BHAT2001 Report: Comparative Analysis of Marriott and Hyatt Hotels

This report offers a comprehensive comparative analysis of Marriott and Hyatt, two prominent players in the global hospitality and tourism industry. It begins with an introduction to both companies, highlighting their history, scale, and operational structures. The core of the report comprises detailed PESTLE (Political, Economic, Social, Technological, Legal, and Environmental) analyses for both Marriott and Hyatt, examining how external factors influence their business operations and strategic decisions. Following this, the report presents SWOT (Strengths, Weaknesses, Opportunities, and Threats) analyses for each company, providing an internal and external assessment of their competitive positions. The report further explores the competitive and operational environments of both Marriott and Hyatt, discussing their market strategies and challenges. The analysis covers aspects such as market positioning, competitive advantages, and operational efficiencies. The report concludes with a summary of key findings and insights, offering a balanced perspective on the performance and future prospects of Marriott and Hyatt within the dynamic landscape of the hospitality and tourism sector. The report aims to provide a detailed understanding of the strategic choices and challenges faced by these leading hotel chains.

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Running Head: HOSPITALITY & TOURISM 0

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Table of Contents
Introduction...........................................................................................................................................2
PESTLE analysis of Marriott.................................................................................................................2
PESTLE analysis of Hyatt.....................................................................................................................4
Swot analysis of Marriott......................................................................................................................5
Swot analysis of Hyatt...........................................................................................................................7
Marriott competitive and operational environment................................................................................8
Hyatt competitive and operational environment....................................................................................9
Conclusion.............................................................................................................................................9
References...........................................................................................................................................11

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Introduction
J. William and his spouse Alice opened a foundation beer in Washington. In today's time, this
business is one of the leading and powerful brands in the industry of hospitality. This
organization has 3800 hotels and restaurants in the US and in 73 nations in the world. This
organization has two operating groups that are Marriott lodging and the service group of
Marriott. The Marriott lodging generates sixty percent of organization revenue. Marriott
service assembly contract services operation. This organization is a partner with an
organization that has a membership of organizations within the industry of travel and tourism.
The objective of the travel and tourism industry is to deliver the knowledge and ability for the
expansion of practical solutions for a business at a responsible level. This organization is a
member of the global tourism corporation. This organization has contributed to the
sustainable design guide and hotel sitting for sponsorship and development of hospitality and
tourism. Marriott is supported and endorsed by the World Travel & Tourism Council (Baker,
2014).
Hyatt Corporation is a leading hotel organization in the globe. This is retained by the Pritzker
family of Chicago. This organization has developed a special concept. This organization is
located in the culturally rich towns around the globe. This organization is started in the mid-
1990s. This organization has opportunities for growth in timeshare properties, franchising,
casinos, and free-standing golf courses. This organization has taken entry in the corporate in
1957. Pritzker's family control and assembled the organization. The industry of hospitality
and tourism promoted tourism and travel. This facilitates many tourists by delivering many
hospitality services to them that improvise the time of touring. The group of hotels of
Marriott and Hyatt facilitate customers and members by delivering effective qualitative
services, destinations, and touring sites. The industry of tourism and travel is indorsed by
assemblies of Marriott and Hyatt hotels that are a sub-segment of the industry of travel and
tourism. These play an important role to promote the tourism and travel industry by provision
of superiority services regarding food, recreational activities, accommodation, tourist guides,
and attraction. This organization is located in a significant location globally as increase
potential changes in sites of tourist attraction and places more visitors pouring on a yearly
basis (Dyson, 2014). The following discussion will cover the SWOT, PESTLE analysis,
analysis of the competitive and operational environment.

