1 Introduction
This report is going to analyze InterContinental Group(IHG) critically. The aims of this report wants to evaluate the business position which can help IHG to create value for its stakeholders. In this report, the analysis will be separated to three parts, which are background of InterContinental Hotels Group, strategy position and strategy. Its reward club awarded ‘Best Customer Service in the Middle East and Asia’ and ‘Best Redemption Ability in Europe and Africa’ at the Freddie Awards (IHG, 2016b).
2 Background of InterContinental Hotels Group
InterContinental Hotels Group is one of the leading hotel group in the world with having 5099 hotels and 754,265 rooms globally. It owns the business across 100 countries (IHG, 2016a). …show more content…
Lesser & Rubin (1993) mentions that there are many conditions to be concerned depending on the equity investor and required rates of return in extension capitalization rates for hotels properties. The entry of hotel and resort industry is very high, so the threat by entry of other hotel group is different to menace the market share of IHG. Even the investor wants to enter the hotel market, most of them would like to choose franchising because they can attract more customers via the hotel brand. Also, the hotel group can help the investor to manage the hotel which has more benefits by using franchising. Therefore, the threat of entry in the hotel industry is low and the threat for IHG also will be low …show more content…
Economical Factor
The currency exchange affects the business environment a lot. World Travel & Tourism Council analyze the impacts that currency exchanges have on travel and tourism flows and the extent to which they influence visitor arrivals to a destination. Most of the travelers come from a specific country are relatively susceptible to changes in the exchange rate between these two countries. Moreover, there are many countries with a widely range of source markets ten to get a less impact by the changes in any specific currency exchange rate (WTTC, 2016).
“A study from Australia and Tourism and Tourism Research Australia shows that exchange rates only have a level of impacts to affect the choice of destination selection and travel’s decision-making. However, currency exchange rates have a larger influence to affect the travel expenditure in the destination.” (WTTC, 2016)
It is showing that the currency exchanges rates of US dollars have a large influence to affect the choices of travelling which can affect the business of IHG.
C. Socio-cultural
This report is going to analyze InterContinental Group(IHG) critically. The aims of this report wants to evaluate the business position which can help IHG to create value for its stakeholders. In this report, the analysis will be separated to three parts, which are background of InterContinental Hotels Group, strategy position and strategy. Its reward club awarded ‘Best Customer Service in the Middle East and Asia’ and ‘Best Redemption Ability in Europe and Africa’ at the Freddie Awards (IHG, 2016b).
2 Background of InterContinental Hotels Group
InterContinental Hotels Group is one of the leading hotel group in the world with having 5099 hotels and 754,265 rooms globally. It owns the business across 100 countries (IHG, 2016a). …show more content…
Lesser & Rubin (1993) mentions that there are many conditions to be concerned depending on the equity investor and required rates of return in extension capitalization rates for hotels properties. The entry of hotel and resort industry is very high, so the threat by entry of other hotel group is different to menace the market share of IHG. Even the investor wants to enter the hotel market, most of them would like to choose franchising because they can attract more customers via the hotel brand. Also, the hotel group can help the investor to manage the hotel which has more benefits by using franchising. Therefore, the threat of entry in the hotel industry is low and the threat for IHG also will be low …show more content…
Economical Factor
The currency exchange affects the business environment a lot. World Travel & Tourism Council analyze the impacts that currency exchanges have on travel and tourism flows and the extent to which they influence visitor arrivals to a destination. Most of the travelers come from a specific country are relatively susceptible to changes in the exchange rate between these two countries. Moreover, there are many countries with a widely range of source markets ten to get a less impact by the changes in any specific currency exchange rate (WTTC, 2016).
“A study from Australia and Tourism and Tourism Research Australia shows that exchange rates only have a level of impacts to affect the choice of destination selection and travel’s decision-making. However, currency exchange rates have a larger influence to affect the travel expenditure in the destination.” (WTTC, 2016)
It is showing that the currency exchanges rates of US dollars have a large influence to affect the choices of travelling which can affect the business of IHG.
C. Socio-cultural