International Hospitality Management

INTERNATIONAL
HOSPITALITY
MANAGEMENT

Table of Contents
Background of Hospitality sector....................................................................................................3
Overview of IHG group...................................................................................................................3
SWOT analysis of the IHG group...................................................................................................4
Introduction to emerging market.....................................................................................................6
PEST of emerging market...............................................................................................................9
Strategic implementation.................................................................................................................9
Justification of the strategy............................................................................................................10
Practical application of the strategy...............................................................................................11
Conclusion.....................................................................................................................................11
REFERENCES..............................................................................................................................13

Background of Hospitality sector
Hospitality segment is seen as ancient as the humanity because it is been continuing since
many years and is growing with success. From earliest caves to the inns, staging posts, resorts
and the motels, this sector is been thriving with like 187000 hotels across the world. In ancient
times, Roe & Greece, bathrooms & spas often facilitate sleeping facilities and was counted as
population attractions for the ones who are been seeking the relaxation & rest. A bordello in the
classical Pompeii is been counted as first hospitality development which charged for the lodging.
In Japan, first 2 hotels in the history were been built in early 700s. After the digital age, software
organizations started developing the new tools for hospitality sector which are been still evolving
at present, involving the customer databases & reservation system, housekeeping & room
management, preferences of customers and loyalty programs (Gardini, Ottenbacher and
Schuckert, eds., 2020). In 21st century, global company’s hotel chain merges and acquires one
another. InterContinental group of hotel owned Crowne Plaza & Holiday Inn, Accor Hotels
owned brands Raffles, Novotel & Sofitel and Marriot owned the Renaissance. In the year 2009,
AirBnB was founded which poses a challenge to hotel industry through attracting tourist &
capturing market share. The hotels responded with the creative marketing approach involving the
social media campaigns &personalized experience of customers creates by way of the smart
devices. The Waldorf Astoria in the New York is been sold to Chinese Anbang group of
Insurance for $1.95 billion, which is the most ever paid for the Hotel. The world’s first hotel in
Pahang, Malaysia expanded for becoming as biggest hotel globally with approx 7351 rooms.
Overview of IHG group
IHG group is one of global leading hotel firms and their respective principal objective is
for providing real hospitality service for all by way of recognizing & respecting the people along
with this creating unique and great experience of guest. The group offers the hotel brands which
are aimed at wide audience & is been loved by large number of the people across the globe. By
their worldwide reach, the group ensures that their respective service delivery extends to their
type of people, local communities and environment around the world (IHG about us, 2020). In
today’s highly competitive market, the group is been placed well for accelerating growth of their

main business and maximizing returns on the new initiatives like addition of the new brands
towards a portfolio, maintaining expansion related programs of the Crowne Plaza hotel operating
in China and the new locations or areas in developing countries to involve Kuala Lumpur,
Chendu, Bali and EMEAA geographic region. It is seen as one of the growing hotel companies
with approx 4 Lac colleagues who are been working around in greater than 100 countries for the
purpose of delivering true hospitality for all. The asset light strategy of the company helps the
group in growing their business at the time of generating maximum returns so that it could
achieve a top position within hospitality industry or market (Bergs and Lub, 2020). Worldwide
hotel sector is been driven by the economic growth & increasing trend for international &
domestic travel. The purpose & culture of the group is to focus on people’s expectations and
demand while they visit the hotel so that they could be able develop healthy relationship with the
tourists or guest by making them satisfied and meeting to their expectation in effective and
efficient manner.
SWOT analysis of the IHG group
Strengths
Profitability- It has been reflected that in the year 2017, the sales of the group have been
increased by $68 million that is 4% to $1784 million. In year 2017, hotel delivered the strong
underlying profitable growth & opened their highest number of the hotel since the year 2009,
including most ever with AMEA as well as Greater China.
Well-known global presence-The IHG group operate within around 100 countries and is seen as
one of leading companies within its sector. The major brands of this group that are operating
across the globe are Inter Continental, Hotel Indigo, Holiday Inn, Kimpton, Candlewood suite
hotel etc. Further, this group is been well-known for having large number of the rooms on a
global basis.
Effective recruiting strategies-The group had established the strong recruitment strategy where it
got rid of HR generalist technique & re-allocated recruitment function towards functional &
operating departments (Bauer, 2020). For instance- Payroll function was been distributed to the