Company and market analysis of hyatt regency hotels

The Hyatt Regency is delegate of the five star brand .Hyatt Regency encompass the full selection of hotel types, with person properties offering a full range of skilled services and dining options customized to fulfill the needs of conference, business travelers or resort vacationers. Hyatt Regency enables all guests whether they are traveling to work, calm down or gather in festivity to feel creative and revived. Properties range in size from 200 to over 2000 rooms and are opportunely to be found in urban, suburban, airport, convention and resort destinations around the world. Hyatt Regency’s convention hotels feature abundant meeting and conference facilities proportionate to the number of bedrooms or to market demand. Convention hotel guests are often part of a premium group, meeting or conference. Business hotel guests are primarily individual business travelers. Resort hotels cater to couples seeking a absent yourself, families enjoying a vacation together and corporate group seeking a relaxed atmosphere in which to conduct business meetings The Hyatt Regency properties are prominent for their expedient and strategic locations within major cities throughout the country. Also synonymous with the brand are the high level of personal service guest service and the extensive range of comprehensive business facilities available in luxurious ways. Here is a report stating the core concepts of marketing of Hyatt Regency Hotel. The One year marketing plan is thoroughly discussed and its various stages are show in the report .

Situation Analysis

The ‘Hyatt group is the ninth largest International Hotel chain

in the world, with over 320 wholly owned properties. This group is specialized in

occupying strategic, inner city locations and serving first and foremost commercial patrons. Hyatt Hotels Corporation operates several chains. The Hyatt Regency brand is the oldest brand in the company, with the Grand Hyatt and Park Hyatt brands being introduced in 1980.Of these properties, some are styled as “resort” properties, and may feature spas or other recreational facilities. The property has other following chain including Hyatt Place, designed as a restricted service offering embattled to the business traveler. An extended stay chain, Summerfield Suites, was acquired by Hyatt in 2005, and features 34 locations in the United States. .

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In addition to hotels, Hyatt also operates an upscale timeshare program through Hyatt Vacation Ownership, Inc. The program is known as Hyatt Vacation Club. It currently has over a dozen locations, some of which are located within or connected to Hyatt hotels.[15] Additionally, the group runs a chain of upscale retirement homes known as Classic Residence by Hyatt [16] and offers retail home décor and furnishings through Hyatt at Home, an online store featuring luxury product. The Hyatt Regency, is somewhat depressed, due to the economic downturn and restrictions being reliant on annually contracted clients from the travel

trade, automotive and IT sectors with guaranteed room nights per year. This area of business

accounts for 70% of the property’s revenue. The current market is made on corporate travel. This threat to the critical corporate sector could be considered as short to medium term, as indications of a return to business travel observed.

http://www.hyatt.com/hyatt/about/our-brands/hyatt-regency.jsp

 The Company

The Hyatt Regency, is agent of the five star brand within the Elite

Business Hotels of the World’ group. All Hyatt Hotels are first-class properties, contribution

between 200 to 2000 exclusive rooms.

Mission

The Hyatt Regency is fanatical to providing its guests with the uppermost eminence of renovate and values. We seek to distribute on our promise of assessment and eminence above all else. We value our position in the community and will work to develop those associations and to respect and defend our background .At Hyatt, we’re committed to making a optimistic and long-lasting bang in every group of people in which we maneuver. We do this by representing a strong promise to preserving our natural environment through Hyatt Earth, by giving back to the local community through Hyatt Community, and with the volunteer services of our associates through Hyatt’s Family of Responsible and Caring Employees (F.O.R.C.E.).

Service Offering

Service: first-class facilities accompanied by accomplish extraordinary service, differentiated from Antagonism in line with the overall brand strategy has demonstrated to be a victorious move toward generating high levels of replicate business Hyatt Regency has a long-standing status for equipped excellence and expertise, ensuring that individual hotels achieve maximum competence and guest satisfaction. Detailed operational policies and standards are provided for each Hyatt sub-brand, allowing owners to leverage the experience and knowledge of the Hyatt network in driving performance and preference.

Rooms : Hyatt provides detailed policies and standards for each sub-brand to ensure smooth and efficient operation of the rooms division for individual properties.

Food and Beverage: Hyatt has a global reputation for award-winning restaurants, creative banqueting, and sophisticated kitchen and ordering systems.

