to offer complimentary
services. For this, the average room rate at the Sheraton Melbourne differs from AUD300
to AUD950 as per the prestige club room. Melbourne Marriott Hotel: It is located at the peaceful place which become the ideal
place for the leisure travellers and for this, the average room rate starts from
approximately AUD650 to AUD1200 per night.
 Intercontinental Melbourne: It is situated at the heart of city with around 250 guest
rooms and for this, room categories include deluxe room starting around AUD560 and
the iconic suite for AUD1100. Intercontinental Melbourne also offer complimentary Wi-
Fi and paid club and lounge facilities to their customers in order to retain them for longer
period of time.
By undertaking the various competitors of Grand Hyatt Melbourne leads to develop
strength and offer great experience undertaking the prominent locations and concerning facilities
that are offered to provide excellent customer experience to their guests. In terms of this, Grand
Hyatt Melbourne leads to set significant standards and also target their market undertaking the
leisure, corporate and crew area. Along with this, Grand Hyatt Melbourne has the spacious club
which accommodate approximately 70-80 guests that leads to develop strengths for Grand Hyatt
Melbourne. Moreover, it also offer prominent amenities like spacious pool, spa and other
facilities which can become advantage for hotel. Moreover, weakness include significant effect
of Grand Hyatt Melbourne as there is no separate caretaker for the front desk that leads to
influence guest requests in terms of making front desk guests busy.
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COMMERCIAL PARTNER
It defines those individuals who has some degree for their involvement with other
business dealings as they have wide range of meanings which prominently include individuals
who plays an important role in terms of managing, owning, creating an organisation (Nieves and
Diaz-Meneses, 2016). For this, hotels need to oversee their partners and other activities for their
suppliers and marketing with other hotels. Moreover, commercial partners and partnership is
quite quick and also offer low cost method in terms of the working together which is useful for
both the parties. Along with this, commercial partnerships leads to offer hotel to the significant
access to the owners and also purchase effective decisions for various hotels. Moreover, the
business profile of hotel include small country pubs, accommodation hotels, gaming and foodies
and so on.
 Retail organisations: Grand Hyatt Melbourne and Tesco could be significantly become
great commercial partners in terms of offering effective services and also leads to
develop cooperation and collaboration undertaking the business strategies that leads to
describe suitable expectations of leisure guests (Cezar and Ögüt, 2016). Along with this,
Grand Hyatt Melbourne has maximum number of travellers including leisure activities. In
terms of this, developing partnership with Tesco could helpful in order to attract more
guests by offering effective services to guests and also providing significant discounts
with Tesco including the advertisement strategy which is beneficial for both parties.
 Tourism of Australia: Tourism of Australia leads to promote several areas including
sight-seeing, dining options, accommodations and so on that is directly beneficial to
Grand Hyatt Melbourne in terms of marketing and promoting their brand without
spending much amount on advertisement and promotion. Moreover, it is important for the
Australian economy that include domestic and international components and for this,
tourism leads to represent around 3.0% of the Australian GDP and contribute towards the
AUD7.5 billion of national economy. Along with this, domestic tourism become the
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significant part of tourism industry that leads to show around 73% of the overall direct
tourism GDP. In addition to this, there were around 7.4 million international visitors in
Australia and 8.8 million till June 2019. Hence, tourism leads to contribute around 8.0%
to the Australia's total export earnings.
 Develop relationship: As per this, Grand Hyatt Melbourne leads to develop partnership
with any other airline company in order to select their customers and also select
prominent point in terms of adding effective hotel membership with other airline
membership. Along with this, it is more convenient and effective for the guests who tends
to significantly travel and stay at the hotel premises (De Pelsmacker, Van Tilburg and
Holthof, 2018). In terms of this, Grand Hyatt Melbourne could prominently develop
partnership with any airline company that include both international and domestic flights.
Therefore, guests could be more beneficial due to these partnerships.
MARKET AND CONSUMER RESEARCH
Market research is useful in terms of critically analysing the development of significant
decisions, understanding the industry and identify what is going on in the specific region.
