Group Report about " Inter Continental Hotels Group PLC: Holiday Inn Division"

Group Report about " Inter Continental Hotels Group PLC: Holiday Inn Division"

Introduction

InterContinental Hotels is the leading global hotel group. Intercontinental Hotels Group owns a wide portfolio of respected and well recognized brands which includes Crowne Plaza, InterContinental, Holiday Inn, Express by Holiday Inn and Staybridge Suites. It is also the world's second largest hotel group by the number of rooms. IHG has approximately 515,000 rooms for guests across almost 100 nations and territories and has more than 3,300 managed, owned, franchised and leased hotels.

The overall strategy of the group is to grow business and exploit considerable potential in the upscale division of the global market and make large scale, strong mid market arrangement in major global markets. IHG operates in all the divisions of the hotel industry. The market is divided on the basis of quality and price. The criteria of quality include the extent and nature of services and facilities and services offered by hotels in every division.

Discussion

InterContinental's portfolio of brands an advantage or disadvantage

Effective brand management is gaining attention because of the growing number of brand portfolios as it is changing the fundamental constitution of the hotel industry. The brand portfolio of InterContinental Hotel Group consists of nine hotel brands which include some of the most popular and best known hotel brands worldwide. IHG has build up a portfolio that covers everything from reliable family oriented hotels that offer great value and service to luxurious expensive hotels in the major cities and resorts of the world (Kapferer, 2012).

The portfolio of Intercontinental Hotel Group proves to be an advantage for the business of IHG. The brand portfolio of IHG is able to focus on the big picture causing better allocation of resources to where they can do fine, hence creating the most importance, value and reducing needless overlap (Gammoh, Voss, & Fang, 2010).

The brand portfolio of InterContinental Hotel Group has a direct impact on the growth, development and future success of the business. IHG has appropriately organized and managed its brand portfolio which is a vital tool for any business to flourish. The ideal portfolio of brands fit with the business vision of the company's future. Another advantage of IHG's brand portfolio is benefits like synergies and economies of scale, plus in a number of areas the business can utilize shared services for instance, engineering, finance, purchasing etc. Additionally, the brand portfolio of IHG has provided the company with an opportunity to go after new segments in the market (Kwun, & Oh, 2007).

InterContinental Hotel Group is developing their brands to respond to the increasing needs of their guests. From Heritage Holiday Inn, which was opened by Kemmons Wilson after being unable to find a comfortable and reasonable hotel for the family, to their newest addition, HUALUXE Hotels and ResortsTM, the first brand of international hotel specially designed for Chinese consumers.

One of the main advantages which are offered by the diverse portfolio of InterContinental Hotel Group is the flexibility ...