International Hospitality Management Assessment

This document provides an assessment on International Hospitality Management. It covers the background of hospitality and IHG, SWOT analysis, emerging markets, and PESTEL analysis. The document also discusses the opportunities and threats faced by IHG in the hospitality industry.

INTERNATIONAL
HOSPITALITY
MANAGEMENT
ASSESSMENT
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Table of Contents
INTRODUCTION...........................................................................................................................3
MAIN BODY...................................................................................................................................3
Background of hospitality(tourism).......................................................................................3
Background of IHG................................................................................................................3
SWOT analysis to IHG...........................................................................................................4
Background of emerging markets..........................................................................................6
PESTEL analysis of intercontinental hotel group..................................................................7
Porters generic strategies, Ansoff's matrix and Nykiel's fourteen hotel strategic growth....10
Justification of strategy ........................................................................................................11
Practical strategy of strategy after 5 and 10 year.................................................................12
CONCLUSION .............................................................................................................................12
REFERENCES .............................................................................................................................13
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INTRODUCTION
The hospitality management this is demonstrated as globally well recognized industries
which is continuously growing, this process involves the administrative different tasks of a resort
and hotel. The loading mangers they assure that guests on business travel or group of individuals
coming on vacations they all should have pleasant experience at motel , or at different types of
establishment with the accommodation, and hotels and this process is followed according to the
labour and bureau statistics. In context to intercontinental hotel their managers assures that their
hotel is welcoming and warm so number of guests could feels that they're at home (Murphy, and
et.al 2018.)
MAIN BODY
Background of hospitality(tourism)
The hospitality industry this began in 15,000 BCE with the lascaux caves in France, this
was developed to accommodate other members of the tribes. The hospitality industry this a
recognized industry and it was formed in the 1950s or 1960s while structure was formed in
proper manner (Busser and et.al 2019) The number of travellers they always prefer hospitable
places for the purpose of relaxing, and being away from obstacles or hustle and bustle busy
schedule of everyday routine. During the middle ages in japan there was two hotels which are in
history such as (guest house known as ryokans) these were probably built in the early 700.
Hospitality this is nearly known as old as humanity. Tourism this is defined as economic,social,
and culture phenomenon which requires movement of group of individuals to different countries
or moving from one place to another or places outside for the personal and professional business
purposes. These group of peoples they are known as visitors which might be tourist or non-
residents. The word hospitality this comes from Latin word called hospes, this word is referred to
the guest or host and a visitor.
Background of IHG
The intercontinental hotels were founded in 15th April 2003. The intercontinental hotels
group plc or their resorts they are informally British multinational hospitality company and their
headquartered is in England in Denham Buckinghamshire (Poretti and Blal, 2020). The
intercontinental group of hotels they have about 889,582 guest rooms and over 5,900 hotels
across the 100 countries. The IHG they have their own brands which includes regent hotels,
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intercontinental hotels, kimpton resorts and hotels ans six senses hotels, hotel indigo, crowne
plaza, holiday in express and stay bridge suites. The mentioned list stock exchange in London
and its constituent is the FTSE index. The origin of this business was nearly traced in 1777,
while William bass found the bass brewery in Burton -upon -Trent. During the 1875 they had red
triangle logo this was the first trademark which was registered in the united kingdom. Later on
the company however changed its name in the 1969, the term bass charring ton was quite
familiar and known at that time , and launched the crest hotel chain as well as they marked first
entry in lodging sectors. In 1988 the government of British limited the number of pubs which
could be directly own by the brewers and this was resulted into investing in the expansion of the
hotel business (Seo and Soh, 2019).
SWOT analysis to IHG
SWOT analysis this defines strategic planning tool which are used by the intercontinental
hotels or by group of their manger in order to perform situational analysis of an organization.
This is a technique which evaluates the strength, opportunities, weakness , and threats of
organization or IHG groups. Intercontinental hotels this is leading organization and they
maintains their better position in the market by analysing in a careful manner as well as
reviewing SWOT analysis. SWOT analysis this process requires coordination between several
departments along with the firm which involves management information systems, operations,
marketing finance and along with this strategic planning.
