Hyatt Hotels Marketing Plan for Business Travelers

Introduction

Hyatt Hotels Corporation is ranked as the 9th largest international hotel chain in the world. The group specializes in being located in strategic city-center locations and offering service, first and foremost, to commercial and business individuals. The business operations of Hyatt Hotels Corporation comprise several chains. The group boasts of several well-known brands, with the Hyatt Regency brand being the oldest in the corporation. The Park Hyatt and Grand Hyatt were introduced more recently. Additionally, and most relevant to this plan, the Hyatt Place brand is designed to offer luxury and hospitality services specifically to business travelers (Hyatt Hotels Corporation, 2015).

With the advancement of globalization, the hotel industry is constantly experiencing growing demand from corporate travelers. The business travel market has become increasingly lucrative in modern times. According to Alexandria (2015), business travel spending in the United States was anticipated to surpass the $300 billion mark by the end of that year — a significant 5% increase from the prior year. Alexandria (2015) further asserts that the following year was expected to see an increase in economic activity and consumer confidence, with travel spending forecasted to rise by approximately 6%. Business trips were projected to rise by three percent, adding an average of nearly 40,000 extra business trips every day. Hyatt Hotels Corporation is well positioned to capitalize on this trend. In order to attract and retain business travelers, it is imperative for the company to provide a home away from home and an office away from the office. The following marketing plan presents senior management with a new product or service specifically targeted toward this consumer group.

The product package presented in this plan is centered on in-room conveniences. Having already introduced free Wi-Fi to all hotel guests, this marketing plan aims to make the Hyatt brand a preferred name among business travelers worldwide. The core of the product package is making guest rooms conducive to office work. Specifically, it is recommended that the hotel group offer consumers the convenience of working comfortably from their rooms, rather than requiring them to visit the hotel business center. The product package therefore involves the introduction of proper in-room office workspaces, including ergonomic chairs and desks, proper lighting, easy access to power outlets, fax and printing machines, and the already established Wi-Fi. These in-room amenities will offer significant convenience to business travelers who need to work productively during their stays.

Situational and Environmental Analysis

The level of competition in the hotel industry is very strong, not only at a national level but also on a global scale. Competition for business travelers is intensifying further. However, it is important to note that Hyatt Hotels Corporation holds a competitive advantage as one of the few large hotel chains to offer free Wi-Fi connectivity to all guests. The introduction of this new product offering will build on the existing convenience services offered by the company and strengthen its competitive position in the marketplace.

Nationally and internationally, several companies in the hotel industry have focused on cost efficiency due to broader economic conditions. This has been particularly true for large hotels, as the economic recession significantly affected the hospitality industry by reducing travel volumes. However, the business travel sector is anticipated to grow as the economy recovers. This presents the company with a valuable opportunity to introduce its product offerings to new and existing clientele. Mass media advertising will need to be supported by planned investment in order to publicize the new product offerings to the company's consumer base worldwide.

There are no anticipated political influences, occurrences, or events that could adversely affect the operations relevant to the product offering being presented.

A major emerging technological trend involves connectivity. This goes beyond simply having Wi-Fi in guest rooms — it incorporates new technological advances that allow guests to connect all of their devices, such as laptops and phones, to the room's TV screen and use them simultaneously. This requires suitable power ports and high-speed connections. Another advancement is ergonomics — designing workspaces that account for how individuals sit and move in order to maximize productivity. For example, providing seating furniture that reduces the risk of back pain and allows for easy movement around the workspace.

In contemporary society, consumers must optimize their time for both work and relaxation. The hallmarks of successful products today lie in convenience and ease of use. Simply put, if a product offering does not save time and is not easy to use, consumers will most likely overlook it. The in-room workspaces will save time by eliminating the need to travel to the hotel business center to print documents or make conference calls. In addition, they will be easy to use, increasing connectivity and allowing guests to relax within their rooms simultaneously. In the information age, free Wi-Fi with high speeds will serve as an additional competitive advantage for the company.

SWOT Analysis

A SWOT analysis is a useful technique employed for organizational auditing. It is used to analyze and understand a company's strengths and weaknesses, as well as the opportunities available to it and the threats it faces. An organization can use this technique to determine whether a given factor is internal or external and how it affects the company's performance, both in the present and in the future (Warner, 2010).

1. Renowned products: Hyatt Hotels Corporation is recognized by its customers and competitors in the hospitality industry for quality, dependability, and reliable products and services. Through these quality products, the company has maintained a stable and loyal customer base.

2. Heritage brand: One of the strengths of Hyatt Hotels Corporation is the brand identity it has established since its founding. The company is known for specializing in the best hospitality products and services, and clients choose the company because of the trust they place in its brand.

3. Innovative culture: Hyatt benefits from an innovative culture preserved within the organization. The company is consistently keen to implement novel products in the hotel industry and has accrued continued benefits from its creative initiatives. For instance, Hyatt was one of the first hotel companies to offer free Wi-Fi to all guests.

1. Attributes can be copied: A downside of the product offering being presented is that its characteristics can be easily replicated by rival companies. Since these in-room convenience amenities may be visible through the company's website, competitors can quickly copy the move, which would reduce the competitive advantage attained by Hyatt.

2. Lack of diversification: Another weakness is that the product line and consumer base lack extensive diversification. Dependency on prevailing rates of rebooking could bring about complacency, increased competition, or a false sense of consumer satisfaction.

1. Increase in business travelers: Hyatt Hotels has a significant opportunity to take advantage of the increasing number of business travelers worldwide. With the advancement of globalization, there is a growing surge of corporate and business travelers, and the company is well positioned to maximize on this trend.

2. Economic growth: The global economic recession has subsided and the economy is gradually returning to normalcy. This is favorable for Hyatt Hotels Corporation, as economic growth boosts the hotel industry overall.

1. Strong competition: Hyatt Hotels faces intense competition from other top corporations in the hotel industry. It is important for the company to recognize that its products can be substituted and that customers can shift to rival companies with relative ease.

2. Being beaten to the punch: As noted above, the hotel industry is intensely competitive. Hyatt therefore faces the threat that if it does not embrace this plan promptly, a rival company may do so first and gain a competitive advantage over Hyatt.