A Comprehensive Report on International Hospitality Management and IHG

This report provides a comprehensive analysis of the Intercontinental Hotel Group (IHG) within the international hospitality management industry. It begins with an introduction to hospitality management and the global tourism landscape, followed by a background on IHG and its historical development. A detailed SWOT analysis is presented, outlining the company's strengths, weaknesses, opportunities, and threats. The report delves into the background of emerging markets and applies PESTEL analysis to assess the external factors influencing IHG's business decisions. It explores various hotel strategies, justifies their adoption, and considers their practical application in the coming years. The report emphasizes the importance of understanding customer needs, adapting to market changes, and leveraging technology. The analysis considers how IHG can navigate challenges such as increasing costs, environmental regulations, and evolving customer behaviors to maintain its competitive edge and achieve sustainable growth in the international hospitality sector. The report concludes with a summary of key findings and recommendations for IHG's future strategic direction.

INTERNATIONAL
HOSPITALITY
MANAGEMENT

Table of Contents
INTRODUCTION...........................................................................................................................3
MAIN BODY...................................................................................................................................3
Background of the international hospitality industry and tourism...................................................3
Background to IHG..........................................................................................................................4
SWOT analysis of IHG....................................................................................................................5
Background to the emerging markets..............................................................................................5
PESTEL Analysis............................................................................................................................5
Hotel strategies to be adopted..........................................................................................................7
Justification of a strategy.................................................................................................................8
Practical application of strategies 5 to 10 years ahead....................................................................8
CONCLUSION................................................................................................................................9
REFERENCES..............................................................................................................................10

INTRODUCTION
Hospitality management refers to the service management which is a intangible in nature
and having the ability to satisfy their customers need and fulfill their expectations. Service is a
transactions in which there is no any physical outcome and other type of act. This is able to show
the social behaviour and support to the customer in avail the services. This report is about the
Intercontinental Hotel Group (IHG). This is a multinational hospitality industry which is having
the headquarter in England has about a 890000 guest rooms in all over 6000 hotels which is
across more than hundred countries. In this report, it is going to be the discuss about the factor
which are able to affect the IHG along with this, there is also some discussion about the issues
which are faced during the expansion of the business. In different countries where there is within
a longer period of time. This report includes the background of SWOT analysis, therefore the
hotel and there is a discussion about the Global hotel and tourism industry. There is also some
discussion about the background of the emerging market and the PEST analysis to develop
market. there is also a discussion about the Porter’s generic strategies and Ansoff matrix along
with Nykiel’s fourteen strategies which are examined in the emerging market of the hospitality
industry which is by IHG (Rathore 2017).
MAIN BODY
Background of the international hospitality industry and tourism
Hospitality refers to one of the vibrant industry. This industry is continuously changing
time to time on several internal and external issues are also there which are also responsible for
change in this industry for better. Hospitality industry is coming highly competitive day by day,
which is due to having different competitors in this field. The main reason of becoming highly
competitive is that there is high profit in this industry and having a large customer base who are
there to consume the hospitality. They are able to pay high amount which creates high profit to
the industry. Some of the hospitality businesses are doing better where as some are facing
challenges due to local and international competitors. In context to International hospitality, the
international travel is driving high growth and there are causes which are responsible for.
Globalization is the one who have changed the whole hospitality and tourism industry.
Nowadays, hotel and tourism industry has became a billion dollar business industry where
communication is highly effective in relation to retain the customer to understand their

