Task 1: Organizational profile:
Park Hyatt Sydney hotel is one of the contemporary harborside luxury hotel located in New South Wales. It is situated in between the coveted locations of Australia, the iconic Sydney Opera House and the Harbour Bridge. The luxury 5-star hotel mainly provides accommodation, luxury and event services to cater to local and international consumers. It provides tourist and guest the choice of exclusive harbourside residence and intimate surrounding with unique architecture and design that reflects Australian landscape. The key highlight of the hotel is its 155 spacious guestrooms and suites with world class interiors and ceiling design. Some of them also provide stunning view of the Opera house. The most unique thing about this luxurious hotel of Sydney is its outdoor rooftop swimming pool along with private sun decks and spa facilities. It offers tourist with exquisite and stunning holiday destination to relax and indulge (The Luxury Travel Expert, 2017). The hotel provides the following hospitality options to its consumers:
Dining options: The stylish and sophisticated dining room of the Part Hyatt Sydney provides harbourfront location and warm décor to guest. Chef Andrew McKee is responsible for providing local and authentic food flavors to guest.
Room accommodation option: The hotel provides luxurious rooms with modern bathrooms with wet area and floor to ceiling glass doors that opens into a private balcony. Bedroom suite, rooftop suit, harbor suit, opera suite and Sydney Suite and spacious lounge are also available (The Tailor 2017).
The Hotel Hyatt Coropration has a 50 year history as its foundation was was laid in 1957 whwn Jay Pritzker bought the original Hyatt House. After this acquisition, he and his brother played in role in the growth of the Hyatt brand with their value of family and care. On the other hand, Park Hyatt has a 21-year history with massive internal and external transformation. Now, Hyatt is global hospitality group with more than 600 properties in almost 50 countries of the world. Hence, they have built their brand through more than half century of innovation and visionary hospitality leadership based on the values of care for guest (Hyatt About 2017). The mission and vision statement of the hotel are as follows:
Vision statement: To be recognized as the world’s most iconic hotel with exceptional service and contemporary luxury
Mission statement: To be committed to continuously exceed guest expectation, provide highest quality of accommodation and service and embrace the brand philosophy to become the leading Park Hyatt properties.
This make them renowned as an exceptional hospitality brand in Australia. The hotel also finds place in top hospitality accolades as it features in the top ten list of world’s best luxury hotels, world’s most spectacular rooftop pools and hotel rooftops (The Luxury Travel Expert, 2017).
The external environment in which hotel industry operate challenges the business process of hospitality industry. To manage and sustain the competitive advantage, organizations have a set goal and strategies to drive their business. In case of Park Hyatt, their key business goal is to maintain the position of number one luxury hotel in Sydney and ensure that they deliver high standard of service to guest as well as maximize forecasted revenue. The achievement of these goals can be possible for them only when they respond to changes in external environment and implement effective strategies to seize new opportunities in the way. There might be many uncontrollable variables that affect the industry. These factors will determine the success of hotels. Some of the external factors affecting tourism and hospitality industry include fluctuation in economy of a region, changes in business law of specific location, introduction of new technology, changing lifestyle and innovations (Shani et al. 2014). In the case of Park Hyatt Sydney, this report particularly analyzes the responsiveness of the organization in responding to changing lifestyles and innovation within their external business environment.
Task 2: External environment:
Certain external factors are beyond the control of an organization, however they significantly affected business of an enterprise. Changes in lifestyle are one of the external factors that influences business and its growth particularly in hospitality industry. Consumers are the driving change in hotel industry with continuous changes in their lifestyle and food and lodging preferences. The new breed of travelers in today’s world has entirely different need and demands than previous generations. This drastic change in hotel and accommodation choices has been influenced by rise in globalization and technology. Technology has given more power to consumers in terms of choice of hotel as well ratings it on the basis of quality. Modern hotel guest now want feeling of connectedness wherever they go. Hence, with technology as an important part of their lifestyle, guest values those hotels which provides a valuable experience to them in terms of connectedness, ambience and hospitality experience. Therefore, a hotel who does not change with current demands of modern travelers are going to lose valued consumers and revenues too.
