IHG Park Lane Hotel: Service Development Portfolio Report

This report provides a comprehensive analysis of the service development portfolio for the InterContinental London Park Lane hotel. It begins with an overview of the hotel's facts, figures, and approach, highlighting its luxurious services and prestigious location. The report then delves into the target consumers, focusing on millennial travelers and their preferences. Primary research, including survey data on consumer demographics, technology usage, and service expectations, is presented. Based on this research, a consumer persona is developed, and the need for Electronic Business Services (EBS) is identified. The report examines market competition, the affordability and accessibility of technology, and its impact on consumer choices. Design thinking phases, including ideation and prototyping, are explored, along with marketing and testing strategies. A value proposition is outlined, and the report concludes with references and appendices. The analysis emphasizes the importance of technology, innovation, and personalized services in meeting the evolving demands of modern travelers and maintaining a competitive edge in the hotel industry.

SERVICE DEVELOPMENT
PORTFOLIO

TABLE OF CONTENTS
INTERCONTINENTAL LONDON PARK LANE........................................................................1
Facts and figures ........................................................................................................................1
IHG Park lane approach..............................................................................................................1
Target consumers........................................................................................................................1
2. Millennial ...............................................................................................................................2
3. Primary research......................................................................................................................3
4. Consumer persona...................................................................................................................5
5. EBS Service need....................................................................................................................5
Market competition.....................................................................................................................6
Affordability and accessibility of technology.............................................................................6
Impact on consumer choices and demands.................................................................................7
6 Design Thinking Phase III – Ideate..........................................................................................8
7 Design Thinking Phase – Prototype ........................................................................................9
8 Marketing & Testing .............................................................................................................10
9 Value Proposition ..................................................................................................................11
REFERENCES..............................................................................................................................12
APPENDIX....................................................................................................................................14

INTERCONTINENTAL LONDON PARK LANE
InterContinental London park lane is a well developed brand which offers luxurious 5
star hotel services for the guests of London. The hotel is situated in the footsteps of Hyde Park
facing Buckingham Palace. The hotel is located in the most prestigious location of London. The
organization offers perfect location, effective spa services, fitness centres and upscale
neighbourhood to its consumers. The hotel has developed high and effective heritage value due
to the fact that Queen Elizabeth has spent her childhood in the place (WELCOME TO
INTERCONTINENTAL LONDON PARK LANE, 2015). Moreover, the closeness of hotel to
Buckingham Palace enhances its value.
Facts and figures
IHG is a reputed hotel which is well known for its prestigious location and luxury services.
 The hotel was established in 1927 and has been successfully operating there on.
 The organization has been nominated for the best work experience provider in London.
 It has been recognised as the best business hotel in UK for the year 2015 by Business
Traveller Awards (Award win for InterContinental London - Park Lane, 2015).
 The services of entity are highly developed and quality ascertained.
 The entity has developed luxury brand by providing international level services to high
class guests and travellers.
 The entity has developed an effective brand image and competitive position within
market by enhancing its online marketing measures (InterContinental London Park Lane:
A Condé Nast Traveller UK Business Hotel of the Year 2009, 2009).
IHG Park lane approach
 Developing high quality and refined services for consumers.
 Providing quick and personalised response to consumers in order to enhance high and
effective brand image within market (Ping, 2013).
 Adopting well developed and technically advanced promotional measures (Facebook,
instagram, Twitter, social media, add words, etc.).
 Delivering high range of services to develop a memorable experience for consumers.
Target consumers
 Travellers from around the world
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 Millennial business guests
2. Millennial
Generation Y the Millennial consists of people who are born between the year 1980 and
1999. These are the young travellers who seek chances for adventures and trips around the world
(Mohn, 2014). As per the researches, young travellers of millennial generation represent 20% of
the total international travellers. They help in developing high market demand and effective
services in the market. According to Maxwell and MacLean, 2008, the dynamic personalities and
unique demand of Generation Y travellers helps in developing unique and effective services
within market. Report based on the analysis of a survey depicted that more than 7,600 young
travellers aged between 18 to 30 years from more than 100 countries travel regularly in UK
every month (Kang, Lee and Huh, 2010).
