HAT 203 - Hyatt Hotels: Comprehensive Macro and Micro Analysis

This report provides a comprehensive analysis of Hyatt Hotels, examining both the macro and micro environments impacting its operations. The macro analysis delves into political, economic, socio-cultural, and technological factors, highlighting the influence of government policies, economic instability, changing consumer trends, and technological advancements on Hyatt's business. The micro analysis includes a SWOT analysis, identifying Hyatt's strengths such as a strong brand portfolio and expertise in new markets, weaknesses like lack of investment in new technologies, opportunities including emerging consumer behaviors, and threats such as increasing competition and rising wage levels. The report references various sources to support its findings, offering a detailed overview of the challenges and opportunities facing Hyatt Hotels in the global hospitality industry. Desklib provides access to similar solved assignments and past papers for students.

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HAT 203
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Table of Contents
1. Company background...............................................................................................................3
2. Macro Context..........................................................................................................................3
Political factors............................................................................................................................3
Economic factors..........................................................................................................................3
Socio-cultural factors...................................................................................................................4
Technological factors...................................................................................................................4
3. Micro context...........................................................................................................................5
SWOT analysis............................................................................................................................5
Strengths...................................................................................................................................5
Weaknesses..............................................................................................................................5
Opportunities............................................................................................................................6
Threats......................................................................................................................................6
4. Reference List...........................................................................................................................8

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1. Company background
Hyatt Group of hotels was established by Pritzker in the 1957. Currently it is counted among the
most coveted Hotel groups around the globe. The business started with an individual hotel near
the International Airport of Los Angeles. Currently there are 750 hotels under this group and a
diversify portfolio of 7 product lines. The company has also been listed as the seventh most
workforce friendly company.
2. Macro Context
Political factors
Hyatt hotels are not much infected by major changes in politics or government. However,
individual tax policies of various governments fluctuates their operational cost. Other than that,
trade policies of individual government determine their organisational structure. As highlighted
by Sharma and Mishra (2018), the company also needs to modify their workplace policies based
on the Civil rights act of local regions. In most of the developed countries food safety, fire safety,
civil right act and other similar regulations are strictly imposed and monitored.
Economic factors
The travel market of USA is considered as one of the main recipient of an emerging Global
Traveller pool. The arrival of global tourists to us has increased to 72% from 55 million to 76
million. Consumer spending has increased in the six areas including Airlines, car rental, lodging
and travel Logistics. Out from 2017, these factors have recorded and aggregate growth of 353
billion US dollars (Agarwal and Das 2019). Hyatt Regency has operations in all these sectors and
hence it is expected that in 2018 5% business growth will be experienced by the organisation.

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However, unstable economy because of global economic crisis is one of the major challenges for
the organisation. People prefer to reduce their travelling cost which is affecting tourism as well
as hospitality. The impact of these changes was evident in the 28% revenue fall in the third
quarter profit of financial year 2018-19 of Hyatt. According to the ideas of Chan, Ye and (2016),
organisations like Hyatt which has diversity find target customer base All around the World are
more likely to experience the outcome of global economic crisis.
Socio-cultural factors
The history highlights that Hyatt hotels has maximum reputation for their guest relationship.
They entertain leisure seeking clients and business travellers, alike. A significant part of the
revenue of the organisation is donated towards Hyatt foundations which work with less
developed communities in order to generate social values.
To speak of global changes in consumption trends, after the financial crisis, more potential
groups of customers prefer to cut down travel expenses. This can be a risk factor for the premium
hotel group. Lastly, Morozova et al. (2017), speaks of the new millennial generation which have
high propensity to spend more on vacations. This is why Hyatt hotels should render their service
not in the form of products but in order to provide and enhance the User experience.
Technological factors
Any travel decision is accompanied by online research regarding exploration and booking.
Because of the emergence of this trend of online research regarding hotels and other components
of travel and leisure industry, it becomes important for Hyatt group to enhance their market
presence. However, researchers like Chaturvedi (2018), identify those online customers are price
conscious since they get the option of effortless price comparison among various Hotel groups.

