International Hospitality Management: Analysis of IHG and Strategies for Expansion

INTERNATIONAL
HOSPITALITY
MANAGEMENT

Table of Contents
INTRODUCTION...........................................................................................................................3
MAIN BODY...................................................................................................................................3
Background on Hospitality Industry (and tourism).........................................................................3
Background to IHG..........................................................................................................................4
SWOT analysis of IHG....................................................................................................................5
Background to Emerging markets...................................................................................................8
PEST of selected emerging market..................................................................................................8
Hotel strategy to be adopt and to be implemented (using strategic model and frameworks) within
the entering market..........................................................................................................................9
Justification of strategy..................................................................................................................11
Practical application of strategy – 5 and 10 years ahead...............................................................11
CONCLUSION..............................................................................................................................12
REFERENCES..............................................................................................................................13

INTRODUCTION
Hospitality management refferd as service management, in which the services are pr-
determined and intangible in nature. In addition to this, it is provided to the customer in a sense
of their satisfaction. In service industry or hospitality management it seek to ensure the hotel is
warm, welcoming and make guest feel like they are at home.(Franco and et. al., 2020). This is all
about an act which shows social behaviour, support and equality that is initiated for the
customer. For the presnt report, intercontinental Hotel group or IHG is taken into consideration.
It is a British multinational service industry that process of hospitality industry which have them
headquarter in England. Intercontinental hotel has about 889582 guest rooms and over 5900
hotels across hundred plus countries. Intercontinental hotel group have various brands including
intercontinental, regent hotel, hotel kimpton and various resort. The company is also listed in the
stock exchange with a huge base of customer. As per this report, this is going to cover about the
factor which affect international hotel groups. While, they face issue in expanding their business
in other country and total scenario which affect the business for a longer period of time. This
report is taking brief analysis of intercontinental hotels group and ensure with some
improvisation and strategy to recover from this issues.
MAIN BODY
Background on Hospitality Industry (and tourism)
According to the various research, it is identified that the origin of idea of hospitality
industry has been came in existence since the creation of word itself. In the concept of traditional
way stranger are welcomed by a group or a community and then offer to stay. So, the hospitality
industry was originated from this concept. As per this, thousand year ago, when road networks
was so much disturb and travelling was not comfortable and the peoples are not arrived at their
home at their fixed timing (Köseoglu and et. al., 2016). Then, they must need to stay somewhere
then the concept of hospitality industries is arising and peoples provide a local Shelters to them.
This is the primitive culture in that era.
After the changes, IT came in the trend and peoples make it a business scenario. Since,
this sector has been created and always unbroken in the field of growth and distance to create
international expansion in this modern time. As per this, travel industries are also grow up by the
hospitality industry. In which this is also take an immense potential with a network of service

provider. Which has developed a character to nearly every desire destination. Hospitality has
gradually become even the largest and more risen industry. Which have been playing hundreds
of million shares from different sectors. In addition to this, the travel history is originated with
the hospitality industry (Otache, I., 2020).
So, when the travel industry is rising and there is a concern of hospitality industry is also
taken. So, the overall scenario indicates the history of hospitality industry and travel industry. In
this context, the innovation in hospitality management is very necessary because there are
number of people who believe in exploring in various countries or state. Therefore, industry
provides him shelter and food. The concept of travelling industry is always growing the
proportion to hospitality industry. This is common now a day because this is create an emerge as
a business in many of countries and this industries is evolving day to day as per increasing
customer.
Background to IHG
In this context, the origin of this business can be started from 1777, when William Bass
was established appoint rent. This hotel is get recognition in 1875. when its red triangle logo was
first ever registered in the history of United Kingdom. The company is later changed their name
in 1978s. There on beneficial structure and framework which get recognition from various
countries (Ariza-Montes and et. al., 2017). This is all about the increase in sales and hospitality
service with a graceful to earn more profit. In 1988, the British government limited number of
such brewer which could help in the resulting of best objective investing in the expansion of their
hotel business. This led shareholders toward more profit in their centre. This organization have
their own origin with the specific investment in development of service industry. The hospitality
industry has proper resource like they need human resources to serve service in various
department. This industry need huge resources of human to manage the services in which they
used to fix and provide better service to customer. Pan America Airways which is founded by
pan am. Which established the American intercontinental hotel divisional change and opened the
first hotel in Brazil in 1945.
On 19th of August, the hotel was sold to the holding company of intercontinental hotel
corporation which is based in UK. This UK based grand metropolitan is of up-to 500 million
dollar. As grand met focused in their core business and expansion of hotel in the core department
of food through this. They can raise the sales and generate more revenue and context with this.