Analysis of Hyatt Hotel: Contemporary Hospitality Industry Report

This report provides a comprehensive analysis of the contemporary hospitality industry, focusing on the Hyatt Hotel. It begins with an introduction to the hospitality sector and its importance, followed by an overview of the Hyatt Hotel Corporation. The core of the report involves a detailed PESTEL analysis, examining political, economic, social, technological, environmental, and legal factors impacting Hyatt's operations. It then presents a SWOT analysis, evaluating the company's strengths, weaknesses, opportunities, and threats. The report further explores current and potential trends in the industry, including the impact of digital disruption and external environmental factors. The analysis considers the effects of the COVID-19 pandemic and other challenges faced by the hospitality sector. The report emphasizes the need for adaptability in the industry, highlighting how companies like Hyatt must adjust to meet evolving customer needs and maintain a competitive edge. The conclusion summarizes the key findings and implications for the future of the hospitality sector.

The Contemporary Hospitality Industry

Table of content
INTRODUCTION
PESTEL Analysis
SWOT Analysis
Current and potential trends
CONCLUSION
REFERENCES

Introduction
The hospitality industry focuses on cover different industries that involve food, drink as well as
accommodation. The role which is played by hospitality sector is important in improvement of
hospitality provision. In current assessment depend on hospitality sector so that they focus on take
decision in respect of diverse challenges which assists in the industry. There is assessment related to
Hyatt Hotel. It is determined as a biggest hotel chain possessing 750 hotels around diverse part of
world. There is an assessment of different sectors that is determined as a part of hospitality industry
and diverse operational as well as functional department. There is assessment of operational roles in
order to examine diverse function that is considered as a part of hospitality sector. In this report, there
is a discussion regarding SWOT & PESTEL analysis in order to assess internal or external
environment which impose direct effect on the company and there is also an explanation regarding
effect of external factor on improvement of organisation in hospitality sector. There are different kind
of example related to appraisal of implication related to current trend in hospitality sector and
assessment of ability of hospitality organisation in order to improve goods and services that meet
specific need and how external environmental factor imposes direct effect on development of current
as well as potential trend within hospitality sector (Alegre and Berbegal-Mirabent, 2016).

Meaning of digital disruption
Meaning of digital disruption
Background
Hyatt Hotel Corporation is determined as an American International
hospitality organisation that handle and franchises business, hotel resorts
and so on. The hotel was founded by Hyatt Robert Von Dehn as well as
Jack Dyer Crouch in year of 1957. They focus on performing work with
around 1, 00,000 employees who perform their work within the hotel in
900 properties with 20 brands within 60 countries.

PESTEL Analysis
 PESTEL analysis is determined as a tool and technique which is adopted for purpose of making detailed
assessment of external environmental factor. In reference of hospitality sector, this kind of factors must be
changed very rapidly and there is a requirement to emphasize on method that imposes direct effect on
internal function of hospitality brand. In present report, there is a segment of a way of such kind of factors
imposes direct effect on the whole functioning and operation of Hyatt. It offers a great detail regarding
operating challenges which is faced by Hyatt hotel in order to achieve competitive advantage over rivalries
at market place (Andrades and Dimanche, 2019).Thus, the PESTEL analysis of chosen hotel is going to be
mentioned below:
 Political factors the government possess stronghold over changing nature within hospitality sector. There
is not such as they do not possess any kind of travelling restriction by government that leads to no
movement of individual person around border since there is an effect of COVID-19. The situation and
condition resulted in adverse effect on organisation of hospitality sector. Therefore, the Hyatt hotel has
affected in adverse way from March 2020 with situation or condition of Lockdown around diverse part of
globe and there is not any kind of business as well as a creation of revenue on diverse part of hospitality
brand. Due to political stability as well as significance of lodging industry in countries economy it imposes
positive effect on operations of business organisation. And, due to this, the company do not change their
policies and conduct their operations in proper manner. In addition to this, due to increase in corruption
level within service sector it imposes negative effect on operations of organisation (Bani-Melhem, Zeffane
and Albaity, 2018).

