Hospitality Marketing Report: Analyzing Hyatt Hotel's Strategies

This report provides a comprehensive analysis of Hyatt Hotel's marketing strategies, focusing on the core concepts of marketing and its practical application within the hospitality industry. It begins with an overview of Hyatt Hotel and defines the fundamental concepts of marketing, followed by an examination of different marketing processes. The report explores the role of marketing, detailing its key responsibilities such as market research, budget management, communication, and customer relationship development, and how these functions interrelate with other departments like finance, human resources, and sales. It also analyzes the marketing environment, including political, economic, social, technological, and legal factors. The report further examines how Hyatt Hotel uses the marketing mix (7Ps) to achieve its overall business objectives, evaluating different tactics employed. The report concludes with a critical analysis of the key elements of the marketing function, including research, strategy, planning, and tactics, and how they contribute to the success of the hotel. The report provides valuable insights into how Hyatt Hotel navigates the marketing landscape to achieve its business goals.

Unit 15: Hospitality Marketing Essentials

Table of Contents
Introduction...................................................................................................................2
Overview of Hyatt Hotel................................................................................................2
Concept of Marketing....................................................................................................2
Different Marketing processes......................................................................................3
LO1 Explain the role of marketing and how it interrelates with other functional units in
a hospitality organisation..............................................................................................3
P1 Explain the key roles and responsibilities of the marketing function within a
selected hospitality organisation...................................................................................3
P2 Discuss how roles and responsibilities of marketing relate to the wider
organisational context...................................................................................................4
M2 Analyse the significance of interrelationships between marketing and other
functional units within a selected hospitality organisation............................................4
M1 Analyse the roles and responsibilities of marketing in the context of the marketing
environment..................................................................................................................5
D1 Critically analyse the key elements of the marketing function and how they
interrelate with other functional units within a selected hospitality organisation..........6
LO2: Compare ways in which hospitality organisations use elements of the
marketing mix (7Ps) to achieve overall business objectives........................................7
P3 Compare the ways in which different hospitality organisations apply the marketing
mix to the marketing planning process to achieve business objectives.......................7
M3 Evaluate different tactics applied by hospitality organisations to demonstrate how
business objectives are achieve.................................................................................10
Conclusion..................................................................................................................10
References.................................................................................................................11
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Introduction
Marketing is considered as an essential tool within the contemporary hospitality
organisations including the understanding of the market place, consumer’ s demand,
creation of the marketing strategy which is directed by the consumer, development of
the cost-effective relationships and delivering quality to the customers. The
hospitality organisations have accepted the importance of the relationship with the
customers and are also making efforts to acquire a novel approach to the marketing
strategy. This report is aimed towards having an understanding of the role of
marketing and the ways in which it is interconnected with the other functional units in
a hospitality organisation. Moreover, it also provides a comparison of the ways in
which the hospitality organisations make use of marketing mix to attain the
objectives. For this reason, the organisation that has been selected is Hyatt Hotel.
Overview of Hyatt Hotel
Hyatt Hotel is among the largest hotel chains throughout the world having about 843
properties and 208,207 rooms. Hyatt was established in 1957 by Jay Pritzker. In
1962, the company became a public company and in 1968, it became a private
company. In order to digitalise the experiences of the customers, the hospitality
organisations have now launched apps for managing their services and also for
controlling various features of the customer cycle as well as experience. For
enhancing the customer experience, the use of augmented reality within the
hospitality industry has been considered to increase.
Concept of Marketing
Marketing has been regarded as the management of profitable consumer
relationships. The purpose of marketing is the creation of value for the customer and
in turn taking value from the customers. The objectives of marketing involve the
attraction of new consumers by promising higher value and increasing the number of
existing consumers through the delivery of satisfaction. Marketing has been defined
as the set of institutions, activity, and the procedures for making, delivering,
communicating as well as substituting the products or services having value for
clients, customers, partners, and society.
