Hyatt Group of Hotels India

Category: Business Class or Five Star Chain of Hotels in India

Submitted By Akshay Aggarwal 81B Apurva Vashisht 86B Omkar Bhatt 36A Raisa Chakravarty 44A Sana Arora 124B

Company Overview

The Hyatt is an established international chain reputed for its high quality of service. The Hyatt has around 735 hotels and resorts spread across 44 countries. It has hotels all across the world from Bali , to Beijing, from Berlin , to Bombay. The company's affiliates own, operate, manage and franchise Hyatt branded hotels and resorts under the Park Hyatt, Grand Hyatt, Hyatt Regency, Hyatt Resorts, Hyatt, Hyatt Place and Hyatt Summerfield Suites brands. The Hyatt has united all its hotels, and resorts under one umbrella brand and has used integrated marketing communication tools to convey their superiority to the customers. Mission & Vision The mission of the company is to provide authentic hospitality by making a difference in the lives of the people they touch every day. The group relentlessly and consistently pursues the goal of becoming the most preferred brand in the niche segment of associates, guests, and owners that it caters to. Business Philosophy We do not believe in brand image but believe in brand experiences. A hotel should design its products and services in such a manner that it matches up to the kind of image it desires to portray to the market. In this case, Grand Hyatt, Mumbai, for instance positions itself as a business class hotel. All the amenities and services provided are suitable for the business class. The Grand Hyatt understands that it is more cost-effective to regain the trust of an unsatisfied customer than to spend on advertising looking for new ones. The Grand Hyatt has a system in place as regards to how to handle a disgruntled guest. For the convenience and quick recall for the employees this system has been contracted into a term called LEARN (service recovery mechanism). L LISTEN E EMPATHISE A APOLOGISE R REACT N NOTIFY

Business Overview Nature of Business Hotels are essentially service providers and there are three systems for distributing the services, e.g. twolevel, one-level and zero-level. The three-tier distribution system is required to be managed properly so

that the users expectations are fulfilled and the promised services reach the ultimate users in the right way. It is in this context that the hotel management requires world class professional excellence which would simplify the distribution process and maintain cost effectiveness. Channel I: Direct-To-Customer In the first channel, the hotel organization and customers communicate directly with no intermediaries. This is called direct marketing. It is also known as Zero-Level distribution system owing to the fact that it does not have any intermediaries.

Hotels

Direct distribution methods

Customers

Channel II: Tour Operator as An Intermediary Tour operator is a wholesaler in the travel and tourism industry. A tour operator negotiates bulk allocations of seats from charter airlines and bulk accommodation from hotels, and then develops a packaged product, which is marketed to consumers directly. The tour operator does not charge a commission; instead he agrees upon discounted prices with the different hotels involved, and makes profit by charging the customer an inclusive price for the holiday package. In fact, some of the operators mark up the price by as high as 33% and only pays 50%-60% of the normal room price to the hotelier who is lodging their clients.

Hotels

Tour Operators

Customers

Channel III: Travel Agent as an Intermediary In distribution, travel agents perform the role of a retailer stocking a range of hotel and travel products. Information about the products and prices is stored in database and manual directories, and is provided via brochures. Most travel agents make use of the GDS technology. Global Distribution Systems (GDS) allow travelers to select hotels and make reservations from remote locations, for any date in the future and receive instant confirmations at the same time. Some of the third party websites that the Grand Hyatt uses

are www.expedia.com and www.travelocity.com. Some of the travel agents include: Tour Club, Flexi Tours Pvt. Ltd., and Indian Holiday.

Hotels

Tour Agents

Customers

Management & Organization Structure

GENERAL MANAGER

FRONT OFFICE MANAGER *

HOUSEKEEPING MANAGER

HEAD SALES AND MARKETING

FOOD & BEVERAGE MANAGER

Restaurant Manager & Bar Manager

Front Desk Supervisor

Rooms Coordinator

Floor Supervisor

Laundry Supervisor

Custodial Supervisor

Sales Manager

Marketing Manager

Reservation Manager

Executive chef

*Front office organization chart & Hierarchy

Augmented Product /

Clients: SEGMENTATION

CUSTOMERS: There is a broad consensus that segmentation is the starting point for developing effective marketing strategies because trying to target all customers is not cost effective and hence concentrating a hotels marketing resources on key markets leads to a more focused and cost effective marketing strategy. The segmentation variables form building blocks in developing target market profiles of customer expectations and the primary segmentation variable used by virtually all hotel and lodging companies is the purpose of travel. Hotel users can be classified based on this primary variable as follows:

The Business Traveler

The business traveler is the archetypal corporate executive, and frequent flier who opts to stay in a hotel during a business trip. The Luxury Traveler

The luxury traveler is the traveler who has the time and money on his hands to splurge on a 5 star hotel Special Travelers

This is a class of people comprising of government officials, politicians on official visits, or celebrities such as movie stars or sports persons. They require special accommodation arrangements when they are staying in the hotel.