Human Resources: We strive to be the employer of choice for the thousands of associates who make a difference in the lives of our guests every day.

Technology : Our IT team works to provide long-term technology solutions that are efficient and cost effective while supporting the needs of the business.

http://www.hyatt.com/hyatt/about/our-brands/hyatt-regency.jsp

Macro Environment

Political: Hyatt Regency comes under the range of best elite groups of hospitality industry. Over the years Hyatt has build up a tremendous leading position and with the help of political support has enhanced its business .Hyatt has its own interpersonal corporate policies that politically support different governments worldwide. It makes use of tremendous amount of eco friendly good to leisure its clientele list for these products Hyatt pay huge amount of money to different governments as import duties and add up a great amount of money to the GDP of various governments.

Economic: The achievement of various brands and chain worldwide has help made Hyatt Regency more stronger on its economical factors in these recent year. This property has its own chain of franchisees which adds up more on its revenue .Hyatt Regency London is positioned in such a way that

It covers mainly both business and leisure. This factor helps itself to stand out in the competitive market and maintain its status and brand name between the rivals

Social: Hyatt Regency is well known for its guest relationship. It provides services to both leisure seeking clients as well as business travelers .Hyatt serves most of its revenue toward Hyatt foundations which helps and serves other community in intense need thus it adds up a social value to it in greeter ways of the customers. Hilton contributes lot of revenues to the Hilton Community Foundation that serves the community in need and thus adding more value to its social responsibility.

Technology: Our IT team works to provide long-term technology solutions that are efficient and cost effective while supporting the needs of the business. The most important purpose of utilizing modernized industrial strategy is to improve the standard of living of its client .

SWOT Summary

The following things to see the internal strength and weaknesses of our organization and the opportunities and threats facing the company in our external environment. We must come forward to improve our lines of weakness.

Organizational strengths must be set in order to make the most of the peripheral opportunities as

they occur, and emergency plans should be formulated in such a order that helps us deal with threats presented by the external environment

SWOT ANYLISIS IS FOLLOWED BY THE MCKINSEY 7S MODEL

STRENGTHS

http://www.chimaeraconsulting.com/images/baseline/mkinsey7s.gifhttp://www.valuebasedmanagement.net/methods_7S.html

•Strategy: well illicit and differentiated approach used

•Structure: well organized, decentralized construction.

•Skills: assorted choice of service skills within organization and employees.

•Style: hard-hitting, participative environment.

•Staff:  highly valued enthusiastic and talented personnel that are aggravated and extremely proficient. A well

competent team who are proud of their hotel and respect the brand values are part of the organization

•Shared Values: understandable and well communicated and organized

•Brand Strength:  All brand values ,beliefs and norms well represented bring into existence of brand loyalty between all the guest of the organization

•Reputation: a strong status is build up in the external and internal competitive market

WEAKNESS

•Strategy: All the strategies should be well communicated between internal and external market

•Systems: recognized systems result from the feature angled work and circumstances.

Interdepartmental interaction could be enhanced

•Staff: constant training is very essential among the internal staff. Each internal employee should be well informed and educated of the new and upcoming policies

•Facilities: certain rooms require restoration and upgrade technical

Apparatus, such as high Internet admission and laptop links with intense WIFI connectivity

OPPORTUNITIES

•Market: Returning growth rate.

•Competitors: As per now there is no much competitor for Hyatt Regency in five star hotel properties

•Suppliers: well-built and long term relationship is build up with suppliers

•Guest Reliance: replicate corporate business based on personal service and excellence

 THREATS

•Market Entry: It is very likely that the competitive and global brand can come up with the similar product and service line

•Substitutes: Numerous comparable services and standards can be emerged and offered in low rates

•Economy: coming back to the same level of performance and offer value standards due to recession may take bit more time

Strategy Pyramids

Our marketing strategy is to focus customers’ attention on the high quality of the services we

Offer. Within this strategy are three main points aimed at different market segments.

We will provide:

•The most excellent Business amenities

• modified Services

• lavish facilities

Marketing Strategies

. Brand Marketing

Hyatt’s Regency marketing strategy is well designed to shelter and maintain brand value and responsiveness while formulating the specific business requirements of hotel operations.

