Hyatt Hotels Strategic Analysis: Hospitality & Tourism Management

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H O S P I TA L I T Y A N D
T O U R I S M M A N A G E M E N T
B A S E D O N T H E C A S E S T U D Y O F H Y A T T
G R O U P O F H O T E L S
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AGENDA OF THE
PRESENTATION
Description of the case study
related to Hyatt group of hotels
Identified issues such as
political factors, economic
factors, socio-cultural factors,
technological factors
Strategic recommendations
Conclusion
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CASE STUDY
OVERVIEW-1
Hyatt hotel is one of the most
popular and developed group of
hotels covering more than 750
locations around the world
(Hyatt.com 2019)
This organisation was developed in
1957 in Los Angeles and today it
has 7 product lines for its customer
base around the world (Hyatt.com
2019).
This company has also been
named as the seventh most
customer friendly organisation
(Hyatt.com 2019).
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CASE STUDY
OVERVIEW-2
Despite that several concerns are
affecting the business and
customer relations of this product.
Political, economic, socio cultural
and technological aspects are
primary among them, improvement
of which is required by the Hyatt
group of hotels.
Besides, the weaknesses and
threats identified in SWOT analysis
determines the need and
requirement of the organisation for
the growth of the organisation
(Sharma and Mishra 2018).
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SUMMARY OF
IDENTIFIED ISSUES-1
Political factors:
1. Local governmental tax policies affects the operational costs.
2. Trade policies of governments affect the organisational structure
3. Local region civil rights act modifies the workplace policies of the
core organisation.
Economic factors:
1. Global economic crisis has increased complications in attracting
consumer base.
2. People are now looking for low cost hospitalities to reduce their
costs of travelling (Sharma and Mishra 2018).
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SUMMARY OF
IDENTIFIED ISSUES-2
Socio-cultural factors :
1. The new generation focus more on experience than
their usage
2. Global crisis has affected the loyal customer base of
the organisation.
Technological factors:
1. High price of Hyatt group of hotels do not attract the
customers that prefer to book hotel online.
2. Bad reviews and negative comments also increased
the complication pr the hotel group.
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SUMMARY OF
IDENTIFIED ISSUES-3
SWOT analysis:
1. Lack of investments has minimised the expansion of
technologies.
2. As per Agarwal and Das (2019), majority of the online
booking portals do not include this hotel group for its
high price
3. New and economic entries of group of hotels affected
the organisation and its reputation by capturing its
market base.
4. The inability of the organisation to accept local
policies has affected the smooth market expansion for
the organisation.
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STRATEGIC
RECOMMENDATIONS-
1 To overcome the political concerns of the organisation,
the Hyatt group of hotels should focus on the food, fire,
safety and civil rights of the local region, and impose
them strictly.
The organisation should focus on reasonable food,
lodging, and travelling related expenses for millennial or
younger customers that focus on reasonable and quality
travel options.
The organisation should focus on developing quality
means for effective development of customer relations
so that user experience could be enhanced.
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STRATEGIC
RECOMMENDATIONS-
2 Organisation should focus on its presence of travelling
and online booking portals and for that should focus on
developing partnership with these famous portals so
that consumers could observe its presence globally.
Should invest in developing cost effective version of this
hotel chain so that consumer base could be developed
and quality service could be provided in cost effective
manner (Chan, Ye and Xu 2016).
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CONCLUSION
This presentation effectively
mentioned the case situation
of Hyatt hotel and residency
and mentioned its primary
concerns related to its micro
and macro environment.
With identification of several
concerns, it provided a
degree of solutions so that all
these threats and
weaknesses identified could
be mitigate.
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REFERENCES
Agarwal, M. and Das, P., 2019. Green Hotels: An Overview. Boston
Hospitality Review, 7(1).
Chan, D., Ye, T. and Xu, H., 2016. Localization of senior managers of
international luxury hotels in China: The current situation and
influencing factors. Journal of China Tourism Research, 12(1),
pp.126-143.
Hyatt.com, 2019. About the Company. Available at:
https://www.hyatt.com/ Accessed on 3rd June 2019.
Sharma, S. and Mishra, P., 2018. IMPACT OF CORPORATE SOCIAL
RESPONSIBILITY PRACTICES ON THE CORPORATE PERFORMANCE OF
LUXURY CHAIN HOTELS. Journal of Services Research, 18(1), p.47.
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