The lifestyle of the 21st century is quiet different from the past century. Modernization is seen society with advent of new modern technology and demands for luxury lifestyles. Globalization continues to be a factor that has considerably changes the lifestyle of travelers. Due to technological advancements, the expectations of consumers have increased and hoteliers are facing the pressure of a highly competitive market. Digital and social media is a great part of today’s lifestyle and now the consumers are more informed about best hotels and services by instantly reviewing feedbacks and review of hotels in different mobile applications and hotel websites (Torres et al. 2015). Therefore, the consumers now have become very flexible demanding more values and personal service in accommodation. They have created new competition for hotels and has affected their business too.
With changing lifestyle, the communication process in hospitality industry has also changed. Today’s consumers increasingly rely on mobile technology to decide about shopping, travelling and dining options. Mobile device penetration has been rapid and monumental in developing countries and mobile phone user is estimated to rise to 4.77 billion by 2017. New means of connectivity by means of mobile devices and application has dramatically affected the business communication and promotion process for their products or service. Currently, large percentage of consumers search on mobile devices before making any decisions (Smith 2016). This affected businesses and now entrepreneurs focus on making their websites as responsive as possible. Mobile devices and websites create clear communication channels for users where consumers can easily convey concerns and feedbacks about services (Aral et al., 2013). Therefore, business within the hospitality industry is now increasingly dependent on good online reviews and feedbacks. This also gives them the opportunity to understand concerns in service and take corrective steps accordingly. Although the methods of communication have now changed with new digital tools, however hotel industry apply fundamental principles of marketing and promotion to attract target audience towards their hotels (Sparks et al. 2016).
Impact of changing lifestyle on business of hospitality industry
Changing lifestyle has also affected the business of the hospitality industry due to greater purchasing power of the consumer. The consumer behavior related to choice of hotel has changes with the advent of technology and interest in unique indulgence during holidays. Consumer behavior is also influenced by family motivations, role, and status of groups and families. Secondly, lifestyle factors such as culture, occupation, social class and living styles affect purchasing pattern of consumers (Rani 2014). Hotel industries have little power in changing these behaviors; however they can control the physical factors such as communication process and layout of hotel to impress consumers.
Observing the change in nature of hotel guest due to changing lifestyle of consumers, hotel industry has responded to the change by improving customer relationship management and reputation management. Now competitive hotels focuses on strategic marketing analysis to identify new taste, styles, purchasing habits and communication channels of target audience (Padilla-Meléndez and Garrido-Moreno 2014) They are now smartly choosing suitable communication channels to attract target consumers and encourage greater transparency in communication. The positive impact of this strategy for business in hospitality industry is that hotels can quickly engage with travelers and bring quick improvements in service to get big pay offs in the long term (Kim et al. 2015). To go beyond the traditional lodging applications, there is an urge for new innovations in hotel design and service. To fulfill the demand of the modern travelers, hotels are now increasingly focusing on modernism, opulence, fantasy and exotic exclusivity while planning hotel designs and services (Wiste and Li 2016).
Considering the new demand for consumers to experience opulence, connectivity and long lasting lodging experience, Park Hyatt has effectively responded to changing consumer’s demand. The location of the hotel gives them an added advantage in attracting tourist, as it is located between Opera House and the Harbour Bridge. With luxurious suites that give a view of the harbor and Opera House, they have succeeded in the most challenging task in establishing hotels, which is related to choice of location. As the current bread of new consumers demand world class service, as well as a personalized experience, Park Hyatt has rightly exploited this element of consumer behavior while making decisions on choosing hotels. Despite sophisticated style and discrere residential facilities, Park Hyatt Sydney has preserved the value of courtesy, care and comfort to provide a personalized experience to visitors and guest.