Hyatt® is focused on targeting the distinct guest segments that each of our brand delivers and supporting the needs of the hotels thorough daily analysis and application of data and analytical techniques.

There is a well organized, harmonized and incorporated communication strategy for the Hyatt master brand and each of the sub-brands across every distribution channel.

We aim to keep hold of maximize potential revenue of our existing customers and expand the number of new clients through a distinctive marketing approach motorized by information and analytics. primitive, quantitative strategic analytics and prognostic modeling identify the most profitable customers, enabling Hyatt Regency to influence partiality in all facets of marketing. The quality driven model is basically being used to develop the value and standards of our most loyal guests, our Gold card holders , and within 2 years, it will be activated throughout the organization

Coordinated – Marketing

Hyatt Regency coordinated marketing initiative benefits a sub-set of hotels and resorts, as well as beneficial to regional programs. Cost portion is based on the balanced share of actualized room revenue for trailing 12 months of participating hotels in the targeted business segment

Field Marketing

The Corporate Marketing management assigns a personal hotel marketing manager to each hotel to help them market their individual property. The marketing manager then utilizes the property’s business requirements, issues and profit objectives and helps in the development of the brand and promotional marketing programs.

Direct Marketing

Our direct marketing will be handled by our PR agency. We will buy select targeted list of

corporate companies and send them information about Riverview Hotel. We know that we are

no experts in direct marketing so it will be important that our PR agency handles every aspect

of direct marketing for us.

CORPORATE SALES FORCE

U.S. SALES

http://www.hotel-online.com/News/PR2007_2nd/LodgingLedgerApril2007Chart1.jpg

FIGURE 1

The above figure shows the sales forces of Hyatt Regency and its rice of profit ratios In 2006, Hyatt® created its own revenue organization combining Sales Services, Revenue Management and Marketing for all of North America. As Hyatt expands its own brand collection, its chain include Worldwide Sales Force (WWSF), paying attention more promoting multiple brands to approximately 1,800 extreme highly valued clientele list . In 2005, a separate National Sales Force (NSF) was established which mainly focused on future customers with whom Hyatt Regency believed major business could be developed over time. Hyatt’s restricted sales computerization application (Envision) allows WWSF and NSF to generate a direct correlation to functionality, and also including the research accessibility and booking business at all other properties. .In 2007 its more brands were introduced which help it add up more on its revenue

Segmentation: Market segmentation is a enlargement process in which large market segment is divided into smaller segments of market which lead to have the same distinctiveness. Figure 1 shows the market and sales share owned by Hyatt Regency in USA stating a strong and high held position. The service range of Hyatt hotel includes and the products various conveniences and facilities, online services, rewards and benefits. The price value of each services provided differs from different market segments for example: The per night rate would differ in India and in London it would be quite high and different night.

Targeting: Target marketing is where the larger market segment is subdivided into smaller market segments and in which particular segment is highly concentrated. In this process, all the marketing resources are functioned into that particular segment of the market. For example, all the hospitality sector have different types of travelers including business, leisure, and family holidays coming in at same place .Hyatt Regency targets all types of travelers and makes sure that all the requirement of these different guest are satisfied. For example, for business clientele list Hyatt Regency provides all conference facilities, meeting rooms, teleconferencing WIFI services and many more and tries and meet their requirements . Thus as per targeting factor Hyatt Regency enhances its various products and services as per the requirements of the targeted clients

Positioning: Market positioning is a process where any organization tries to create a higher impact on the minds of its customer. Hyatt falls under the elite group of hotels globally so has created the best reputation standards all over the world. They are quite familiar with the customers need and want and thus focus completely on the strategies to meet them. Market positioning also involve frequently monitoring the services and their presentation in the market. Hyatt Regency has a frequent cheeks on feedbacks from its guest and thus if any change in requirement is suggested by ay guest it is eagerly being facilitated

.

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Ansoff Matrix

The Ansoff Growth matrix helps the organization to decide their product and market enhancement strategies. Ansoff’s growth matrix states that the development of the business growth depends on its new or existing products in new or existing markets.

Based on the above growth plan Hyatt Regency Hotels seems to break through the diverse market segment providing the wide range of products and services in a very reasonable prices. These products and services include all the rewards and benefits provided in all the hotels. After penetration, this organization started to develop upon new facilities and also enhanced its performance reputation in the market. Having enlarged recognisation and being a best choice of millions of clients , Hyatt has a diverse opening to further penetrate into the existing market and reach the newer market segment and also expand their products and services for the new and existing markets.