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Different Marketing processes
The marketing process comprises of four components including strategic marketing
analysis, marketing mix planning, implementation of marketing, and marketing
control. Strategic marketing analysis is the procedure of planning, developing and
implementation activities for acquiring the competitive advantage within the selected
position. The marketing mix is regarded as a set of strategic marketing tools that can
be utilised by the organisations for the generation of anticipated response from the
target market. Marketing implementation is the procedure of turning the marketing
plans into actions ensuring that the actions are implemented in such a way that
achieves set objectives of the plan. Marketing control is the procedure of monitoring
the anticipated plan with their progress and making the required adjustments.
LO1 Explain the role of marketing and how it interrelates with other functional
units in a hospitality organisation
P1 Explain the key roles and responsibilities of the marketing function within a
selected hospitality organisation
The marketing function can be described as the roles of the organisations which
provide help in determining and supply of the potentially profitable products for
market and it also provides assistance in their promotion. The common functions in
the organisations involve market research, planning of product, product promotion,
process of development, sales, finance, customer service, etc. The functions of
marketing have distinctive responsibilities and are also accountable for
organisational growth. The major roles and responsibilities of marketing functions of
Hyatt Hotel involve market research, marketing budget, marketing communication,
and develop customer relationships, etc.
Market Research – For market research, Hyatt Hotel acquires the figures of
occupancy, average rate, and the revenues from the adjoining areas of the hotel
from different consulting organisations and through different internet sources. This
gives an indication of the development of the market. Hyatt hotel also carries out an
in-depth summary of the competitors. It also visits the websites of the adjacent hotels
for obtaining the figures of the data of passengers.
Marketing Budget – The marketing budget helps Hyatt Hotel to follow the plan and
avoid the unpredicted cost-reducing the possibility of overspending. It also provides
assistance in determining the ROI for numerous aspects of the marketing plan. Hyatt
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Hotel determines all costs regarding marketing activities including, advertising, public
relations, staffing, branding, etc (Punjaisri & Wilson, 2017).
Marketing Communication - The marketing channels utilised by Hyatt Hotel are
managed and it also develops and manages all definite assets, standards and
guidelines of the brand communication are also sustained. It also offers well-timed
reports regarding marketing success, opportunities as well as the strategies at
distinctive level.
Develop Customer Relationships – In order to develop a steady revenue base and
to ensure the increased levels of repeated business, Hyatt Hotel has developed
strong customer relationships. For this, the hotel has developed the customer loyalty
program which rewards the guests who stay at hotel on a regular basis. The loyalty
program is targeted at the corporate customers, individual guests, visiting customers
and huge number of traveling staff (Noe, et al., 2017).
P2 Discuss how roles and responsibilities of marketing relate to the wider
organisational context
M2 Analyse the significance of interrelationships between marketing and other
functional units within a selected hospitality organisation
The interrelations among the roles and responsibilities of marketing and other
functions of the organisation can be regarded as marketing functions are the
elements of the hospitality organisation and hence the other units and functions are
related to one another. The marketing function needs the support of the other
functioning departments of the organisation in order to perform efficiently. In case
Hyatt hotel wants to plan and implement the marketing plan, it will require the
support from the financial department, human resource department, sales
department, and the production department (Tajeddini, et al., 2017).
In addition, in case Hyatt hotel’s marketing team wishes to provide a discount on the
booking of certain number of rooms, the marketing team will need to communicate
with the finance department. The hospitality organisation has different marketing
functions, whereas, all of the functions and departments in Hyatt hotel are linked
together for increasing its profitability. The main purpose of marketing is to increase
profitability by enhancing the sales of the organisation. Hence, it can be achieved by
the contribution of all departments and functions of the hospitality organisation. The
finance department provides the appropriate budget to the marketing department in
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order to plan and execute the marketing plan. The food production department
interacts with the logistics department of meeting the demand and supply of the
services and products. The human resource policies are established according to the
market trends, target customers, as well as sales. Therefore, all of the functional
units in a hospitality organisation are interrelated to one another for bringing the
marketing plan that is profitable (Mishra & Modi, 2016).
