Hospitality Management and IHG: SWOT and PESTLE Analysis

INTRODUCTION
Hospitality management can be defined as practice that is used to manage hospitality
sector. This industry mainly deals with hotels, restaurant, resort, motels as well as other
hospitality functions (Kaushal and Srivastava, 2021). Whereas, management can be described
as the ability of an individual that manage staff, services and other functional department of the
firm.
The present report will discuss about the background of the hospitality industry and tourism
sector. Furthermore, the study is based on InterContinental Hotel Group (IHG) that is work
leading hotel company that provide their customer with various hospitality services.
Along with this, the report will discuss about the SWOT analysis that can be explained as
strategic tool that allow organization in identifying strength, weakness, opportunity and threat
that will company in improving the performance. In addition to this the study will discuss about
the pestle analysis that helps organization in investigating about the external factor that will
affect the business in positive and negative way.
Lastly, the report will throw light on emerging market where firm can expand their
business as well as business strategy that will help in developing the firm.

MAIN BODY
Hospitality industry is a broad sector that includes business tourism, travel, lodging and
beverage. It may be argued that this industry is mainly serving their customer with various
hospitality services for running their business. whereas, tourism sector can be explained as the
industry that provide the customer with travelling services such as desired destination, industrial
sites and particular location that customer wants to visit. This sector is a part of hospitality
industry as it run hand in hand with each other.
Moreover, the hospitality industry helped in increasing the overall economy of the
country subject in this study (China) by attracting large customer from various other countries.
(Goryushkina and et.al., 2019). It creates positive and negative impact on the GDP of the country
and helps in developing the remote area of the state. Furthermore, this industry has helped in
growth of UK due high investment in 2018 that has contributed in enhancing the key
performance value of the country. The overall performance of London was much higher than UK
itself such as average room rate of United Kingdom was GBP 87 whereas the rate of London was
alone 150 in 2018 (Hospitality growth of UK., 2020).
In addition to this, the occupancy rate on of UK was 6% lower than
London that was 84%. However, the profit over per room for London itself
was 124 that have made it a highest contributor in the hospitality sector of the
UK. Moreover, the demand of this industry has been increasing this areas
and investor are willing to invest more in this sector despite of Brexit that was
the biggest threat for this industry. However, in 2020 there was a huge
downfall in hospitality industry due to pandemic that has negatively affected
the overall of revenue of this business. Along with this, the overall GDP of
the country was also reducing that has affected the productivity of the
nation.
Basis London ( in percentage) UK ( in percentage)
1. Average room rate 87 150
2. Occupancy rate 84 6

The Brexit and Covid -19 has affect affected the market area of the United Kingdome by
reducing the International traveller that has contributes in the drop to overall tourism sector. As
well as it has reduced the leisure travel across the world that has resulted in lowering the overall
all visitor of the nation that has negatively affected the economy of the country (Brown,
Liñares-Zegarra and Wilson, 2019).
Background of IHG
The present report is based on IHG that is one of the leading brands in the hospitality sector.
IHG stands for InterContinental Hotel group is a British multinational hotel industry that
provides their customer with quality and luxurious services in order to run their business.
Moreover, the company was first founded by Juan Tripe on 15 April 2003. The headquarter of
the organization is located at Denham, England UK. Along with this, the key people of the
company are Patrick Cescau and Keith Barr is presently the CEO of the company (IHG
hotel.,2021). IHG is a public limited organization that deals in various brands such as
InterContinental Resort, Crown Plaza, Even Hotel and Holiday Inn Express as well as Indigo
hotel that contributes in increasing the overall revenue of the firm.
Furthermore, the company is serving their services World Wide with the headquarter in
many countries that has resulted increasing the sales of the firm and helped in maintaining the

brand image of the frim in the competitive market. In addition to this, the aim of the company is
to wider their organization and increases the satisfaction of their customer by serving the great
quality of the services. As the company has global presence and have established their hotels in
prominent countries along with this the firm wants to expand and reach the local communities so
that it is able to cover the local market. That will result in enhancing the productivity of the firm
as well as it will be able to face the external and internal threats of the business environment.
(IHG hotel.,2021). Moreover, the organization wants to enter into new market areas so that it
increases their sales and revenue such as company has decided to penetrate in the market area of
Bali and Kula Lumpur as these areas are the new location that will contributes in development of
the frim.
Swot Analysis of IHG
SWOT analysis is a strategic tool that helps organization in identifying the internal strength
as well as external threats that can affect the organization growth in the competitive business
environment. In others words, it is a business technique that help the organization in identifying
the strengths, weakness, threats and opportunity related to the business completion and project
planning (Longhurst and et.al., 2020.). Moreover, this tool will help the company in investigating
the current and future potential. The SWOT analysis of IHG has been mentioned in details
below:
Strength
 Brand Image: IGH has good brand image international marker that contributed in
attracting more and more customer that has contributed in increasing their sales.
Along with this, the organization have highly skilled worker that has lead in
satisfying the customer as well as helped in improving the performance of the firm at
competitive market.
 Expansion programme: Another strength of the organization is their expansion in
the new area of the market. That has contributed in increasing the revenue of the firm
as well diversified the risk in the market its operates.
 Strong Marketing: Along with this, the company marketing strategies of
collaborating with small and medium hotel has allowed the company in advancing
their technology that has contributed in supply of the resources (Cui Allan and Lin,