` The strategic communication skill of Park Hyatt Sydney is also the reason that has enabled them to build their brand and drive revenue. The success of their sales and marketing strategy has become possible because of their study on customer segment and current market dynamics. They have effectively used new technology and media platforms to interact with consumers worldwide and raise awareness of Hyatt as high quality brand in tourism and hospitality industry. With wide use of social media and mobile applications among consumers, Park Hyatt Sydney responded to this trend by establishing their own electronic distribution channel. Therefore, Hyatt.com is one of the most important platform for them to implement and evaluate their marketing efforts. The website excels in terms of booking efficiency and online purchase process. This form of efficiency has been achieved by the development of a dedicated team that has focussed on functionality, design, content of website and website traffic. The Business Intelligence Unit has increased digital marketing efficiencies for Park Hyatt Sydney (Hyatt Development: Competitive Strengths – Sales and Marketing 2017).
Park Hyatt’s marketing approach of constantly evaluating data and analytics of consumers has led to the continuous expansion of the number of new guest in hotels. They have targeted distinct consumer segment and used predictive approach to identify the most profitable customers and leverage preference in all facets of marketing (Hyatt Newsroom 2017). The action of the Park Hyatt is an exemplary example of how hotels can maintain the trust of consumers and generate revenue despite drastic changes in lifestyles and consumer preference for hospitality service. Hence, new entrepreneurs looking to establish their own hotel can emulate and study the marketing approach of Park Hyatt Sydney hotel to succeed in their business.
Innovation in hospitality industry is one of the most important prerequisites for success in business. This is particularly important for hospitality industry due to the four major trends which are-
- Changeable and demanding consumers in hospitality market
- Difference in current generations view about service compared to previous generation
- The big data revolution and increase in usage of social media
- New economic reality such as more tourist flow from foreign countries, new family structures and the aging population (Nieves et al. 2014)
This entire current trend in society makes it mandatory for hotels and restaurants to adapt new business models. However innovating in hospitality industry is not an easy task, it is dependent on the leader’s knowledge of consumer behavior, value creation, new business models, product and destination development, sustainable development and entrepreneurship (Wang et al. 2014). Hotel innovation and business performance are interrelated. Innovation is emerging as the key tool for growth, profitability and competitive advantage in business. However, the influence of innovation on positive outcome is low because of uncertainties and risk in business market particularly in new areas. Despite this risk, innovation is an obvious priority for tourism and hospitality industry. Mattsson and Orfila?Sintes (2014) emphasizes that both service innovation and back-office innovation is needed to increase performance of hotel. This will ultimately have an impact on hotel occupancy rates and
The market value of a hotel is dependent on innovation. Innovation is the pathway to reach high competitive standards in business. This enables an organization to use changes related to innovation as a means to succeed. The increase in proactive consumers is also one of the reasons for which constant innovativeness is required in hospitality industries. These customers look for new and unique experience and are willing to pay for the same service at a lower price. This behavior of consumers increases the demand of better service in accordance with new interest of consumers (Nicolau and Santa-María 2013). Therefore, the importance of innovation is justified in the hospitality industry due to the customer’s decision making process.
Several external factors also affect innovation management in hotel industry. The penetration of internal and mobile devices in common household is one of the factors that has forced hotel industry to introduce innovative changes in their organization. This is because with the provisions of internet, plenty of information is easily available to customers and it threatens brand loyalty values of an organization. Based on online review of hotels, consumers are increasingly choosing those hotels that provide high quality service in low cost. To succeed in such competitive environment, the strategy of differentiation is extremely important for hotel industries. This implies that hospitality industry must improve their working methods by means of proactive changes based on consumer preference and technology (Fernández et al. 2011). It can be concluded that external variables of new demands of consumers, increase in competition and advent of new technology stimulates innovation in hotel industry.