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This is why Hyatt Corporation has to emphasize on improvement of their services constantly, so
that they can retain their average customer base.
Relationship between Hotel roots and visitors is changed to online networking. Reviews of
expenses shared by potential customers of income often become the factor for critical judgement
and decision making of many other travellers (Hyatt.com 2019). In this context, the active
presence of the organisation on social media will help them to take care of user feedback. The
dedicated social media team of Hotel groups should be to help communicate the most positive
user reviews with maximum section of target customers.
3. Micro context
SWOT analysis
Strengths
As a leading company in the industry the Hyatt group numerous strengths that help it to thrive
the challenges, sustain their market share as well as penetrate new markets. The major factors of
strength include the strong brand portfolio into new product diversification categories. Other
than that Hyatt hotels have develop wonderful expertise in operating in the new markets which
constantly allows them to generate new revenue streams. Analysing the case study it can also be
inferred that the reliable distribution network of Hyatt hotels also helps them to serve their
potential Marketplace. The online presence of the organisation shows that they have dedicated
customer relationship strategy because of which level of customer satisfaction is high
(Chaturvedi 2018). The last factor that deserves mention here is the strong flow of free cash
resources because of which the organisation can easily undertake new project.
Weaknesses

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Lack of investment to expand into new technologies is one of the major weaknesses of the
organisation. Market analysis, conducted by Agarwal and Das (2019), shows that many of the
online booking sites in the world do not include Hyatt hotels. However, analysing the case study
it can be commented that investing in disruptive Technologies is not included in the scope of the
organisational vision.
Another major weakness is the loss of market share in their niche categories because of presence
of many new entrants into the hospitality business. Analysing the overall impact of the marketing
campaigns, it can be inferred that product marketing is another weakness of the organisation.
That is why; competitors can attack their potential business segments (Agarwal and Das 2019).
Opportunities
New trends in consumer behaviour like online booking can provide opportunity for developing
new revenue streams from product development in new markets. Opportunistically, the inflation
rate in the most potential markets of Hyatt are low because of which there is market stable which
helps in sustenance of business.
Other opportunities include Trends of higher consumption by the millennial generation for
luxurious travelling. The case study shows that has organisation has the opportunity of
leveraging this business opportunity and understand their consumer segments better by serving
their needs utilising the Big Data Analytics.
Threats
Growth in strength of local distribution agents in the developing markets of Hyatt is a potential
threat. This is because; the market situation is forcing the organisation to pay great emergence to
the local distributors. However, as analysed by Agarwal and Das (2019), the increasing

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isolationism in the economy of America can lead to development of similar situation from
government of other major markets also. This can negatively impact the international growth.
Other threats include dynamic rise in the wage level in emerging as well as established markets,
legal liabilities of several markets. Lastly there is the biggest threat from the urge forgreener
production, owing to the Paris agreement of 2016.

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4. Reference List
Agarwal, M. and Das, P., 2019. Green Hotels: An Overview. Boston Hospitality Review, 7(1).
Chan, D., Ye, T. and Xu, H., 2016. Localization of senior managers of international luxury hotels
in China: The current situation and influencing factors. Journal of China Tourism
Research, 12(1), pp.126-143.
Chaturvedi, A, 2018. Hyatt to make room for 14 new properties over next two year. The
Economic Times. (Online). Available at:
https://economictimes.indiatimes.com/industry/services/hotels-/-restaurants/hyatt-to-make-room-
for-14-new-properties-over-next-two-years/articleshow/68604583.cms?from=mdr Accessed on:
14tth May 2019.
Hyatt.com, 2019. About the Company. Available at: https://www.hyatt.com/ Accessed on 14th
May 2019.
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.
Sharma, S. and Mishra, P., 2018. IMPACT OF CORPORATE SOCIAL RESPONSIBILITY
PRACTICES ON THE CORPORATE PERFORMANCE OF LUXURY CHAIN
HOTELS. Journal of Services Research, 18(1), p.47.
Agarwal, M. and Das, P., 2019. Green Hotels: An Overview. Boston Hospitality Review, 7(1).

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Chan, D., Ye, T. and Xu, H., 2016. Localization of senior managers of international luxury hotels
in China: The current situation and influencing factors. Journal of China Tourism
Research, 12(1), pp.126-143.
Chaturvedi, A, 2018. Hyatt to make room for 14 new properties over next two year. The
Economic Times. (Online). Available at:
https://economictimes.indiatimes.com/industry/services/hotels-/-restaurants/hyatt-to-make-room-
for-14-new-properties-over-next-two-years/articleshow/68604583.cms?from=mdr Accessed on:
14tth May 2019.
Hyatt.com, 2019. About the Company. Available at: https://www.hyatt.com/ Accessed on 14th
May 2019.
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.
Sharma, S. and Mishra, P., 2018. IMPACT OF CORPORATE SOCIAL RESPONSIBILITY
PRACTICES ON THE CORPORATE PERFORMANCE OF LUXURY CHAIN
HOTELS. Journal of Services Research, 18(1), p.47.