Apart from the purpose of travel users of the hotel industry can also be classified based on various other variables which are as follows:

Geographic Segmentation: The Federation of Hotels and Restaurant Association of India has divided the country into four geographical regions (north, east, west and south). Within each of these zones areas are further classified according to their population density, levels of industrialization, climate and various other geographic factors.

Demographic Segmentation:. These depend on Age, Gender, socio economic class, Ethnic origin, religion and nationality

Psychographic Segmentation: This type of segmentation is based on the customers social class, lifestyle and personality. A customers lifestyle reflects the expectations he will have of the services and facilities provided by the hotel.

Behavioral Segmentation The behavioral segmentation of customers depends upon factors such as most wanted benefits, usage rates, loyalty, readiness to buy and attitudes toward the product. In this way the service marketer must understand which of the benefits offered priorities are for the target customer and use that to effectively target the customer segment.

Positioning In a highly competitive environment, theres a risk that customers will perceive little real difference between competing alternatives and so make their choices based on price. A hotel should design its products and services in such a manner that it matches up to the kind of image it desires to portray to the market. In this case, Grand Hyatt, Mumbai, positions itself as a business class hotel. All the amenities and services provided are suitable for the business class. The hotel provides office space, wherein the guest can make use of computers, printers, and scanners and can do their work peacefully. They also have the facility for their guests to hire laptops. This kind of facility is not provided by many hotels. Unlike, other 5 star hotels like J.W. Marriot which portray a Bollywood image, the Grand Hyatt believes in serving mainly the corporate class. With their newly launched Chinese restaurant, China House, which welcomes many celebrities, it has helped the Grand Hyatt to become a part of the social world. The celebrities visiting the hotel are treated just like any other guests visiting the hotel. There is not much media attention, people bothering them for their photographs or autographs, etc. are few reasons why they prefer coming to Grand Hyatt. One might think that it is restrictive only to the business class people but it has helped the high profile celebrities visiting the hotel to be left alone and peaceful.

Brand Strategy : The Hyatt has united all its hotels, and resorts under one umbrella brand and has used integrated marketing communication tools to convey their superiority to the customers. The Hyatt does undertake brand

management at a necessary and prescribed level through advertising, promotion, and continuous improvements and innovations in its operations, and efforts to localize its services to suit the local flavor.

The following list represents the kinds of media employed by the Grand Hyatt:

Business Publications: The Grand Hyatt often places advertisements in Business publications such as Outlook, Business World etc. to serve as reminders to the corporate executives.

Tourist Publications: The Grand Hyatt also places ads, to attract tourists, in tourist publications such as TravTalk, Times Food Guide, Mumbai City Guide, Travel Guide Mumbai etc.

Directories like The Yellow Pages.

Direct mail to tour operators and corporate clients.

Although media like T.V., radio, etc. are rarely used by the Hotel industry, The hotel industry can leverage itself through lifestyle, travel and living, and entertainment shows such as programs that feature on the Discovery Travel and Living channel, NDTV Nightout, After Hours, etc.

OOH (Out of Home) advertising is catching on in a big way in India and hotels have begun to make use of such a form. This type of media works well in urban areas where the average person is more out of home rather than indoors.

Another technique of advertising is via the internet. All the hotels have their own websites which provide detailed information regarding accommodation, restaurants, lounges, spas and other facilities that they provide. The Grand Hyatt too has its own exclusive websites with all the details mentioned. Infact the website allows for picture galleries to be exhibited as well as video tours of the hotel. Also, apart from their own websites, hotels tie- up with online travel websites to place advertisements.