In the past, hotel industries competed to maintain price and quality of their product and services. However, with the social and economic changes in society, there is great need of flexibility and innovative strategies in planning moves in hotel industry. Today hotel owners want increased organizational creativity and innovation in all areas such as product, service, organization system and work process to sustain competitive advantage for long run. Till the 1990s, hotels competed under quality pressure, price pressure and flexibility pressures. However, after the 1990s, competition has been mostly induced under the pressure of innovativeness. This is because business environment became more complex after the acceleration in changes such as technology, new products, demands and adaption of technology by firms (Radu and Vasile 2007). Therefore, innovation is a form of proactive response to changing business environment.
Park Hyatt Sydney has been successful in proactively responding to changes in business environment and attracting consumers through innovative lodging experience. The ambience, the opulence and spacious rooms and suites of Park Hyatt is a perfect example of innovative hotel features. They have earned many accolades in the hospitality industry and sustained the competitive advantage because of their innovative hotel features. Some of the features that distinguish them from other hotels include rooftop suites with private terrace and panoramic view of Sydney Harbour, private wharf, complimentary broadband internet and wireless facilities, dedicated 24 hour butler service, spa, outdoor rooftop pool and elegant meeting rooms (Activities & Things to Do | Park Hyatt Sydney 2017). It has taken care of both consumer demands in indulgence during holidays and technological needs in developing countries. In accordance with this demand, Park Hyatt Sydney offers meeting venues equipped with latest audiovisual technology such as wireless internet, ipad controlled sound and lighting systems. Apart from this, innovation is also seen in Park Hyatt’s service and cuisine. Hence, Park Hyatt Sydney has been successful in offering peace of mind and memorable guest experience to their guest and tourist.
In response to the realization of catering to a modern and high tech consumers, Hyatt has taken innovative approaches to win consumers. In relation to guest feedback available from TripAdvisor, twitter, Yelp and others, they have not panicked by the fear of negative feedback. Instead, they reply to both negative and positive comments. The analysis of these comments helped them to understand what consumers currently want when they come to hotels. This approach was influential in making them successful in identifying the experience that consumers want while staying at hotels and innovative strategies helped them to achieve the position that they wanted in hospitality industry.
Conclusion:
The report presented an overview of the organizational profile of the Park Hyatt Sydney hotel to understand the history, mission and objective of hotels and its current position in hospitality industry. Secondly, it analyzed the impact of external environmental factors on business of hospitality industries. The report discussed about changing lifestyles factors that has affected the business environment of hospitality industry and challenged hotel owners in sustaining the competitive advantage. Globalization and penetration of the mobile devices became the major factors that change consumer behavior and their choices in choosing hotels. Hotel industries does not has the power to change the consumer behavior, however to sustain business revenues and attract consumers, there was the need for studying new taste, styles, purchasing habits and communication channels of target audience to determine new methods of business process. Smart strategies like selecting suitable communication channels and new business model has helped competitive hotels to effectively respond to lifestyle changes. Park Hyatt’s marketing approach was successful in facilitating digital marketing efficiency, evaluating data and analytics of consumers and planning business needs accordingly. In addition, the report also discussed about the importance of innovation particularly in hospitality industry due to changing business environment and increased adoption of technology in business. Park Hyatt Sydney could achieve the position of excellence in hospitality industry due to the focus on innovation while designing hotel rooms and planning hotel features for their esteemed guests.
Reference
Activities & Things to Do | Park Hyatt Sydney. 2017. Sydney.park.hyatt.com. [online] Available at: https://sydney.park.hyatt.com/en/hotel/activities.html [Accessed 21 Jun. 2017].
Aral, S., Dellarocas, C. and Godes, D., 2013. Introduction to the special issue—social media and business transformation: a framework for research. Information Systems Research, 24(1), pp.3-13.
Fernández, J.I.P., Cala, A.S. and Domecq, C.F., 2011. Critical external factors behind hotels’ investments in innovation and technology in emerging urban destinations. Tourism Economics, 17(2), pp.339-357.
