The Marketing mix of Hyatt Hotel analyses the 4Ps of Hyatt Hotel, which includes the Product, Price, Place, and Promotion of Hyatt Hotel. Hyatt Hotel is a multinational corporation of American origins. It is a public company associated with hospitality services and the tourism industry through its dealings via resorts and hotels. The company has targeted business and leisure travelers as its potential customers. Hyatt Hotel was founded in 1957, and it believes in offering authentic services to every customer by efficiently catering to their needs. Some of its rivals are as follows-
- Starwood Hotels and Resorts
- Trident Hotels
- Taj Hotels
About Hyatt
- Type: Multinational hospitality company
- Industry: Hospitality
- Founded: 1957
- Founder: Jay Pritzker
- Headquarters: Chicago, Illinois, United States
- Area served: Worldwide
- Key people: Jonathan M. Karl (Chairman) and Mark Hoplamazian (CEO)
- Number of employees: 74,000
Table of Contents
Hyatt Hotel Product Strategy
Hyatt Hotels is a leading hotel chain that offers luxurious services and authentic hospitality. Bars, restaurants, spacious rooms with advanced amenities and modern facilities, uninterrupted Wi-Fi connection, suitable transport choices, and a wide range of food and beverage options are vital parts of every Hyatt hotel.
Hyatt Hotels Corporation offers a diverse product mix that caters to various customer segments in the hospitality industry. Their portfolio includes a range of hotel and resort offerings, each designed to meet specific customer needs and preferences.
The new Product Mix of Hyatt Hotels in 2023 is as follows (Source).
- Luxury Properties: This category includes brands like Park Hyatt and Andaz. Park Hyatt hotels are known for their sophisticated, luxurious accommodations and personalized services, targeting high-end business and leisure travelers. Andaz hotels offer a boutique luxury experience with unique, culturally rich environments.
- Premium Properties: Brands like Grand Hyatt and Hyatt Regency fall into this category. Grand Hyatt hotels offer upscale accommodations, often in major gateway cities and resort destinations, with premium amenities and services. Hyatt Regency is known for its superior, full-service offerings, catering to business and leisure travelers with spacious accommodations and meeting facilities.
- Lifestyle Hotels: This segment includes brands such as Hyatt Centric and Alila. Hyatt Centric hotels are in prime urban locations, offering a full-service experience with a modern, lifestyle-oriented focus. Alila properties, known for their combination of innovative design and luxury in unique locations, cater to travelers seeking an intimate and personalized experience.
- Select Service Hotels: Brands like Hyatt Place and Hyatt House fall under this category. Hyatt Place offers casual hospitality in a high-tech and contemporary environment, ideal for business travelers and short-term stays. Hyatt House is designed for extended stays, offering residential-style suites with full kitchens and comfortable living spaces.
- Time-Share Properties: Hyatt Residence Club provides luxurious, residential-style accommodations for those looking for time-share options. These properties are in select resort destinations and offer spacious, high-end accommodations.
- All-Inclusive Resorts: Hyatt’s all-inclusive resorts, such as those under the Ziva and Zilara brands, offer a comprehensive, all-inclusive experience. Hyatt Ziva is family-friendly, while Hyatt Zilara is adult-only, providing extensive amenities, dining options, and activities.
- Destination Hotels: This collection features various independent hotels, resorts, and spas, each reflecting the local culture and environment. They cater to travelers seeking authentic, local experiences.
Hyatt Hotel Place Strategy
Hyatt Hotels has an international presence as they are spread over various countries. Its headquarters are based in Chicago in the United States. First Hyatt House was at Los Angeles International Airport, and since then, the corporation has established six hundred and seventy-nine properties spread worldwide over fifty-four countries. Prominent places having one of its hotels or resorts are Atlanta, Beijing, Boston, Chicago, Hong Kong, Manila, Mumbai, San Francisco, Seol, and Tokyo.
The company owns and operates all its hotels on a franchisee system. Hyatt has a central reservation system in strategic places like Germany, UAE, India, Japan, Australia, and the United States to offer 24*7 services to prospective customers at strategic locations. The company has several traditional and online tie-ups with travel agencies, who recommend a stay at any of its resorts or hotels according to specific requirements.
Here’s Hyatt Hotels’ place strategy.
- Global Presence in Key Locations: Hyatt Hotels strategically establish properties in major cities, business hubs, popular tourist destinations, and emerging markets worldwide, ensuring they cater to business and leisure travelers.