M1 Analyse the roles and responsibilities of marketing in the context of the
marketing environment
Marketing is the major feature of the products and services of the organisations. The
appropriate marketing strategy enables businesses to attain their goals as well as
competitive advantage. In order to evaluate the business environment, organisations
carry out numerous long and short term analyses. The political factors function as
the barrier to the exit and entry for the planning and strategies of Hyatt Hotel. The
political environment is regarding present government of the country within which the
hospitality organisation has been operating. For the successful operation of Hyatt
Hotel and marketing, the political matters and the unfavourable and favourable
conditions of the country are significant. Marketing is considered to be directly
associated with economic factors. As, if the economy is not progressing or steady,
then the hospitality organisation cannot promote its services and products in an
appropriate manner. In majority of the situations, the economic factors are intermixed
with the political factors (Mishra & Modi, 2016).
The marketing strategy is positioned to have an understanding and to evaluate the
culture and society of the market which is catered by the hospitality organisation.
The social factors include domestic markets, population trends, demographics, and
cultural trends. These factors help Hyatt Hotel to evaluate the market and create the
products or services consequently. Technology is considered to have huge impact
on marketing. The marketing strategies must highlight technological advancement as
technology is considered to provide strength to the business framework of Hyatt
Hotel. If the environment is not favourable for the organisation, then they cannot
market efficiently. The location of the hospitality organisation also influence its
marketing plan as the climatic changes and the needs of the customers for specific
offering can also be a challenge. The legal policies related to the laws of quality and
safety and rules of marketing along with the customer laws are barriers for the
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hospitality organisations during the marketing of the products and services
(Armstrong, et al., 2018).
D1 Critically analyse the key elements of the marketing function and how they
interrelate with other functional units within a selected hospitality organisation
The marketing function enfolds numerous distinctive functions, for instance,
distribution system, finance, advertising, etc.; however, these are the activities that
are subjected to the marketing process. Following are the key elements of the
marketing functions:
Research – The market research within Hyatt Hotel plays a significant role. It is
regarded as one of the most vital function of marketing due to the reason that it
cannot function efficiently without effective market research. The research provides
assistance in attaining useful information related to all of the factors regarding the
business procedure. Research not only help in acquiring the market information but it
also provides assistance in attaining resources, raw materials, finance as well as the
other business predictions. Therefore, it is regarded as a significant function of
marketing between business organisations (Ellis & Derera, 2019).
Strategy – Once all the data and information have been accumulated by the
research, it is then administered to evaluate all of the potential strengths and
weaknesses among the operations of the hospitality organisation. The processed
data then enables Hyatt Hotel to identify the strategies which it can utilise. The
strategies offer useful guidance in order to compete in a strong market and become
successful in the market. The strategies are developed on the basis of the realistic
probabilities and the results which are measured by the help of the research.
Planning – When the research and strategy processes are completed, the planning
process is the next key element. The marketing department includes sales
forecasting, financial planning, distribution communication and the other factors of
the organisation. The planning department makes use of a particular timeline in
order to plan significant strategies in order to transform the goals of the hospitality
organisation into profitability.
Tactics – Tactics is the fourth major role in the marketing function. These are the
short term or small plans which are deployed for attracting the target customers.
They also involve offers for the limited time period which provides the promotional
enhancement in the marketing plan, for instance, Buy one get one free offer. This
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provides assistance in the accosting the pressure from the competitors and increase
the sales (Liu, 2017).
LO2: Compare ways in which hospitality organisations use elements of the
marketing mix (7Ps) to achieve overall business objectives
P3 Compare the ways in which different hospitality organisations apply the
marketing mix to the marketing planning process to achieve business
objectives
Within the marketing planning process, the marketing mix is applied to achieve the
objectives and goals of the organisation. The hospitality organisations utilise
distinctive methods to implement marketing mix. Generally, it is dependent on
market size, market demographics, size of the organisation, and the products and
services of the organisation. The marketing mix tool provides help to marketers in
order to have an understanding of the product. The most common implementation of
the marketing mix involves 4 Ps of marketing which involves price, product,
promotion and place. This approach was then extended to the 7Ps of marketing
including price, product, people, promotion, physical evidence, place and process
(Loo & Leung, 2018).
