you will upload or attach the PDF file of the company you studied (when you create a thread, use the “plus sign in a circle” icon in the toolbar to add an attachment/insert the document). In your post, you will analyze and evaluate that company’s overall position strategy in the market (usually, you can find information about it in the ‘Competitive Positioning’ section of the document, if available). Identify which companies are the main competitors, and how well (or not so well) positioned is the firm against the other players in the industry. Additionally, based on Chapter 7 of the textbook, discuss what type of strategy you think the company is following (market leader, market challenger, market follower, or market nicher). Do you think the company's strategy is appropriate? Why or why not? Finally, is the company mostly oriented to consumer markets, business markets, or both? Explain why.
Hyatt Hotels Corp in Travel (World) HYATT HOTELS CORP IN TRAVEL (WORLD) September 2019 © Euromonitor International PASSPORT 2TRAVEL: HYATT HOTELS CORP Disclaimer Much of the information in this briefing is of a statistical nature and, while every attempt has been made to ensure accuracy and reliability, Euromonitor International cannot be held responsible for omissions or errors. Figures in tables and analyses are calculated from unrounded data and may not sum. Analyses found in the briefings may not totally reflect the companies’ opinions, reader discretion is advised. Hyatt is gaining value share in luxury hotels, in line with the luxury hotel market recording steady growth globally. Consumer preferences for luxury travel are shifting to more wellness experiences, where Hyatt has actively diversified its portfolio by acquiring wellness brands to stand out from the crowd. Its foray into short-term rentals was short-lived but the company remains open to future opportunities. Scope SCOPE OF THE REPORT http://www.euromonitor.com/ http://www.euromonitor.com/ © Euromonitor International PASSPORT 3TRAVEL: HYATT HOTELS CORP Executive summary INTRODUCTION Luxury hotels continues to show strong growth The global luxury and upscale hotel industry shows continued growth thanks to increase of consumer demands for luxury travel and experiences over luxury goods; Hyatt Hotels Corp is able to grow further. Growth drivers in Asia Pacific and Middle East and Africa While approximately 80% of revenue of Hyatt is generated from the US, Hyatt sees great opportunities in Asia Pacific and the Middle East and Africa that 21 new luxury hotels are planned to be opened by 2020 in the regions (16 in Asia Pacific and five in the Middle East and Africa). Diversified meaning of luxury As the preference of luxury travellers is shifting to luxury experiences and lifestyle itself, Hyatt is providing bespoke, wellness and mentally-wellbeing experiences. World of Hyatt loyalty programme Hyatt is trying to strengthen its World of Hyatt loyalty programme by offering various benefits. Hyatt launched a member-exclusive activities platform, FIND and new credit cards with JP Morgan Chase which can earn bonus points on World of Hyatt. New brands added Hyatt has been diversifying its brand portfolio by acquiring Miraval Wellness Resort and Spa, and the fitness brand, Exhale as well as expanding partnership with Small Luxury Hotels of the World. Short-term rentals Although Hyatt sold off its minority share in Oasis in late 2018, Hyatt is seeking further opportunities in short-term rentals for high-end travellers, as the market grows. http://www.euromonitor.com/ http://www.euromonitor.com/ State of Play Exposure to Future Growth Competitive Positioning Diversified Meaning of Luxury Short-Term Rentals Key Findings Appendix © Euromonitor International PASSPORT 5TRAVEL: HYATT HOTELS CORP Top companies at a glance STATE OF PLAY http://www.euromonitor.com/ http://www.euromonitor.com/ © Euromonitor International PASSPORT 6TRAVEL: HYATT HOTELS CORP Hyatt Hotels Corp´s global footprint STATE OF PLAY http://www.euromonitor.com/ http://www.euromonitor.com/ © Euromonitor International PASSPORT 7TRAVEL: HYATT HOTELS CORP ▪ Hyatt Hotels Corp is a US-based hotel chain with a portfolio consisting of 865 properties in over 60 countries. ▪ Hyatt Hotels has a strong reputation in the luxury and upscale hotels industry with a long history by concentrating more on high-end travellers to provide luxury experiences, compared to other companies, such as Marriott and Hilton which have expanded their coverage to mid-market and budget hotels. ▪ Approximately 80% of Hyatt Hotels Corp’s revenue has been generated from the US. However, Hyatt sees enormous potential in the luxury segment in Asia Pacific and the Middle East and Africa, with 21 new luxury hotels planned to be opened in these regions including in China, Japan and Qatar by 2020. ▪ China is one of the fastest growing countries in luxury and upscale hotels with a 3% CAGR over 2016-2019, thanks to strong economic performance with high-income households who can afford luxury. Thanks to this, Hyatt was able to increase by 20% in value terms during the same period. Company overview STATE OF PLAY http://www.euromonitor.com/ http://www.euromonitor.com/ © Euromonitor International PASSPORT 8TRAVEL: HYATT HOTELS CORP ▪ The global hotel industry has been showing steady growth thanks to consumers seeking more personalised trips and increasing demand for travel, with most of Hyatt’s growth driven by market momentum. In addition, luxury hotels account for less than 1% of global hotel outlets but 11% of sales, reflecting how important luxury hotels are to the overall lodging industry. ▪ Consumers’ needs and desire for luxury travel is shifting to experiential. Based on Euromonitor’s Lifestyles Survey in 2017, relaxation and nature, and outdoor activities ranked number one and two, respectively, in global travel preferences: travel destination features. ▪ Hyatt recently acquired Miraval Hotels in 2017 which is well known for wellness hotels providing various experiences including spa and fitness. Shortly after, Hyatt also acquired Exhale, a