Sales volatility is crucial for any business to calculate, especially in the service sector. In other words, it assists in predicting possible fluctuations in revenues or financial losses over a specific period. Therefore, employers may adjust to pricing behaviors to not be affected by sales volatility. Overall, this essay analyzes how the average deviation in prices on a weekly and seasonal basis may influence the branch of Hyatt International in Andaz.
To begin with, the Hyatt franchise is highly focused on examining sales volatility to provide current and reliable data for potential investors. Its branch in Andaz is a major hospitality company; however, it is widely recognized as a highly steady organization. Therefore, when the stock market falls, increasing a security’s value, the Andaz branch on Wall Street employs a different strategy to alter pricing options and stabilize its revenues. To be more particular, the hotel’s reports share that in 2020 this case of sales volatility did not severely impact the unit’s operating performance (Andaz, 2020). In addition, it can be seen through market data analysis, including stock-specific indicators, that the company can return to standard deviation after a seasonal sales volatility of fewer than 12 weeks (Andaz, 2020). As for the weekly cost alterations, Hyatt in Andaz can stabilize its performance during the following month, which allows the organization to not experience repercussions in terms of revenues (Andaz, 2020). The unit is focused on employing risk-adjusted strategies and, consequently, can avert the negative influence of price fluctuations in the market.
Overall, the company’s advanced strategy focused on averting the negative influence of sales volatility appears to be beneficial for Hyatt’s branch in Andaz. Therefore, the organization can quickly return to the same results or even enhance them in a short period without struggling financially. The only thing that changes due to sales fluctuations is the company’s operating performance, as it opts to change the strategy to stabilize its revenues.
Reference
Andaz. (2020). Andaz private investments. Web.