Strengths of IHG
Intercontinental group of hotels they are barely leading
organization in an industries therefore they have number of
strengths which enable them to thrive in the market. All
these strengths not only helps in protecting exist markets
or else protecting market share ( Baral, and et.al Vacik,
2018)
Wide geographical presence focusing on priority
markets- The hospitality groups of inter continental hotels
are presence in 100 countries with 766,837.They have
89% of pipeline rooms and 87% total rooms which are in
priority of markets which are located in Canada,India,
Weaknesses
Weak intercontinental security
There are 1,200 intercontinental
hotels which were infected with the
credit card stealing of malware as
well as guest information includes
card number, cardholder name,
internal verification code all those
informations were also stolen.
Rewards club – There are loyalty
programs which are provided by
the intercontinental groups of hotel
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Russia and Indonesia. These groups they have strong
presence in emerging economics where spending on hotel
and travel increasing rapidly. In the context of the
intercontinental hotels and restaurants they had made a
huge global across the world and strategically positioned
as a upper class lifestyle brand (Nain, 2018).
Customer relationship focus- The trends of
intercontinental hotels they had been reveals their report
about that group of consumers preferences are shifting
towards uniqueness services and personalisation such as
traditional preferences are on availability and the cost. In
the relevance of intercontinental hotels they provides
easiest reservation system that offers guests fantastic
personalised experience. They rewards clubs which often
provide access to exclusive along with preferential rates to
the honest and loyalty members who are booking through
the guest journey and direct channels this helps in building
loyalty relationships with the guests as well as this also
helps in strengthening all competitive advantages.
Effective Recruitment strategies – There are several
hospitality sectors those established effective and strong
recruitment strategy which are comply by the
intercontinental hotels and they re-allocate functions of
recruitment to operating department. for example each and
every payroll functions are barely allocated to payroll
departments.
such as holiday inn priority club
and the rewards clubs they have
been drawn negative reviews from
customers. There are many
complaints from customers that
whatever points are promised they
are not fulfilled towards customers,
whenever customers tried to
redeem their points they were told
that those points were expired, so
this means promised loyalty points
they have never expiry dates.
Opportunities for IGH
New geographical markets
Partnership in Canada with rose wood hotels they would
rebrand 2000 rooms for the holiday inn express hotels so
in this way intercontinental groups of hotels in china are
Threats to IGH hotels
Competitors – There are number
of competitors which can compete
with intercontinental hotels so this
could be a biggest threat of IGH
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planning for to construct more new 300 hotels in china in
the coming next five years (Holle beek and Rather, 2019)
and its biggest competitors are
Wyndham, Marriott and they are
getting more competition from
Hyatt and Hilton.
Hotel recruitment in china- In the
context of intercontinental group of
hotels had been faced numerous
challenges because very less
graduates in china choose
profession of hospitality sector to
work , there are training gap and
skills in restaurant staff as well as
in finance and sales.
Concluding statement – The
SWOT analysis of intercontinental
hotels have been shown that this is
least problematic in comparison to
other big hospitality groups across
the world, because they do have
effectiveness operational
management and branding.
Background of emerging markets
There are different emerging market in which China which is highly populated country
are one of the highly emerging market for the hospitality sector where there are many of
customer like to avail high quality of service. In this, there are different types of people in china
where there are many customer which they are like to avail one of the best service which is the
provided by the hotel IHG. As per the population is increase, there are huge number of customer
are there for the future. Service market is the one which is there going to be in high demand as
per the time passes. There are high value of service in all over the world and due to this there is
no time when there is high requirement of better service is needed and will be in demand which
can help in to create high market in future (Ma and et. al., 2020). There are high market to avail
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the service in all around the world. Hospitality sector is the one of the sector which have there
own high value. In relation to this, there are emerging market which should have high demand of
service in future and due to this hotel IHG should have large number of customer base there to
provide their services to their large customer base. There is huge market to avail one of the best
services in the hospitality sector in which people like to travel form one corner to other corner
just to avail the quality service which hotel IHG is able to full fill as per demand and able to earn
high profit in future. Hotel IHG is also able to attract large customer base by providing one of the
best service which is able to satisfy as per above the expectation of customer which also made
them their loyal customer and influence them to avail their services again (Sevel, 2018).
