Intercontinental hotels group, International Business
INTERCONTINENTAL HOTELS GROUP GUATEMALA By: Daniela Caballeros Foundations of International Business Summer A
COMPANY Company name: InterContinental Hotels Group Overview of company: InterContinental Hotels Group also known as IHG is ahotel company that is established worldwide. They have more hotel rooms than anyother hotel company in the world. They consist of 661,000 rooms in over 4,500 hotelsin almost 100 different countries worldwide. InterContinental Hotels Group operatenine hotel brands: InterContinental, Crowne Plaza, Hotel Indigo, Holiday Inn, HolidayInn Express, Staybridge Suites, Candlewood Suites, and EVEN™ Hotels andHUALUXE™ Hotels and Resorts. Their stated goal is “We want to grow by makingour brands the first choice for guests and hotel owners.”(InterContinental Hotels Group (2012)
INTERCONTINENTAL HOTELS GROUP Headquarters: IHG is made up of three operating regions: Europe’sregion is in West Midlands, UK, Americas’ is in Salt Lake City, Utah, USAand Asia, Middle East and Africa region is in Shanghai, PR China. Products: IHG operates hotels worldwide through franchising,managing on an owned or leased basis.(InterContinental Hotels Group (2012)
INTERCONTINENTAL HOTELS GROUP Financial information: IHG is in leadership 13 of top 20 markets aroundthe world, accommodating over 153 million guests annually. IHG is listed on Londonand New York stock exchanges and their revenue for 2011 was $20.2 billion. Revenue ($m) Americas $830 Europe, Middle East and Africa $405 Asia Pacific $216 Greater China $205(InterContinental Hotels Group (2012)
INTERCONTINENTAL HOTELS GROUP Global locations:4,500 hotels in almost 100different countriesworldwide.
INTERCONTINENTAL HOTELS GROUP Overview of global strategy of company: Mission: “Our strategy is to build the hotel industry’s strongest operating system focused on the biggest markets and segments where scale really counts.” Using insight to make their brands the first choice for guests Delivering consistent customer experiences Generating excellent returns from their hotels
INTERCONTINENTAL HOTELS GROUP Improving hotel revenue by encouraging guest visits. Improving the efficiency of their hotels and operating processes. Putting their market scale and knowledge to good use. Using their worldwide scale and experience to convert more hotels toIHG brands. Making the most of their global presence.“guests choose brands they know when they travel.” Strengthening their organization.
INTERCONTINENTAL HOTELS GROUP Investing in people and ability to do business. Building strong partnerships within their own company and withtheir owners across the world.
POTENTIAL COUNTRY OF BUSINESS Name of Country: Guatemala Overview of country: Guatemala is located in the northernmost part ofCentral America broadening Mexico, Belize, Honduras and El Salvador. It hasthe size of 108,890 sq. km. which is about the size of Tennessee. The capital ofGuatemala is Guatemala City. It is known for cool highlands, tropical areasaround the pacific and Caribbean coasts and tropical jungle in northernlowlands. Guatemala was once populated by the Mayan civilization but wasconquered by the Spanish in 1524 and became a republic in 1839.(US Department of State. (2012)
GUATEMALA Population: (2011 EST.) 14.7 million Annual population growth rate(2011 est.): 2.4%. Wealth:Real GDP (2011 est.): $26.5 billion.Real GDP growth (2011 est.): 3.8%.Per capita GDP (2011 est.): $5,033. Political situation: Constitutional democratic republic(Forbes.com (2012)
GUATEMALA Economic situation: The wealthiest 20% of the population consumes 51% ofGuatemala’s GDP. As a result, about 51% of the population lives on less than $2 aday and 15% on less than $1 a day. Culture:Ethnic groups: Mestizo (mixed Spanish-Indian), indigenous. Religions: RomanCatholic, Protestant, traditional Mayan. Languages: Spanish, 24 indigenous languages (principally Kiche, Kaqchikel,Qeqchi, and Mam).(US Department of State. (2012)
STRATEGY Find popular tourism spots in Guatemala. Penetrating the Market. Look for opportunistic free standing buildings to renovate anddevelop according to the location. Emphasize on accommodating foreigners to come stay at the newhotels.
STRATEGY Have hotels get involved in the community they are in. Develop marketing strategies to promote new hotel locations. For example: TV commercials. Find outstanding staff to employ at new locations.
STRATEGY Adjust pricing rates to the specific areas to make sure the rates arecompetitive. Incorporate hotel activities that will allow guest to enjoy thesurrounding city and tourist spots. Example: volcano climbing, ziplining, jungle excursions, excavating in Mayan ruins.
CHALLENGES: Finding well developed personnel to deal with many differentpeople at the same time. Ensuring that there is a well established hotel security. Making sure that the hotel rates satisfy each and every customer.
CHALLENGES: Making sure hotel activities do not interfere with local businesses. Developing building that will withstand the different climatesaround the country. Having employees that can speak all major languages- Spanish,English, German, French, Italian, Swiss, etc.
CHALLENGES: Finding innovative ways to show people the area in newways. Making sure the hotel does not negatively affects the localpopulation and cultures.
KEYS TO SUCCESS Being proactive Being innovative Being compassionate Being productive Being environmentally conscious
KEYS TO SUCCESS Being competitive Being helpful Being culturally conscious
REFERENCES Forbes.com (2012). Best Countries For Business #91 Guatemala. Forbes.com. 06/20/2012.http://www.forbes.com/lists/2011/6/best-countries-11_Guatemala_CHI093.html InterContinental Hotels Group (2012). Overview of InterContinental Group. InterContinentalHotels Group. 06/20/2012. http://www.ihgplc.com/index.asp?pageid=2 US Department of State. (2012). Bureau of Western Hemisphere Affairs. Background Note:Guatemala. 06/18/2012. http://www.state.gov/r/pa/ei/bgn/2045.htm Pearson Education (2012). Guatemala Maps, History, and Geography. InfoPlease . 06/19/2012.http://www.infoplease.com/ipa/A0107596.html