Organising market research is important in terms of making effective decisions within the
hospitality industry and it also include identifying data, evaluate significant options and also
understand the prominent trends that happen in the industry (Luo and Qu, 2016). In regard of
this, research is also prominent and also seek capital for the investors in terms of purchasing a
product or expanding the existing ones. Along with this, international tourism comes from china,
UK, USA and other international countries. For this, the major area come to the Sydney for their
leisure activities and it is also analysed that there are around 8% increment in the women
travellers. In relation with this, customers also select brand loyalty in terms of receiving points to
do something good to the hotels in terms of offering other prominent services. For this, Grand
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Hyatt Melbourne has prominent experience in terms of repetitive and high client base that helps
in representing them at international level.
Along with this, the world wide presence for the brand which permit and also offer
exceptional services which is useful for hotel in saving the profile of guests and also add notes
that leads to include small details regarding the likes and dislikes of customers. In terms of this,
Australia also welcome around 9 million international visitors and also increases 3.6 million or
65% as compared to 10 years report. Moreover, increasing economic and political instability
depicts the inbound tourism market and growth at the international arrivals which moderated to
the 4.9%. Furthermore, the Australian dollar is forecasted at low to medium that will continue
towards the support of growth of international travel to the Australia and also motivate domestic
travel.
Despite from this, hotel also face challenges in terms of falling property prices and
Australian economy which is still expected to continue the strong domestic travel demand and
also forecast in terms of growing the demand and for this, domestic trips also grow by
approximately 4.2%. moreover, the occupancy rates also slow down slightly year by year and
also increases on the daily rate by 1.8% with the growth over the last five years.
CONCLUSION
By considering the above discussion, it is identified that macro factors have huge
influence on the overall performance of hotel and significant marketing strategies that are
developed considering the prominent factors like political, economical, social and so on.
Moreover, developing strategies prominently make organisations more profitable which is useful
in attaining prominent goals and objectives. Furthermore, strengths and weakness are also
identified for the competitors and also leads to create prominent advantages for hotel which is
useful analysing the price factor and also helps in targeting market. Along with this, prominent
market research is conducted for the tourism and hotels which is useful in increasing customer
base for the respective company.
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REFERENCES
Books and Journals
Alnawas, I. and Hemsley-Brown, J., 2019. Market orientation and hotel performance:
investigating the role of high-order marketing capabilities. International Journal of
Contemporary Hospitality Management.
Baran, R.J. and Galka, R.J., 2016. Customer Relationship Management: the foundation of
contemporary marketing strategy. Taylor & Francis.
Cezar, A. and Ögüt, H., 2016. Analyzing conversion rates in online hotel booking. International
Journal of Contemporary Hospitality Management.
De Pelsmacker, P., Van Tilburg, S. and Holthof, C., 2018. Digital marketing strategies, online
reviews and hotel performance. International Journal of Hospitality Management, 72,
pp.47-55.
Jiang, Y. and Wen, J., 2020. Effects of COVID-19 on hotel marketing and management: a
perspective article. International Journal of Contemporary Hospitality Management.
Luo, Z. and Qu, H., 2016. Guest-defined hotel service quality and its impacts on guest
loyalty. Journal of Quality Assurance in Hospitality & Tourism, 17(3), pp.311-332.
Nieves, J. and Diaz-Meneses, G., 2016. Antecedents and outcomes of marketing
innovation. International Journal of Contemporary Hospitality Management.
Tanford, S., Shoemaker, S. and Dinca, A., 2016. Back to the future: progress and trends in hotel
loyalty marketing. International Journal of Contemporary Hospitality Management.
Wang, T.C., Tsai, C.L. and Tang, T.W., 2019. Restorative quality in tourist hotel marketing
pictures: Natural and built characteristics. Current Issues in Tourism, 22(14), pp.1679-
1685.
Yadav, R., Dokania, A.K. and Pathak, G.S., 2016. The influence of green marketing functions in
building corporate image. International Journal of Contemporary Hospitality
Management.
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