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Research conducted on the needs and demands of consumers revealed that the consumers
demand for effective and highly technical services are increasing in the market. The major
demand within UK market for the consumer needs and services includes:
 Wi-Fi in rooms
 Social space
 Excellent customer service
 Modern equipment
 Work desk
 Value for money
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3. Primary research
In order to conduct the primary research within market, survey method was adopted by
the researcher which helped the hotel in receiving effective and exact data results. In order to
conduct the survey for research, 50 consumers of IHG Park Lane hotel were selected by using
random sampling measure. This helped the researcher in developing exact and effective results.
The findings of research are as follows:
Gender
Options Frequency Percentage
Male 30 60
Female 20 40
Findings: Above table signifies that in the research, there are 30 males and 20 females
from whom responses are attained. From this, it can be interpreted that results attained from this
study are not biased from gender point of view as there are slight differences in the number of
males and females.
Occupation
Options Frequency Percentage
Student 10 20
Unemployed 2 4
Job 12 24
Business 26 52
Findings: In the sample, there are 26 business men, 12 employees, 2 unemployed and 10
students. This sample size has helped in gaining ideas about different viewpoints of individuals
from which effectual conclusion is developed. Further, businessmen are the one that consumes
services of hotel frequently than other set of respondents and large number of businessmen in
sample size has assisted in gaining actual information and requirement of customers. Based upon
it, sound development of products can be done.
Age
Options Frequency Percentage
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20-25 20 40
25-30 17 34
30-35 5 10
35 and above 8 16
Findings: In the sample, large number of respondents is from the age group of 20-30
years and this age group is more comfortable with technology. From their response, appropriate
product is developed. In this context, 20 respondents are from the age group of 20 to 25 years
and 17 from 25 to 30 years.
Technology is a significant part for generating high experience in the hotel. Kindly
rate.
Options Frequency Percentage
Highly agree 25 50
Agree 15 30
Disagree 7 14
Highly disagree 3 6
Findings: It has been found from this study that technology is a significant part for
generating high experience in the hotel. This is the scenario because individuals are now getting
well verse with technological products and also, they are using the same on regular basis. Due to
this, hotels need to offer quality services by including technology in it so that they can be able to
meet with the satisfaction level of customers. Also, it boosts the experience of guests.
Do you seek value for your money?
Options Frequency Percentage
Yes 48 96
No 2 4
Findings: From the above table, it has been found that customers are always in need of
value for money that has been incurred by them. In this context, hotel must offer quality service
so that value for money can be gained by customers. Here, cited hotel can offer quick response to
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customers and address the issue of customers with high priority so that they can meet the needs
of customers in a desired manner.
Are innovative services important for developing quality experience for the
stay?
Options Frequency Percentage
Yes 41 80
No 9 20
Findings: Among 50 responses, 41 stated that they seek for innovation and creativity in
hotel while checking in. In this context, company must include creativity in the service delivery
so that they would be able to meet with the needs of customers in an effectual manner. In this
regard, focusing on technology will aid in boosting the experience of guests at mentioned hotel.
Do you think that the hotel must implement EBS?
Options Frequency Percentage
Yes 38 76
No 10 20
Does not matter 2 4
Findings: Considering the responses, it has been analysed that hotel must include EBS in
the operations in order to offer quality and quick services. This also helps company in managing
whole operations in an effectual manner and can be able to address the issue of customers within
few clicks. In addition to it, EBS aids in reducing the cost of operations which is again profitable
for company.
4. Consumer persona
On the basis of the primary research conducted within market, following results has been
evaluated by the researcher. The consumer persona for the research will be as follows:
 Gender: Male
 Occupation: Businessman
 Age: 20-30 years
 Current needs: need of innovation and technology based services
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 Reason for stay: Holidays, relaxation and business work
5. EBS Service need
On the basis of research and findings, it has been analysed and evaluated that technology
and innovation plays a significant and crucial role in the growth and development of organization
(Martin and Isozaki, 2013). These measures help companies in creating a wide and effective
impact on high consumer’s satisfaction and enhancing the competitiveness of entity. In order to
develop a competitive market position within market, IHG Park Lane hotel has developed an
effective measure to adopt the extensive electronic based services within organization. For this
measure, the business unit will introduce E.B.S. within hotel to enhance its digital access
(Hollensen, 2015). This will help in enhancing the competitive position of hotel within market.
