Founded by Jay Pritzker in 1957, the Hyatt Hotels was originally was a Hyatt House Motel near to Los Angeles. Earlier the company was known as Global Hyatt Corporation which later on changed to Hyatt Hotels Corporation.
It handles the portfolio of 14 premier brands globally with more than 36000 employees who helped the company in becoming one of the renowned hospitality brands globally. It operates with formats such as hotels, vocational properties, resorts, residences and ownership properties. The company has more than 700 properties in its portfolio spread across 50 countries globally.
Segmentation, targeting, positioning in the Marketing strategy of Hyatt–
The services of the brand are the segmented basis on the bundle of offerings, ambience, complimentary services like Spa, Gym, Hygiene factor, pricing and staffs, housekeeping services and locality at which these hotels, resorts & properties of the brand located.
The offerings of the brand have been targeted based on the income levels & bundled services and therefore it uses differentiating strategy to make it promising for customers who want to 3-star/ 4-star/ 5-star hotels/resort experience.
The brand has positioned itself as a prominent player in the hospitality industry, culturally rich brand giving importance to the local community, culture & traditions.
Marketing mix – Here is the Marketing mix of Hyatt.
Mission-“To deliver distinctive experiences for our guests”
Vision- “A world of understanding and care”
Tagline-“World of Understanding”
Competitive advantage in the Marketing strategy of Hyatt–
Strong Financial Company: Pilling up with the cash and the short-term investments $538 million along with the borrowing capacity of $ 1.4 billion which is supported by the real estate properties that the company have in the strategic locations globally is the confidence building factor for the company.
Renowned Brands: In a hospitality industry the intangible things have a great impact on the demand pattern, just like the company have leading brands in its portfolio due to which Hyatt Hotels have received various awards, accolades and top ranking from Forbes, Fortune, Interbrand and various others because of the user experiences & services it has delivered to the customers.
BCG Matrix in the Marketing strategy of Hyatt –
The brand Hyatt Hotels operates in the strategic businesses such as Upper Upscale, Luxury, Upscale and Branded Residentially and General Hotels.
In the Upper Upscale category, Hyatt has the chain of Hotels such as Hyatt Regency, Hyatt, and Hyatt Centric contributing revenue of around 50% and is, therefore, is starring in the BCG matrix.
In Luxury segment, it has Park Hyatt, Grand Hyatt, and Andaz generating revenue of around 20% and is, therefore, is starring in the BCG matrix. The other segments constitute of hotels such as Hyatt Place, Hyatt House, Hyatt Ziva, and Hyatt Zilara. These are 3-4 stars hotels which compete with a large number of international and national hotels, therefore, it is the question mark in the BCG matrix.
Distribution strategy in the Marketing strategy of Hyatt
The brand has been expanding through series of acquisitions and alliances recent one of which is New Ocean Resort Casino in Atlantic City which joined Hyatt Hotels group in April 2018. The increased focus of the company in franchising activities in order to increase the presence in the market has resulted in decreased dependency on owned properties and capital requirement.
The company has been looking into breaking the stereotypes and position the brand more than just a Hotel stay. In 2017 it acquired Miraval Group, the provider of experiences & wellness to understand & offer its customers the personalized services.
Brand equity in the Marketing strategy of Hyatt
The Global hospitality company has been ranked 9th in Fortune 500 magazine and 17th in the list of Best Employers for Diversity.
The brand manages state of the art properties globally in form of hotels, residential & vacations properties. The differentiating experiences coupled with the loyalty programs in the name of World of Hyatt has helped the brand in increasing repeat customers and brand value over the years.
Competitive analysis in the Marketing strategy of Hyatt
The hospitality industry has got competition from various ends whether it is private properties, Hospitality Chains, Travel sites offering the host of discounts, peer to peer traveller services or provider of short rent a home such as that of HomeAway/ Airbnb etc.
The Hyatt competes on the factor such as brand name, services, pricing, accommodation quality, cordial staff behavior, and strategic locations of the hotels.
Some of the competitors of the brand Hyatt are Ritz-Carlton, Mandarin Oriental, Marriott Hotels, Hilton Garden Inn, Sheraton etc.
Market analysis in the Marketing strategy of Hyatt
with the advent of health tourism and increasing business activities across the borders in tourism and hospitality industry, there has been the vast increase in the investments such that it has become top 10 sectors attracting foreign professionals and tourists.
Hyatt has tied up with and has created distinctive guest segments, network of which is helping the brand in further growing the businesses of the company. Since the time of launch of its IPO in 2009, the company has increased its pipeline by 12% per year on an average which has helped the company in entering 45 markets and 15 new countries.
Customer analysis in the Marketing strategy of Hyatt
It serves customers in retail as well as the corporate segment. Incorporate segment its customers range from national and international companies organizing conferences, foreign nationals, Government organizations, corporate tie-u with the companies etc,
In the retail segment, the customers are in the upper middle and upper-income class group who are majorly in the age group of 30-55 years. These customers are rich affluent and have unstated, potential and augmented needs which Hyatt caters to make them repeat customers.
