3a) So as learning curve I selected the yield management,( is the process of understanding, anticipating and influencing consumer behavior in order to maximize yield or profits from a fixed)
Hyatt took some years to establish this system but over the years the revenue grow from $100K and $10K of profit to $105K of revenue (+5%) and an increase of profit of $2.5K, meaning that an increase of 25% in profit. Economies of Scale – within Hyatt there is a brand called Hyatt Park where I will focus and In this case they have an average of 200 rooms per hotels, so big hotels and they are situated on big cities where they are sure about the demand focusing on two main segments leisure and business. Economies of Scope: as product scope I selected the cross selling
Product Scope: I realized that most of the Hyatt Park hotels have Spa, so they aren’t just focus on selling the room but also the spa in order to get more money. Because as we seen today its most of the times is better to have two products together than two separately in order to reduce costs and increase the profit.
Market Scope: As most of the Hotels around the world are doing there are more than one price even for the same room, we have the seasonality issue than the rack rate corporative rate travel agencies rate, internet rate and partners as booking.com rate.
Geographical scope: As most of international chains the cultural aspects of the country where Hyatt park establish is hotel there are cultural problems and due to the fact of Hyatt park is present around the world some adjustments has to be made. Hyatt Hotels has won several diversity awards and, as an example, the Hyatt Regency Hotel in Houston, USA, has carved out a niche market by specializing in South Asian Weddings. Hosting such events gives properties a competitive edge in obtaining future business and confirms to employees, guests and the