Hyatt Hotels: Comprehensive SWOT Analysis of Strategy & Competition

This case study provides a detailed SWOT analysis of Hyatt Hotels, a leading company in the hospitality industry. It examines the internal and external factors influencing Hyatt's performance, including political, economic, social, technological, environmental, and legal (PESTEL) factors. The ana...Read More

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A Case Study of Hyatt Hotel
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Hyatt hotels
Introduction
The hospitality industry is a very interesting venture in very many ways, all over
the world growth in the hotel industry is rapid. There are many groups of companies that
work internationally and have Tran served the continents in their business and
operations. The production and consumption revolves around the tourism, events and
hospitality. The managerial attention of the business is very volatile due to the level of
cash flows and the seasonality of the industry. The demand of the hotel rooms services
changes in the level of occupancy levels in the hotel are key due to the changes in the
supply of the hotel and rooms, in addition the patterns of the business is influential to
the economic conditions. This indeed affects the environment and has adverse effect to
the revenues. The industry is highly competitive and the sales and marketing are key to
the operations of the trademark all that contribute to the success of the services offered
at the Hyatt hotel (Raluca Andreea Trandafir, 2015, 192). The Hyatt hotel is one of the
best and leading company in the industry. In this regard the industry has to maintain a
position that ensure it’s prominent through the SWOT analysis.
The micro analysis
Change in the environment have an impact not only to the hotel corporation but
also to the other players in the business. The internal factors are influenced by political
economic social economic environmental and the legal factors that affects the
environment of the hotel. The impacts of the macro environment have an overall effect
to the profits of the industry in general (Borza, A. & Bordean, O., 2008, 16). The

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analysis has great detail in the operations of the challenges that Hyatt hotel are likely to
face in prevalence compared to the other competitive forces. The location and the
environment of the company. All the factors in the macro environment have either direct
or indirect impacts to the Hyatt hotel corporation and play a major influence to the shape
of the strategy and competitiveness of the hotel in the industry.
Macro analysis
The PESTEL analysis give the key operations details to the Hyatt hotel in the
macro environment to counter the forces and ensure that the business is more
profitable. The political factors affects the market of the business, the dynamics are key
in the determination of the success of the business. Certain actors need to be analyzed
such as the level of corruption and the trade regulations services in the area of
operation. The economic environment ensures that the country foreign exchange is safe
from the inflation.
The SWOT analysis
This is a strategic plan tool that the managers of the Hyatt hotel uses to know the
situational analysis. The technique identify the strengths, weakness, the opportunities
and the threats the hotel face in the environment (Walsh, J., 2002, 28). This method of
analysis is effected and coordinated among the departments in areas that are key to the
operation of the Hyatt hotel this includes the finance, marketing, the management and
the strategic planning.
In the analysis some of the strengths of the hotel are the internal strategic
factors, this is evident as the company leads in the industry. The strengths of the

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company has protected the market share of the company and helped the existing
business in the industry access new market, these areas of strength include the
company having a strong point of brand portfolio over the years the Hyatt hotel
introduced measure to invest in building a strong ground, this strength has enabled the
company to expand to having new categories.in the past the track record Hyatt hotel
has kept is to develop new products through the innovation (Raluca Andreea Trandafir,
2015, 192). To boost its new market Hyatt hotel has improved on the performance to
expand the organization into building new revenue streams in the economic cycle.
Another strength held by Hyatt hotel is having a major distribution of networks this
ensure that all the maximum potential s checked. Hyatt hotel ensures that the customer
satisfaction is excellent to maintain a good relation with their clients, in addition the
company has a strong free cash flow that ensures that the resources of the company
are channeled to the development of the new projects.
Hyatt hotels have some of the weakness in the internal strategic factors, these
are areas where the company ought to improve on their strategy planning to ensure that
they remain competitive and in their right position. First the company need to improve
on the new technology aspect, this is in line with the scale of expansion that the industry
has grown, and this shares the right vision of the Hyatt hotel. Another point of weakness
lies on the organization structure which limits the expansion of the products segments
(Anon, 2010). Hyatt hotel also faces the challenge of not managing to handle the new
entrants in the segment and loses market shares in this categories and need to improve
on the culture. Lastly on the segments there has been attacks by is competitors as their
products should have the right positioning on the marketing and selling.

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The opportunities for Hyatt hotels includes having the new changes on the trends
and behavior for their consumer by opening up a new market, this build new avenues
for revenues for the company. The hotel can also bring down the inflation rate to enable
the stable market for their customers, there is also the opportunities to have new
environmental policies that allows the play of the use of the new technology and gain
equal market share in any new product category (Walsh, J., 2002, 28). The Hyatt hotel
can also embrace the fact to open new markets because of the agreements made with
the governments. This ensures that the use of new technology for the Hyatt hotel in all
the products categories.
The threats that face the Hyatt hotels are the lack of new supply of innovative
products over the years and these is one of the factors that delays development, this
results to the high and low swings in their sales for a long period of time (Anon, 2010)
The company also face the threat of local distributors that threaten new products in
addition there is a growing competition that is a threat to their market. The governments
are in due time advocating of isolation of their economy to the industry that has a
negative impact. As most of the Hyatt hotel operations are in different countries they
face the currency fluctuations.

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Bibliography
Anon, 1999. Hyatt, Hilton, Marriott and Starwood Hotels Commit to Participate in
Pegasus Systems' New Meetings & Conventions Reservation Initiative. PR Newswire,
p.1.
Anon, 2010. Hyatt Hotels Around the U.S. Join Breast Cancer Network Of Strength in
the 2010 Walk to Empower. Targeted News Service, pp.Targeted News Service, May 7,
2010.
Anon, Hyatt Hotels Corporation SWOT Analysis. Hyatt Hotels Corporation SWOT
Analysis.
Bartholomew, D., 1996. Pure Boost To Hyatt's Spirit -- Test software verifies hotel
system's strength. InformationWeek, p.90.
Borza, A. & Bordean, O., 2008. IMPLEMENTATION OF SWOT ANALYSIS IN
ROMANIAN HOTEL INDUSTRY. An Enterprise Odyssey. International Conference
Proceedings, pp.1623–1637.
Evans, N. & Ebooks Corporation, 2014. Strategic management for tourism, hospitality
and events Second., New York: Routledge.
Raluca Andreea Trendier, 2015. THE SWOT ANALYSIS OF A ROMANIAN SEASIDE
HOTEL COMPANY. SEA: Practical Application of Science, (8), pp.191–193.

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Walsh, J., 2002. Properties take advantage of a brand's strengths to gain an edge in a
competitive marketplace. Hotel and Motel Management, 217(8), pp.28–30.