Hyatt Marketing Strategy – Marketing Strategy of Hyatt: Jay Pritzker founded Hyatt Hotels in 1957. It was initially a Hyatt House Motel close to Los Angeles. The company was formerly known as Global Hyatt Corporation, which was later changed to Hyatt Hotels Corporation.
It manages the portfolio of 14 top brands worldwide with more than 36000 employees, which helped to make the company one of the most recognizable hospitality brands in the world. It works with a variety of formats, including hotels, residential properties, resorts, residences, and own property. It has over 700 properties spread out across 50 countries.
Hyatt At A Glance – Marketing Strategy of Hyatt
Company : Hyatt
CEO: Mark Hoplamazian
Founder: Jack D. Crouch | Hyatt von Dehn
Year founded: September 27, 1957, Los Angeles, CA
Headquarters: Chicago, Illinois, United States
Annual Revenue: US$5.020 billion
Profit | Net income: US$766 million
Number of employees : 127,000
Products & Services: Hotels and resorts
Hyatt Fun Facts: Hyatt Hotels Corporation, commonly known as Hyatt Hotels & Resorts, is an American multinational hospitality company headquartered in the Riverside Plaza area of Chicago that manages and franchises luxury and business hotels, resorts, and vacation properties.
Marketing Strategy of Hyatt
Hyatt’s Marketing Strategy covers various aspects of the business right from segmentation and targeting to the overall mission and vision of the company and the various parameters which the company executes to become the top brand that it has in the market. So what is the Marketing Strategy of Hyatt? Let us discuss.
Hyatt Marketing Strategy – Segmentation, Targeting, Positioning
The brand services are segmented based on the package of offerings, the ambiance, Hygiene factor, and pricing as well as staff, housekeeping, and the locality where these properties, hotels, and resorts are located.
The brand’s offerings are targeted according to income levels and bundled services. It uses a differentiating strategy in order to make it appealing to customers who desire a 3-star/ 4-star/ 5-star hotel/resort experience.
The brand is a leading player in the hospitality sector, a culturally rich brand that gives importance to local culture, traditions, and communities.
Hyatt Mission Statement
“To deliver distinctive experiences for our guests”
Hyatt Vision Statement
“A world of understanding and care”
-“World of Understanding”
Hyatt Marketing Strategy – Competitive Advantage
Strong Financial Company:
The company’s confidence-building factor is its ability to bolster its cash reserves and short-term investments of $538 million, as well as the $ 1.4 Billion borrowing capacity. This is in addition to the real estate properties located at strategic locations around the world.
In hospitality, intangible factors have a significant impact on demand patterns. Hyatt Hotels has received numerous awards, accolades, and top-ranking from Forbes and Fortune. This is due to the customer experiences and services it provides.
Hyatt Marketing Strategy – BCG Matrix
The brand Hyatt Hotels is active in strategic businesses like Luxury, Upscale, Upscale and Branded Residentially, and Upper Upscale.
Hyatt is the leader in the BCG matrix.
It has Park Hyatt and Grand Hyatt in the Luxury segment. This segment generates around 20% of revenue and is, therefore, a major player in the BCG matrix. Other segments include Hyatt House and Hyatt Ziva hotels. These hotels are 3-4 star and compete with many international or national hotels.
Hyatt Marketing Strategy – Distribution Strategy
Through a series of acquisitions, the brand has grown. The most recent was New Ocean Resort Casino in Atlantic City. It joined the Hyatt Hotels group in April 2018. Increased focus on franchising activities to expand the presence in the market has led to a decrease in capital requirements and dependency on own properties.
The company is committed to breaking stereotypes and positioning the brand as more than a hotel stay. It acquired Miraval Group in 2017, a provider of experiences and wellness to better understand and offer personalized services to its customers.
Hyatt Marketing Strategy – Brand equity
Global hospitality was ranked 9 th by Fortune 500 magazine, and 17 th on the Best Employers for Diversity list.
The brand manages luxurious properties worldwide, including hotels, residences, and vacation homes. Through the World of Hyatt loyalty programs, the brand has seen a rise in repeat customers and increased brand value over time.
Hyatt Marketing Strategy – Competitive Analysis
There are many competitors in the hospitality industry, including private properties, Hospitality Chains, and Travel Sites that offer discounts, peer-to-peer traveler services, or short rental of a home-like HomeAway/ Airbnb.
The Hyatt competes in the following areas: brand, services, pricing, and accommodation quality.
Hyatt is competing with Ritz-Carlton and Mandarin Oriental as well as Marriott Hotels, Hilton Garden Inns, Sheraton, and others.
Hyatt Marketing Strategy – Market Analysis
With the rise of health tourism and the expansion of business activities in tourism and hospitality industries across borders, there has been a significant increase in investments. It has now become one of the top 10 sectors that attract foreign professionals and tourists.
Hyatt has partnered with and created unique guest segments. This network is helping to grow the brand’s businesses. The company’s pipeline has grown by 12% annually since 2009 when it launched its IPO. This has allowed the company to enter 45 markets as well as 15 new countries.
Hyatt Marketing Strategy – Customer Analysis
It serves both corporate and retail customers. Its customers in the Incorporate segment include national and international companies that organize conferences, foreign nationals, government organizations, corporate tie-u, etc.
The customers in the retail segment are mostly in the upper-income and middle class, with a majority of them being between 30-55 years old. These customers are wealthy and well-off and have potential and augmented that Hyatt helps to keep them returning customers.
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