CASE #2 – CUSTOMER RELATIONSHIP MANAGEMENT

“REBRANDING HYATT”

Customer satisfaction with Hyatt Hotels Corporation is high.  According to J.D. Powers’ 2015 North
American Hotel Guest Satisfaction Index Survey, the company did well in many key segments, even taking top
spot for satisfaction in the upscale category. And in this year’s American Consumer Satisfaction Index, the
company scored better than the industry average of 75. Hyatt is one of America’s oldest and best-known
hotel chains, offering brand differentiation through various lodgings: Park Hyatt, offering residential and urban
luxury, Grand Hyatt, designed for upscale holiday travelers, and Hyatt Regency, specializing in mid to large-
scaled premium properties. In recent years, the company has also added Andaz, an upper-end boutique brand,
and HYATT, providing smaller full-service hotels. Most recently, the company launched Hyatt Centric, aimed
directly at younger travelers. Because of the company’s high satisfaction levels and its unusually high level of
brand diversity, offering more brands those competitors of the same size, it stands out as a particularly
successful business, begging the question: how does it do it? In fact, the answer is pretty straightforward: at
Hyatt, it’s all about consumer input. Sara Kearney, Senior Vice President of brands has said that, since 2008,
the company has “focused on consumer feedback in developing a brand. In effect, we learned how to design
the hotel by responding to the needs of consumers as they described them to us.” Hyatt has developed a solid
online presence, making it easy for guests to communicate with the hotel. On the company’s home page, guests
can click the “What’s on your mind?” box which takes users to a microsite built around a complete customer
experience: a Twitter plug-in, images of rooms and amenities, email commenting, links to social networks and
YouTube content, and the company’s booking engine. Hyatt enables travelers to easily interact with them and
find relevant information. In designing such a comprehensive digital experience, the company is better poised to
push customer engagement, and collect data to continue refining and/or creating experiences which provide
real value to customers. And customers are responding to the company’s efforts. This year, Hyatt ranks #1 in
hotel-related Twitter engagement and #8 in Facebook followers. Hyatt has been around since 1957, but data
collection and analysis has helped the hotel chain better understand just how different today’s guests are
compared to those of previous generations. To remain relevant with today’s Millennial consumers, the
company has used data to rebrand some of its key locations, launching an extreme makeover to attract
younger guests. After extensive research and evaluation of customer feedback, Hyatt has embarked on
delivering a new brand of hotels called Hyatt Centric. Hyatt Centric, currently located in Chicago and Florida’s
South Beach - with additional locations in New York, San Francisco, and Paris having already been announced
- is targeted at younger consumers who normally use AirBnB because they prefer city-centered locations and
the residential feel of an apartment or home. Among its Millennial-friendly features, Hyatt Centric offers
seamless digital capabilities, pet-friendly rooms, and a fitness center. Guests can curl up in the “library” in a
place called the Corner, or socialize in the bar which promises locally inspired entrees, artisanal cocktails, and
live music. From the food to the artwork and furniture, each location is designed with local authenticity in mind,
helping travelers more easily transition into their new environs. The Hyatt Centric name was inspired by the
brand’s mission to put the guest at the center of its city locations. But the customer has also been firmly
situated at the center of all branding choices, increasing Hyatt Centric’s value. Hyatt Centric has been, from
the start, customer centric because it looked at customer needs from the customer’s point-of-view. By stepping
into the customers’ shoes, the company was able to do two things: gather rich data on guests’ preferences
and behaviors, and create smart segments that go beyond basic demographics. Forward-thinking analytics
helped Hyatt Centric not only identify its best customers across an array of channels, from demographics to
preferences and trends, but also understand their behaviors, habits, and interests. As CEO Mark Hoplamazain
said earlier this year, “The process we followed to create this new brand is something that has worked really
well for us over the last several years. It requires very intensive engagement with owners, developers, partners,
our team members of course, and maybe most critically, guests – lots of guests.”

QUESTIONS
1. Dissect the important facts of the case in bullet form. List down at least five (5) facts.
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2. Hyatt proved to be at its best in the hospitality industry, in its rebranding strategy,
customer feedback played a very important role. In this regard, how did Hyatt maximized
Customer Relationship Management Technologies in order to gain its position in the
industry?
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3. Considering yourself as a part of the Customer Service Department of Hyatt, aside from
using IT applications, what other strategies would you recommend to maintain or further
improve its position in the industry and its market status?
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4. What personal approach would you recommend Hyatt to maintain or further improve its
status with the target market?
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