Hyatt Hotel Groups: Innovation and Creativity Management Models

This report analyzes innovation and creativity management within Hyatt Hotel Groups, a multinational hospitality corporation headquartered in Chicago. It examines various business models such as the Black Box Model, Linear Model, Interactive Model, System Model, Evolutionary Model, and Innovation Milieu Model, and how they are applied within Hyatt to foster innovation. The report also discusses the application of the Funnel Theory and Blue Ocean Strategy to enhance Hyatt's effectiveness in the market. It highlights Hyatt's strategic approach to investment, customer service, and market adaptation, emphasizing their focus on luxury services and continuous improvement to maintain a competitive edge in the hospitality industry. This document is available on Desklib, a platform offering a wide range of study resources, including past papers and solved assignments.

Innovation and Creativity
Management in
Hospitality and Tourism

Contents
INTRODUCTION...........................................................................................................................1
Applying Different relevant models on Hyatt Hotel Groups ......................................................1
Applying different theories on Hyatt hotel groups to become more effective............................3
CONCLUSION ...............................................................................................................................6
REFERENCES................................................................................................................................8

INTRODUCTION
Hyatt hotel groups is headquartered in Chicago. The main vision of the organisation is to
provide luxury services to different customers in the market (Ouyang, Liu, and Gui, 2021). The
organisation has more than 1,150 luxury properties in different regions. The report aims to
analyse about discussing different models and theories which help the organisation to generate
new innovative ideas in the market. It includes innovation funnel theory and black box model.
On the other hand, there will be discussion about different barriers which affect the Hyatt hotels
groups in the market.
Hyatt hotels groups is an American multinational Hospitality corporation. It is
headquartered in Chicago and the corporation is founded by Hyatt Robert Von Dehn. The main
aim of the Hotel groups is to provide luxury services to the customers in the market. Their brand
value and reputation helps them to generate more revenues in the market. They are one of the
Luxury Hotel groups in the hospitality industry (Hassi, 2019). The main strategy behind the
success of Hyatt hotel groups is their loyalty program which helps the organisation to give better
competition to the different brands in the market. The are constantly introducing new ideas
which is making them better. They are giving a tough competition to other brands in the market.
The tourism and Hospitality industry is growing at an experiential rate. It is one of the
emerging industry which supports the country GDP very critically. It gives employment to
different workers in the market. Hospitality industry provides accommodation to different
customers with providing a wide range of luxury services. Hospitality and tourism industry has
to managed to grow at an effective pace. This industry includes restaurant, hotels, events, cruises
etc.
MAIN BODY
Applying Different relevant models on Hyatt Hotel Groups
There are different business model which could be applied on Hyatt hotel groups. These
models are described below:
 Black Box Model – It is financial model which helps the organisation to transform their
investments into an computerized software (Lee, Hallak, and Sardeshmukh, 2019). By
using this model the organisation innovate different strategies for useful investments. The
main focus of this model is to generate maximum revenues from the market by doing a
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legitimate investment in the market. In context to Hyatt hotel groups the organisation is
using this model to see different investments scenarios in the market. Their management
has core team to judge different investments opportunities in the hospitality industry.
Experience plays a vital role which the management of Hyatt hotel group carries to
evolve themselves with new market trends. This model is only executed by doing proper
calculation of every business aspect.
 Linear Model – This model suggests that there is variable prepared for every
combination which the organisation has to deal in the market. The main purpose of this
model is prepare a strategic counter plan to manage difficult situations. In context to
Hyatt hotel groups the management always prepare a plan to counter negative aspects in
the market. For example In Covid 19 hospitality and tourism industry face huge losses in
the market. On the other hand, Hyatt groups of hotel has receive necessary investments
from shareholders and investors to continue their operations in the market.
 Interactive Model – This is the model which helps the organisation to generate new
innovative ideas for the current market scenario. The organisation channel the
communication in both ways. The employees has also the authority to suggest new
innovate ideas to the management. This could help the company to generate more
revenues in the market (Broshi-Chen, and Mansfeld, 2021). Hyatt hotel groups follows
agile and structured system in the workplace. The employee could communicate directly
to the top management in case of any emergency or suggesting new ideas.
 System Model – It is a process oriented representation which is followed at all levels of
management. In today's world different organisation is using this theory to create a flow
in the workplace. The decisions are passed through from top to bottom management.
System models helps the company to develop a conceptual idea and transform the way of
thinking by seeing different factors. Hospitality sector has tough competition because
different groups or brands are investing in this industry to accommodate new services to
the customers (Magadán, and Rivas, 2018). Hyatt hotel groups follows a systematic
workflow in their properties. The organisation has necessary experience to enhance the
customers services in the market. The management of Hyatt hotel groups follows a
structured system. In this the organisation helps the employees to achieve maximum
productivity in the workplace. This helps the hotel to offer better services and amenities
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to the customers. By using this model the hotel groups achieve new innovative ideas in a
systematic manner. They carry out a strategic plan to do their operations smoothly in the
market.
