Strategic Planning for the Hospitality Industry

This document discusses strategic planning in the hospitality industry, focusing on factors to implement a chosen strategy, creative business strategies for future competitiveness, and performance metrics. It also explores critical success factors and key performance indicators. The subject is strategic planning for the hospitality industry, and the document type is a study material with solved assignments.

Strategic Planning for
the Hospitality
Industry

Contents
INTRODUCTION...........................................................................................................................3
MAIN BODY...................................................................................................................................3
Critically analyse the most appropriate factors to implement a chosen strategy. ......................3
Research about creative business strategies for your chosen organisation’s future strategy
selection to be competitive in the hospitality industry................................................................5
Evaluate and Analyse the different performance metrics...........................................................6
CONCLUSION................................................................................................................................8
REFERENCES................................................................................................................................9
Books and Journals ....................................................................................................................9

INTRODUCTION
In an organisation strategic planning is an essential process as it defines this strategy and
direction to the company to make decisions and to allocate all the resources that are required to
complete the accomplish the strategy (Knittel, 2020). Intercontinental Hotel is a British
multinational hospitality company that has its headquarters in denham, England. IHG owns
several brands, including Regent Hotels, Kimpton Hotels and Resorts, , Staybridge Suites
Intercontinental, Crowne Plaza, Voco Hotels, Holiday Inn, Holiday Inn Express, , Hotel Indigo,
Holiday Inn club vacations, avid, Candlewood Suites, EVEN Hotels, and Hualuxe.
It is essential two side strategies to achieve the mission vision and objective of the
organisation in an effective and efficient way and leads to success of the organisation.
Intercontinental hotel group selected for this report. The report deals about the factors that need
to be implemented to make a strategy also there are creative business strategies that helps hotel
group to achieve competitive advantage in future also there is discussion about the key
performance indicators critical success factors and different performance metrics.
MAIN BODY
Critically analyse the most appropriate factors to implement a chosen strategy.
As international Intercontinental hotel group wants to expand its operations Around the
World through franchise there are some factors that can be adopted by business in order to deal
efficiently. For successful implementation of the franchise is it is important to research and
analyse the factors that will help to implement this strategy. Intercontinental hotel group wants to
expand customer base in new market. Here are some factors that are important to be adopted by
Intercontinental hotel for conducting different sizing effectively the list is mentioned below
Unique and creative business concept: to make effective strategy it is important that it should be
creative to attract more customers and must be unique so as the people find something new to
enhance its sales the Intercontinental hotel group should also make unique and attractive strategy
that encourages franchisees to take their franchise.
 Select the right people to carry brand forward: Before expanding the business it is
important to research and find the right persons who you can accomplish the task
efficiently. It is important to give the franchise to 2 best people is the name of brand is
also associated the success of business depends on the people who carry them. The

Intercontinental hotel group makes research and then personally select the people who
can carry out and further expand its business as they are able to make profits, attract more
customers and retain its brand name in the market. The competitor finds the opportunity
and they analyse the requirement of staff and recruit skilled staff according to the
requirement (Soeswoyo, Rahardjo and Asparini, 2019).
 Select the right location for business: As it is important to select right people to make a
business effective it is equally important to select the please where the business should
operate. It is an essential task to analyse the environment in select the most appropriate
please conduct business. There are many factors that need to be studied before
stablishing the business like the transportation facility the economic conditions
demographic factors infrastructural cost and a competitiveness the country. In relation to
Intercontinental hotel group their 1st study the environment and then decide the please
where the option or franchisee would be beneficial and profit earning and then make the
budget accordingly and close competitor Marriott used concept of hotel view before
deciding the place for franchise
 Have loyal customer base: The customers are the one for whom the business is
conducted and expended so it is important to find out the customers of the place where
the business wants to expand. The profitability and sales also depends on the Place. In
context of Intercontinental hotel group, they should make a survey and find out how
many loyal customers does the Chosen location has to identify the suitability before
expanding at the place. Marriott Hotel first promote its brand and gain more customers
then start a new affair.
 Having proper and clear market position: to have a good position in the market and
gain competitiveness the franchisee should accept and follow the things that are told by
franchisor. It is important to find to out a proper place and gain a good market position
(Zaitseva, Goncharova and Androsenko, 2016). Marriott Hotel is a competitor and they
formulate strategies to attract more customers. Also to implement the strategy effectively
it is equally important to have a good understanding of market position. In relation to
hotel Intercontinental group they should also find out the market position as it helps the
to implement the franchisee and also to know the condition of the place and know about
the customer loyalty.

