HAT203: Case Study Analysis of Hyatt Hotel Corporation

This document provides a comprehensive case study analysis of the Hyatt Hotel Corporation, examining its internal and external environments. The analysis includes a PESTLE analysis, evaluating political, economic, social, technological, legal, and environmental factors. Porter's Five Forces are used to assess the competitive landscape, considering the threat of new entrants, bargaining power of consumers and suppliers, the threat of substitutes, and the intensity of rivalry. A SWOT analysis identifies the company's strengths, weaknesses, opportunities, and threats. The study offers a detailed overview of the company's market position, competitive advantages, and potential challenges, concluding with strategic recommendations. The document is designed to support students in understanding and applying hospitality management concepts.

Running Head: Hospitality Management 0
Hospitality Management
(Student Name)

Hospitality Management 1
Table of Contents
Introduction......................................................................................................................................2
PESTLE Analysis............................................................................................................................2
Porter Five Forces............................................................................................................................3
SWOT Analysis...............................................................................................................................3
Conclusion.......................................................................................................................................4
References........................................................................................................................................6

Hospitality Management 2
Introduction
Hyatt Hotel Corporation is one of the leading chains of brand in the international market that was
established by Jay Pritzker in the year 1957. It is the hospitality company with board
international operations, widely recognized, brands as well as a convention of innovation that
established during a history of straddling over 55 years. The company has expanded their roots in
the international marketplace in more well organized manner. The company has introduced the
Hyatt Ziva as well as Hyatt Zikara brands in the year 2012. The company has over 500 hotels
that make them competitive in the market.
In the subsequent part there will be detailed analysis of external and internal environment of the
company that makes them competitive in the market
PESTLE Analysis
Political: Hyatt Hotel Corporation derives below the variety of the finest leading groups of the
hospitality business. The company devours built up a great foremost position as well as with the
assistance of the radical support they were also able to expand their business. The company has
its interpersonal company guideline that politically supports the government authorities in the
international market (Hwang, and Chang, 2016).
Economic: the achievement of the various brands as well as chain in the global market has
support the company to become more powerful on its economic factors. Such property has its
chain of franchisee that accumulates more its revenue. It makes them more competitive in the
market in an effective manner (Yue, and Xu, 2018).
Social: the company is eminent for maintain relationship with its visitor. The company delivers
services to both the holiday seeking consumers and the corporate travelers. The company assists
and covers all of their income towards the Hyatt foundations that helps as well as acts other
community at the time of strong need. Therefore, it also includes the cultural value to it in
effective manner of the consumers (Arif, and Hossin, 2016)..
Technological: the company has arranged great IT team in their business that help them to
deliver longstanding know-how solution that are useful as well as affordable while assisting the

Hospitality Management 3
requirement of the business. The main purpose of utilizing modernized industrial strategy is to
enhance the quality lifestyle of their consumers in an well organized as well as efficient manner
(Arif, and Hossin, 2016).
Porter Five Forces
Threat of New Entrants: The peril of novel players in such diligence is high due to the reason of
great growth in the tourism and hospitality industry attracts new companies to entre in such
industry. Lots of companies entered in such industry that affected over the product margin of the
business at superior level (Boyle, 2015).
Bargaining power of consumers: The bargaining power of consumers in such business is high
due to the reason the low switching cost in such industry that give an option to the consumers to
get attracted towards the stumpy price services that forced the business to offer discounts and
keep their value low to attract their consumers.
Bargaining power of suppliers: the number of suppliers in the industry in which Hyatt Hotels
Corporation operates is a lot compare to the buyers. It represent that the suppliers has les control
over the price that make the bargaining power of suppliers weaker.
Threat of Substitute: The threat of auxiliary in such industry of the company is medium. The
major threat for the company can be cottage as well as B&B (Bed and Breakfast), Inn that
become most popular in the recent ears as it provide a standard service with effective prices to
the consumers.
Rivalry: the competition among the competitor can lead to an aggressive pricing as well as
promotion in battles to benefits as well as attract more consumers. There is low switching cost in
the hotel industry for the consumers; they can change the hotel at any point of time that enhances
the level of competitor for Hyatt at greater level. However, the company has built up brand
image in the global market that makes them to enjoy competitive advantage in the market
(Hazeri, et.al, 2016).
SWOT Analysis
Strengths