PESTEL analysis of intercontinental hotel group
PESTEL analysis this is demonstrated as a important tool which is widely used and
helpful which shows big pictures of external surroundings mostly which are related to the
foreign markets. PESTEL is explained as economic,political,technological,sociocultural, legal
and environmental these are in context in which firms operates (Meng, and et. al Chen, 2020)
Analysis of PESTEL helps mangers to have better understanding about threats and opportunities
which are usually faced by them , the process of analysis aids are building effective vision for
the future business and how the firm could be compete profitably. Emerging market is defined as
a market which have some characteristics in order to enhance and developed the market but
these markets do not completely meet its standards. In other words it can be explained as
economy which is used for developing nation which have been become engaged in order to grow
markets globally. emerging markets productivity is high in china. There are many factors which
affects the growth and success of the hotel industry. Those changes occurs in the macro-
environment factors these might directly influence on intercontinental hotels and also these
factors impacts on players in the leisure and in travel. The factors of macro-environment could
also impact on porter five forces which usually shapes the strategy as well as competitive
landscape.
Political factors – The ban on travels might kill tourism and hotel industry, the government
authority, they have uphold strongly all the tourism and hotel industries, if in any case political
party decides to ban the travel, this will definitely hurt hotel and tourism industries. This is all
about taking one decision and on the other side losing large majority of economy. In the context
of intercontinental groups there are many political factors which plays a significant role in
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identifying those factors which can impact on long- term profitability of intercontinental hotels
in a china markets (Ellis, and et. al 2020). Intercontinental hotels they are operating in leisure
and travel and also they expose itself to the various and different political system risks and
political environment. The groups of intercontinental hotels they could closely analyse some
factors before investing or entering in china market. There are some following factors which are
mentioned below;
 Taxation
 Working according week regulation in the terms of leisure and travel.
 Employee benefits are mandatory
 Labelling all products and other requirements in leisure and travel
 The stability and importance of political in case of leisure and travel sectors or in the
country's economy.
 Protection of intellectual property.
 Risk during military invasion
Economic factors -The different macro – environment factors which include savings rate,
inflation rate, foreign exchange rate, interest rate and the economic cycle which commonly
determines collection of investment and accumulation demand in an economy on the other side
micro- environment factors which includes competition norms they barely influence the
advantages of competitive firms. The groups of intercontinental hotels they utilise some
economic factors which includes inflation rate or growth rate or in addition indicators of
economic industry like leisure and travel consumer spending and industry growth rate they could
speculate sectors and their organization. Economic factors are considered by intercontinental
hotels during the PESTEL analysis, mentioned below;
 What type of economic systems are operated and how stable it is.
 Exchange rates
 Stability of country currency
 Inflation rate
 Interest rate
 Stages of business cycle for example- recovery, prosperity, recession.
 Labor costs and its productivity in economy.
 Unemployment rate
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Social factors- The culture of society and different ways of doing things this might impact
culture in an organization which is existed in positive environment. In the relevance of
intercontinental hotel, the beliefs and the attitude of the individual groups they play an vital role
how marketers of china understand their customers and in addition how are they designing
marketing related messages for the consumers of leisure and travel industry. Social factors
during PESTEL analysis given below;
 Education standards in the context of intercontinental hotel groups
 Demographic level of the population
 Power and class structure in the society
 Culture (social conventions as well as gender roles)
 Attitude this include consciousness during environmental factors and health etc.
 Some societies they appreciate entrepreneurship and some of them don't.
Technological factors - Technology this is a fast disorganized or disrupting industries which are
across the board for example transportation industries in the last previous years all the industries
are transforming rapidly, due to this reason players are also not getting any chance to established
to cope with the changes. Nowadays taxi industries have been dominated by players such as lyft
and uber, and on the other hand car industries are rapidly moving to automation which are led by
firms of technology this include manufacturing and it is disrupted by tesla which is barely
declared by electronic car revolution as well as google. A firm this does technological analysis
nearly of all the industries along with this firm speed up those technologies too which are
disrupted by the industry, this means slow speed would give more time but the fast speed during
the disruption might give firm little time in order to be profitable. Technology analysis
mentioned below;
 Latest technological developments which has been done by intercontinental hotel groups
 Technological diffusion rate
 Impact on consumer service and the sectors or impact on value chain structure of
consumers.
 In leisure and travel industries impact on cost structure.