Hyatt About. 2017. Hyatt History. [online] Available at: https://about.hyatt.com/en/hyatthistory.html [Accessed 19 Jun. 2017].
Hyatt adapts with high-tech innovations | Hotel Management 2017. . Hotelmanagement.net. [online] Available at: https://www.hotelmanagement.net/tech/hyatt-adapts-high-tech-innovations [Accessed 21 Jun. 2017].
Hyatt Development: Competitive Strengths – Sales and Marketing. 2017. Hyattdevelopment.com. [online] Available at: https://hyattdevelopment.com/competitive_strengths/sales_and_marketing.html [Accessed 20 Jun. 2017].
Hyatt Newsroom. (2017). News Releases. [online] Available at: https://newsroom.hyatt.com/2013-05-23-Hyatt-Strengthens-Brand-and-Marketing-Leadership [Accessed 20 Jun. 2017].
Kim, M., Vogt, C.A. and Knutson, B.J., 2015. Relationships among customer satisfaction, delight, and loyalty in the hospitality industry. Journal of Hospitality & Tourism Research, 39(2), pp.170-197.
Mattsson, J. & Orfila?Sintes, F. 2014, “Hotel Innovation and Its Effect on Business Performance”, International Journal of Tourism Research, vol. 16, no. 4, pp. 388-398.
Nicolau, J.L. and Santa-María, M.J., 2013. The effect of innovation on hotel market value. International Journal of Hospitality Management, 32, pp.71-79.
Nieves, J., Quintana, A. and Osorio, J., 2014. Knowledge-based resources and innovation in the hotel industry. International Journal of Hospitality Management, 38, pp.65-73.
Padilla-Meléndez, A. and Garrido-Moreno, A., 2014. Customer relationship management in hotels: Examining critical success factors. Current Issues in Tourism, 17(5), pp.387-396.
Radu, E. and Vasile, D.C., 2007. Innovation in the hospitality industry. Academy of Economic Studies. Bucharest.
Rani, P., 2014. Factors influencing consumer behaviour. International Journal of Current Research and Academic Review, 2(9), pp.52-61.
Shani, A., Uriely, N., Reichel, A. and Ginsburg, L., 2014. Emotional labor in the hospitality industry: The influence of contextual factors. International Journal of Hospitality Management, 37, pp.150-158.
Smith, J. 2016. [online] Available at: https://www.business2community.com/tech-gadgets/impact-mobile-technology-business-communication-01704702#ucXX7K8oC2t3tJws.97 [Accessed 20 Jun. 2017].
Sparks, B.A., So, K.K.F. and Bradley, G.L., 2016. Responding to negative online reviews: The effects of hotel responses on customer inferences of trust and concern. Tourism Management, 53, pp.74-85.
The Luxury Travel Expert. (2017). Top 10: best luxury hotels in Australia. [online] Available at: https://theluxurytravelexpert.com/2014/11/24/top-10-best-luxury-hotels-australia/ [Accessed 19 Jun. 2017].
The Tailor. 2017. Park Hyatt Sydney Harbour – Luxury Hotels Sydney | The Tailor. [online] Available at: https://www.thetailor.com.au/park-hyatt-sydney-nsw [Accessed 19 Jun. 2017].
Torres, E.N., Singh, D. and Robertson-Ring, A., 2015. Consumer reviews and the creation of booking transaction value: Lessons from the hotel industry. International Journal of Hospitality Management, 50, pp.77-83.
Wang, C.J., Tsai, H.T. and Tsai, M.T., 2014. Linking transformational leadership and employee creativity in the hospitality industry: The influences of creative role identity, creative self-efficacy, and job complexity. Tourism Management, 40, pp.79-89.
Wiste, P.M. and Li, M., 2016. Component hotel: the continued evolution of urban hotel design in the 21st century. International Journal of Hospitality and Event Management, 1(4), pp.325-332.
Order an Essay Now & Get These Features For Free:
Turnitin Report
Formatting
Title Page
Citation
Outline