 Capabilities of workforce: To implement a strategy successfully one of the important
factors is capability of its workforce. So it is important to analyse that are the employees
ready to take new challenges and expand the business successfully or there is need to
give them training and enhance their skills. The management of Intercontinental hotel
group should conduct a survey. To find out The capacity and capabilities of its
employees will they be able to work in the expanded business. In contrast Marriott Hotel
uses professionals workforc and set stardards that they need to achoieve and rthat helps in
checking the capabilities of the workforce.
Research about creative business strategies for your chosen organisation’s future strategy
selection to be competitive in the hospitality industry.
Business strategies is a plan used by company to expand their business in the market
place. It is necessary for a company to create effective business polices so they can achieve their
plan successfully and attract more customers and take the first mover advantage and grab the
opportunity at earliest. To increase the reach of their business Intercontinental hotel group is
expanding by franchise. They want improve their customer base and serve them better. To
sustain in this competitive environment, it is significantly important to understand the needs and
wants of customers and satisfy the. In order to conduct the effective franchise for successful
expanding of their business in marketplace the business strategies made by Intercontinental hotel
group are as follows:
 Digital media marketing- As the world is turning digital and every organisation is using
digital mode to promote their business and attract more customers and make them aware
about the business (Camilleri, 2018). In Intercontinental Hotel the group is also using
digital platforms as they can reach more customers and gives international exposure and
is less costly. Also people now a days are more active on these digital platforms and these
attract them more than the traditional methods used. The use content marketing, e mail
marketing, social media marketing and video marketing etc.
 Build brand awareness- To be successful in a business it is important to create a brand
image in the market customers get attracted to the brand and prefer taking services from a
company that has established brand name. They should make sponsorships and advertise
their brand along with they should provide quality services to its employees and create a
positive image in their minds so they promote them to their family and friends. This

increase there both B2B and B2C business. All this would help them to increase the
customer base and market share in the industry (Rijal and Ghimire, 2016).
 Connect with community- Understanding the needs and wants of the customers of an
organisation is the most important part they should focus on. in relation to
Intercontinental hotel group try to analyse the preferences Lifestyle and socialization
pattern of its potential customers. Hotel should provide the services that attracts its
customer and become part of their lifestyle as the customers will get the services
according to their preference they will be more attracted (Madar and Neaşu, 2020). Also
as the hotel gets the resources from the society it is the duty of Hotel to revert back to
society in the sense that optimally utilising the resources and also doing some Charity and
following social responsibility to give back to society and this impacts the customers
positively and the Goodwill of the business is also set in the mind of customers as well as
society and government and this makes a connection with them.
 Membership rewards – There are people who make repetitive physics and take Pita
services from a hotel those are called its loyal customers. retain those loyal customers it
is the duty of the hotel to provide them some extra benefits and feel them special by
giving them special offers and extra discount than the normal customers (Baum, 2018).
this increase the loyalty of the customers and they never think of switching the hotel. also
it is human nature that if they like a place they normally go and take services from that
place. in relation to Intercontinental hotel group provide Quality Services and always try
to retain the customer by providing them some special packages and provide them the
rates that are less than the normal people also they provide them the offer of customisable
packages which are friendly for these customers. Loyalty points is also one of the offer
that can be used to attract and increase the repetitive visit of the customers (Sotiriadis and
Van Zyl, 2017).
 Monitoring competition – Competition is faced by every industry and a positive
competition is somewhere good to enhance the capacities of these organisations. in case
of Intercontinental hotel group, it is important to monitor the competition and make
strategies accordingly also the prices of the packages and services offered should be done
in respect and relation to the competitors pricing to gain the market share in make a good
image in the minds of customers by providing them the services that give them value of