requirement and their expectation (Acharya and et. al., 2017). Hospitality industry management
generally are the part of hospitality industry. International hotel industry along with tourism are
the one which are able to provide high level of premium services which are there served to their
customers who came from different corner of the world to avail the services which is during their
vacation, tourism trip, traveling and many more. Today's hospitality industry are the one who are
responsible to fulfill the requirement and the expectations of their customer with high value
which can also helps the industry to get retain their customer along with to promote their
hospitality which is by word of mouth. This also helps in to increase the whole hospitality
industry with high profit which is by providing better services to their customer.
Background to IHG
Intercontinental Hotel Group has started from 1777, and get recognised in year 1875.
Initially, there was red triangle logo which was first ever registered in United Kingdom. Letter
on, company has changed its name in 1978. This company has the beneficial structure along with
framework which was recognised by different countries. It is all about to increase the sales of the
hospitality services along with high level of profit. In 1988, British government Limited which
help to give the result with this objective for the investment in hospitality industry. This attracts
more shareholders towards its high profit in this industry. IHG have its origin with some specific
investment for the development in this hospitality industry. They had the proper resources like
human resource for serving the better services in different departments. For expansion of this
industry, they needed some resources which were related with human (Wu and et. al., 2020). To
manage different services in this hospitality industry which are there able to satisfy and fulfilled
and need and expectations of their customers by providing one of the best services to them. This
IHG has created its value and continuously expanded their brand with different countries. It
helps in generating high-level of revenue along with profit which also invested to enlargement of
these hospitality industry. They have created a base for providing one of the best hospitality
services in their company. Time to time, this company is getting expand in all over the world and
are able to generate large revenue along with high level of profit. They are the one who have
fixed the benchmark in relation to providing one of the best services all over the world.
SWOT analysis of IHG
SWOT analysis is the one which stands for strength, weakness, opportunity and threat
which is a technique for assessing for the business. This is a framework which is used to evaluate

the competitive position of any company and order to develop strategic planning (Kabii and et.
al., 2019).
STRENGTH
Huge customer base- IHG is having
large customer base which is due to their better
Services within all over the world and having
one of the best in all over hospitality industry.
Brand value- Due to able to provide
high level of Services within the hospitality
industry by this company. This creates high
level of promotion which is by word of mouth
and creates the brand value of this company
within hospitality industry (Kalargyrou and et.
al., 2017).
Large number of employee- In this
company IHG is having large number of
employee which is to maintain the all services
which is used in hotel to regulate. With proper
and standard way to manage the different
services there is need of large number of
humans. Need are their employees of this
brand they over hundred and many more
countries. They are able to serve their best for
this. They need large number of employee in
their company to serve the customer.
Recognition in world wide- IHG is
having a big brand value in context to this, they
are able to maintain their recognition in
different countries in which they are able to
provide one of the best services in the
hospitality industry which creates recognition
WEAKNESSES
Never evolved in competition- IHG has
never need to involved in the competition
which is due to the use number of customer
base.
Lack of Technology- In the time of
Technology when every organisation is using
the latest technology IHG is not considering
such recent technologies which are able to help
and serve better services in the hospitality
industry and can take proper structure to form.
Average profit- Due to nature of high
investment in services and able to provide best
services to their customer, they acquire
minimum cost, initiative value due to high
production cost of the services and do this
profit margin little narrow (Li 2017).
High investment- IHG is able to invest
large amount which creates large value of
services in different sector of the hospitality.
Lack of financial planning- Financial
planning of it in proper way by which the crisis
faced by IHG in numbers of time. So, to
running such type of hospitality industry they
need to create some strategy which is done by
some planning that is need to cost planning and
implementation of strategies which can help in
to recover from the financial issue.
Limited in success- IHG has their own

all over the world (Pratt 2016).
Challenging nature- Strength of IHG is
that, they are continuously using the innovation
in their company which creates different
challenges. Due to this, they are able to face
issues and can counter easily.
leading form which have having the ability to
face number of challenges in the recent time
due to this there are some Limited success.
OPPORTUNITY
Need to open Transportation system-
For the IHG, they are able to invest large
number of fund for our services. They can
focus on transportation which are able to make
them adaptive and flexible and regarding
customer convenience.
Technology in environment- There is
need to get advance, which is in the field of
technology. So there is need to use the latest
technology to overcome from different issues
and there is need to focus on the latest
technology which can give better customers in
relation to services.
New customer using online channels-
There is a opportunity which is based on the
online search which can help in to get huge
customer base. The ability to book which is the
ability to book the location as per their demand
and can give maximum option to get services.
Opening of new market- The firm have
the capability to get inter in new market with
getting strategy which can help in to penetrate
the market and can able to get better profit.
Different trends of customer behaviour-
THREAT
Increasing cost of Raw- This is one of
the big issue which is faced by the company
and need to spend large amount in relation to
buy raw materials which is used in providing
services to their customer.
Environmental regulation- There are
different government law and regulations and
the guidelines can create some issues in the
regulation of the company. So legislation is
able to create problems in proper running of
the form (Goh 2020).
Differentiation in customer approach-
IHG is able to provide such services which are
expected by the customers. So, in this customer
are the one who plays the vital role in process
of development along with pursuing consumer
experience.
Liability law- Each and every countries
have their different liability law which IHG
need to claim to get better all with different
policies in such market.

