Perform a market audit of The Hyatt Regency Sydney.
The Hyatt brand of hotels is one of the premium hospitality brands all over the world. Competing with global brands it has successfully established itself as one of the finest hotel chains of the world. Established in 1957, Hyatt’s success story has now spread over 777 properties in over 54 countries (about.hyatt.com, 2018). The chosen hotel for this discussion is the Hyatt Regency, Sydney. It is the largest premium hotel in Sydney boasting of a lifestyle environment. The following discussion analyses the market connections and the products offered by the Hyatt Regency Sydney. A PESTEL analysis is also to be conducted for identifying the external factors influencing its operation in the current scenario.
Corporate Connection:
The Hyatt Hotels Corporation is one of the most popular multinational hospitality brands with a huge loyalty base. Hyatt Regency Sydney, being a premium 5-star property and the largest hotel in Sydney has a strong corporate connection. The Hyatt Regency Sydney contributes to the yearly revenue of US$ 4.68 billion of the Hyatt Corporation (investors.hyatt.com, 2018) and attracts business travellers and leisure tourists from all over the world. The Hyatt property in Sydney bears the premier flagship brand of the Hyatt Corporation that is the Hyatt Regency, and is well connected to different multinational corporations in the world who hold their business meetings and parties in the 3700 square metre flexible event space of the hotel (hyatt.com, 2018). Several smaller hotel chains, wants to associated with the Hyatt Corporation and initiates take over by the company which allows it to bring in a variety of experiences of different cultures all around the world. The Hyatt Regency Sydney incorporates such cultural amalgamation and provides an unparalleled Australian lifestyle in its corporate culture.
Products and Services:
The Hyatt Regency Sydney, being a premium 5-star property provides world class services for the customers who value quality lifestyle during their stay in the hotel.
The Hyatt Regency Sydney has a huge number of guestrooms, which number to 892, providing the customers with a variety of options to choose from during their course of stay. All of these rooms promise a spacious environment with spectacular views of the Darling Harbour which is a scenic treat to the customers.
The Hyatt Regency Sydney boasts of a variety of dining options for the customers with a variety of restaurants in the hotel (hyatt.com, 2018). The Sailmaker provides the customers with local delicacies, where the customers can relish fresh seafood from New South Wales. The Zephyr is a rooftop bar which provides a refreshing view of the Darling Harbour with refreshing drinks and an open air setting. The Lobby Lounge is one of the prime attractions of the hotel with a beautiful coffee shop and refreshing cocktails all throughout the day. The Dundee Arms is an iconic restaurant opened in 1860 (environment.nsw.gov.au, 2018) and is now a part of the Hyatt property. It provides the essence of the old Australia, where sailors used to stop by for refreshments. The Heritage café which is a café cum exhibition centre in partnership with Canon Australia, provides a perfect retreat for the customers (canon.com.au, 2018). The ultimate attraction is the Regency Club Lounge which provides the customers with an unparalleled experience unique in all over Sydney. The club lounge designed as a cruise liner is a perfect resting place for business travellers as well as tourists, offering international cuisine and a lifestyle experience.
The Hyatt Regency Sydney also hosts events such as weddings and community events. The 3900 square meter event area allows huge corporate meetings and parties which is incorporated with the international service of The Hyatt Corporation. Moreover, the hotel also provides other facilities which are common in 5-star properties.
PESTEL analysis:
Political analysis: The Hyatt Regency Sydney faces no contemporary political threats in its location. Australia, being a relatively politically stable country promises a fair political environment for the running of the 5-star property. Well-connected relations with top level politicians and corporate organisations, The Hyatt Corporation runs a good political relation in all the countries that they operate. Similar conditions apply for Australia too.
However, past incidents such as assassination of important political leaders in Hyatt properties, such as Israeli tourism minister Rehavam Ze’evi in 2001 in Jerusalem Hyatt Regency (Glickman, 2008), puts Hyatt properties such as Hyatt Regency Sydney in potential political turmoil.
Similarly, the rise of global terrorism also makes the high profile hotels like Hyatt Regency Sydney, potential targets of co-ordinated terrorist attacks. Past attacks in Grand Hyatt Hotel in Jordan in 2005 (Fattah & Slackman, 2005) confirms the potential dangers of these properties due to the rise of terrorism.
Economic analysis: The world financial crisis over the past years have directly affected the hotel industry, similarly affecting the Hyatt Regency Sydney. The customers travelling to foreign countries had been low considering the higher financial exchange rates. Moreover, economic stagnation in Europe and China had discouraged the travellers from taking trips to countries like Australia, and moreover staying in expensive hotels like the Hyatt Regency Sydney. The revenue of the Hyatt properties did not show any decrease but still has the potential of loss from the global crisis.
However, according to UN reports the global economic growth rate increased by 3 percent in 2017 and promises to increase in a stable manner in the following years (un.org, 2018). This promises a better future for the Hyatt Regency Sydney where it can draw more customers from all over the world who look for a better lifestyle and prefer deluxe stay during business and leisure travels.
Social factors: The social factors seem favourable for the Hyatt Regency Sydney. Doing business in Australia, is a favourable aspect for the hotel. The travel friendly Australians who are always hitting the road, looking for good quality accommodation and interestingly spends the most on travel (moneysmart.gov.au, 2018). This is a promising business aspect for the Hyatt Regency Sydney. Moreover, Australia is gaining popularity as a tourist destination in the recent years. Travel loving people from all over the world are coming to Australia, and this aspect looks very promising for the Hyatt Regency Sydney.