money more than the competitors of the industry are giving. (David, David and David,
2017). These are some of the critical strategies that can be adopted by Intercontinental
Hotel group in order to adopt franchise in an effective and successful manner for
enhancing the loyal customer base and improve profitability ratio (MENESES, 2020).
Evaluate and Analyse the different performance metrics
Performance metrics includes figure and data that are representative of a company's
actions, overall quality to check the performance and evaluate the company’s position. By
analysing the position of company it is easy to make Strategies and know the areas where the
improvement is required and accordingly perform the task. There are several performance
metrics that can be used by Intercontinental hotel while adopting franchise for expanding their
business, they are mentioned below: -
Critical success factor- To attain a goal and objective of an organisation it is essential to
set Critical success factor. To attain a goal and objective of an organisation it is essential to set.
Also it is important for in organisation to communicate these factors effectively among the
members so as to accomplish the set objective effectively as they lead to the achievement of
mission and the objectives of the company. Also it helps the company to distribute the duties
among the employees and helps them to contribute to their part effectively and lead to success.
Different types of critical success factors are environment factor, industry factor, strategic factor
and management factor.
 Industry factors include all the factors that come in industry and it is important to
analyse and monitor these factors for successful implementation of a strategy (Barišić,
Barišić and Miloloža, 2020). Also analysing these factors help us to gain the competitive
edge in the industry. So, intercontinental hotel group always checks the industry factors
and chech their influence on their hotel and the other competitors to know the future
strategies and implement them effectively.
 Environmental factors include climate temperature of the area to expand business it is
important to analyse the environmental factors Implement a strategy and set the business
in an efficient manner. This is an external factor and impacts the business directly and
impacts the success of the business. This is a macro factor and has influence on all the
hotels so intercontinental hotel checks the place where they are willing to expand and
check if any competitor already exist and ho are they operating in the environment.

 Strategic factors are those factors that help the company to gain the competitive
advantage these factors help the implementation of strategy easy Also they helped the
company to achieve the mission goals and objectives easily and effectively. They help to
understand the market and make strategies in favour of the company. It is important to
analyse the strategies that are to be used by the hotel to start franchisee successfully.
 Management critical factors help in the management of the project and its successful
completion these factors play a crucial role in the organisation and an important to be
studied and implemented in an effective way for Achieving the desired objectives set by
the organisation. So, these factors needs to be set to become successful and is used by
Intercontinental Hotel group.
It is a vital task to understand the performance metrics that will help the hotel to know
about the performance of organisation in industry and it is the task of manager to keep eyes on
these factors like environmental factors and the strategies that are needed to be implemented and
then use key performance to know about the performance and become successful.
Key performance indicators
Key Performance indicators are set of measurements that helps to measure the performance of
the company. The key performance indicators measure and compare the performance of
company in relation to the set targets. It also compares the performance of business in relation to
the different companies in the same industry (Elbanna, and Elsharnouby, 2018). The company
gets benefits by following key performance indicators as they focus on goal and generate
accountability. In context of Intercontinental hotel group, the took the decision of franchisee that
helps to after growth of the business. It helps to minimise the waste and use the resources
effectively also it improves the performance of the staff. All the quantifiable factors like
profitability, revenue, working capital, source of income are analysed and the measures are taken
accordingly. Intercontinental hotel group should analyse the performance of the hotel and set the
goals and objectives according to the analysis of performance and to improve it. So the company
should identify the key performance indicators and use them to expand their business and be
successful.
Balance scorecard
A balanced scorecard is strategic management performance metrics that is used to improve
and identify the internal business functions and their result to external outcomes. they are used to

