Overview of Hospitality Industry and SWOT Analysis of InterContinental Hotels Group

CHOOSE ONE COUNTRY FROM
THE INTERCONTINETAL HOTELS
GROUP BRIX

Table of Contents
INTRODUCTION.....................................................................................................................................2
Overview of hospitality industry.............................................................................................................2
SWOT analysis in regard to IHG.............................................................................................................2
Background of emerging markets............................................................................................................5
PESTEL of Brazil....................................................................................................................................6
Hotel tactic to be adopt and implement by company within Brazil as entering market............................8
Justification of chosen strategy..............................................................................................................10
Practical application of strategic strategy..............................................................................................11
CONCLUSION........................................................................................................................................11
APPENDIX..............................................................................................................................................13

INTRODUCTION
Hospitality industry is one of the most leading and profitable industries in the world
because it encompasses varied category of fields such as Food & Beverage, lodging, Travel &
Tourism; tourism agencies, motels, Hotels and restaurants. The current assignment will be based
on InterContinental Hotels Group, which falls under category of top 10 successful hotel
organizations in the UK. The aim of chose company is to offer satisfactory and top quality
accommodation and other kind of services to each guest. The study will explain background
information about hospitality industry, IHG and will define SWOT analysis in the context of
chosen firm. Furthermore, it will justify background of emerging markets and PESTLE of
selected one. The report will clarify hotel strategy to be adopt and implemented within entering
market. It will provide proper justification of tactic and their practical application up to 5 &10
years ahead.
MAIN BODY
Overview of hospitality industry
It considered as a wide group of ventures or companies that specialist in offering and
providing quality accommodation, food & beverage and other types of services to guest whether
it is national or international. Customer satisfaction is the main objective of hospitality industry,
which its management may attempt to achieve by conducting varied practices like strategy
development, plan implementation, etc. Another objective of hospitality & tourism industry is to
provide coaching and mentoring to prepare individuals for effective job performance and
productivity, which allow them to offer service to guest in unique and effective manner
(Department of Tourism & Hospitality Management, 2021).
SWOT analysis in regard to IHG
SWOT is the best strategic model that has been utilized in regard to many organizations
whether it is small or large, in order to determine their key strengths in term of power or
capability, weaknesses, opportunities related to business growth and threats that may affect
strategic plan and strategy of a firm (Đalić and et.al., 2020). Here, this concept is use in the
context of InterContinental Hotels Group. It encompasses four different elements that are
following;

Strengths-
Wide geographical presence with concentrate on priority markets- it is one of its
biggest strengths that make firm extremely popular in the world. It has built organizational
presence approx. in 100 nations successfully with 766,837 comfortable rooms. IHG may have 89
percent of pipeline and 87% of open rooms in priority markets of Middle East, Canada,
Germany, United Kingdom, India, Russia, etc. which in return provide a lot of benefits to its
venture.
Wise brand portfolio- another strength of IHG that provide benefits to its business and
retain potential guest is that company is able to follow a unique method of popularizing and
segmenting varied brand of hotels on the basis of each guest events that help management in a
differentiated organizational experience for customers that excellently meets target market
expectations and fulfil their needs.
Effective hiring tactics- IHG is capable to recruit skilled, experience and knowledgeable
candidate, which is one of its another strengths including above two (Qiu and et.al., 2020).
Human resource department in InterContinental Hotels Group may successful develop and use
recruitment tactics, which enable them to acquire talented people who may contribute to grow
venture even better than its rivals.
Strong financial background- with this strength, IHG is able to take action to enter into
new and emerging markets or nations, where it may obtain competitive benefits in varied
manners. It has strong financial background, which enable brand to invest in profitable projects
or plans.
Weaknesses-
Lack of IT security- it is the biggest weaknesses of Intercontinental Hotels Group,
which may put negative impact on brand image and customers as well as worker’s safety. Its
hotels may have infected with credit card stealing malware and customer’s details such as card
number, cardholder name, etc. may stole. It may decrease guest visit in hotels.
Lack of research and development practices- due to this weakness, firm may also face
challenge and varied problems, which may decrease its sales and management may losses