Economic factor
 Economic factor The economic factor involved inflation rate, foreign exchange rate as well
as many more. There are different kinds of factors such as competition norms that impose
direct effect on competitive edge of organisation. They focus on using different economic
elements like growth rate, inflation rate, and growth rate and so on. In current time, the UK
possesses robust real property laws as well as contact that is secure. There is a long history
of using laws in fair way related to disputes within business organisation. The current judicial
procedure is connected as well as reliable. There is a several isolated instances related to
corruption that lead to investor assess corruption. Due to increase in COVID-19, it imposes
negative effect on the economic scenario. There is a slower growth of economy because
there is a decrease in personal disposal revenue of individual person that leads to threat for
hospitality sector. There is different kind of hospitality brands such as Hyatt has affected by
condition because there is a constant decrease in method the individual person perceiving
safety and security within hotel connected to decrease in recreational activity. In addition to
this, due to stability in host country currency, the organisation operates their business in an
appropriate manner that imposes positive effect on operations of organisation (Boxall,
Nyanjom and Slaven, 2018).

Social factor
 Social factors it is determined as a factor connected to change in need of the individual
person with its changing preferences which impose direct effect on the individual
person who have willing for higher security measure in order to deal with situation. In
this process, there is a complete transformation within method that is assessing by
Hyatt hotel in overall operations of hotel. The safety and security of guest is determined
as a top priority related to Hyatt in current situation. They are regularly monitoring
effect of covid-19 situation in order to deal with concern of customer. Therefore, the
Hyatt Hotel focuses on providing services according to need of customer that help in
increasing brand image of company in front of customer at market place. It is also
helpful in increasing sales of organisation in future period of time. But due to
frequently change in taste of customer it imposes negative effect on organisation so that
they do not operate business in proper way (Eissne and Gannon, 2018).

Technological and Environmental
factor
Technological factors there is a complete transformation of method within hospitality sector perceives the use of latest technology measure within whole function in travelling
website is easier in making booking in assessing quality as well as level of facility provided by such kind of brand reviews that is offered on online website. In addition to
this, the source of digital Media Company is completely transformed. The transformed method is adopted as source related to marketing as a promotional means related
to company. Therefore, they emphasised on adopting some social media campaign that results in higher involvement of customer. The method used by individual person
is by adopting platform of social media has become most important criteria in order to take decision in future period of time. Due to recent technological improvement by
Hyatt hotels, it helps in increasing brand image of company and achieving competitive advantage over rival firm in the market. But due to increase in the cost structure
within lodging sector it imposes negative effect on operations of business organisation during the period of time.
Environmental factor The global tourism as well as a travel sector focuses on experiencing rapid development over past several years that leads to 9.8 % of global
development of GDP according to the figure which is arises in year of 2016. This sector is growing through 4% within upcoming period of time after pose COVID effect
if there is a increasing concern over effect of climatic change on future international travel as well as tourism sector. Hyatt is determined as a part of hospitality sector
there is which is highly susceptible and effected through climatic eco-system as well as pattern. There are different kinds of factor that impose direct effect on method, the
individual person making its stable decision with alteration in climatic situation. There are different kinds of threats of organisation, the Hyatt hotel focuses on dealing
with issues related to rising level of sea within coastal areas. The current COVID outbreak transform method of hospitality sector perceives its organisation. The pressure
related to concern of climatic change leads to results in Hyatt international leading global or International hotel focuses on overcome from different operating process as
well as important project initiative with objective is to decrease GHG emission at different hotel properties around the globe (Farrington, Antony and O’Gorman, 2018).

