TLH 314 Assessment Brief | International Hospitality Management

Added on -2020-02-24

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0Running head: INTERNATIONAL HOSPITALITY MANAGEMENTInternational Hospitality ManagementName of the StudentName of the UniversityAuthor note
1INTERNATIONAL HOSPITALITY MANAGEMENTTable of ContentsIntroduction......................................................................................................................................2Background to the Hotel Company.................................................................................................4Global Hospitality Markets..............................................................................................................5Global Emerging Markets................................................................................................................7Selected City and Country...............................................................................................................8Market Analysis...............................................................................................................................9PESTLE.......................................................................................................................................9Porter’s Five Forces...................................................................................................................12SWOT Analysis.........................................................................................................................13Market Growth Strategy................................................................................................................15Porter’s Generic Strategy...........................................................................................................15Ansoff Matrix............................................................................................................................17Growth Strategies......................................................................................................................18Implementation of the strategy......................................................................................................18Recommendations..........................................................................................................................18Conclusion.....................................................................................................................................19References and Bibliography.........................................................................................................20
2INTERNATIONAL HOSPITALITY MANAGEMENTIntroduction Tourism is a significant industry that has a significant contribution in the globaleconomic development and employment generation. In 2016, the tourism industry alonecontributed globally US$2.3 trillion and 109 million jobs. Taking into consideration theindustry’s extended indirect and induced influence, in 2016, the industry contributed in theglobal economy US$7.6 trillion and provided 292 million jobs. This was similar to 10.2% of theworld’s GDP, and roughly 1 in 10 of all jobs. 76.85 of the travelling expenditure was due toleisure travelling, in comparison with 23.2% business travelling. From the sector’s contributionto GDP, domestic travel contributed 72%, which is a huge contribution in comparison withinternational travel which accumulated to the remaining 28% (Wttc.org 2017). 77%23%Contribution of Tourism to Global GDP 2016Leisure SpendingBusiness Spending72%28%Contribution of Tourism to Global GDP 2016Domestic SpendingForeign Visitor SpendingFigures 1 & 2. Contribution of Tourism to Global GDP 2016 (Business vs. Leisure /Domestic vs. Foreign Spending)Source: (Wttc.org 2017)In 2016, the direct contribution of tourism industry to GDP increased by 3.1% , makingthe growth faster than even the worldwide economy, which expanded at 2.5%, which made thetourism sector for the sixth consecutive time outperform the global economy (Wttc.org 2017).
3INTERNATIONAL HOSPITALITY MANAGEMENTFigure 3. Annual Growth of Tourism SectorSource: (Wttc.org 2017)In 2016, World Travel Monitor reported that the number of global outbound tripsincreased by 3.9%, with Asia leading the countries. The prediction for 2017 seems positive, withan expected growth by 4% and 5% (ITB-berlin.de 2017). Global forces like shifts in globaleconomy, rising consumer demands, game-changing innovation, natural disasters, geo-politicalturmoil and pandemics have together altered the travel landscape in 2016 (Mumford, 2016).Mobile technologies are assisting travelers in inspiring them to travel more and providing moreuseful travel experiences. Relevant technology partnerships are delivering delightful userexperiences. In terms of tourism industry, the work-life balance conflict exists too. The issues inrelation to the industry are exacerbated as the sector is presently experiencing a labor shortage.The long unsocial hours, low status of jobs and low pay in this sector hardly manages to attractnew staff or retain the existing ones. In terms of the new age consumers of the tourism industry,customer satisfaction is an important factor. As most of the hotels nowadays are using cyber
4INTERNATIONAL HOSPITALITY MANAGEMENTmarketing strategy for promoting themselves to the customers, online booking has also beenintegrated in their operations (Xiang, Magnini and Fesenmaier 2015). As the industrialized world is going through a crisis, many have termed it as a globalrevolution. countries have experienced economic turnarounds and economies have startedmoving in the right direction. However, the recovery of the current economy fails to translatethis revolution into improvement in employment conditions. The most positive side to thisrevolution is that backward countries have started producing low cost good services.Delocalization has enabled ever-improving standards of living with high quality, hightechnology, high productivity and low wages. Delocalization has helped bettering the networksystem among countries so that a better trade relation exists (Lambin 2014). The One Belt OneRoad Initiative(OBOR)is a strategy that has been developed for focusing on the connection andcollaboration amongst Eurasian countries (Yunling 2015). Among the most emerging economies,Brazil, Russia, India, China and South Africa are the most significant one, together calledBRICS. These five countries are either developing or newly industrialized but are fast-growingeconomies (De Vries et al. 2012).We at InterContinental Hotel Group, as a global hotel group, find the need to explore newmarkets that have the potential to help us serve our customers better. We are open to adoptingnew ideas, compete in a new environment with new competitors and successfully survive themarket. Our brands are developed with the aim to respond to guests’ needs. In this managementreport, we would find solutions to help us serve our global customers better.
5INTERNATIONAL HOSPITALITY MANAGEMENTBackground to the Hotel CompanyCrowne Plaza Hotels and Resorts is a part of the InterContinental Hotels and ResortsGroup (IHG Group). They believe in making business travel better for their customers. With thechanging markets of the world, business has changed, and so has the work life. Businesses havebecome more digital, mobile, flexible and connected (InterContinental Hotels Group PLC 2017).To not be left behind, Crowne Plaza has acquired properties that are situated in some of the mainurban centers, resort destinations and gateway cities all across the world. The brand is growingfast, on its way, understanding the needs from the hotels for the modern business travelers.Crowne Plaza focuses on people who are ambitious and looking to invest in something that canhelp them go up their career ladder. All Crowne Plaza hotels are ready with 24x7 premium fastand fresh food, accommodation, and business-ready services and spaces so that the guests arekept connected, productive, restored and rested. The group of hotels have more than 5000 hotelsacross the world, with their presence felt in around 100 countries. Already there are about750,000 rooms and more hotels under development. There is only one purpose - to create GreatHotels Guests Love (Ihg.com 2017).Figures 4 & 5. Logo of Crowne Plaza and IHG GroupSource: (Ihg.com 2017)

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