Thus being a elite position holder in the competitive market in terms of hospitality, Hyatt follows a wide range of other brands. We shall now discuss about the hospitality market in more detail for the marketing plan.

Historical Results

Marketing mix allows you to combine all the marketing tools in order to sell your product Chris Murray – Portfolio (2006) – Hardback – 290 pages

Marketing activity in previous years has produced positive results. The areas that have

Produced the best results have been:

•Product: high-quality facilities and services accompanied by consummate personal service,

differentiated from competition, in line with the overall brand strategy has proven to be

a successful approach generating high levels of repeat business

•Price: pricing strategy has been consistent with the differentiation objective, to provide

added value for a reasonable rate as opposed to discounting and devaluing our

products and services.

•Place: service information is provided to the guest via personal selling, direct

marketing, advertising and the Internet. Delivery channels include travel agents and

international reservations systems.

•Promotion Hyatt’s Central Reservation System is an important contributor to the performance of our hotels system wide. The system reserved 17.9million room-nights in 2009, representing approximately $3.6 billion in room’s department revenue. Reservation centers are located globally in the all the major places like United States, Australia, India, UAE, Germany, Japan and China and are provides 24/7 access services to the prospective guests. High quality performance is delivered to meet the market need and build up relation with the distribution channels. These include traditional travel agencies (e.g., American Express, Carlson Wagonlit), online travel agencies (e.g., Expedia, Travelocity, Orbitz and multiple regional agencies, etc.), opaque agencies (e.g., Priceline, Hotwire) and multiple user-generated sites that link back to Hyatt.com (e.g., Trip Advisor).Hyatt® also has extensive marketing partnerships with all global and regional airlines.

Our marketing strategy’s objective is to communicate the unique set of services that we offer to discern hotel guests. We attempt to direct the focus of our guests to the issues of quality and value for the money as opposed to simply the bottom line costs associated with their stay.

Our marketing strategy will allow us to communicate our brand values, develop close working

relationships with our customers and suppliers and to identify the needs of our guests in an

effective manner. Continued differentiation and growth are two goals we have set for

ourselves. Growth will take place by targeting new areas of business within both local and

national communities.

REVENUE MANAGEMENT AND MARKETING BUDGEDT

COST ESTIMATED IN GPB

Advertising for Television

£2.5 million for 12 months

Radio Promotions, Marketing Companies, sponsorships ,direct marketing

£5 million for 12 months

Website Maintenance

£70,000 for 12 months

Other Promotions

£180,000

Community programs

£250,000

Field Marketing

£80,ooo for 12 months

Business Guests seminars

£100,000

Marketing staff Training

£70,000

Other Miscellaneous Expenses

£200,000

Total Marketing Expenses

£9.05 million

Total Marketing Expenses

£9.05 million

Hyatt® makes use of a state-of-the-art revenue management system to provide centralized ways for pricing, distribution and personnel development process . Revenue management, is more likely to a computer system. It is an incorporated set of business processes that bring together people and technology hand in hand , with the goal oriented market and help in enhancing the revenue management system

After the discussion of the marketing plan, we shall now appraise the plan and make further assumptions. The marketing programs utilized by the hotel are extremely successful and also received positive feedback from all its clients . But all other hospitality organist ions have started to pursue the same programs and practices due to which Hyatt have to come up with another pioneering device and sustainable strategies to be a focus for more clientele list . Additional assumptions can be made that the new entrants and the current competitors reduce their process in order to gain competitive benefits. Moreover further assumptions can be made for the VAT increase and its effects on the clients comeback. .

Conclusion

In the above report we have managed to discuss the full fledge marketing plan and here by conclude that Hyatt Regency has a greater potential to lead the competitive market with the help of its elite and world best services and products .. Marketing is the chief source to achieve all customers need and build up good relations with them and if the use of this process is done effective manner it can help achieving milestones. Finally, I would like to state that ethical and traditional art of marketing can help Hyatt Regency hotel in all possible manner increase and look upon new strategies to attain the market share. With this above discussions and theories, I conclude the marketing plan for Hyatt Regency corporation limited