BACHELOR IN BUSINESS ADMINISTRATION (HONS) FINANCE

PROFESSIONAL ETIQUETTE FOR HOTELIERS

(HTH558)

Prepared by:

Mieshirl Vivie Daivon

Student ID:

2019451538

Prepared for:

Ahmad Noor Syahir Sazali

Submission date:

1st January 2021

The hospitality industry is one of the main industries in this world. The hospitality industry

provides accommodation to people who travel and needs shelter for the day. Today, the

hospitality industry is providing more choices for its consumers all around the world from

hotels, resorts and etc. Hospitality industry is one of the industries that provide service which

basically focused on customer satisfaction because customer is the main target and they are the

one that pay us.

In this era of 2020, the world has been infected by the new virus called Covid-19. Due to the

unfortunately event, the world economy was shut down almost overnight. The pandemic has

confronted the hospitality industry with an unusual challenges. Strategies to balance the virus

curve are lockdowns, social distancing, travel restrictions and etc. Most of hospitality industry

is likely to be hit hard which their profit is declining.

While the hospitality industry is slowly recovering in these past few months, the Covid-19

crisis continues to exert profound impacts on how the hospitality industry should operate.

Hospitality businesses are expected to make a few changes to their operations in the Covid-19

business environment in order to ensure the employees and customers health and safety.
 COMPANY BACKGROUND

Hyatt Hotels and Resorts is an American international corporation in the world. It is one of the

top ten world famous hotels brand. Hyatt was founded by Jay Pritzker in 1957 when he

purchased the Hyatt House motel adjacent to the Los Angeles International Airport. Over the

following decade, Jay Pritzker and his brother, Donald Pritzker, working together with other

Pritzker family business interests, grew the company into a North American management and

hotel ownership company, which became a public company in 1962. In 1968, Hyatt

International was formed and subsequently became a separate public company. Hyatt

Corporation and Hyatt International Corporation were taken private by the Pritzker family

business interests in 1979 and 1982, respectively.

On December 31, 2004, substantially all of the hospitality assets owned by Pritzker family

business interests, including Hyatt Corporation and Hyatt International Corporation, were

consolidated under a single entity, now Hyatt Hotels Corporation.

Now, this company manage 500 hotels over 46 countries. The headquarters is located in

Chicago. Nowadays, Hyatt Corporation has many subsidiaries which are Park Hyatt, Andaz,

Grand Hyatt, Hyatt Regency and Hyatt Place. Their slogan is “You are more than welcome.”
 ISSUES AND CHALLENGES

Since the Covid-19 landed on the year of 2020, most hospitality industries are harshly affected.

Hyatt Hotels is one of the industry affected by this pandemic. On early October, Hyatt Hotels

is taking action by closing down their hotels. This closing down is because of government

regulations or simply due to lack of guests. People have to stay at home to minimize social

contacts which results in limited travel, meaning no guests and no income to keep hotels open.

Hyatt Hotels have gain much losses since the Covid-19 pandemic.

Facing a crisis, most of the consumers intend to reduce spending on travelling, hotels and

restaurants, in exchange for spending more on groceries and etc. This will be a challenge for

the hospitality industry because there will be no profit in a day and more days to come. Other

than that, the hotels are forcing to take cost saving measures, especially reducing wages. The

hospitality industry has lost $1.4 billion in revenue every week from the Covid-19 outbreak, as

well as a 30% drop in hotel occupancy from a year ago, according to industry groups cited in

the CNBC report.

Hospitality sector was hit hard by the government measures to limit Covid-19. Flying bans,

travel restrictions and etc. But there is hope as lockdowns has come to an end and things return

to normal, hotels are preparing to reopen. They can look forward to large, expectant markets

that are eager to start travelling again. Hotels with a right strategy will be in the best position

to make up for the losses and difficulties of the past few months.

Hyatt Hotels has lay off 1,300 employees worldwide which began on June 1 due to the historic

drop in travel demand and the expected slow pace of recovery caused by the Covid-19

pandemic.

The company already had implement numerous restructuring measures to surmount challenges

from the coronavirus crisis, which has prompted worldwide business closures and a sharp fall

in global travel as people stay home to prevent the spread of Covid-19. Those measures

included decreasing company expenditures, cutting salaries for top executives and board

members, and reducing pay and offering temporary work for employees.

Furthermore, Hyatt have extended their cancellation policy to provide further flexibility to help

their consumers make travel decisions.

To conclude, not only hospitality industry is affected but also all types of industry are affected

by the pandemic. Businesses need to come out with a right ideas to attract more customers

during this pandemic to keep the business going. Some businesses may need to sell their assets

to support their cash flows.

Reopening a hotels should be extra careful since the Covid-19 is easily spread and the hotels

should keep their customers safety and health.

 https://www.cfo.com/financial-performance/2020/11/hyatt-loses-161m-as-travel-

slump-continues/

 https://www.bizjournals.com/chicago/news/2020/05/12/hyatt-to-lay-off-1300-

worldwide-coronavirus.html

 https://www.freemalaysiatoday.com/category/nation/2020/10/11/hotels-facing-tough-

times-again-with-resurgence-in-covid-19-cases/

 https://www.wxxinews.org/post/hyatt-regency-hotel-delays-reopening

 https://www.thestar.com.my/business/business-news/2020/09/12/no-recovery-from-

covid-19-just-yet-for-hotel-industry

 https://www.cvent.com/en/blog/hospitality/hotels-adapting-covid-19