 Technology's influence on offering of products
Environmental factors- As per studies there are different markets and they have different
environmental standards as well as different norms too and this could impact on profitability of
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an leading organisation which are situated in the markets. Even different countries can also have
different liabilities laws and different environmental laws for example in the terms of US Florida
and Texas they could have different environmental disasters and different liabilities (Cha, 2020)
There are many countries which often gives healthy tax breaks to the organisation or companies
further that is operated in the renewable sector. Before starting a new business or entering in the
new markets which are already existing thus firm must evaluate all environmental standards in a
careful manner because that is required to operate in the markets. There are some environmental
factors which should be considered by firm are given below;
 Climate change
 Recycling
 Weather
 Water and air pollution both should be regulated in the leisure and travel industry.
 There should be laws for regulating environment pollution
 Endangered species.
Porters generic strategies, Ansoff's matrix and Nykiel's fourteen hotel strategic growth.
Porters generic strategies
There are three strategies which includes porters generic strategies, Nykiel's fourteen and
Ansoff's, these are growth strategies which are employed by intercontinental hotel. These
strategies are used by the hotels for the investment analysis. This mostly estimates the
competitive issues and potential issues which are already existing. The porters generic strategy
this demonstrate the way companies and organisations chases every competitive advantages in
the targeted market and this include three generic strategies focus, differentiated or lower cost.
The hotels they can choose one or more than one competitive advantages, all these strategies
mostly determine the vision or directions of an organisation (Kim, and et.al Gatling, 2018) This
strategy helps in determining the profitability whether they are average, above or below the
industry.
Ansoff's matrix strategic
Ansoffs matrix this is effective tool for strategic planning which commonly provides
framework to senior mangers and executives in addition to future growth thus this process
includes growth strategies which involves market development, market
penetration,diversification and product development . This tool is very helpful for the growth of
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existing products as well as for the new products. The Nykiel's fourteen this is also hotel
strategy and this applied for the growth options therefore these growth strategies are used for the
assessing and improvement opportunities (Meng, and et.al Xiong, 2020) In the hotels the
ownership interests are usually prepared in order to encourage operators thus they can make
sustainable income. These strategies maximize total values of a hotel. The term management and
review branding these are also part strategies of growth options. In the context of intercontinental
hotels, the long term prospects values regarding hotel physical evaluation plays a important role
in the Ansoffs matrix strategy.
Justification of strategy
The intercontinental hotel mainly requires methods of evaluating for potential issues or
competitive issues to perform the investment analysis, furthermore hotels should require to have
the buying power of competitors, suppliers, consumers or rather than this the threats of new
entrants and threats of substitutes for the purpose of competitive environment analysis. The
argument and bargaining power of consumers this is a finest opportunity which could buying
down the price of a service. In the relevance of intercontinental hotel group their consumers have
all rights to take related to the purchasing decisions. This mainly occurs due to the reasons of
global and local opponents in the hotel industry. The management system of the hotels they can
easily targets their customers by comprising world- class businessman and global tourist this is
usually done to reduce the bargaining power of the number of customers. In the relevance of
intercontinental hotel group their switching costs would be moderated and the process of
purchasing and supplying might influence and might lead low for the hotels so this is a biggest
threat for the hotel industry. In the case of investment analysis, there is a moderate levels of
threats in the leading hotel industry (Luu,2019) This helps in achieving consumer expectations
and needs along with this, this would reduce risks towards management of intercontinental hotel
group. Policy of competitive pricing they are very essential to reduce the the threats. The
management system they have more capabilities to fulfil desires or other needs and expectations
of the customers instead of reducing their risks , so in this way it is known as moderate level of
threats to the intercontinental hotel groups. Intercontinental group of hotels they apply strategy of
porter generic model ion order to implement analysis and this strategy works with cost strategy,
differentiation and with leadership issues. All these activities are effective and they works for the
organisation to accomplish the competitive advantages. This strategy can be effectively followed
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in order to implement on differentiation purpose, cost leadership issues and to focus on issues.
The pricing issues are continuously becoming penetrating between the potential and existing
customers. In many cases its becomes very difficult to build long term relationship in the with
the existing consumers because of the high pricing policy (Xu and Chan, 2018).
Practical strategy of strategy after 5 and 10 year
There are different benefits of these strategy in future which are there able to attract large
customer base which can help to get better business in order to achieve high profitability of their
Hotel IHG. Cost leadership is able to help in to attract high customer base along with their
quality. There is also role of cost focus in which can give competitive advantage to their hotel.
