Answer To: ASSESSMENT BRIEF___________________________________________________ Page 1 of 2 Subject Title...
Bichitrananda answered on Nov 16 2021
REPORT ON HYATT’S STRATEGY
Table of Contents
Executive Summary…………………………………………………………………………...3
Introduction…………………………………………………………………………………...3
Marketing Strategy……………………………………………………………………………5
Competitive strategy…………………………………………………………………………..6
Findings………………………………………………………………………………………..7
Conclusions……………………………………………………………………………………8
Recommendations……………………………………………………………………………..9
References……………………………………………………………………………………11
Executive Summary
Hyatt Corporation is one of the elite brands in the hotel industry and has been around for a long time. The brand has expanded into resorts and other aareas of the hospitality industry. The Corporation is a conglomerate of more than 12 brands with different segments. The current strategy of the Brand is being discussed in the report and there are three recommendations to improve the Hyatt strategy as it operates globally with macro-economic challenges. The three strategies are to increase loyalty programs as they’ve been widely successful and continued to attract tourists all over the globe. The second strategy is to focus on the digital strategy by adopting new techniques based on the advancement in technology and also the expansion strategy of Hyatt can be accommodated in the brand segmentation to enhance the services of upscale brands.
Introduction
Jay Pritzker is the founder of the Hyatt Hotels, and the corporation was founded in 1957 along with his brother Donald Pritzker. Hyatt has its headquarters in Illinois, Chicago. The Hyatt Regency was added to the New York Stock Exchange in 2009. The Hyatt corporation has been a part of the Pritzker family with two separate entities Hyatt International Corporation and Hyatt Corporation. The two separate entities became one corporation in 2004 as the Hyatt Hotels Corporation. Hongkong was the first international location for the Hyatt Regency in 1967. The Hyatt Hotel Corporation has grown over the years, and they are the first hotel in the United States to expand into the international market. The current CEO Mark Hoplamazian has made significant changes to engage more with customers and drive growth in this area. Hyatt has established its brand portfolio with multiple sub-brands under the Hyatt corporation like Hyatt Regency, Grand Hyatt, Park Hyatt, Hyatt Ziva, and Hyatt Zilara. Hyatt operates in more than 60 countries around the globe and employs more than 100,000 people in the 6 continents.
Organization Structure of Hyatt
The Organizational Structure of Hyatt is a divisional structure where the functions like marketing, operations, sales, and human resource are divided into different departments under the main head which includes the Chief Financial Officer, Chief Human Resource Officer, General Counsel, and Secretary, Global President of Operations, ad Executive Vice President. The officers that head the divisions answer to the board of directors. The board consists of 11 members that have the Chief Executive Officer – Mark Hoplamazian, Chairman- Thomas Pritzker and other directors include Paul Ballew, Susan Kronick, Mackey McDonald, Cary McMillan, Pamela Nicholson, Jason Pritzker, Michael Rocca, Richard Tuttle, and James Wooten. The divisional heads under the board of directors control the marketing, operations and sales divisions. These functional divisions under the Chief Financial Officer- Joan Bottarini include Transaction head, Tax consultant, Financial shared services and Capital Strategy and Development. The Chief Commercial Officer is in charge of the departments such as Salesforce, Digital, Commercial, Well-being, and Commercial division. Under the Global Head of Operations, Departments from Asset management, Construction, Development & Operations, Lifestyle Operations, Field Operations, and Guest Customer Experience. The Group President of America and Group President of Asia-Pacific head the functions of Finance and Operations based on the location. The brands such as Park Hyatt, Beijing, and Park Hyatt, Shangai function under the Global President of Asia-Pacific (Board).
Marketing Strategy
Marketing is a key element of Hyatt’s strategy and it has contributed immensely to the expansion of Hyatt as a global brand. Hyatt has different segments of brands that cater to various segments of the customers.
Segmentation & Targetting:
Luxury Brands- Andaz, Park Hyatt, UB, Alila, Grand Hyatt, Mirawall and Thompson’s Hotels (Hyatt, 2019). The luxury brands serve the customer segment of rich clients and the demographic includes the wealthy. The Hotels under these brands range up to 250 rooms.
Upper Upscale Brands- Hyatt Regency, Hyatt Centric, UB and Destination Hotels come under this category. This category targets the family demographic and provides their services to them. The Upper Upscale Brands have rooms ranging up to 2000 in the count and depend on the location.
Upscale brands- This category serves the customers that have a slightly lower budget than the Upper Upscale brands. The brands such as Hyatt Place, Hyatt House, Joie de Vivre, and Caption come under this category. The rooms range from 150 to 300 in number. The upscale brands have fewer rooms compared to the Upper Upscale and Luxury brands. The upscale brand targets customers in the middle-class society and the upper class.
Positioning
Hyatt Hotels Corporation has positioned itself as a luxury, premium brand and a full-service boutique brand (Staff, 2013). By...