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PESTLE analysis of Marriott
 Political
The main political factor can affect the Marriott that is critical for tourism, international
associations and the political environment in the popular destination of tourists. The risks of
politics vary from unexpected changes in political systems to civil disorder to the main
judgment that is taken by the government. The political influences take place and not affect
only the host nation but all nations that comprise operations of the trade or engage in business
with Marriott international. The entire systematic risk of politics may be exposed to relevant
factors that considered to take part in the investment. Laws that nation enforces regarding
business like a law of contract as dictate that Marriott is not allowed to do. The barriers of
trade that the host nation would protect the Marriott with potential partners of trade that harm
the organization by preventing potential exports (Graham, 2018).
 Economic
Economic factors are referred to as the national economy that Marriott such as modifications
in the rate of inflation, the rate of foreign exchange, the rate of inflation, the present stage of
an economic cycle, the gross domestic product. These factor impact on the aggregate
investment, aggregate demand, and climate of business. This makes the climate of business
more potential to make business more profitable. The rate of interest in the nations affects
that individual is like to borrow and capitalize. The rate at higher level results in good
investment that present more growth for Marriott. This rate of exchange impact the
profitability of Marriott that engage in international business (Leonard, 2018).
 Social
The social factor also affects the Marriott that is a direct consideration of society. This
organization operates in and belief, encompasses culture, values, attitudes that a large number
of the population embraces as a community. Social factor affects the operational aspect and
marketing aspect. The class distribution in the population is significant as the organization
promotes a premium invention to the public.
 Technological
This dismantles the structure of the price and competitive scene of the industry that is a very
short period of time. This has become more important to regularly and constantly transform
for maximizing potential profits and becoming a leader of the market that prevents

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obsolescence in the future. The technology impact on the cost of the organization that great
profit increases the level of profit and reinvested in research and development.
 Environment
The condition of weather may impact the Marriott ability to manage the conveyance of
resources and products. This affects the dates of delivery of the final product in unexpected
monsoon. This organization produces a large number of waste and according to the law
required to be managed by environmental habits. This consists fine of pollution and quotas
that can place a financial strain (Helms & Nixon, 2019).
 Legal
The policies of the organization are not enough to protect Marriott. The government places
discrimination laws to protect staff and confirm that everybody treated fairly. The
organization gives the same opportunities regarding age, gender, religion, and disability.
Laws of safety and health created to witness the horrible situations that employees enforced
to were forced to work in the industrialized revolution. This organization has placed laws to
witness the quality level at a reasonable level for specific products to retain the customers
safe and applies to discover their costs elevated.
PESTLE analysis of Hyatt
 Political
The factors of politics play a significant part in the economy of the nation. The major target
of Hyatt is to attract international tourism that hosts many different properties. The industry
of hospitality and tourism has a government backbone and government support to sustain a
competitive world. The government charges a great amount of tax on the star and superfluity
category of hotels. Changes in politics have a direct impact on the industry of hospitality and
tourism. There are many small steps taken by the government that inevitably affect the
industry of hotel. Government small steps inevitably affect the industry of hotels. The
government has also taken many steps that support industry growth (Panagiotu, 2013).
 Economic
The factors of economic like changes in taxation, growth of the economy, inflation. This is
the best to know that changes in economic leaves an important effect on the behavior of the
organization. The province of each nation or capital states has a wide number of travelers

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arriving for the workshops, conferences, deals of business, another purpose, and so on. Hyatt
worldwide tries to exploit travelers as they bring a large number of money with the potential
of expectation from five-star guesthouses. In today's time, guests pay more by the demand for
services. A large number of guests accommodated in hotels by services as more demand
support to pay more as the industry grows. The increasing number of guests and services
provided also requires to be good or luxurious.
 Social
Changes in social factors affect the demand for Hyatt products and services. The ability and
willingness of individuals to effort as a business hotel help to deliver many options that can
be availed. Room for single lodgers and bedrooms of twins proves to be effective for males.
A single bedroom or individual is preferable by females. Hyatt welcomes ten percentage
different classes of visitors and accessibility for each kind of room that is a plus point (Rauch,
2017).
 Technological factors
The technology of Hyatt is beyond the standards in the management of the hotel. This
organization uses a very effective software that meets all requirements of members of staff
and consumers. Hyatt has started to embed more defined technology. Visitors prefer the
Hyatt that is embedded with technology. This is considered more secure and safe. This
support to reduce the effort of work and increase result. This supports a benefit to humanity
that helps to develop property and advancement in the industry of hospitality and tourism.
 Environmental factors
Changes in the weather and environment have a direct effect on the Hyatt hotel. In severe
circumstances of weather, the organization applies taxes to achieve more friendly and
environmental products. This industry does not demand to generate factors that affect
credibility. Hyatt teaches many proper and effective measures to its employees that required
to be taken special training in emergency cases.
 Legal factors
The industry of the legal environment is important for Hyatt to grow. This organization has
faced many changes that affect organizational behavior. This includes laws of safety and