- Multi-Channel Distribution System: Hyatt utilizes a comprehensive distribution system, including direct bookings through its website and mobile app, as well as third-party platforms like online travel agencies, to maximize reach and convenience for customers.
- Strategic Partnerships and Alliances: Hyatt forms alliances with travel agents, corporate clients, and airline partners to enhance its market presence and offer integrated services to guests, such as loyalty program benefits and exclusive offers.
- Diversified Property Types: Hyatt’s diverse portfolio, including city hotels, resorts, and convention centers, ensures they can cater to various customer needs, from business conferences to luxury vacations and family getaways.
- Local Adaptation and Integration: While maintaining brand standards, Hyatt hotels adapt to local cultures and environments, offering unique experiences that resonate with the local setting, thus appealing to both international travelers and local guests.
Hyatt Hotel Pricing Strategy
Hyatt Hotels believe in a comprehensive understanding of customer’s wants and desires. The company is focused on putting its best foot forward by offering excellent products and services in luxurious settings in the tourism and hospitality industry. They have a dedicated team where researchers provide their opinions on the best options to meet the requirements of both customers and the company. Hyatt Hotels has adopted a premium pricing policy for its products as they cater to high-profile business class and upper-class sections of society.
This policy has proved successful as customers of Hyatt Hotels are more interested in service quotient than in prices. Hyatt realizes that high volume will lead to more significant revenues and hence offers discounts on group bookings and extended stays. Vouchers for meals, complimentary suites, and lucrative deals for regular customers are ways it tries to cut down its premium prices for regular customers. Here’s an overview:
- Dynamic Pricing Model: Hyatt utilizes a dynamic pricing approach, adjusting rates based on seasonality, occupancy levels, local events, and market demand. This flexibility ensures competitiveness while maximizing revenue.
- Value-Based Pricing: The pricing across Hyatt’s diverse portfolio reflects the value offered to different customer segments. Luxury properties like Park Hyatt are priced higher, targeting guests who seek premium experiences, whereas brands like Hyatt offer more budget-friendly options for value-conscious travelers.
- Segmented Pricing Strategy: Hyatt’s varied brand portfolio allows for segmented pricing. Each brand caters to specific market segments – from luxury to economy – enabling pricing strategies tailored to each segment’s expectations and willingness to pay.
- Loyalty Program Incentives: Hyatt’s loyalty program, World of Hyatt, is crucial in its pricing strategy. It offers tiered membership benefits, including discounted rates, rewards, and exclusive offers, encouraging repeat business and brand loyalty.
- Geographic Pricing Considerations: Hyatt’s global presence necessitates geographic pricing considerations. Prices are set according to local market conditions, economic factors, and competitive landscapes in different regions, ensuring relevance and competitiveness in diverse markets.
- Package and Promotional Offers: Hyatt employs promotional pricing through packages and special offers, such as all-inclusive deals, seasonal discounts, and event-based promotions, to attract a broader customer base and boost occupancy during off-peak periods.
- Corporate and Group Pricing: Special rates are offered for corporate clients and group bookings, catering to the business travel market and significant events. This pricing strategy is crucial for maintaining high occupancy and consistent revenue streams.
Through this multifaceted pricing and marketing strategy, Hyatt successfully caters to a wide range of customers, from luxury seekers to budget travelers, while adapting to the ever-changing dynamics of the global tourism and hospitality industry. This approach drives revenue growth and strengthens Hyatt’s brand positioning across its diverse portfolio.
Hyatt Hotel Promotion Strategy
Hyatt has implemented a top-notch marketing strategy designed to build and keep the brand image and maintain positive awareness by meeting every conceivable customer need. It offers several schemes for the benefit of its target audience. Hyatt rewards the loyalty of regular clients via a signature membership card called the Hyatt Gold Passport.
It is a reward program offering discounts and promotions to members. If their stay extends to more than two consecutive nights, voucher cards are provided to customers. The leading hotel chains have several eloquent taglines like- We care for people so they can be their best, and you’re welcome. In 2016, Hyatt was ranked 47th in terms of best US Company by Fortune magazine. Guests at Hyatt are their best advertising mediums as hyatt offers top services to prompt the guests in hotel promotion through mouth publicity.
Some Recent Video ads and Print ads of Hyatt are:
https://youtu.be/C3plCkJFTk0
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