fitness service provider, to aggressively expand its business concepts to wellness. ▪ Hyatt made a partnership with Small Luxury Hotels of the World (SLH) in November 2018 whereby World of Hyatt members can earn and redeem points and receive benefits in participating hotels under SLH. The partnership continues to expand to cover more hotels around the world to make more synergy between them. Growth decomposition: steady growth STATE OF PLAY http://www.euromonitor.com/ http://www.euromonitor.com/ State of Play Exposure to Future Growth Competitive Positioning Diversified Meaning of Luxury Short-Term Rentals Key Findings Appendix © Euromonitor International PASSPORT 10TRAVEL: HYATT HOTELS CORP ▪ The main country for Hyatt, the US has been continuously showing healthy growth in luxury and upscale hotels. ▪ Hyatt performed well in the US with newly added brands such as Hyatt Place and Hyatt Home, which are selective service upscale hotels. ▪ The US is the dominant country but the market is already saturated. Thus, Hyatt sees great potential in Asia Pacific due to rapidly growing demands for luxury driven by increasing high incomers in the region. ▪ China shows strong growth with more operators opening hotels in the near future. ▪ The United Arab Emirates and India are also rising priorities in the luxury segment with greater numbers of high- income travellers. The luxury preference of these travellers suggests Hyatt has a bright future. Exposure to growth EXPOSURE TO FUTURE GROWTH http://www.euromonitor.com/ http://www.euromonitor.com/ State of Play Exposure to Future Growth Competitive Positioning Diversified Meaning of Luxury Short-Term Rentals Key Findings Appendix © Euromonitor International PASSPORT 12TRAVEL: HYATT HOTELS CORP ▪ Hyatt accounts for less than 1% of the global lodging industry, yet market share is gradually increasing via expansion of the portfolio of Hyatt brands in the luxury and upscale industry. ▪ While long-standing major players such as Marriott International and Hilton are gaining more market share over competitors by covering a wide range of consumer segments from luxury to budget hotels, it is noticeable that short-term rentals operators such as Airbnb Inc and Expedia Group Inc show dramatic share growth over the review period. ▪ As the sharing economy is impacting many different industries, Airbnb and Expedia, the latter owning both Stayz and HomeAway, are rapidly taking market share. Relative performance COMPETITIVE POSITIONING http://www.euromonitor.com/ http://www.euromonitor.com/ © Euromonitor International PASSPORT 13TRAVEL: HYATT HOTELS CORP ▪ To differentiate from competitors, Hyatt is trying to build stronger loyalty by offering various promotions and benefits via World of Hyatt, the operator’s loyalty programme. ▪ To target consumers who are willing to spend more on experiences, Hyatt introduced a new platform offering a variety of activities, named FIND, for its members where they can purchase with rewards points. ▪ Hyatt launched new membership credit cards partnered with JP Morgan Chase whereby consumers collect more bonus points that can be traded for free nights at Hyatt hotels. ▪ Hyatt is planning to sell some USD1.5 billion of its assets by early 2022 to improve profit performance. Competitor overlap COMPETITIVE POSITIONING http://www.euromonitor.com/ http://www.euromonitor.com/ © Euromonitor International PASSPORT 14TRAVEL: HYATT HOTELS CORP Key categories and markets COMPETITIVE POSITIONING http://www.euromonitor.com/ http://www.euromonitor.com/ © Euromonitor International PASSPORT 15TRAVEL: HYATT HOTELS CORP Key brands COMPETITIVE POSITIONING * http://www.euromonitor.com/ http://www.euromonitor.com/ State of Play Exposure to Future Growth Competitive Positioning Diversified Meaning of Luxury Short-Term Rentals Key Findings Appendix © Euromonitor International PASSPORT 17TRAVEL: HYATT HOTELS CORP ▪ The concept of luxury has been shifting and diversifying as consumer demands are changing. While luxury consumers’ values used to revolve around luxury goods, this has shifted to experiences which bring mental wellbeing and the lifestyle choice that defines how consumers spend their time. While luxury hotels are providing more authentic and local experiences, Hyatt introduced a new experiences platform, named FIND, for World of Hyatt members exclusively in July 2018. ▪ World of Hyatt members can use their rewards points to purchase various experiences that FIND provides. It includes unique experiences that consumers rarely can find in the mass market, for example, hiking and taking selfies with a wolf, and private yoga or tango lessons. ▪ FIND is also able to digitally connect Hyatt with consumers, as the importance of online experiences is becoming more crucial among millennial consumers. Thus Hyatt is trying to communicate more with consumers by giving them opportunities to fully enjoy their World of Hyatt membership. Experience a luxury lifestyle DIVERSIFIED MEANING OF LUXURY Sources: World of Hyatt website, https://world.hyatt.com/content/gp/en/rewards/find-experiences.html http://www.euromonitor.com/ http://www.euromonitor.com/ © Euromonitor International PASSPORT 18TRAVEL: HYATT HOTELS CORP ▪ Hyatt acquired Miraval in early 2017 to expand its hotel portfolio to wellness resorts, showing its strategy towards wellness luxury. Miraval has three high-end wellness resorts that provide full wellness experiences to consumers by providing spas, healthy dishes and nature adventures as well as two spa and fitness clubs. ▪ After opening its third resort in Austin in January 2019, a Miraval resort in Lenox, Massachusetts is planned to be open later in 2019. ▪ As luxury wellness will continue to impact the luxury travel industry, Hyatt is able to build a strong reputation and exploit synergies in luxury wellness through the acquisition of Miraval. Luxury wellness with Miraval DIVERSIFIED MEANING OF LUXURY Source: Miraval Resorts website, https://www.miravalresorts.com/ http://www.euromonitor.com/ http://www.euromonitor.com/ © Euromonitor International PASSPORT 19TRAVEL: HYATT