Hospitality Management: IHG SWOT Analysis, Emerging Market, and Hotel Strategy

International
Hospitality Management

Contents
Contents...........................................................................................................................................2
INTRODUCTION...........................................................................................................................1
BACKGROUND OF HOSPITALITY INDUSTRY.......................................................................1
BACKGROUND OF IHG...............................................................................................................1
SWOT analysis of Intercontinental Hotel group.........................................................................1
Background of emerging market.................................................................................................3
PESTEL analysis.........................................................................................................................3
Hotel strategy to be adopted........................................................................................................5
Justification of strategy................................................................................................................8
Application of strategy................................................................................................................8
CONCLUSION................................................................................................................................9

INTRODUCTION
Hospitality management refers to management of task and work related to hotel as well as resorts
(Arlt, 2020). Term of hospitality include various types of services. This project report include
study of IHG which is leading hotel group which is established in United Kingdom. It is
multinational hotel group providing hospitality services to their customers in different parts of
world. This project report includes SWOT analysis and PESTEL analysis of emerging market of
company. It also includes different hotel strategy to be implemented by company and
justification of strategy.
BACKGROUND OF HOSPITALITY INDUSTRY
Hospitality industry include different types of categories in different fields including lodging,
event planning, foods and beverage services, transportation and many more. This industry
includes hotels, bars, restaurants, resorts in their areas (Bodkhe and et. al.2019). Main object of
this industry is to enhance experience of their customers by providing them warm and friendly
welcome and provide them environment like home. This experience allow company to
differentiate their services form those of competitors.
BACKGROUND OF IHG
Intercontinental hotel group is one multinational hotel group which is a hospitality organisation.
It is established in the 2003 by Juan Trippe in United Kingdom. It is a large organisation group
which has around 350000 employees working in different parts of world. It is providing various
services as it has resorts, hotels, bars and other many services. Company is providing luxury
services to their customers in order to provide them enhance experience (Cabral and Jabbour,
2020).
SWOT analysis of Intercontinental Hotel group
SWOT analysis is one of analysis which identify various factors that create opportunity as well
as threat for any business. It identifies factors including strength, weakness, opportunity and
threat fir business (Dev, 2020). This strength includes those factors which create benefit for
business whereas weakness include those factors which create negative impact on business.
These factors allow managers of enterprise to formulate strategies for their organisation to
remove these factors from their operation. These also helps business to take advantage of
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opportunity available for business and reduce risk of threat for their organisation. SWOT
analysis of InterContinental hotel are as follows:
Strength Weakness
 Organisation is adopting asset light
model of business in which they are
franchising their hotels in different
parts of world. This will help them in
generating cash as well as profit with
become hotel which is asset free.
 Enterprise is providing their services in
different geographic location including
UK, Germany, China, Canada, India,
Indonesia, Mexico, Russian and many
other countries. Main focus of
organisation is on countries where there
are increasing business of hotels and
travel and providing strong market
presence (Golubovskaya, Robinson and
Solnet, 2017).
 Intercontinental hotel is one of largest
hotel group which is working as per
preference of their customers.
Organisation is fulfilling changing
customer requirement which helps them
to enhance their customer experience.
They are also built strong relation with
their customer which increase their
loyalty level.
 Organisation is providing luxury
services which is not available for
middle class family as their target
customers are rich people who can
afford luxury services and also working
df satisfying their needs and wants.
 Company does not have strong
information system as they have large
group and it is important for them to
have effective information system for
coordination between different hotels
but there is poor information system in
company which create problem of
coordination in different hotel of
organisation.
 Due to increase competition in
hospitality industry, organisation has
fall from its position and has reached to
3rd position in global market.
 Company has weak IT structure which
is not strong enough to keep
information of their guest secure (Guix
and Font, 2020).
Opportunity Threat
 There is increase in international
tourists and travel which provide
 There are various hotels which are
offering their services at relative low
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