Distinguishing Factors As a distinguishing factor, the service provider prepares an augmented product that exceeds the customers expectations. Services that fall under this category are generally the additional services, over and above the basic product, that are offered to the customers. They serve as the main point of differentiation. By and large, the core and basic products offered by most of the hotels across the industry tend to be the same. Therefore, the hotels use this product level to make their package more attractive than the competitors. The Grand Hyatt uses the following additional facilities to leverage itself. The following is a list of the common augmented products provided by the Grand Hyatt. They are available to all the guests irrespective of the type of room they occupy or the nature of their visit to the hotel i.e. as a guest or a visitor. Dedicated swimming pool Baby-sitting service Convenient access to the complex's 24-hour Business Centre for private meeting rooms, secretarial

services, translation facilities and laptop rentals Grand Ballroom- 30,000 square feet of conference and meeting space - amongst the largest and most

sophisticated facilities in the city. Convenient access to Club Oasis - Fitness Centre and Spa Gourmet Store within the complex for homemade jams, chutneys and sauces, a variety of cheese, cold

cuts, olives and wine as well as freshly baked breads, cakes, tortes and cookies Catering and home delivery from Grand Hyatt Mumbai's restaurants Beauty Salon Tennis Courts GrandHyattPlaza A Multilevel shopping plaza featuring over 50 boutiques of Indian and international

brands. Over and above the list mentioned above, we have classified the Lounges and Bars as augmented products. This is because the hotel, in order to satisfy the basic needs of accommodation and dining, already has 547 rooms and suites as well as 5 restaurants. Thus the lounges and Bars serve as additional and extra facilities that the hotel provides to the guests.

Accommodation

Dining

Recreation & Health

Hotel Facilities

Rooms Grand King Grand Queen Grand Twin

M Swimming Pool Celini

24 Hours room Service

24 Hour Concierge Club Oasis (Fitness Centre & Spa)

Apartments Studio Apts 1 BHK 2 BHK 3 BHK Grand Caf Grand Club Accommodations Club King Club Queen Club Twin Suites Grand Exec. Suites Veranda Suites Diplomatic Suites Grand Suites Presidential Suites The Bar M Bar China House Soma

700+ Car Park

Gourmet Store

Technology Concierge

Beauty Salon

High Speed Internet Service

Baby Sitting Service Tennis Courts 24 Hour Business Centre GrandHyattPl aza (Shopping Centre

Grand Ballroom

Brand Value Distinguishing Factor Having a chain of hotels is considered to be an advantage due to the loyalty that could be developed among customers who travel a lot. The guest is already assured of good service because of the image of Hyatt. Therefore, Grand Hyatt, Mumbai, did not feel the need to work on building its brand image. The existing image of the Hyatt helped this hotel to carve a place in the market. This does not imply that the Grand Hyatt sat on its laurels and did nothing to localize its brand. The Hyatt does undertake brand management at a necessary and prescribed level through advertising, promotion, and continuous improvements and innovations in its operations, and efforts to localize its services to suit the local flavor. Thus projecting a single brand makes sense in the global market. Existing Competition

TAJ Hotels: Taj Hotels Resorts and Palaces are recognised as one of Asia's largest and finest hotel company. Taj Hotels Resorts and Palaces comprises 59 hotels at 40 locations across India with an additional 17 international hotels in the Maldives, Mauritius, Malaysia, United Kingdom, United States of America, Bhutan, Sri Lanka, Africa, the Middle East and Australia. Incorporated by the founder of the Tata Group, Jamsetji N Tata, the company opened its first property, The Taj Mahal Palace Hotel, Bombay, in 1903. The company has had a long-standing commitment to the continued development of the Indian tourism and hospitality industry. From the 1970s through the 1990s, the Taj played an important role in launching several of India's key tourist destinations. Working in tandem with the Indian government, the Taj developed resorts and retreats while the government developed roads and railways to India's hidden treasures.

ITC/ Sheraton Corporation . ITC -Welcomgroup Hotels, Palaces and Resorts, is today one of India's finest hotel chains, with its distinctive logo of hands folded in the traditional Namaste is widely recognised as the ultimate in Indian hospitality. Each of the chain's hotel pays architectural tribute to ancient dynasties, which ruled India from time to time. The design concept and themes of these dynasties play an important part in their respective style and decor. With more and more hotels being added at strategic destinations, the group has joined hands with the Sheraton Corporation to strengthen its international marketing base. A successful marketing franchise for almost 25 years now, there are currently 10 ITC - Welcomgroup Sheraton hotels, and more in the pipeline.