It refers to the approach of different customers
which is there to develop their own look and
style and the hospitality industry is able to give
them privacy along with comfort in different
location which can help the customer to get
better services and able to provide better
compound (Gouws and et. al., 2019).
Background to the emerging markets
IHG is able to select the location California for the diversification of hospitality business.
This is the appropriate place which is to capitalize the IHG. This one is most inhabited place
which is having higher economy along with better GDP within country. This can also help in to
create large hospitality business internationally trade which is there in California. In other side,
California is also known for the beauty which is IHG is able to create most significant value to
add in this beauty by providing hospitality with whole new level to the customer. California is
also known for their different business start-ups which is having lots of beautiful places to attract
tourists. it is good to invest in the California which is having huge population of visitors or
tourists and having better transportation facilities along with economical growth. This economic
growth, enhance the spending capacity of customers to invest in to consume better hospitality.
This is is emergent market in the world and investors see lots of opportunity to invest here in this
emerging market along with bearing different risks. Risk comprises of better competition with
high opportunity of profit. In the international market, there is need to consider that investors
feels a better opportunity to expand their business in this economical place. This also helps in to
consider market condition along with opportunity there by IHG (Bhalla and et. al., 2020).
PESTEL Analysis
Pestel analysis refers to a strategic tool which is used to analyse the macro environment
of the organisation. Here, PESTEL stands for political, economic, social, environmental,
followed by technological, legal factors which is there creates the impact on micro environment
in an organisation. In context to IHG, pestel analysis is able to provide great detail related to
operating challenges which will face there for the competitive forces.
Political factors impact on IHG

Political factor is the one, who plays a significant role is there on the Intercontinental
Hotel Group on long-term profitability which is there in certain countries of market. IHG is
operating in different country’s where they are exposed with different political and government
along with political risk. To get success in the travel and leisure industry in different countries
there are many risk of political environment. IHG can easily analyse the some of the factors
which are there in the market before investing or entering (MOISĂ 2017). Taxation with
legislation, mandatory employee benefits, product labeling and other requirements, trade
regulation and tariff related with customer services, antitrust laws, price regulation level,
corruption, political stability along with importance of hospitality sector in different country with
different economy.
Economic factors impact on IHG
There are many factor in which economic factor is able to most create the impact on the
hospitality industry where inflammation rate, interested foreign exchange rate, saving rates and
economic cycle is able to determine the aggressive demand along with aggregate investment
which is there in the economy. IHG is able to use such economic factor like inflation, Industries
economic indicators, growth rate, which is there to forecast the growth trajectory for the
organisation. There are some of the factors which is there in the economic should be considered
in reference to IHG which are like government intervention in free market along with related
services of consumers, skill level of workforce in hospitality industry, labour cost and
productivity related with economy, economic growth and employment rate, inflation rate,
business cycle stages, exchange rate etc (Oteng 2018).
Social factors impact on IHG
Social factor is one of the most important factor which is there in the pestel analysis for
the company IHG. The culture of society and the way of doing things can impact the culture of
organisation along with shared beliefs along with attitude of customer plays a great role in the
hospitality industry which is there to understand the customer. There are some of the factors
which is there in the social factor in reference to IHG are like Culture. Interest. attitude regarding
health and environmental consciousness, entrepreneur real spirit, education level as well as
standard of education, power structure for class structure in society populations, skill level for
demographic etc (Fatma 2016).
Technological factor impact on IHG