The element of 7 Ps Hilton Hotel Hyatt Hotel
Product Hilton hotel offers various
services including food
and beverage service,
meetings, wedding and
banqueting facilities
together with the services
for the special events, etc.
The major products are
hotel rooms where the
consumers can stay for a
certain time period.
Hyatt hotel provides
authentic and luxurious
hospitality services
including restaurants,
bars, uninterrupted Wi-Fi
connections, extensive
food and beverage
options, spacious room
having modern facilities,
etc.
Price Hilton wants to maintain
the reputation by the
provision of high-quality
services; therefore, it
Hyatt Hotel is focused on
providing the best
services and products
within a luxurious setting.
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makes use of premium
policies for expensive
services. The team of
researchers and experts
decide the pricing for the
services through the well-
researched approaches.
The prices are higher in
the peak season and the
pricing strategy is reliant
on the discrimination in
the prices on the basis of
traffic season.
Place Hilton hotel offers
luxurious services across
the world. The properties
of Hilton are owned and
managed under the
banner of the Hilton. They
have also developed
spots nearby airports
which have made it
accessible for the
travelers and business
individuals.
Hyatt Hotels has hotels
that are spread across the
world. It has hotels and
resorts certain prominent
places including Hong
Kong, Manila, Boston.,
Atlanta, Tokyo, etc
(Siakalli, et al., 2017).
Promotion In order to stand away
from the crows, Hilton
hotel has selected
different promotional
activities. It provides
membership to the
customers. It has a
dedicated team and the
staff is also focused on
the marketing strategies
to cause new indulgence
within market (Ofosu,
2016).
Hyatt hotel has also
developed the top mark
marketing strategy which
is particularly designed for
the development and
maintenance of the brand
value and positive
awareness. It also has the
reward program which
provides discounts and
promotions to the
members.
People The reputation of an The staff of Hyatt hotel is
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organisation is considered
to be in the hands of the
employees. Hence, it is
significant that the
employees must be well
trained and the
appropriate individual
should be selected for the
right job role.
responsible for playing a
significant part in
delivering an enjoyable
experience to the
customers. The
employees are friendly
and hospitable and
efficient within their job
role.
Physical Evidence The physical evidence
offered by the
organisation should have
the ability to guarantee
the assertion of the
customers. Hilton Hotel
also has a Facebook
page and Twitter account
which has offered great
advantage.
Within the context of
hotels, the physical
evidence is regarded as
the interior decoration,
architecture, and the
location. Hyatt Hotel’s
physical evidence can be
defined by modern
experience.
Process Hilton has developed an
online reservation and
booking system which
has enabled us to save
time as well as money.
This has also helped in
achieving customer
satisfaction (Ray, et al.,
2017).
The mission of Hyatt
Hotel is to develop
delighted and satisfied
customers. It has well-
established processes for
its each and every task
along with the separate
processes for each of the
operation (Loo & Leung,
2018).
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M3 Evaluate different tactics applied by hospitality organisations to
demonstrate how business objectives are achieved
In order to attain the marketing objectives, different hospitality organisations make
use of different tactics based on their organisational culture. Various hospitality
organisations are now providing family packages where children under certain age
limits are free and along with this they will be provided all of the children stuff free of
cost. Some hotels also offer free lunch on weekend and free drinks with every lunch.
Certain hospitality organisations are also offering last-minute deals allowing the
consumers to book the hotel rooms at last minute and not charging extra price.
Various hospitality organisations have also been providing free spa services to make
customers more relaxed during their stay. Hotels have also been providing group
offers where the groups of certain number of people can attain discount or
complementary services (Ahmad, et al., 2019).
Conclusion
The marketing function is regarded as roles of the organisations which provide help
in determining and supply of the potentially profitable products for the market and it
also provides assistance in their promotion. All of the functional units in a hospitality
organisation are interrelated to one another for bringing the marketing plan that is
profitable Marketing mix is applied to achieve the objectives and goals of the
organisation. The hospitality organisations utilise distinctive methods to implement
marketing mix.
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