The Leela Group

The Leela Group is engaged in the business of ready-made garments and luxury hotels and resorts. The Leela Kempinski, Mumbai and The Leela, Goa and the newly opened Leela Palace Kempinski New Delhi are some of the best hotels in India, and have also won considerable international acclaim.

The EIH Ltd (The Oberoi Group) Asian elegance is the key to running hotels, if you ask EIH (better known as The Oberoi Group). The company owns and operates about 20 luxury hotels, about 10 mid-range hotels, and two inland cruises; The Oberoi Group operates primarily in India, but also in Australia, Egypt, Indonesia, Mauritius, and Saudi Arabia. Most of the company's luxury properties bear the Oberoi banner.

India Tourism Development Corporation (ITDC) / The Ashok Group India Tourism Development Corporation (ITDC) was established in 1966 as an autonomous public sector corporation, entrusted with the task of helping develop tourism infrastructure and promoting India as a tourist destination. The ITDC Ashok Group of hotel chains manages some of the best five star and luxury tour hotels in the Indian hospitality industry. The hotels run by the ITDC Ashok Group of hotel chains may be divided into different categories, these are elite hotels, comfort hotels and classic hotels. The ITDC Ashok Group of hotel chains manages 33 hotels in 26 different tourist destinations all over India. The management of Ashoka Group believes in offering the best in the hospitality industry and the staff at each of the hotels run by the group is especially trained to be courteous and efficient.

Marriott Group Marriott India was established in 1988 and opened its first Mariott hotel in Goa in 1999. Marriott hotels are managed under five brands Ritz-Carlton, JW Marriott Hotels, Marriott Hotels & Resorts, Renaissance Hotels and Courtyard by Marriott. By 2012, the group is expected to expand its Indian operations to encompass 30 properties in the luxury to the upper-moderate tiers, with a total of 5,524 rooms.

Intercontinental Hotel Group/ the Lalit Hotel Intercontinental Hotel group is the largest Hotel chain in the world from a very long time now. InterContinental Hotels Group (IHG), that runs brands like the Intercontinental and Holiday Inn, will be re-positioning its Intercontinental brand next year in the country. The company currently has four Intercontinental brand hotels and will be left with just one at Marine Drive in Mumbai by next year. This follows the closure of the franchisee agreement it had with The Lalit Group of

hotels run by Bharat Hotels for the Intercontinental brand. The latter had decided to run its own brand hotels and hence end the franchisee with the IHG. Moreover, IHG has entered into a joint venture with Duet India Hotels Group (DIHL), the hotel investment arm of global asset manager Duet Group, to develop 19 new Holiday Inn Express brand hotels in India.

Future Plans for Growth

Growth Plan for Hyatt is directly linked to the developing Indian Tourism Industry.

With government

initiatives and developing secondary markets, Hyatt should look at increasing presence in India.

Hyatt is looking for a strong luxury positioning.

Secondary markets With Tier 1 and Tier 2 cities showing tremendous growth in business clients, Hyatt looks at extending the Brands Hyatt Regency and Grand Hyatt to this centres. Most Indian cities having a sense of heritage attached to them, give an opportunity for development in both Leisure and Business Hospitality space. Thus the balance will be very important in development of the properties in future.

Health tourism India is gradually gathering popularity as a destination for health tourism. The country needs to exploit the inherent cost advantage it can offer to a health tourist, the study said. The biggest driver for healthcare tourism is the disparity in costs.

. A heart surgery in the US costs USD 30,000 as compared to USD 6,000 in India. . A bone marrow transplant in the US costs USD 250,000 and USD 26,000 in India. With yoga, meditation, ayurveda, allopathy, and other systems of medicine, India offers a unique basket of services to an individual that is difficult to match by other countries. Clinical outcomes in India are at par with the world's best centres since India has internationally qualified and experienced specialists. Development of Spas and Health Resorts: India tops the list along with China and Montenegro with demand growing each year at a rate of 7.9 per cent as far as India is concerned. For the time being the spa industry in India is still small but it has a bright future ahead. Small spa resorts are key players for now, if an international giant like Hyatt enters now it can dominate the space.

Boutique Hotels and Exclusivity With growing economy and higher purchasing power Indians are looking for better and differentiated experiences. Also there is still a scope for creating exclusive places like a Genting Highlands (Kanatal being an example of this). Boutique hotels and exclusive spaces will be essential to create a stronger luxury brand imagery.