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health. This organization follows age. The law of discrimination has been excluded. The
impact of legal legislative law affects the industry of hotels.
Swot analysis of Marriott
 Strength
The largest strength of Marriott is strict devotion to operational standards. The code of
conduct of Marriott has been deliberated by the top board and each employee anticipated to
follow it. This organization is running in 127 nations with 6500 properties (Weihrich, 2012).
The operation philosophy of Marriott is preferred on the invention, procedures, innovations
and integrate a commitment to ensure total value for money. This organization is known as a
luxury brand by a base of loyal customers. This organization has purchased Starwood that
support organization to tap in the market of Asia pacific. This has generated possibilities to
reduce costs. The benefits of purchase are in the form of penetration and synergies in the
market. This organization is the top-ranked and most innovative according to fast company
and Forbes.
 Weakness
This organization is on the aggressive expansion that drives domain at a high level to
maintain impossible standards of services by the result that the product is diluted. These
norms have carried down the employee’s morale. Image of Marriott merged by regular
controversies. The newest is obstruction of private Wi-Fi of customers that stating privacy
risks. According to the founder business of Marriott always will be a business of the family.
The business of an organization is rooted in the ethics of family and unwilling to change
(Weihrich, 2019).
 Opportunities
People around the globe are open to residing in luxury hotels when they go on traveling with
family and seen in developing economies. A large number of people are traveling on exertion
and desire has increased. In today’s time customers like personalized attention and like to
pay for it. This organization charges a superior for each personalized service (Wilson, et al.,
2012). This refers that an organization can charge a premium cost for each personalized
service. A large number of people around the globe are now more exposed to stay in a luxury
hotel while traveling with families. This has become a trend in developing economies. It has
generated an opportunity that an organization like Marriott cannot afford to miss.

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 Threat
This factor in the atmosphere can be harmful to business growth. This organization faces a
large number of competition from brands like Novatel, Hilton, and so on. These are in a
constant pursuit to become like a leader of an organization. The recession at the global level
has hit the Marriott. The recession at a global level has hit the business of hospitality and
tourism and a large number of properties are out for the sales in the market and not capable
enough to build revenue. Properties that are star-rated around the world are facing a high
amount of risks from groups of terrorists.
Swot analysis of Hyatt
 Strength
Hyatt has outlets in almost every state and supports a strong network of distribution that
provides surety that the product of the organization are available for the customers as per the
time. The structure of the cost of Hyatt is support to produce low prices and vend products at
a low cost. This organization product maintains quality and valued by customers (Porter,
2018). It has an effective track record of evolving new products through innovation in new
products. This organization has gotten effective success by going to strategies of the market
for its products. This organization has developed many expertise to generate an effective
stream of revenue in diversifying economic cycle risk. This organization is continuously
executed new products and built new projects by effective revenue streams.
 Weakness
Hyatt is disbursements more than the usual research and development expenses on the
industry. This organization is disbursements less than compared to a few players in the
business that have an important benefit as a result of innovative products. A current ration of
the organization presents the ability of the organization to meet the obligation in the short
term. This shows that the organization will have the problem of liquidity in the future.
Integrating organizations with different cultures of work are not successful. This organization
is planning to invest that needs more amount in technology to integrate procedures around the
globe.
 Opportunities
A large number of users has increased on the internet across the world. The organization has
the opportunity to expand its online presence through the use of the internet to relate with

