Contemporary Developments in Business and Management: Hyatt Hotel in Hong Kong
The Changing Competitive Environment
Competitive Environment is the part of an organization’s external environment that is consists of other firms that are trying to win the customers in the same market. It is also the segment of the industry that includes all the immediate rivals ( 2008).
In 2007, Hong Kong shows an increase in the number of their visitors. In September of the said year, there are about 2,120,835 visitors that have arrived in the said territory, showing a great increase of 15.9% year on year. Year-to-date arrivals have reached an amazing number of 20,363,764, an increase of 9.6% year on year ( 2008).
There are different factors that can affect the competitive environment of the tourism and hotel industry in Hong Kong and it can impact the different policies and activities of Hyatt Hotel in order to maintain their position in the ever changing market of Hong Kong, primarily driven by the behavior of the tourist in the said country.
Development in Hotel Industry of Hong Kong
One of the most important aspect developments of hotel industry in Hong Kong is the soaring influence of China. China’s influence on both inbound and outbound tourism has grown enormously. China is not only the major source of the arrivals of tourism into the country but continues to grow at a healthy pace. Furthermore, China is also a major destination for the outbound traveler’s because of its relative ease of access as well as low-cost benefits for the Hong Kong-based travelers (2008). In 2007, there are about 11,321,149 Chinese visitors that have traveled to Hong Kong, a great increase of 10.9% year on year (2008).
It is also important to consider the retail produce portfolio stays small, which shows that the tour packages are still the backbone of the retail travel products in Hong Kong, but the product portfolio remains limited ( 2008). This is affected by the regional economic crisis that made other Asian destination cheaper ( International 2008).
It is also important to consider the impact of the Internet with the hotel industry of the country ( 2008). There is different traveling and hotel companies that are offering online services that can make the life of the travelers or tourists easier.
Hotel Design, Structure and Service
The hotel industry of the country is being affected by the different aspects regarding the changing demands of the tourists regarding the structure and design of hotels. The hotel industry of the country is focusing on the four – and five – star hotels in the country (2008).
With accordance to the said change, Hyatt focuses on maintaining and updating the design and structures of their room. According to them, the changes in the new rooms goes beyond simply updating the soft furnishing but also involved the complete redesign process of the rooms in order to meet the constantly changing needs of the new millennium traveler. The company focuses in creating a room that is perfectly suited to the needs and demands of the discriminating business traveler.
Application of Technology
Technology is also one of the most important aspects that can impact the behavior of the customer regarding hotels and tourism. Technology is one of the most important factors that are being considered by Hyatt in order to maintain their competitive advantage in the ever-changing hotel industry in the country. The company had been able to introduce their in-room confidential fax machine with personalized number, voicemail with two phone lines with the data port enabling simultaneous use of the telephone and lap top computer modem. In addition to that, the company also introduces their On Command Corporation or OCX’s next generation, which is the Entertainment and Technology for Hotels service. This enables them to offer effective services that focus on the dynamic, multimedia focal point of the hotel guestroom, where in guests can access the cable and satellite TV, choose the latest Hollywood movies, utilize multi-lingual electronic; in addition to that the guest can access the Internet. The said plan enables the company to become the first hotel in Asia to offer its guests the advanced On Command technology ( 1999).
Increasing Demand for Cheap Package
Another important aspect that must be considered is the financial crisis that is going on in the international arena. This can affect the overall or global tourism industry, and all of the sectors that are connected with it. That is the reason why more and more hotels and shops are beginning to slash their prices. Another important aspect is that Cathay Airways pacific is offering different special fares as well as free stopover night in Hong Kong. As of now, in a nod to the common traveler, the airline’s new frequent-flyer program will include all classes of travel, instead of just first and business class as it did before (1998).
The said development or change in the tourism industry can directly impact or influence the overall performance of the hotel sector of the country; it can affect the decision-making and policy implementation of the Hyatt with accordance to their customer relationship and marketing strategy. The company is offering different packages and special offers that will let the tourists save money while enjoying the best of Hong Kong. Aside from that, the company is also offering different types of categories of packages that will help to meet the different demands of desire of their customer such as romance, relaxation, bed and breakfast and local discovery. The said decision enables the company to improve their customer relationship as well as follow the changes in the competitive environment of hotel sector and tourism industry in the country.
Impact of the Internet
The Internet plays an important role in the development of all fields, industry and sector in the world. It has a vital impact on the tourism and hospitality industry, primarily in the hotel sector. In Hong Kong, the Internet is considered as the primary factor that causes the shift of the customer relationship of the different companies and organizations that are connected with the tourism industry. As of now, more and more customers or tourists are doing their transactions with their travel agency and other tourism organizations, primarily hotels, via the Internet or online manner. According to the study of the Forrester Research in 2006, the Internet has a powerful impact on the hotel distribution. 71% of all the North Americans are doing their hotel reservation and tourism activities online, the said number will increased by 81% by 2010 ( 2006).
This enables the company to implement their online booking system that will handle the requests and transactions of their customers or tourists from different parts of the globe. Furthermore, the company is also implementing and maintaining their company website in order to keep their customer updated and informed regarding the different offerings and packages of the company.
Using their website, the tourist can search for the package that will be suitable for their budget, desired time as well as the category of their hotel needs. By doing the said strategy, it helped the company to be more close to their customers or tourists, or serve as a great way of marketing. On the other hand, it gives their customers the advantage, because they no longer have to go out in order to book their hotel transactions, above all, it can also help them to save and find their desired travel package in more efficient and easy way.
Effectiveness of Hyatt’s Policies and Decision-Making
As of now, Hyatt Hotel in Hong Kong is considered as one the most well-known hotels in the country because of their innovations and services. This is due to the fact that the management of the company is doing different activities regarding their policies and decision-making that is directly related to the different changes and development in the entire tourism industry and hotel sector in Hong Kong that helped them to maintain their competitive advantage.
By focusing on the growing demand for cheap hotel accommodation, the company had been able to cater to the different demands as well as capabilities of their customers or tourists that helped them to increase their customer relationship. It also enables the company to come up with the different offering and packages that will help their customers to get what they want in lower rates.
In terms of technology, the rapid growth of the travel industry has meant that the sophisticated information technologies or IT are required in order to manage the increasing volume as well as quality of tourism services and products. There are different studies that show that modern travelers are demanding ore high quality products, travel services, information and value for their money. The emergence of the new tourism services as well as products, as well as the rapid development in the tourism demand, has driven the wide-scale adaptation of IT in general, primarily the application of the Internet ( 2005).
Areas for Improvement
It is important for the company to improve their relationship or connection with other players in the tourism industry, primarily the airlines. In leadership of Cathay Pacific, this is due to the fact that airline companies are considered as the primary entities in the tourism industry, and because of the Internet, they are having a direct relationship with their customers or the tourists. By doing this, the company will be able to improve their relationship with the customers or their marketing strategy. This is due to the fact that direct and good relationship with the tourists or customers is considered as the most important aspect of any business, it will be important to satisfy the customers and let them get what they pay for.
It will also be important to continue their relationship with different travel agency in order to maintain other way of communicating or connecting with the possible customers.
In terms of their application of the Internet, it will be important if they will improve their Internet service by implementing a real-time customer relationship. It will be important to have a special service where in their customer can talk to the customer service representative of the company in real-time manner.
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