The focus of the scope of activities of the Park Hyatt group remains to the hotel industry and as such, its major competitors include the big players in the global hotel industry. The global hotel industry can be characterized as an oligopolistic industry that is dominated by few well known brands which give stiff competition to each other.
Its biggest competitor is the Intercontinental Hotel Group that has occupied the top slot since 2004. It holds properties that aggregate to about 600,000 rooms and it has major expansion plans to add 250,000 rooms over the next few years. It has an average growth rate of 5.9% in the room supplies that assists it to remain the biggest hotel group across the world (Top 10 hotels of the world, 2010).
Its second biggest competitor includes the US based Wyndham Hotel Group which has witnessed a 7.7% growth rate in its supply of rooms. Its inorganic route of growth through the acquisition of two brands from the Global Hyatt group helped in the development and addition of almost 400 new properties that have significantly contributed to its growth.
1. Current Market Analysis
The entire potential market of the hotel industry can be categorized on the basis of several attributes. One such attribute is the level of disposable income of the consumer. Correspondingly, the entire target market can be classified as upscale market segment, middle income market segment and the economy and budget sections of the market segment. From the strategic analysis of Park Hyatt, it is evident that the hotel major is targeting the upscale market only as its offerings are too expensive to meet the budget constraints of the middle to lower income group levels.