Using the Ansoff matrix strategy which is there able to focus on the chosen customer base and
helps to deliver the awareness which is about their brand name and their service quality. In future
after 5 and 10 year these strategy like market penetration are there to lead for attracting high
customer base for their hospitality business (Gao, 2021).
CONCLUSION
As per discussed that hospitality management is defined as globally and recognised industries
which are growing rapidly, this process involves administrative different task at resort or hotel.
The loading mangers assures that group of peoples coming for business or vacation they must be
welcomed and pleasure should be given in this way hospitality management is essential. In this,
there report there is discussion about different strength and weaknesses of hotel along with their
opportunities and threat. There is introduction about the background of hospitable industry along
with hotels background where there is PEST analysis which is able to evaluate the external factor
which can effect the hospitality sector and there is also justification fo strategy which has
adopted by the chosen hotel. There is also some explanation of practical strategy which is there
in 5 and 10 year in future.
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REFERENCES
Books and journals
Busser, and et.al Shulga, 2019. Involvement in consumer-generated advertising. International
Journal of Contemporary Hospitality Management.
Luu,2019. Building employees’ organizational citizenship behavior for the
environment. International Journal of Contemporary Hospitality Management.
Kim, and et.al Gatling, 2018. The impact of using a virtual employee engagement platform
(VEEP) on employee engagement and intention to stay. International Journal of
Contemporary Hospitality Management.
Cha,2020. Customers’ intention to use robot-serviced restaurants in Korea: relationship of
coolness and MCI factors. International Journal of Contemporary Hospitality
Management.
Baral, and et.al Vacik, 2018. Ecological and economical sustainability assessment of
community forest management in Nepal: A reality check. Journal of sustainable
forestry, 37(8), pp.820-841.
Hollebeek,and et.al Rather,2019. Service innovativeness and tourism customer
outcomes. International Journal of Contemporary Hospitality Management.
Assessing and monitoring the soil quality of forested and agricultural areas using soil-quality
indices An, Q., Meng, and et.al Xiong, 2020. Assessing the relative efficiency of
Chinese high-tech industries: a dynamic network data envelopment analysis approach.
Annals of Operations Research, 290(1), pp.707-729.and digital soil-mapping in a semi-
arid environment. Archives of Agronomy and soil science, 64(5), pp.696-707.
Meng, and et. al Choi, 2018. An investigation on customer revisit intention to theme restaurants:
The role of servicescape and authentic perception. International Journal of
Contemporary Hospitality Management.
Meng, and et. al Chen, 2020. Assessing the relative efficiency of Chinese high-tech industries: a
dynamic network data envelopment analysis approach. Annals of Operations
Research, 290(1), pp.707-729.
Murphy, and et.al Ingram, and Hutchinson, 2018. A review of high performance work practices
(HPWPs) literature and recommendations for future research in the hospitality
industry. International Journal of Contemporary Hospitality Management.
Ellis, and et. al Rozenberg, 2020. Does authentic assessment assure academic integrity?
Evidence from contract cheating data. Higher Education Research &
Development, 39(3), pp.454-469.
Gao, 2021. Effect of Price Change Alert on Perceptions of Hotel Attribute-based Room Pricing
(ABP) versus Traditional Room Pricing (TRP). International Journal of Hospitality
Management, 92, p.102725.
Xu and Chan, 2018. When cosmopolitan corporations meet local environments: The impact on
managerial structure in international luxury hotels. International Journal of Hospitality
Management, 74, pp.30-39.
Ma and et. al., 2020. Institute–Hotel Coordinating Barriers to Early Career Management—
Hoteliers’ Accounts. Journal of China Tourism Research, 16(2), pp.297-317.
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Seo and Soh, 2019. Asset-light business model: An examination of investment-cash flow
sensitivities and return on invested capital. International Journal of Hospitality
Management, 78, pp.169-178.
Poretti and Blal, 2020. The asset-light strategies and the dividend puzzle: International evidence
from the hospitality industry. International Journal of Hospitality Management, 91,
p.102639.
Nain, 2018. A study on major challenges faced by hotel industry globally. International Journal
of Creative Research Thoughts, 6(1), pp.561-571.
Sevel, 2018. Managing across a corporate and product brand portfolio: evidence from a large
South African service organization. Journal of Product & Brand Management.
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