The demand for packaged travels and luxury tours among the people is also promising for the hotels like Hyatt Regency Sydney. The 5-star property, which provides exclusive packages and customised travel plans has the promise to increase its market and popularity in the present scenario.
Technological Analysis: The modern technology and continuous research in the technological sector has a promising influence for the hotels like The Hyatt regency Sydney. Online hotel booking apps such as AirBNB makes it easier for hotels like the Hyatt Regency Sydney to reach out to lot of customers worldwide (airbnb.com.au, 2018). Strategic promotions in social network and making customers aware of the different events and offers during special festivals and events is highly favourable for the hotel to spread its market in the present scenarios.
The Hyatt Regency Sydney, which is a part of the Hyatt Corporation has always adapted with the changes of the society, hence, similar technological advances and integrating and upgrading with the new and technologically advanced hospitality management systems boost the market of the Hyatt Regency Sydney in the present times.
Environmental analysis: the Environmental threats pose a real threat to the hotel industry and the Hyatt Regency Sydney is no exception. The rising fuel prices and energy costs are a real threat for the sustainable running of hotels (Mahachi, Mokgalo & Pansiri, 2015)
New environmental laws are a hindrance to hotels as they have to update their infrastructure accordingly and require a considerable infrastructure budget which has to be maintained annually. The costs might rise up to billions in a year.
The climate change and pollution has posed a major threat to hotel industries as global warming has led the hotels to reconsider its outlook towards maintaining an infrastructure which can deal with the global issue.
Promoting a green environment has clashes with the hotel ethics. Many hotels have turned into non-smoking zones which has adversely affected customer loyalty.
Legal analysis: The big hotels such as the Hyatt Regency Sydney has a potential threat from legal threats at different times. The hotels which are a part of the hospitality industry has to maintain good public relations. Dealing with different people at different points might not satisfy the needs of everyone which can land the hotels in serious legal threats at different points of time (Kelly, 2018).
Moreover, maintaining a hotel requires to adhere to several land laws and municipal laws. Violation of such laws can lead the hotels to face severe legal threats from the government bodies which might be an issue of reputation for the brand image of hotels like the Hyatt Regency Sydney. These threats have to be kept in mind while developing the infrastructure of the hotel to avoid such threats
References:
about.hyatt.com. (2018). About Hyatt. Retrieved from https://about.hyatt.com/
Fattah, H., & Slackman, M. (2005). 3 Hotels Bombed in Jordan; At Least 57 Die. Retrieved from https://www.nytimes.com/2005/11/10/world/middleeast/3-hotels-bombed-in-jordan-at-least-57-die.html
Glickman, A. (2008). Last defendant in Ze’evi murder case gets 30 years in prison. Retrieved from https://www.ynetnews.com/articles/0,7340,L-3631564,00.html
investors.hyatt.com. (2018). Hyatt Hotels Corporation – Investor Relations – Financial Reporting – Annual Reports. Retrieved from https://investors.hyatt.com/investor-relations/financial-reporting/annual-reports/default.aspx
Mahachi, D., Mokgalo, L. L., & Pansiri, J. (2015). Exploitation of renewable energy in the hospitality sector: Case studies of Gaborone Sun and the Cumberland hotel in Botswana. International Journal of Hospitality & Tourism Administration, 16(4), 331-354.
Kelly, C. (2018). Valet drives $300,000 Porsche underneath another guests vehicle. Retrieved from https://www.dailymail.co.uk/news/article-5789373/Sydney-Hyatt-Regency-Hotel-drives-Porsche-Subaru.html
www.airbnb.com.au. (2018). Holiday Rentals, Homes, Experiences & Places – Airbnb. Retrieved from https://www.airbnb.com.au/s/Hyatt-Regency-Sydney–Sussex-Street–Sydney-NSW–Australia/all?place_id=ChIJB_E7ITmuEmsRvpaogmLagvc&query=Hyatt%20Regency%20Sydney%2C%20Sussex%20Street%2C%20Sydney%20NSW%2C%20Australia&refinement_paths%5B%5D=%2Ffor_you
www.canon.com.au. (2018). The Gallery – Photography Exhibition in Sydney. Retrieved from https://www.canon.com.au/explore/the-gallery-photo-exhibition-sydney
www.environment.nsw.gov.au. (2018). Dundee Arms Hotel | NSW Environment & Heritage. Retrieved from https://www.environment.nsw.gov.au/heritageapp/visit/ViewAttractionDetail.aspx?ID=5045598
www.hyatt.com. (2018). hyatt-regency-sydney. Retrieved from https://www.hyatt.com/en-US/hotel/australia/hyatt-regency-sydney/sydrs
www.moneysmart.gov.au. (2018). Australian spending habits | ASIC’s MoneySmart. Retrieved from https://www.moneysmart.gov.au/managing-your-money/budgeting/spending/australian-spending-habits
www.un.org. (2018). UN: Highest Global Economic Growth Since 2011. Retrieved from https://www.un.org/development/desa/dpad/publication/world-economic-situation-and-prospects-2018
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