Legal factor
 Legal factor: Legal factor is connected to whole regulatory framework that is formed by government such
as use face mask in order to moving around along with several expectation depend on guidance as well as
local laws (Mooney, Harris and Ryan, 2016). In context of Hyatt, there is a requirement to follow overall
regulation that is determined as a part related to public areas such as meetings, lobbies as well as event
space and so on. In addition to this, there is also need to extra take care in order to ensure that it is
necessary to provide appropriate safety to its guest in addition to this the regulatory accounting as well as
legal system are appropriate and transparent at similar time it is offering protection level for diverse sector
and also hospitality sector in context of predefined rules related to laws. There is a different kind of
measure which is adopted by government is several price control that involved in creating innovative
Zealand’s zero agriculture subsidy model after the Brexit. In addition to this, the Hyatt hotel focuses on
follow employment law as several nations possess regulation in order to make sure about labour safety.
They also provide secure environment towards workforce that is determined as a ethical as well as moral
obligation of chosen Hotel. In addition to this, the data protection is determined as a primary issue that is
faced by Hyatt Hotel, due to the providing privacy to its user. There is a need to assess regulation related to
data protection in order to protect consumer data otherwise it imposes negative effect on Hyatt Hotel.
 On the basis of above given different factor, the Hyatt hotel focuses on adopting PESTEL analysis in order to
conduct different operations within business organisation. It is useful in performing different operation in
proper way that is useful in organise task in proper way (Ferreira, 2019).

SWOT Analysis
SWOT is determined as a basic tool that helps in making internal assessment which is used for purpose & aim of
making detailed assessment of method. They focus on assessing strength, weakness, opportunities as well as
threat of hospitality brand that help company in its functioning. It refers to a framework which helps an
organisation in effectively analyzing the internal and external factor (Bonfante and et. al. 2021). It will assist an
organisation in effectively analyzing the strength, weakness, opportunity and threats. It will assist an
organisation in identifying what an organisation will doing right and what they need to change in the
organisation. It was considered as a planning methodology which help organisation in developing a strategic
plan which assist in achieving the goal of organisation. It will help an organisation in improving their business
operation and keep the business relevant. In context of selected company their SWOT analysis is discussed
below for better understanding.
Strength- It refers to the resources and capability of an organisation which is used for competitive advantage in
market (de 2020).It was consider as a necessary attribute within an organisation that assist in the ultimate
success of a project. In context of selected company, their strength is mention below:
 Hyatt hotels possess a strong brand portfolio and having brand recognition.
 They have been able to develop an extremely loyal base of customers; there is a presence of exposure to
various industries that includes hotel management, ownership, franchising and development.
 Hyatt hotels are having a dedicated customer relationship management department that is assisting in the
achievement of the high amount of customer satisfaction among their present and future customer base.
 There has been a successful track record of integration of commentary organizations with the help of mergers &
acquisitions. There has been streamlining of operations for building up of reliable supply chain.

Weaknesses
Weakness- It refers to the negative factor which affects the growth
of an organisation. This factor will stop an organisation to perform
with their full efficiency. It will define the area where an organisation
will need to improve so that they will remain competitive. In context
of selected company their weakness are mention below:
 Not highly successful at integrating firm with different work culture.
It was analysis that Hyatt hotel is successful at integrating small
companies it has share of failure to merge firms that have different
work culture.
 Hyatt hotel is one of the leading organisations in its industry it has
faced challenges in moving to other product segments with its
present culture

Opportunities
 This factor is classified as an external element which helps an organisation in achieving the
goal or objective set for the project (Dobrović and Furjan, 2020). It will include all those
favourable external factors which help an organisation in achieving the competitive
advantage in market. In relevance of selected company, opportunity for company which help
in their future growth and development is mention below:
 There are many emerging hotel markets that can be an opportunity for expansion of Hyatt
hotels, can work towards the assessments of the light business model.
 With the COVID-19 pandemic there has been a different base of customers having a high
amount of health consciousness. For such as there can be a focus more on the development
of some alternatives measure of security and safety.
 There are different emerging market of hotel that is determined as an chances &
opportunities in order to expand business of Hyatt Hotel that help in assessment of light
organisation model.
 Due to COVID-19 pandemic, there are various customer base possessing high level of health
conscious therefore they can emphasize on improvement of different kind of alternative
measure that provide safety to its user in order to retain them for a longer period of time.