Analysis of IHG Hotel Group in the Contemporary Hospitality Industry

This report provides a comprehensive analysis of the Intercontinental Hotel Group (IHG) within the contemporary hospitality industry. It begins with an introduction highlighting the rapid growth of the hospitality sector and the focus on IHG. A PESTLE analysis examines the political, economic, social, technological, environmental, and legal factors affecting IHG. A SWOT analysis assesses the company's internal strengths, weaknesses, opportunities, and threats. The report evaluates the impacts of external factors, focusing on political and environmental aspects, and discusses current and potential trends such as pool facilities, online bookings, and sustainability. It also covers product and service development, including market research and digital platforms. The conclusion summarizes the key findings and emphasizes the importance of understanding macro-environmental factors and internal capabilities for strategic decision-making. The report also includes a list of references.

CONTEMPORARY HOSPITALITY INDUSTRY

TABLE OF CONTENT
 Introduction
 PESTLE Analysis
 SWOT Analysis
 Evaluation of the impacts of external factors
 Current and potential trends
 Develop products and services
 External factors impact on current and potential trends
 Conclusion
 Refrences

INTRODUCTION
 It has analyzed that hospitality industry undertaking
Rapid growth and people are getting attracted through
travel and tourism.
 This presentation is going to analyze the factors on
Intercontinental hotel group. It describes their macro
environment factors and conduct a SWOT analysis with
will examine the internal capacity of organization.
 Also there will be evaluation of the impact of current and
potential trends which affect the hospitality industry

PESTLE ANALYSIS
 It is the best tool to analyses the macro or says outside factors that has
indirect impact on organization growth and existence. This helps in forming
strategies in a better way

POLITICAL FACTORS
 These factors involve political control over organisation policies in regards with tax, duties
and foreign trade.
 Hotel IHG group has affected through impact of Brexit due to having restrictions on
involving staff from EU and levied taxation.

ECONOMIC FACTORS
 It consist influence of economic condition through
demand and supply, interest rates, liquidity and money
flow in economy
 IHG hotel has positive impact as they contribute evenly in
UK economy by supplying demands and needs of
customers.

SOCIAL FACTORS
 It affects on people demand, wants and trends which
must be fulfil.
 IHG fulfil almost every tourist requirement which has
positive outcome on brand name.

TECHNOLOGICAL FACTORS
 Technological upgradation is being the need of every
organisation to make effective and reliable services.
Hospitality sector is highly affect through technology.
 Customers get quick services in laid of current and fast
technology.

ENVIRONMENTAL FACTORS
 These factors are highly necessary to work
sustainable in economy. Hotels are working at a
fast speed which also require influence on
environmental protection by making eco friendly
service and promote re-cycle and reuse.
 IHG group working for low energy consumption
in providing travelling and promotes recycling y
minimising wastage.

LEGAL FACTORS
 Laws and acts are must needed to fulfil for every
organisation. These laws are formulated to protect right of
individuals whether they are customers or employees
 Hotel IHG fulfil all the legal Act of equality, culture and
diversity and health and safety at workplace as per the UK
government.

SWOT ANALYSIS
 It is the best tool to analyze internal factors of organization.
Hospitality industry work in consistent manner which require to
focus on their internal strength and weakness. These relevant
points will make their strategies more powerful and give them a
courage accompanied the opportunities and overcome with
threats for future preference.

STRENGTHS
 Hotel HG has reputed brand name which help in building
customers trust and being a market leader.
 The hotel comes has great Quality Services and worldwide
reach.

WEAKNESS
 The Intercontinental hotel group is letter with retention of staff
due to requirement of fresh talent they lose existing employees.
 Competitive and innovative strategies are the main weakness of
the hotel group.

OPPORTUNITY
 Due to having world wide range and reputed brand name, the
hotel could make diversification by asserting technological
advancement and attract investors.
 Use of social media in marketing will be more beneficial for
opening in Asia market to analyse customers preference and their
culture.

THREATS
 Lack of staff is the threat of hotel reputation.
 Covid-19 implication has lowered down the companies profits
and it becomes difficult to pay staff salary which leads to
termination.
 Competition through social media is also a big threat for IHG,

EVALUATION OF THE IMPACTS OF EXTERNAL FACTORS
 It has evaluated that the external factors has impacted on hotel. It has positive impact of political factors as the
hotel response to every amendments in taxation policies and maintain the standards of government by fulfilling
their Responsibility in economy.
 It has also identified that the company effectively work on environmental protection by avoiding destruction of
resources and promote sustainability.
 In terms of technological advancement, the company has negative impact as they mainly focus on traditional
methods but in Modern Times present technology are necessary by giving training to employee to get adjust
into technological environment.
 The hotel contribute in providing employment opportunities coma employee welfare but could not retain the
employees for longer time due to requirement of fresh talent as they have to recruit new candidates.

CONTINUE…..
 With the aim to attract investors for Asia, the company has good brand reputation and revenue
inferential year so that it will be a great way for the investors by making their reach to the Asian
countries.
 The Intercontinental hotel group has vast number of services with the most quality and affordable
price. As it comes under the fastest hospitality chain which provide 5 star facilities. The rooms are
safely clean and protected through fire walls extinguisher and enhance customer privacy.
 The hotel follows standard for legal rights as the data and information of customers are secure with
them also employees get initiative and fair treatment within the hotel premises.

CURRENT AND POTENTIAL TRENDS
 In hospitality industry, the current trends are pool facility, giving
sports and entertainment spa, bar and club, gym and many more.
Tourist are keen to get these benefits meanwhile at their stay.
 Online bookings and easy payments are being effective and most
desired service.

CONTINUE……
 Early check in and check out our easy for regular customers and convincible
facility for solving doubts and queries.
 The most required trend is to be sustainable and provide product which could be
recycle such as paper slippers , mineral waters can and many more.

DEVELOP PRODUCTS AND SERVICES
 Product service and development in Intercontinental hotel group then bye undertaking market
research and analyzing customer segment.
 All the services are provided efficiently by limiting the time period in customer service.
 Also digital platforms are using to get online bookings and provide convincible way of getting Hotel
services.

EXTERNAL FACTORS IMPACT ON CURRENT AND POTENTIAL
TRENDS
The hotel group has the ability to develop new products and services due to having good financial
position and franchise in two many location.
 To meet customer demands, the hotel group professional employees who undertake proper market
research before taking any decision regarding investment.

CONCLUSION
 The presentation has concluded that there are macro environment factors who affect the ability of
hospitality industry also by showing internal strength and weakness will be helpful to take decisions
regarding focus areas.

REFERENCES
 Alzyoud, S., Partington, S. and Mitchell, C., 2017. Employee innovation in the
hospitality industry: the mediating role of psychological safety.
 Senbeto, D.L. and Hon, A.H., 2020. Market turbulence and service innovation in
hospitality: examining the underlying mechanisms of employee and organizational
resilience. The Service Industries Journal, 40(15-16), pp.1119-1139.
 Chatman Colet, C.F. and Bourlet, J., 2018. Work life balance at the hospitality industry.
 Dasgupta, S., 2020. Chapter Employability Skills Required vs. Level Acquired from
Hospitality Colleges: Comparing Students’ Perception. Hospitality and Tourism
Industry, p.89.
 Ahmad, R. and Scott, N., 2019. Technology innovations towards reducing hospitality
human resource costs in Langkawi, Malaysia. Tourism Review.

Thank You