Hospitality Management 4
 The company has huge number of properties in the strategic location such as Hyatt Hotel
nearby Los Angeles airport, from where the chain was prolonged to the San Francisco
with a extravagance hotel near airport.
 The company has string brand portfolio as well as brand recognition in the international
market
 The business has extremely loyal consumer base (Arif, and Hossin, 2016)
Weaknesses
 The company has limited market share in the global market
 The business has very low brand differentiation that make them less competitive in the
market
 The revenue of the company is majorly depends on the US market (Lapian, and Tumbel,
2019).
Opportunities
 By analyzing the current growth of the hospitality industry it is expected that it will grow
further in the near future
 There is emergence of the health conscious consumers in the market that make them
prefer hygiene and good hotels that will give an opportunity to the company to attract
such consumers (Tran, 2018)
Threats
 Due to intense growth of hospitality industry attract new entrants that create and enhance
huge level of competition in the market
 The long term risk is involved from nontraditional lodging options
 Due to threat of terrorism as well as adverse geo-political conditions, the company needs
to invest huge amount on security (Jamshidi Dermenaki, 2016).
Conclusion
After analyzing from the above, it can come on the conclusion that the hospitality industry is
immensely growing in the market that attract huge companies to enter in such marketplace. One

Hospitality Management 5
of the leading chains Hyatt Hotel Corporation expanded their commercial in the global market.
The business has built up great image that make them competitive in the marketplace in a well-
organized manner. However, the company has faced intense competition in the market due to
high growth rate in such industry it affected complete recital of the corporation at greater level.
Therefore, it is required for the company to use their strength in coping up with the challenge of
threat that will make them succeed in the competitive market.

Hospitality Management 6
References
Arif, T.M.H. and Hossin, M.Z. (2016) A comparative analysis of internal and external
environments between Hotel Hyatt, UK and Hotel The Cox Today, Cox’s Bazar,
Bangladesh. IOSR Journal of Humanities and Social Science, 21(6), pp.13-22.
Boyle, M. (2015) The Annual Scientific Meeting of the Australasian Trauma Society,
TRAUMA2007, Park Hyatt Hotel, Melbourne, Australia 13-14 October 2007. Australasian
Journal of Paramedicine, 5(4).
Hazeri, M., Hassan, M.D., Abba, Y., Omar, A.R., Allaudin, Z.N., Soltani, M., Hamdan, R.H.,
Mohamad, N.F.A., Raina, S.M. and Vishkaei, M.S. (2016) Histopathological evaluation and
molecular detection of natural Iridovirus infection in cultured grouper fish in
Malaysia. Comparative Clinical Pathology, 25(5), pp.965-971.
Hwang, S.N. and Chang, T.Y. (2016) Formulating Management Strategy for International
Tourist Hotel Using DEA. In Data Envelopment Analysis 45(3). Springer, Boston, MA.
Jamshidi Dermenaki, S. (2016) Visitor’s cultural-based perceptions of hospitality services in
Tehran: an exploratory study of mostly booked hotels 13(3)
Lapian, S. L. H. V. J., and Tumbel, A. (2019) Analysis of Green Marketing Mix Factors On
Hotel Industry (Study on Sintesa Peninsula Hotel Manado; Discovery Kartika Plaza Denpasar;
Hyatt Regency Yogyakarta; Grand Melia Jakarta). International Review of Management and
Marketing, 8(6), 112-121.
Tran, T.Q.C. (2018) Maintenance and Improvement of Care at Hyatt Regency Danang Resort &
Spa (Doctoral dissertation, Le CNAM, Paris, France) 19(5).
Yue, M. and Xu, S. (2018) The Perception of Hyatt Place—a Mid-scale Brand among Hotel
Customers in China. JIHT,3 p.71.

Hospitality Management 7