International Hospitality Management: IHG Strategies for Emerging Markets

International
Hospitality Management

Contents
Contents...........................................................................................................................................2
INTRODUCTION...........................................................................................................................1
MAIN BODY..................................................................................................................................1
Background of Hospitality Industry................................................................................................1
Background of IHG.........................................................................................................................1
SWOT analysis of IHG................................................................................................................1
Background of Emerging Market................................................................................................4
PESTEL analysis.........................................................................................................................4
Hotel strategies to be adopted......................................................................................................5
Justification of Strategies.............................................................................................................8
Application of Strategies.............................................................................................................9
CONCLUSION................................................................................................................................9
REFERENCES..............................................................................................................................10

INTRODUCTION
Hospitality management is related to hospitality industry which include services like hotel, food
and beverages, tourism, entertainment (Ahn, 2019). International hospitality management is
concerned with management of hospitality business at international level. This Project report
include study of IHG which is one of leading company and providing hospitality services to their
customers in order to enhance their experience. Company has global reach as they are providing
their services to customers all over world. This project includes discussion of SWOT and
PESTEL analysis them to identify factors which can affect their operation. It includes
analysation of market in which firm is expanding their operation as well as strategies to be
adopted and implemented y organisation. This project report also includes justification of
strategies to be implemented by business and recommendation for company.
MAIN BODY
Background of Hospitality Industry
Hospitality industry is one of growing industry in world and including different services include
lodging, food and beverages, tours and travelling entrainment (Barreda, 2017). This industry
includes hotels, bars, restaurants, resorts. Goals of this hospitality industry is to enhance
experience of their customers and provide warm and friendly environment to their customers.
They offer them rest, entertainment and satisfaction. There is increasing competition in this
industry as there are many market players offering their services in this industry.
Background of IHG
InterContinental Hotel group is one of UK based organisation which are offering their services at
international level. This organisation is established by Juan Trippe in the 2003 in UK.
Organisation has around 5964 Hotel in all over world and has 886036 rooms in worldwide.
Company has 350000 employees who are contributing in success and growth of enterprise. IHG
providing different services to their customers including hotels. Bars, resorts, restaurants and
many more. Company has various brand under their name and is offering their services in new
emerging market including China, Kuala Lumpur, Chendu, Bali and other places.
SWOT analysis of IHG
Strength Weakness
1

 Intercontinental Hotel group is one of
enterprise which is implementing asset
light model in their business through
adopting franchising model and
managed model to reducer number of
hotels to 8 in worldwide. This helps
them to become cash generative, asset
free and creating surplus for their
shareholders (Bharwani and Talib,
2017).
 Intercontinental hotel group has global
presence as company is conducting
their operation at international level by
expanding their numbers of hotels.
Focus of company is one priority
market which market has potential to
grow. Company has their hotels in US,
Canada, Middle East, China, Germany,
Mexico, India, Russia, Indonesia.
 Company is also focusing on building
customers relationship and experience
which helps them to grow their market
share. Focus of company is on
customers preference. Customers is not
preferred personalisation as well as
uniqueness in service.
 Organisation is adopting unique
approach for segmenting as well as
advertising various brands of their hotel
on basis of occasion which pro
advantage to organisation of
 Company us focusing on quality service
not on cost. As a result, IHG does not
have any economic hotel for their
customers. Company has numbers of
brands for their customers but has no
brand for middle class customers.
 Company does not have strong
information system which create
problems for business. This create
threat for person information of guest
and also for protection of data of
company.
 Intercontinental hotel is one of largest
group of hotel in world and is providing
best services to their customers in order
to increase their satisfaction. But due to
increase competition, poor strategies
company has fall to third positron in
rank of hospitality business which can
create negative impact on their
business. This can also reduce on
profitability of business (Doğan and
Çevİk, 2016).
2