Technology is one of the most important factor which is there in every industry. In
hospitality industry, transportation by using different technology having a good point from the
last 5 year. Hospitality industry is transforming very fast. Technology has their own role in
transforming and creating higher interest in the hospitality industry. Employee of the IHG should
learn the use of latest technology which is there can help in to grow the business along with
attracting largest customer base.
Environmental factor impact on IHG
There are different environmental standards in different markets which are having the
impact along with profitability in an organisation. There are different environmental or even in a
country with different states. So, IHD needs to follow such standards and law of that particular
place where they are operating their business. Before entering the market business should
evaluate carefully about the environmental standards which are there in the place known as
market. Some of the environmental factors which are there should be considered like climate
change and water pollution regulation, endangered species, for renewable energy environmental
pollution laws and regulations recycling etc (Gao and et. al., 2016).
Legal factors impact on IHG
In different country there are different legal framework and situation which are there to
protect the intellectual property rights of organisation. There should be critically evaluation
about market for entering which can help into lead to get secure from the theft of organisation
secret. It can create overall competitive edge, some of the legal factors while entering a market
are data protection, employment law, discrimination law, antitrust law, consumer protection and
e-commerce, copyright and patent law, health and safety law etc.
Hotel strategies to be adopted
Porter's generic strategies and Ansoff’s Matrix and Nykiel’s fourteen hotel strategic
growth options are such strategies which are there can be employed by IHG. Hotel can use such
strategies for the investment analysis which can help in to evaluate the potential and existing
competitive is issues. This Porter generic strategies is able to define about the how company
chases different competitive advantages all over the target market. This also includes different
generic strategies which is forecast differentiated or lower cost. Hotel is also able to choose two
competitive advantage (Okumus 2018). Such strategies are able to determine the direction for the
organisation which also determine the profitability which is there above and below of the

industry. Ansoff matrix refers to a tool of the strategic planning which is able to provide a
framework to executive and the senior managers which is related with future growth, It also
includes the growth and strategies like market penetration, product development and
diversification along with market development. This tool is considered which is for to grow
through existing and related with new product. Nykiel’s fourteen Hotel strategic growth option is
able to undertake the growth strategy like assessing enhancement opportunity. The hotel are
prepared to increase such operators which are able to create a sustainable income and to
maximize the overall value of the hospitality industry. Branding and Management are also
became the part of the strategic growth. Such physical evaluation play a specific role for a long-
term prospects for the hospitality industry in hotel.
Justification of a strategy
By using SWOT analysis, pestel analysis which are able to provide the information is
related to market along with company values. This can help in to get the brand image on a new
level by using the different strategy which are like Ansoff, Nykiel’s 14 hotel strategic growth.
such type of strategies which are there to help the IHG to be on the top regarding the hospitality
industry. Such strategies are also able to take the IHG on a whole new level in hospitality
industry which is by providing better and best hospitality in all over the world. This can also be
known by premium hospitality. This can also help in to attract huge customer base who are there
to consume the new level of hospitality. Which is during their journey, entertainment, vacation,
trip and many more. By using this strategy IHG is also able to create a huge level of service in
the hospitality industry where customers are there to consume the new Hospitality Services. This
can also helps in to create the large profit along with maximum generation of revenue which is
by creating higher service value to their customer (Göğüş 2017).
Practical application of strategies 5 to 10 years ahead
There are many application of strategies which are there used by the IHG which can help
in creating huge benefit in future say 5-10 year ahead. There are some of the applications which
are there creating customer loyalty, creating employment, generating maximum profit along with
revenue, high market share, high market growth, worldwide recognition, fix benchmark, no need
to promote etc. Customer loyalty which is also help in to retain the customer which is there in the
hospitality industry which is IHG. IHG is also able to create high employment to country where
they are operating. This also helps in economy of the country along with providing different

business opportunities (Yang 2017). Using such strategy also helps the brand to get high and
maximum profit and revenue in the company which also helps in to get high profit to the
company. Strategy can also help in get the high market share which having the power to cover
the market with the ability of strategy which creates large profit. High market growth is also
possible in future which in due to response of implementation of strategy in the IHG. In future
fix benchmark is there which is also able to create the brand awareness worldwide and there is
not more to promote the brand anymore (Chakraborty 2019).
CONCLUSION
From the above report, it can be identified that international hospitality management is
able to change due to several internal along with external threats. On the basis of swot and pestal
analysis, it can see that, it is good to conduct operations for the expansion of the brand. It can
also show that investment for enlargement of the hospitality industry can be appropriate. In this
report there are some of the discussion which is about the swot analysis and pest analysis along
with this, there are some discussion about the background of IHG along with hospitality
industry. There is also some discussion about the emerging market in context to hospitality
industry. This report also considered the different strategic model like Ansoff matrix there is also
some justification regarding the strategies which are used. There are some of the applications
which are possible and resultant about five to ten years ahead.

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