Tourism and Hospitality Management: Hyatt Hotels Case Study Analysis

This case study analyzes Hyatt Hotels, a prominent player in the hospitality industry, focusing on its macro and micro environments. The analysis includes Porter's Five Forces, SWOT analysis, and an examination of the company's corporate social responsibility, objectives, goals, vision, mission, and strategic direction. The study assesses the threats of new entrants, rivalry among competitors, bargaining power of suppliers and buyers, and the threat of substitutes. It also highlights Hyatt's strengths, such as its trained staff and strong brand image, while acknowledging weaknesses like competition and employee discontent. Opportunities for expansion and the use of digital projects are also explored. The case study concludes with a summary of Hyatt's position and recommendations for future strategies, emphasizing its commitment to premium services and CSR activities.

Running Head: HYATT HOTELS 0
Tourism and hospitality Management

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Contents
Introduction................................................................................................................................2
Macro environmental analysis...................................................................................................2
Porter’s five forces.....................................................................................................................2
Swot analysis..............................................................................................................................3
Micro environmental analysis....................................................................................................4
Conclusion..................................................................................................................................5
References..................................................................................................................................6

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Introduction
It is true that hospitality industry is booming at the higher phase due to the increasing demand
of customers. The successful operation of the hotel helps in achieving the success and
growth. For the discussion, Hyatt hotel has been taken into consideration. An American
hospitality company tends to offer the best services related to resorts, hotels, as well as
vacation properties (Hyatt, 2019a). Furthermore, the discussion is carried on the SWOT
analysis, porters five forces analysis and micro environmental analysis of the company.
Macro environmental analysis
Porter’s five forces
Threat of new entrant
The entry of new hotels with innovation puts the pressure on Hyatt to lower down their
prices, provide new value proposition. In addition to this, government is also supporting the
hospitality industry by providing them various benefits. This puts the threat on Hyatt
corporations (Hyatt, 2019b).
Rivalry among existing competitors
Hyatt is facing high level of threat from the current competitors, as several brands are
available with good image in the market. The major competitors of Hyatt are Starwood
hotels, Hilton hotels, and Marriott.
Bargaining power of supplier
Due to the increasing demand, suppliers also get attracted toward the hospitality industry.
Due to the increasing suppliers in hospitality industry, it is also easy for the Hyatt to easily
switch to another. Therefore, the bargaining power of suppliers is less.
Bargaining power of buyers

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In the hospitality industry, the bargaining power of buyers is high as many other hotels that
provide similar kind of services. Hyatt hotels effectively train its employees to provide best
services. By ensuring this, it is able to provide premium services. This also helps in gaining
the competitive advantage because there are many options available for the buyers.
Threat of substitute
In Hyatt, the threat of substitute is high as several bars, hotels, and restaurants are presented
that provide the similar kind of services. Hyatt hotel services ensure the differentiation in its
services, as it provides the best kind of training to its employees. Due to its best services, it is
difficult for the competitors to beat Hyatt and replace its hotel brand.
Swot analysis
Strength
 It has trained and qualified staff.
 It has high brand image in the market (Hyatt, 2019c).
 It provides variety of services such as restaurant, bars, hotels and spa.
 It opens for 24 hours.
 Provides online booking services to the customers.
 It is strong financially stable by earning the revenue of 468 crores USD.
Weaknesses
Several competitors are presented that tend to provide the similar kind of innovative services.
In addition to this, different regions have the different regulations, policies, and rules. In
addition to this, limited market share due to high competition from domestic as well as
international player is also the weakness of Hyatt. Besides this, it also faces the discontent
from the employees due to salary issues (Kharub, Mor and Sharma, 2018).
Opportunities
Due to its strong image, it is easy for Hyatt to expand its business on several locations. It can
also provide the various facilities to employees that will help it in retaining them for long
time duration. It can also use the digital project for increasing the standard of its rooms (Lai,
2019).

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Threats
It has to face the high level of threat from several competitors such as Marriott, Hilton hotels,
IHG, Pyramid hotel, as well as the Omni hotels.
Micro environmental analysis
Corporate social responsibility
The CSR of the Hyatt hotels is to fulfil the mission of the company in effective manner. It has
helped the hospitality in huge ways such as setting the objective led by ITP that also helps in
driving the industry to work in varied areas such as carbon emission, youth employment,
water, and human rights (Salvioni, 2016).
It also works toward the social image that helps it in increasing its customer base. It also
faces the little outside challenges as the company supports the hospitality industry.
Objective and goals
The main objective of Hyatt hotels is to provide the best quality and premium services to its
customers. It is effectively utilising its objective by fulfilling its responsibilities in proper
manner.
Vision and mission
The vision of the Hyatt hotel is to ensure the development of people and maintain their
standard of living. As compare to this, the mission of the company is to provide the best
services to its guests, associates on daily basis.
It succeeded in all these things by providing luxury services such as vacation places, resorts,
spa services, Hawaii, and restaurants. However, it is true that all these services can only eb
afford by the middle or higher class people.
Strategic direction
It is already discussed that Hyatt stick in providing the best premium quality services to
customers that can be affordable by upper or middle class people. Therefore, it is
recommended to the Hyatt to adopt such strategy that will help it in lowering down its prices.
Moreover, it can use the cost leadership strategy for this. It has also adopted the innovative
technologies in order to enhance the standard of its rooms (Morozova, Morozov, Havanova,
Duborkina and Arifulin, 2017).

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Conclusion
In the limelight of above discussion, it can be concluded that Hyatt is one of the best leading
organisation by providing premium quality service to the customers. It can also expand its
business due to its strong brand image all over the world. It also fulfils the corporate social
responsibilities in effective manner that helps it in gaining the market and customer base. In
addition to this, CSR activities of hotel help the Hyatt hotels to grow itself at the higher level
as well as adopt the innovative things to improve the living standard of people.

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References
Hyatt. (2019a) Our Company. Online. Available from: http://investors.hyatt.com/investor
relations/our-company/default.aspx [accessed 13/05/2019].
Hyatt. (2019b) About Hyatt. Online. Available from: https://about.hyatt.com/en.html
[accessed 13/05/2019).
Hyatt. (2019c) Corporate Responsibility at Hyatt. Online. Available form
https://about.hyatt.com/en/hyatt-thrive.html [accessed 13/05/2019].
Kharub, M., Mor, R.S. and Sharma, R. (2018) The relationship between cost leadership
competitive strategy and firm performance: A mediating role of quality management. Journal
of Manufacturing Technology Management.
Lai, I.K.W. (2019) Hotel image and reputation on building customer loyalty: An empirical
study in Macau. Journal of Hospitality and Tourism Management, 38, pp.111-121.
Morozova, L.S., Morozov, V.Y., Havanova, N.V., Duborkina, I.A. and Arifulin, M.V. (2017)
Formation and Development of Transnational Hotel Chains in Modern Environment. Journal
of Environmental Management & Tourism, 8(2 (18)), p.319.
Salvioni, D. (2016) Hotel Chains and the Sharing Economy in Global
Tourism. SYMPHONYA Emerging Issues in Management, (1).