This report is a strategic analysis report for The InterContinental Hotel Wellington (ICW). The ICW is branded from the largest global hotel company in the world, The InterContinental Hotels Group (IHG). The ICW is Wellingtons only internationally branded 5 star hotel and is in the luxury hotel market. It offers rooms for business and leisure travellers however the majority of its visitors are business men. The target market for this hotel is the wealthy older male, the male: female ratio at the hotel is 2.3: 1. This report will provide an in-depth analysis of the internal and external factors at play which affect The ICW’s marketing capabilities. The market analysis, competitor analysis and macro-environment analysis will be used to perform a TOWS analysis, and make recommendations for the business to grow. These recommendations include becoming the market leader in the hotel industry for sustainable business practices, and increasing competitiveness by gaining an award of Excellence from Hospitality New Zealand.
This report aims to scan the macro and micro environments of the hotel industry in Wellington in order to come up with recommendations for The InterContinental Wellington for future growth strategies. There is a limitation on the amount of data available for the hotels customer base so an observational analysis was completed, and assumptions/ approximations have been made on the ages of the customers. Mission statement: “With a portfolio of preferred brands in the best developed and emerging markets, our talented people are focused on delivering Great Hotels Guests Love and executing a clear set of priorities to achieve our Vision of becoming one of the great companies of the world,” (ihgplc, 2012) Situational Analysis
The overall aim of the market analysis is for InterContinental Wellington to gain knowledge and insight into the hotel industry and hotel market. Wellington tourism industry
Research done by Colmar Brunton, concluded that Wellington is currently New Zealand’s most popular destination, (Positively Wellington Tourism, 2012). Tourists’ spend NZD$1.2 billion annually in Wellington and tourist numbers are increasing, 14% more Australians arrived into Wellington in 2011 which is six times the national growth, (YouTube.com, 2012). With this high spending from tourists Wellington’s hotel industry is set to benefit from these increases in tourist numbers. Increases in tourist arrivals correlates to increases in the accommodation sector, of which the hotel industry is a sub-sector. Direct economic effects of tourism on the hotel industry include directly increasing room sales in the hotel sector, (Stynes, 1997). ICW: Business and brand
The Intercontinental Hotel Wellington is part of the global company, The InterContinental Hotel’s Group, (IHG), (IHG, 2012). The InterContinental Hotels and Resorts brand is a global business unit for IHG. It is aimed at delivering value to its customers by expressing the knowledge and understanding of each destination it is operating in, this is achieved by providing authentic cultural experiences for guests, (IHG, 2012). The InterContinental Concierge program ensures guests are provided with unique local experiences which increase the enjoyment of their stay, (IHG, 2012).The InterContinental global brand image is one of responsible business practices; this involves preservation of the natural and cultural heritage of local communities, and environmentally sustainable business practices which aim to manage water, waist and energy usage in an efficient manner, (InterContinental, 2012). The InterContinental Wellington (ICW) is an internationally branded 5-star hotel, and the only one in Wellington which is a major point of difference from its competitors, (WellingtonNZ, 2012). It is a hotel based in the centre city of New Zealand’s Capital city and is luxurious, contemporary (modern), and exclusive, (Appendices,...