This measure will help company in developing a low cost and highly advanced measure to
provide consumer services within market. The advantages of service to organization will be:
 Low cost
 High speed
 Value added services
 Enhancing flexibility
 High degree of innovation
The above mentioned measures will help in creating a wide impact on the growth and
development of business unit.
Market competition
Technology and innovation has developed a wide impact on the hotel industry in UK
market. The competitive business units within market have adopted effective measures to
enhance the growth and development of business units by adopting highly advanced means of
process and technologies (Spry and Lukas, 2006). Market research and analysis has helped the
business units in analysing that Park Lane hotel has market competition.
 Hilton international has developed an effective and competitive online infrastructure in
order to enhance the market promotional measures for business. This helps the company
in developing high business networks and develops effective consumer interactions.
 Ritz Carlton adopted innovative and creative means of attracting young consumers within
market through offering customised and well defined services.
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 Online marketing and social media communication measures has helped Marriott
international in developing its business widely.
 Mid-sized and upscale hotels such as Holiday Inn, Radisson Blu and Ramada etc. are
attracting Generation Y consumers by providing technology based services (Radisson
turns Blu for the holidays, 2015.).
 New business entrants are setting new and effective benchmarks for the hotel industry
(Holiday Inn performance boosts InterContinental, 2009)
Affordability and accessibility of technology
 The research results revealed that 85% of the population have adopted Smartphone and
online services in order to enhance innovative technology and services.
 46.71% of International travellers have switched to GPS to find suitable hotel and
accommodation services.
 Developing effective online infrastructure is the need of hour to develop optimum market
demand and sales.
Impact on consumer choices and demands
 IHG Park Lane hotel is considered to be the most prestigious venue of London.
 Market proximity and heritage value of hotel has helped in developing high market value.
 The online infrastructure of hotel helps in developing high and increasing market demand
for consumers.
 Internet and smart phone technology is one of the core and most essential needs of guests.
 Online reviews and travelling sites have a wide impact on consumer needs and demands.
 Managing the reputation and brand image of hotel is one of the most significant needs of
the organization.
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6. Design Thinking Phase III – Ideate
The Intercontinental London Park Lane focuses on strengthening its portfolio of preferred
and differentiated brands. The objective is to develop long term relationships with the clients and
to build scale in the key markets. Revenues are earned on the basis of low cost and direct
channels. The brand offers competitive proposition to IHG group and drives superior returns.
The organization implements its asset light strategy in the most attractive high growth markets
and industry segments (Schultz, Salomo and Talke, 2013). A disciplined approach is maintained
towards the capital allocation and for the purpose of investment for the future growth of other
brands. It facilitates company to drive sustainable growth in the profitability and in gaining high
shareholder returns in the long term. The hotel is first in industry to commit to free guest internet
for all the loyalty members worldwide (Neumüller, Lasch and Kellner, 2015).
The performance will be measured through a set of carefully selected Key Performance
Indicators. The success is measured in the achievement of strategy and it is identified whether
the portfolio is delivering high quality growth or not.
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7. Design Thinking Phase – Prototype
Prototype features
 Dimensions : Height 12cm, Length 10cm, Width 10cm
 System: Google Android
 Operation: Dual Core 1.9Ghz, Networking Wi-Fi, Internal Antenna, Bluetooth,
 Ports : USB, MicroUSB, HDMI
 Compatibility – IOS. Android, HDMI television
 Cost - £286.80
Operational Capabilities
 Will be available in the month of February 2015
 The system has high supplying capacity
 Simple Service operation as it is easy to remove and replace
 Annual software update is available on the system
Application & Costs Scenario
 Implementation of EBS in all 20 suits + 10 reserve/backup processors
 Training/acclimatisation of staff 1 week
 The daily average occupancy rate is 82.7%
 The average suit price £1174, studio suite £509, screening suite £569, Marvellous suite
£790 and Wow suite £1200 and E Wow suite £2800.
Costs
30*processors = 6000£
Installation/staff training = 16000£
Software & rights = 252000£
Advertisement / marketing = £34000
Total Costs = 308000
Benefits
Occupancy increase by 5%
Suit Prise increase by 5%
Total costs divided by ((No of suits * New Daily Occupancy Rate * New Average Suit Price)
– (No. of suits * Old Daily Occupancy Rate * Old Average suit price))
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