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customers. A large number of social broadcasting users has increased across the globe. Social
media platforms are Instagram, Twitter, and Facebook. This organization can use this
platform to promote products (Chandler, 2015). This organization has invested a large
amount in the online platform. This has opened many channels for Hyatt and support to serve
customers better. It has a stable flow of cash and generates options to invest in adjacent
segments of the product. Hyatt has more cash in the organization bank. Thin will support the
organization to invest in new technologies in segments of new products.
 Threats
The competitors of Hyatt have developed new technologies that can lead to a decrease in the
market share of Hyatt. The supplier's bargaining power has increased as inputs case can be
increased for the organization. The taste of customers is regularly changing that needs
compliance by the organization to operate globally. The competitors of Hyatt has increased
promotion and bombarded with many messages. It reduces the effectiveness of promotional
messages (Williamson, 2015). Many of the competitors have developed new technologies
that are a very serious threat to the organization. The pay level scale has increased and lead to
severe pressure on the effectiveness of the organization. Highly profitable product demand is
very seasonal in the environment and events in peak season can impact the effectiveness of
the organization.
Marriott competitive and operational environment
Regular change has a good and positive impact on the Marriott and observed by the economic
realms. This organization has a large number of competitors that make the organization top in
the business line. This organization regularly believes in long-term success by more than 80
ages of experiences, preference of customers, strong brands, and an effective model of
business. This organization has 3400 franchise and manage properties around 18 brands in 70
nations that spanning across six continents. This organization has more than 137000
employees that supported to generate more than $11 billion sales. This is expected to grow
regularly in the coming years (Wrigley, 2019).
This organization has developed exponentially by the product quality and services delivers to
customers. This adopted many innovative technical programs to support the requirements of
customers in problems. This organization focuses to improve the experience of customers
that support differentiating operations from competitors. This organization has proven its
strategies of managing and franchising of hotels by having full possession. Franchised

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properties of the organization forego direct control on employees and struggle to build upon
the preservation and internal procedures. The minimization of investment of capital and
expenses allowed the organization to for cash flows and flexibility at a financial level with a
strong determination of growth. This operation of the organization is to confirm that
belongings are up to par by the standards of the brand (White, 2013).
Hyatt competitive and operational environment
The standards of quality are very far from lenient. This support the Hyatt to take competitive
advantage. This is one of the most respected brands in the market and grow as a principal
hospitality leader. Hospitality and tourism brand maintain and cater to all the luxury
requirements that guests needs. The many services of the organization full focus on the entire
quality and provide affordability to customers. The quality at a higher level is maintained by
strict agreements of the franchise by having owners and managers to follow strict guidelines
from the brand. This organization continuously refine the business model, innovate its brands
and have the art to take care of customers. This organization continuously focuses on making
the products more effective compared to competitors. This organization remains a leader to
develop innovative ways by improving the experience of customers and the procedure of
conducting business. This organization has mentioned many programs to deliver valuable
customer services compare to competitors. It has developed a tool of auditing to handle
expensive renegotiation entreaties from customers (Smith & Holder, 2018).
This supports customers to receive the lowest values that coincided with the current state of
the market. This qualified as an inexpensive advantage and organization edge. The operation
of the organization is responding to customers' needs and regularly identify and provides to
changing requirements. This organization takes regular steps to excel in the operational
environment by effective delivery of quality services and meets customers’ requirements by
delivering incomparable attention to customers. The operation of the organization depends on
the feedback of customers and enhance customer loyalty and satisfaction. This organization is
committed to delivering a quality level that supports to keep customers back for business and
pleasure. Hyatt is respected in the industry of hospitality and tourism and admired as an
organization that clearly the dominant the value of the brand of the organization and has a
large number of customers agree to this (Symonds, 2011).

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Conclusion
This paper discussed the Marriott and Hyatt Swot analysis and Pestle analysis. This supports
the organization to take the more important strategic decision to improve the customer’s
services and market by expanding global reach. These organizations regularly take many
initiatives to improve services. In the limelight of the discussion, it can be said that Swot
analysis presents a strong impact on the performance of both the organization. A swot
analysis lists all the strengths, weaknesses, opportunities, and threats of Marriott and Hyatt.
To overcome the limitations organization develop appropriate strategies to advance its
analysis. This discusses both the organization's competitive environment and operational
environment that helps to promote business by targeting and attracting a large number of
customers. Both the organization operated in many nations and has a good preference for
customers and known as a famous luxury hotel around the globe.

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