Analysis of Modern Trends in Hospitality Industry: Hyatt Hotel Assessment 1 Answer
Analysis of modern trends in the hospitality industry: Hyatt Hotel
The hospitality industry is quite dynamic and diverse, which includes various sectors, for instance, travels and tourism, restaurants and hotels, accommodation facility, tour guides, and travel agents. Further, owing to lucrative business opportunity a large number of entrepreneurs are entering the industry making it very competitive, therefore making it vital for the business to understand the recent trends to gain competitive advantage (Ryan, 2015). The primary goal of the report is to highlight the nature of changes due to recent trends in the hospitality industry globally and its impact on the business. The hotel under consideration for the study is Hyatt Hotel that has a chain of hotels throughout the various parts of the world. The recent trends that will be discussed in later sections include experience economy and asset management practices.
2.0 Recent trends in the hotel industry: Hyatt Hotel
As the industry is diverse and changes drastically due to the recent advancements in technology, the hotel industry must identify and understand the dynamics to survive the rising competition and additionally, become the market leader (Dzhandzhugazova et al., 2016). The author added that technology is advancing at a tremendous pace, which is altering the lifestyle of individuals and impacting their needs and utilities massively, making it necessary for commercial activities to adapt accordingly. Besides, Ryan (2015) corroborated that the use of modern technological tools is simplifying the tasks of the hotel industry and benefiting both the customers and business through more exceptional service quality and satisfaction. The two contemporary trends influencing the operations of the hotels globally are experience economy and asset management practices.
2.1 Experience economy
Song et al. (2015) elucidated that the experience economy is the newest development in the hospitality industry, especially influencing hotels around the world. The phenomena reflect the tendency of the customers to invest and spend money on the experiences, the users will feel after using the product or service bought. Chang (2018) reported that millennials are more persuaded to prioritize experience over the material goods. The report further commented that more than 72% of the young generation spend their finances on gaining supreme quality experiences rather than purchasing physical merchandises. Therefore, Boo & Busser (2018) summarized that the experience economy outlines the combination of services or products being sold by the brand but emphasizes on the impact and effect the offering will make on the purchaser. The author additionally emphasized that experience economy is gaining a lot of momentum in the business as it focusses on delivering services that satisfy the clients, thereby retaining the customers and converting the individuals to loyal patrons, which is essential for the success of the business.
According to Kirillova, Lehto & Cai (2017), hotels belong to service sector industry and needs to outperform the competitors by providing quality services to the visitors to orchestrate the memories of the patrons, which will ensure repeat visits and further recommendation to friends and relatives, henceforth expanding the business. Consequently, hotels around the world are focusing on experience economy philosophy to attract clients. As evident from the instances at Hyatt Hotels, which offers accommodation at exotic locations without foregoing the luxury of life, refined travel to the architectural places, and tailored services for their every customer, consequently emphasising on enriching the experience of the users (Hyatt, 2020).
Moreover, the Hyatt chain of hotels offers the guest to select from a range of their offerings, such as for nature lovers, it had arranged world-class staying arrangement near the beaches, on the mountains and close to a serene environment. On the contrary, to meet the needs of busy city life, it has arranged hotel accommodation at different metropolis internationally for business meets and conferences (Hyatt, 2020). Hence, it can be inferred that Hyatt Hotels have successfully integrated the concept of experience economy in their business strategy.
2.2 Asset management practices
Assaf, Josiassen & Agbola (2015) opined asset management practices is another modern phenomenon that has positively improved the business operations. The author describes asset management as the systematic practice wherein the organization realises the value of assets it possesses and responsible for and further monitors its usage. As the approach aids and guides the firm to manage and methodically monitor the assets, thereby increasing the productivity, reaping maximum befit from the possessed assets, and augments return on investment of the business, consequently putting the company at a better competitive position. As per the views of González-Rodríguez et al. (2018), asset management in hotels outlines the functions that entitle the management to minimize costs of operation, maximize the value of the services and additionally, ensure proper and smooth functioning of the hotel.
Owing to the recent developments in the industry, the owners must be equipped with appropriate skills to effectively manage the assets of the hotels and initiate innovative practices to protect the interest of the company and please the clients. Dzhandzhugazova et al., (2016) substantiated the view and commented that hotels should always engage in refurbishment and renovation activities to enhance the value of the entity, which will permit the owners to charge premium prices. Moreover, it should emphasize on customizing the services offered to the guests, to enrich the experience of the users and thereby add the overall asset value. Similarly, Hyatt Hotels are engaged in managing and governing their assets efficiently. The hotel chains ensure that continuous improvement is made through staff training programs to increase the value of their property. Further, the property is continuously upgraded and renovated to provide value for money to the clients, thereby effectively managing the assets for the success of the business (Hyatt, 2020).
Recent developments in technology and lifestyle have dramatically changed the desires and utilities of the customers, thereby making it essential for the hospitality industry to adopt the practices to survive the competition and enrich their services. Inclination towards experience economy is primarily observed in millennials, henceforth compelling the hotel industry to focus on their quality of service. Further, asset management helps the hotels to maximize their benefit and reduce cost, without foregoing the quality of service or product being delivered to the client. At last, it can be concluded that the implementation of experience economy and asset management practices will ensure the success of the company.