Hyatt Regency Sha Tin Hotel
INTANGIBLE- TECHNOLOGICAL RESOURCES
Hyatt’s Central Reservation, a 24/7 reservation system
CAPABILITIES
“provide authentic hospitality by making a difference in the lives of people we touch every day” (Farley, 2010)
“Hyatt Thrive”
COMPETENCY
INTANGIBLE- HUMAN RESOURCES
- Promotional forces
- Global sales platform
- Strong Capital Base and Disciplined Financial Approach,
- Diverse Exposure to Hotel Management, Franchising, Ownership and Development
FUNCTIONAL STRATEGIES
SUPERIOR EFFICIENCY
- superior efficiency
- quality
- innovation
- customer responsiveness
HR department provides a variety of training
-learning effect
- Promotion of a loyalty program- “Hyatt Gold Passport”
- 'Double Your Points' promotion
- 'Elite Tier Trial' promotion
-platinum members can upgrade
Hyatt awarded 100% in the HRC Equality Index
SUPERIOR QUALITY
Monthly MICE audit training
-eliminate chances of error & ensure quality consistency
CUSTOMER RESPONSIVENESS
Briefing session
Medallia
Effective program "HySat"
-find out and record guests’ likes and dislikes
Issue and problems
Limited exposure of the package
- not able to reach the targeted market segment
- affects the operational efficiency
- Generate extra workload for S&M staff:
- Direct selling, recurring long stay to sale office
- Follow HRST Standard
INNOVATION
- “Long Stay Package”
- “Sweet Deal”
- Wedding room package- Chinese traditional custom
ISSUES & PROBLEMS
Issue and problems
- MICE Audit Session is too time-consuming
- Briefing session is too broad
Technical disability of “Long Stay Package”
- extended stays with complementary demand for room and hotel facilities.
- not entitled to GP points
- rate cannot be search or reserved on the site’s Online Reservation System
Issue and problems
RECOMMENDATIONS
Opening of Hong Kong Science Park Phase 3
• Target at same MICE industry
• Offers larger meeting, convention and exhibition area than HRST
Lengthy MICE Audit Session:
-Shorten MICE Audit Session
-Enable staff to select dates
-Database record
Lengthy Briefing session:
-Supervisor should select significant/useful feedback
-ask staff to brainstorm ideas to solve issues before session
RECOMMENDATIONS
TANGIBLE-PHYSICAL RESOURCES
RECOMMENDATIONS
Opening of Hong Kong Science Park Phase 3:
Technical disability of “Long Stay Package”
Launching event related package
• Clearly define the difference between HRST & HKSP
• Combine accommodation and meeting service at packaged price
• Food and beverage service during event
• Cooperate > Competition
Provision of separate retain program for long stay guest
• More flexibility from direct selling
• Provide retain program for its own in house long stay guest
• Perhaps take 3 hotels in Hong Kong as a group
• Separate points for redemption of coupons
• Worthy→ repetitive stay
CONCLUSION
• HRST perform well among luxury hotel
• Review strategies continuously to see whether they are fitting environmental changes as well as guest need
• Continue to make good use of comparative advantage and grab opportunities
• Use retained profit to improve weakness
- Over 750 square meters meeting spaces
- 9 meeting rooms
- 427 guestrooms
- 132 designed rooms
Tangible- Financial Resources
- occupancy rate, at 79.9%,
Background
-Worldwide recognized hospitality organisation
-Established in 1957
-Hyatt Regency Hong Kong ShaTin was founded in 2009
-One of three full service hotels under HHC
-Teaching hotel
-First hotel in New Territories
-Six layer of management
External Environment
Macro-environment: Political, economic, social and technological
Micro-environment: Porter’s 5 forces
Political
- policies and strategies to enhance the competitiveness of the hotel industry and entice visitors to lengthen their stay
- EG: Individual Visit Scheme(IVS), Cruise hub, tax relieve
- Convert of old industrial buildings and revitalization of heritage buildings into hotels
- attracting more high value-added visitors to Hong Kong.
Introduction
-Keen competition in hotel industry
-Adding value to customers, employees and owners becomes main concern (Kim & Oh, 2004)
-Not easily replicated by competitors
-236 hotels in Hong Kong
-Tourists keep increasing
-Important to adopt correct strategies
Social
Technological
Existing rivalry in industry
- Fierce competition exists
- Not only local, also neighboring cities (Macau)
- provides designer shopping, luxury hotels and resorts as well as many more dining and entertainment options to outbound travelers (MGTB, 2015)
- Various technological applications
- free mandatory Wi-Fi service is basic requirement for luxury hotels
- Mobile web booking and express check-in kiosk are emerging trends
- “digital customer experience”
- 78.3% were the Mainlanders (HKTB, 2014)
- attaining an average annual growth rate of 23.6% (CEDB, 2014)
- numerous protests to Mainlanders
- EG:Anti-Chinese visitors’ activity, anti-parallel trading
- discourage tourist visiting Hong Kong
Economic
Methodology
Flow
The threat of substitutes
STRENGTH
Facilities and Surroundings
-Wonderful view for terraces and and outdoor activities
-Close to China border and CUHK, 3 mins walk to MTR
WEAKNESSES
- Remote from the central business district
- No transportation service for hotels in New Territories from hotel to airport express
- No valet parking
- Not enough shopping mall, retail shops, restaurants in the surrounding areas
OPPORTUNITIES
STRENGTH
Relaxed visa requirements for Chinese inbound travellers
-Reduced restrictions of individual travel scheme are expected to attract more Mainland tourists to HK
Hyatt Loyalty Program-Golden Passport
Gold passport and meeting planner rewards encourage loyalty and help retain repeat business
OPPORTUNITIES
Hong Kong as a MICE hub
-Can create attractive yet profitable packages tail-made for business travellers
- Little
- Upper strategic groups which include luxury hotels cater different needs with those at lower strategic groups
Rapid hotel development in areas in China- Guangzhou and Shenzhen will compete with the hotel in Hong Kong
China has signed a cross-strait deal with Taiwan which allows Mainlanders and Taiwanese to travel directly within these two places
The emergence of Gen Y workers in the future
-Professional capabilities and distinctive competencies in tourism and hospitality market
STRENGTH
Brand Awareness
Strong and renowned brand around the world
SWOT
Bargaining power of suppliers
- adds burden for hotel operation
- EG: food, amenities, and information, labor
- hotels encounter recruitment difficulties with relevant qualifications and experience (VTC, 2013)
Bargaining power of buyer
- Operation cost increasing
- # of Visitors # occupancy, room nights, spending: increasing
- occupancy and spending has increased by 7% and 15.7% respectively (HKTB, 2014)
- IVS visitors’ spending also contribute for 8.8 billion for hotels and accommodations in 2012 (CEDB, 2013)
-Primary Data:
- Face-to-face interview with Sales Executive: Mr. Chalton Chung
-Secondary Data:
-Official data of the HRST
-News
-Books
-Reports
-Journal articles
- the average occupancy rate of hotels was 90%
- supply of hotel rooms is insufficient to meet the demand
- not high especially peak seasons
1. Introduction
2. Methodology
3. Background
4. External & Internal Environment
5. SWOT Analysis
6. Business & Functional-Level Strategies
7. Issues & Problems
8. Recommendations
9.Conclusion
Threat from potential competitors
- more hotels will open meet demand
- total of 76,603 rooms by year 2017
- more personalized, customized and unique experience provided by the boutique and themed hotel with different innovative features.