Hyatt Hotels Corporation SWOT and PESTLE Analysis

Strength

1. Properties in strategic locations: Most of the hotels under Hyatt Regency are located near the airports. The first-ever Hyatt Hotel was opened near Los Angeles airport, from where the chain was expanded to San Fransisco with a luxury hotel near San Fransico airport. Also, most of the full service hotels are located in the key markets which includes major business centres and famous leisure destinations, such as London, Chicago, Mexico City, New York, Paris, San Francisco, Miami, Seoul, and Zurich. Because of their strategic location, Hyatt is preferred by many professionals across the globe. Moreover, the unconsolidated hospitality ventures of Hyatt include near about 50 percent ownership interests in properties in Sao Paulo and Mumbai.

2. Strong brand portfolio and brand recognition: Established in 1957 by Hyatt Robert von Dehn and Jack Dyer Crouch, Hyatt is one of the oldest luxury hotels chains. Because of the unmatchable heritage, it is recognized by many. The brand retention and recognition are quite powerful for the brand. With 539 hotels in USA and Canada,42 in Latin America, 42 in Europe, 22 in Africa & middle east, 131 in Asia and 9 in Australia and Pacific, it is a very well known hotel chain. The brand carries a wide variety of product line under its umbrella. The product line consists of full-service lodging, select service lodging, extended stay lodging, all-inclusive resorts and timeshares catering to different needs of the customers. Such diverse product portfolio makes the brand Hyatt risk reverse to a very high extent with a comparatively lower value of beta. Also, Hyatt has consistently received top rankings, honors, and awards for administration and services from independent productions and reviews, including Condé Nast Traveler, Travel and Leisure, Forbes, AAA, and J.D. Power which makes a it a quite reliable brand.

3. Extremely loyal consumer base: Hyatt has a very loyal customer base. There are different kinds of plans that are provided by Hyatt to its customers for a higher rate of customer retention. Recently only the vice president, Jeff Zidell, in an interview said, ”The more we understand our guests, the better we can care for them and design unique experiences with them in mind”. The customer always has been the topmost priority for the Hyatt, which makes customer stick to the brand.

4. Diverse exposure to hotel management, franchising, ownership, and development: Hyatt's unmatchable experience as a multi-brand manager, franchisor, proprietor, and developer of hotels makes it a standout amongst the others. Hyatt's unique blend of managed, diversified, and claimed properties gives a broad and diverse base of incomes, benefits, and money streams and gives it flexibility to assess opportunities over the lines of business.

Weakness

This section is available only in the 'Complete Report' on purchase.

Opportunity

This section is available only in the 'Complete Report' on purchase.

Threat

This section is available only in the 'Complete Report' on purchase.

Political

This section is available only in the 'Complete Report' on purchase.

Economic

1. Economic growth in emerging markets: The labor market has continued to grow stronger and with it consumer spending. The fastest growing economy was Turkmenistan, at 67 percent, closely followed by Mongolia at 63 percent and Ethiopia at 61 percent. Because of such growth in the economies, they become a very lucrative market for Hyatt and alike. As the per capita income increases, so increases the spending capacity of individuals, the more they spend on luxuries, more profitable it becomes for Hospitality Corporation like Hyatt.

2. Strong growth in US travel market: The US travel market is among the main recipients of a swelling worldwide traveler pool. In the course of recent years, worldwide arrivals into the United States grew 72 percent—from 55 million to 76 million. In blend with other key development drivers, this deluge of spending drove the aggregate US market, involved six portions including airlines, lodging, car rental, cruise, rail, and travel bundling to hit a record $353 billion out of 2017.Strong five percent growth is estimated for 2018, setting the business on course to hit a record-breaking $370 billion by the end of the year.

3. Threat of unstable economic growth: The hospitality and tourism sector experienced numerous challenges as a result of the global economic crisis in the year 2008.People generally tend to cut down on the traveling cost in such times which correspondingly affects the tourism and hospitality service. Third-quarter profit fell 28 percent at Hyatt, which is considered an industry bellwether because of its big global presence and its wide range of hotel brands. So, corporations like Hyatt should become proactive and develop appropriate measures to deal with such situations. One of the solutions to this can be diversifying the business globally so as to minimize the effect of recession effected area on overall revenue.

Social

This section is available only in the 'Complete Report' on purchase.

Technological

1. Effortless price comparison: The travel booking world has been experiencing a noteworthy change, because of the technological advancements and advanced devices which made the travel consumers' voyage go on the web. Whatever triggers the particular trip choice – the purchaser will presumably incorporate an essential online segment of exploring and booking. Indeed, almost 66% of US web clients’ explored travel by means of advanced diverts in 2013, as per eMarketer. Because of increasing trend of online involvement by the consumers, it becomes essential for hotels as well to indulge in the trend and improve their market presence. Hyatt has already marked its presence on such platforms but generally the website visitors are a bit price conscious. In such circumstances, it becomes essential for Hyatt Corporation to improve services consistently in order to retain the consumer base.

2. Online reviews and campaigns: The prevalence of online networking has fundamentally changed the relationship amongst visitors and hoteliers. Through online networking, guests and potential guests can share Experiences to each other and trade data on room rates, hotel amenities, and much more. Web-based social networking additionally enables guests to rate the services and post reviews of hotels and hotel services online. These reviews hugely affect potential visitors as they do inquire about before settling on travel choices, and voyagers are doing pre-trip investigate more than ever. Hyatt is already proficiently active on the social media and the visitor’s feedbacks are taken care of within one working day.

3. Internet of Things Enters Hotels: The IoT connects a system of gadgets, home machines and vehicles utilizing implanted information generating sensors. This empowers devices to speak with each other, or be controlled remotely using a cell phone. Visitors, who are acclimated to technologically advanced solutions both at home and at work, expect comparable services from hotels. From their viewpoint, the ideal solution is to transfer the possibility of a smart home into a smart room. The capability of IoT has already been discovered by the greatest hotel players. Hilton is outlining their own innovation starting with no outside help, while Marriott has chosen to depend on the experience of their accomplices to build their solutions. Hyatt can also explore IoT technologies to improve customer experience and offer personalization services.

Legal

This section is available only in the 'Complete Report' on purchase.

Environmental

This section is available only in the 'Complete Report' on purchase.