Ihg - Using Technology as a Competitive Advantage

Topics: InterContinental Hotels Group, Hotel chains, Intercontinental Hotels Group brands Pages: 5 (806 words) Published: July 8, 2008
IHG at a glance

The World’s Hotel Company
-a multinational company which operates 7 hotel brands
-world’s largest hotel operator (with 558,153 rooms)
-3,763 hotels in nearly 100 countries
-world’s largest loyalty program (with 33 million members) -130 million stays per year
-headquartered in Windsor, England from 1777


Brands include:
Crowne Plaza
Holiday Inn
Holiday Inn Express
Staybridge Suites
Candlewood Suites
Hotel Indigo

Market Standing

ROI Derived from:

And Owning hotels

Operating Profit

Revenue delivery
Almost $5.7B in 2006; $2.0bn from e-commerce
$4B revenue from Priority club program
Market Drive: top 3 in 6 of the 12 largest hotel markets in the world

Continuing Operating Profit

Reservation System

Delivers almost $5Billion of room revenue
$4Million in direct online revenue comes from IHG site
12 local language web sites
1st hotel company to set specific standards for 3rd party providers

Famous Quote
“Today, this organization is clearly one of the leaders in our industry building the kind of technologies that will help us truly serve the needs of our guests, our operators, and our owners.” From Gustaaf Schrils, Vice-President of Hotels Technology and Services

Technology as a Competitive Advantage
Holidex Plus: new advanced reservation system (part of the $75m next-generation project in 2002) •Flight Management Data System (FMDS): to link Holidex Plus with 3rd Party airline and travel agents reservation system •Customer Information Control System (CICS): transaction processing facility running 700 tps for database management •Casper: the friendly case tracking system using WebLogic Server 8.1 for guest complaints as part of the customer retention program •Web presence: Second biggest and fastest growing booking channel, 12 local languages, notching up 75 million site visits in 2006 using Apple XServe RAID •13 Contact Centers worldwide: local phones connected to the Americas, EMEA and APAC through VoIP from Avaya PBX systems over the Cisco Catalyst WAN

Did You Know?

IHG manages world’s tallest hotel in Nanjing, China (432 meters high) •started as a beer brewery in 1777 in England
1st ever hotel to reach 300,000 rooms in 1956
introduced the 1st computerized reservations system in 1965 •Holidex, first to link directly with airline and travel agents reservation in 1977 •Priority Club, 1st frequent guest program, now world’s largest with 33M members •Candlewood Suites, first to offer free guest laundry

Industry Awards
Priority Club Rewards, the “Best Hotel Rewards Program” - Global Traveler magazine for the second year in a row •Holiday Inn London – Bloomsbury wins 2007 Meetings and Incentive Travel Industry award for Best Disabled Facilities Award •InterContinental The Barclay New York – awarded "Best Hotel for Business Service" for a New York hotel •HospitalityLawyer.com presented Wendell Couch, SVP, Global Risk Management, with the Hospitality Loss Prevention Lifetime Achievement Award •InterContinental San Francisco is named New Construction Deal of the Year by Hotel Business magazine. •Global Traveler magazine named InterContinental Hotels & Resorts the “Best Domestic Hotel Chain”


IHG, the world’s largest hotel operator
Goal: Faster ROI by making IHG brands the 1st choice for guests •Target: By end 2008, net growth of 60,000 rooms
Strategy: To build the hotel industry’s strongest operating system focused on the biggest markets and segments where scale really counts. •Priorities:
oBrand Performance
oExcellent hotel returns
oMarket scale/knowledge
oAligned organization

History of Firsts

1777 William Bass established Bass brewery in England

1860 1st group of Japanese Ambassadors in the US stayed at The Willard

1862 Opening of what is now the InterContinental Le Grand,...
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