 Evolutionary Model – This model is basically follows the same structure black box
model. The plan is formulated in a computer system. On the other hand, the plan is then
divided into several parts. The organisation then follows every structure of the plan in a
strategic manner. Hyatt hotel groups manges all the data systematically and then follows
a simple plan to counter different problems and generate new ideas with proper resources.
The is also an important use of this model. It helps to revolutionise the product and
services according to the changing market needs. Hyatt hotel groups had to change the
services according to market scenarios (Jawabreh, 2020). The organisation has rebranded
themselves by listening the valuable feedback of the customers in the market. After the
extensive the groups has changed their hotel names into Hyatt centric to attract new
customers in the market. The organisation has also indulged themselves in acquiring new
properties like gym, spa services in the market. They are targeting new audience in the
market by innovating new creative ideas.
 Innovation Milieu Model – This model suggests as an innovation system. It helps the
organisation to develop different relationships by taking the use of innovation factor in
the workplace. For example it could be scientific, technological, commercial, industrial,
financial etc. On the other hand, this theory helps the organisation to achieve its inherent
goals and objectives in the market. Hyatt hotel groups achieves new creative ideas by
following a systemic plan. This is the sixth generation model (Shin, and Perdue, 2022).
To achieve a innovative idea the organisation has to create a continuous flow of working
to create a new idea. Hyatt hotel groups achieve its inherent goals and objectives at an
exponential pace in the market. The organisation has seen an efficient growth in the
market.
Applying different theories on Hyatt hotel groups to become more effective.
Funnel Theory – This theory suggests that the organisation has to think forward and
innovate new ideas and prototypes to become more efficient in the market. It is the approach
which is followed by every organisation to approach the right idea and working towards that in a
systematic manner. This theory allows the organisation to manage their work effectively at
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different levels. Hyatt hotel groups always give tough competition to other brands in the market.
This theory help the organisation to follow a strategic plan and helps them to grab the right
opportunity in the market.
There are different stages in funnel Theory which are described below:
 Opportunity Assessment - This is the stage where the organisation do proper research
and knowledge. The management study and analyse different opportunities of the market.
There companies are changing their products and services according to the customer
preferences (Tajeddini, Martin, and Altinay, 2020). In context to Hyatt hotel groups their
main aim is to provide luxury services to the customers. The organisation is only working
in one direction to achieve their goals and objectives. The hotel groups are becoming
more innovative in providing new services to the customers.
 Insight based Ideation – After searching the opportunity the organisation study the ideas
effectively to make it more effective according to the market condition. There is core
team in the company which is called research and development. Their main motive is
study the plan effectively by seeing all the negative and positive aspects. Hyatt hotel
groups has experienced management to study the plan systematically and judging it in
every factor. In the new era the market ids dynamic in nature. Hyatt hotel group has to
innovate new ideas and provide never imagining services to the customer to generate
more profits in the market.
 Conceptualisation – This is the stage where the the organisation make different
suggestions and improvements in the idea (Pesonen, 2020). The main focus of the
company is to apply different concepts on the idea. Hyatt hotel groups are diverging
themselves and acquiring a huge share in the market. The organisation has managed to
open resorts and hotels in different regions of the market. They are upgrading their
services according to the customer preferences.
 Evaluation and benchmarking - This step suggests that the organisation is ready to test
out their product or service to a limited number of people. The organisation test the
prototype in several conditions and seeing the reaction of customers. Hyatt hotel groups
are always making themselves better to have an efficient growth in the market. They are
developing new strategies to attract different customers in the market. The testing of
products helps organisation to make some teaks according to the customer preferences in
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the market. This factor is also capable to make the product more innovative in terms of
market requirements.
 Plough on or cut it loose – After distributing the product in the market. The organisation
focuses on the customers feedback and capitalize on it effectively. This is the time for the
organisation to make a decision whether they are launching this product or service into
the market. The projects becomes successful at one point in the market when the
organisation do proper research by studying the market crucially. In context to Hyatt
hotel groups the organisation tweak themselves in every possible way to capture the
hospitality industry. Hyatt has secured a creative spot in the higher end market. The
organisation only targets those individual who can afford their services in the market. The
latest offering of the hotel groups is to blend with new trends and provide a never
imagining services to the customers. They are at the top of the market with different
luxury properties in the market.
 Launch – This is the part where the organisation its product and service in the market.
Now it is in the hand of the customers to make the product successful in the market.
Hyatt hotel groups has to successfully captured the market by innovating new ideas and
offering different services (Al-Ababneh, 2020). They are now diversifying their
operations in different regions. The company is already capitalising a huge share in the
market. Their services are by far best in the market. This gives them a competitive edge
in the hospitality industry.