provide feedback to hotel. The day to day work is communicated to the organisation. After
communicating the plans, the priorities in the project Art set. These are the financial measures
that are taken by the senior management of the organisation as they understand each and every
part of the organisation in a better manner. It tries to manage the financial performance with the
Strategies and plans made (Ahmad and Scott, 2019). Listen to solve the mental hotel group to
communicate their plans and what they are planning to execute to its members for the effective
completion of the project. They also measure the performance of the staff to the franchise and
the expansion decision taken by them. The focus on setting priorities and then following them to
achieve success and create a brand image in the market following these score cards help the
company to meet its financial needs and also to make the targets that was set. The company
should understand the importance and follow these score cards effectively and efficiently for the
growth of the business. (Stenning and Associates (Firm) The Work Lab (Firm) 2016)
CONCLUSION
From the above to report it can be concluded that strategic planning is an important part
which is required by an organisation to attain its goals and objectives effectively. the report deals
about Intercontinental hotel group that wants to expand to franchise in international as well as
national market for that it is important to make strategies and follow them to accomplish the set
goals. also the factors that influence and impact the strategy of also mentioned and how they
affect the hotel discussed. the factors through which the company can increase the brand image
and successfully create the position in the market are also mentioned. for the success of
organisation, it is important to make strategies set performance indicators use scorecard and do
critical analysis of the environment so as to identify the place that is suitable for the hotel.
strategic planning has held Intercontinental hotel group to expand its business effectively

REFERENCES
Books and Journals
Knittel, L., 2020. The role of human resource management in the tourism and hospitality
industry in south Iceland before, during, and after COVID-19 (Doctoral dissertation).
Zaitseva, N. A., Goncharova, I.V. and Androsenko, M. E., 2016. Necessity of changes in the
system of hospitality industry and tourism training in terms of import
substitution. International Journal of Economics and Financial Issues, 6(1).
Camilleri, M.A., 2018. Strategic planning and the marketing effectiveness audit. In Travel
marketing, tourism economics and the airline product (pp. 117-135). Springer, Cham.
David, M. E., David, F.R. and David, F. R., 2017. The quantitative strategic planning matrix: a
new marketing tool. Journal of strategic Marketing, 25(4), pp.342-352.
Čerović, S., IN HOSPITALITY INDUSTRY.
Elbanna, S. and Elsharnouby, T. H., 2018. Revisiting the relationship between formal planning
process and planning effectiveness. International Journal of Contemporary Hospitality
Management.
Ahmad, R. and Scott, N., 2019. Technology innovations towards reducing hospitality human
resource costs in Langkawi, Malaysia. Tourism Review.
Stenning and Associates (Firm) The Work Lab (Firm), 2016. Tasmanian tourism and hospitality
industry: preliminary workforce audit.
Baum, T., 2018. Sustainable human resource management as a driver in tourism policy and
planning: a serious sin of omission?. Journal of Sustainable Tourism, 26(6), pp.873-
889.
Soeswoyo, D. M., Rahardjo, S. and Asparini, P.S., 2019, June. Tourism Components and The
Perspective of Hospitality Industry in Supporting Sustainable Urban Tourism
Development. In 3rd International Seminar on Tourism (ISOT 2018). Atlantis Press.
Madar, A. and Neaşu, N.A., 2020, July. Tourists’ vision about the implementation of sustainable
development practices in the hospitality industry in Romania. In Proceedings of the
International Conference on Business Excellence (Vol. 14, No. 1, pp. 769-779).
Sciendo.
Barišić, A. F., Barišić, J.R. and Miloloža, I., 2020, September. Knowledge Management
Perspective in the Tourism and Hospitality Industry. In Proceedings of the
ENTRENOVA-ENTerprise REsearch InNOVAtion Conference (Online) (Vol. 6, No. 1,
pp. 114-123).
Rijal, C. P. and Ghimire, S., 2016. Prospects of creating memorable experience in Nepalese
tourism and hospitality industry. Journal of Tourism and Hospitality Education, 6,
pp.40-66.
Sotiriadis, M. and Van Zyl, C., 2017. Sharing economy in the hospitality industry: analysis,
suggested strategies and avenues for future research. Tourismos, 12(1).
MENESES, G. D., 2020. Quality in Hospitality Services. Managing Hospitality Experiences,
p.174.