Another theory which could be applied on Hyatt hotel group is Blue Ocean Strategy
Model which is described below:
Blue ocean theory – This model suggests that to a pursuit in the market to create new
demand and space of the product between the customers. This theory helps the organisation to
capture the market effectively. This theory is very effective for the organisation to achieve the
goals and objectives in the market. By using this model the company create new factors to
compete against different products and services in the market. This model is further divide into
two factors:
 Red Oceans – In this factor there are different industries which practice the same
operations in the market. The boundaries of this factor is defined by seeing various
factors. Hyatt hotel groups do their operations hospitality industry. They had to face
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competition from different hotel services in the market (Sørensen, and Jensen, 2019)
(Brouder, 2019). Hyatt groups always outrun their rivals in different ways by developing
new strategies in the market. The hotel groups is focused to achieve their goals and
objectives in the market. On the other hand, the hotel develop different opportunities to
carry out their operations smoothly in the market. Hyatt has to further improve their
services and enhance the customer experience.
 Blue oceans – In this factor there are only limited industries which are doing their
business in the market. This market is uncertain by the competition and the organisation
is developing different strategy to capture the market. Hyatt hotel groups know their
market space in hospitality industry. The organisation has created a path and they are
working towards it every single day. On the other hand the Hyatt groups of hotel could
innovate new ideas to capture this market. Their management has the necessary
experience and by using the right strategy the organisation has the capability to capture
the market. Blue oceans markets could give several benefits to the organisation. They
could generate adequate profits from the untouchable market by using the right strategy
and models.
There are different benefits of this theory which helps the organisation to
understand the market effectively-
 The organisation has the opportunity to capture the market first. They had the first mover
advantage.
 They organisation has the advantage to set the prices of the product without competitive
constraints.
 The organisation find flexibility from various directions
 The model provides a mechanism to decrease the risks and increase the opportunities of
success.
 It empowers the organisation through different set of tools and frameworks.
 It helps the organisation to execute different strategy.
CONCLUSION
From the above report, it has concluded that Hyatt hotel groups to could use different
theories and models to create new innovative ideas in the market. On the other hand, there is
discussion about different models which is Black box model, linear model to become more
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effective in the market. Along with that there will be discussion about different theories like
funnel and ocean theory to create a wide scope and study different opportunities in the market.
The report helps to analyse about different key points which helps the Hyatt groups to generate
more revenues in the market. They had achieved the inherent goals and objectives by using their
different resources in a systematic manner. For further instance, there is discussion about
multiple benefits of using the blue ocean model for the market.
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REFERENCES
Books and Journals:
Ouyang, X., Liu, Z. and Gui, C., 2021. Creativity in the hospitality and tourism industry: a meta-
analysis. International Journal of Contemporary Hospitality Management.
Hassi, A., 2019. Empowering leadership and management innovation in the hospitality industry
context: The mediating role of climate for creativity. International Journal of
Contemporary Hospitality Management.
Lee, C., Hallak, R. and Sardeshmukh, S.R., 2019. Creativity and innovation in the restaurant
sector: Supply-side processes and barriers to implementation. Tourism Management
Perspectives, 31, pp.54-62.
Broshi-Chen, O. and Mansfeld, Y., 2021. A wasted invitation to innovate? Creativity and
innovation in tourism crisis management: A QC&IM approach. Journal of Hospitality
and Tourism Management, 46, pp.272-283.
Magadán, M. and Rivas, J., 2018. Innovation, creativity and tourism. In The Emerald Handbook
of Entrepreneurship in Tourism, Travel and Hospitality. Emerald Publishing Limited.
Jawabreh, O., 2020. Innovation management in hotels industry in aqaba special economic zone
authority; hotel classification and administration as a moderator. Geo Journal of Tourism
and Geosites, 32(4), pp.1362-1369.
Shin, H. and Perdue, R.R., 2022. Hospitality and tourism service innovation: A bibliometric
review and future research agenda. International Journal of Hospitality Management,
102, p.103176.
Tajeddini, K., Martin, E. and Altinay, L., 2020. The importance of human-related factors on
service innovation and performance. International Journal of Hospitality Management,
85, p.102431.
Al-Ababneh, M.M., 2020. The concept of creativity: definitions and theories. International
Journal of Tourism & Hotel Business Management, 2(1), pp.245-249.
Sørensen, F. and Jensen, J.F., 2019. Experience innovation of tourism encounters. Tourism
Analysis, 24(1), pp.55-67.
Brouder, P., 2019. Creative tourism in creative outposts. In A research agenda for creative
tourism. Edward Elgar Publishing.
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Pesonen, J., 2020. Management and leadership for digital transformation in tourism. Handbook
of e-Tourism, pp.1-34.
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