The Analysis of Intercontinental Hotels and Resorts - Coursework Example

Intercontinental Hotels & Resorts Corporate Level Analysis of InterContinental Hotels & Resorts InterContinental Hotels & Resorts belongs to the Intercontinental Company. The founder of the company Juan Tripple founded the intercontinental hotel and resort in 1946 under Pan American World Airways in Belem, Brazil. The mission statement for the hotels was to provide services to the passengers and crews of the Pan American Airways Company in areas where people could not afford the luxury of five star hotels in Asia and Europe. Increase in the routes which the airways took led to the expansion of the hotels in Asia and Europe (Corporate Responsibility Report). Organizational chart The above is the organizational chart for the European, Middle East, and African (EMEA) unit which was tasked with six hundred and thirty hotels. The regional executives of tops officers like the president of the Americas and the chief Executive of the Asia –Pacific area are tasked with ensuring that certain things like growth, profits or revenues and the portfolio of the brands are achieved with the hotel operating regions. In each region where the hotel has a subsidiary, there is an executive committee which is composed of functional managers in charge of such sections like sales and marketing, information technology, finance, engineering and legal counsel. These managers are tasked with different roles and their main responsibility is to ensure that the roles are efficiently achieved and realized (Corporate Responsibility Report). Intercontinental Hotels Groups is an international company which is focused in giving their customers an experience which is different from other companies for the customers to have a memorable experience about their visit at the hotel. This the company achieves through the efficient and effective corporate management in combination with their mature brand management. Likewise, the hotel operates seven hotel brands which are the Intercontinental, Crowne Plaza, Hotel Indigo, Holiday Inn, Holiday Inn Express, Staybridge Suites and the Candlewood suites. The hotels brands have been successful because the hotel deploys the use of multi-brand strategy which always satisfies their different customers’ needs. The different brands have further been strengthened by the fact that the brand portfolio in use covers everything within the hotels operations from luxurious hotels to resorts with great value and service. Therefore, their success in the hospitality industry is majorly characterized by the different branding strategies they have adopted in different locations for their customers ("InterContinental Hotels & Resorts"). The different brands under the hotel were divided because of the standstill which exists in the hospitality industry. These standstills are always caused by economic recession experienced by different countries. Therefore, the need to stay on top of the hospitality industry in the different locations in which they were operating led to the division of the brands as each brand stood alone and had used different strategies to satisfy their respective customers. Moreover, the different hotel brands affiliated to Intercontinental hotel are financially stable because of the financial system recommended by the hotel. The financial supply used in the hotel is used in optimizing such costs as working capital while also ensuring that data transactions conducted by each brand are transparent. Therefore, the transparency existing within the different brands ensures that finances are accurately and effectively utilized hence shortages caused as result of issues like fraud is reduced. Moreover, the working capital of allocated to each brand by Intercontinental hotel ensures that the different brands are able to work within their financial obligations hence securing the finances generated by each brand of intercontinental hotel. InterContinental Hotels & Resorts corporate office is charged with ensuring that targets are precisely identified and achieved. The targets drawn by the corporate office ensures that the hotel assures different stakeholders of their commitment in conducting business in a responsible way or manner within the society and to their esteemed customers. Moreover, the office also ensures that responsible business practice is held by the hotel. This always involve such things like ensuring that good governance and leadership is achieved within the hotel, stakeholders are actively engaged in the process of decision making pertaining to the hotel, responsible procurement strategies and methods are applied towards various businesses conducted by the company, risk faced by the hotel are addressed and proper mitigation highlighted and the hotel achieves sustainability in the environment, society and towards their customers ("InterContinental Hotels & Resorts"). The hotel makes its money from franchising activities which is the major source of their income as they have entered into partnership with such companies like bricks and mortar and also from ownership and lease basis. However, franchising is their largest source of income because a total of 4096 hotels are operated under franchise. As seen the hotel have management have both management or franchise contracts (Enz 32). SWOT analysis Strengths The Hotels size is its strength because it is an international company. Therefore, this means that they find it easy in accomplishing such things like expansions as they have a stable capital bases which is capable of financing major activities in different sectors of the hotel. Secondly, the hotel brand name gives it an added advantage in the hospitality industry. This is due to the fact the brand name is associated to value hence most customers will choose the hotel over other hotels which are considered to be five stars. Lastly, customer loyalty is also an added strength to the hotel because most customers are impressed by the quality of services offered at the hotel hence the hotel can never run out customers ("InterContinental Hotels Group Plc - Travel and Tourism – World”). . Weaknesses However, InterContinental Hotels & Resorts also has weaknesses in terms of their cost structure because the weak cost structure in use at the hotel in comparison to other competitors which are also being considered as five star hotels. Secondly, the hotel also experiences weaknesses in the sector of real estate because majority of the spaces in which the hotels are built always have limited space for such things like parking spaces amongst others. Opportunities InterContinental Hotels & Resorts has various opportunities that when taken into consideration will lead to quality and an increase in revenue for the company. The company is capable of expanding rapidly due to the franchising (Enz 32). Secondly, the hotel can use latest innovation techniques to produce unique products and service which will be able to please their customers as all their needs will be satisfied. Thirdly, the hotel also has an opportunity in emerging markets in different parts of the world as this will allow expanding to other new areas hence increase their profits. Fourthly, incorporating new products into their hotels is also an opportunity which may lead to increase in profits and revenues received by these companies and lastly international expansion offers the hotel opportunities to expand and diverse their services to other regions away from the local market ("InterContinental Hotels Group Plc - Travel and Tourism – World”). Threats In its course of operation, InterContinental Hotels & Resorts also faces threat arising from bad economies. This is because bad economies decreases number of customers visiting the hotel hence reducing the revenues and profits of the hotel. Secondly, the hotel faces threats from politics as governments in different countries may change their business rules and this may negatively impact the hotel. Lastly, the hotel faces the threat of intense competition from their competitors as the competitors may discover strategies which may steal the customers away from the hotel ("InterContinental Hotels Group Plc - Travel and Tourism – World”). The primary competitors for InterContinental Hotels & Resorts are Acccor Company which is a leading hotel operators and market leader in Europe. The company is present in more than ninety countries therefore posing stiff competition to InterContinental Hotels & Resorts. Secondly, the Marriott International Company which is categorized as a top lodging industry and it has more than 7000 hotels in different countries. Lastly, the Wyndham Worldwide Company which operates 7400 hotels based in one hundred countries. Part B Property Level Analysis The name of the hotel I visited was Crowne Plaza in New York City which is brand of InterContinental Hotels & Resorts. Its address is 1 800 2 CROWNE (800 227 6963).The hotel is situated in the location of the renowned Times Square which is based at the middle of Manhattan town. Likewise, the hotel is located in Broadway street code 1605. Moreover, the distance from the Rockefeller Center to the hotel is close as it estimated to be a walk of roughly seven minutes. This location makes it a splendid holiday destination site as a visitor checking in the hotel has a lot to see and experience through such views like the Rockefeller center amongst other interesting and cherished views (Executive Housekeeping Today 140). The exterior of the hotel has been kept neat with a receptionist always on the stand and ready to welcome visitors who are checking into the building. Moreover, the design of the building is it was drawn with customers in mind. The building is tall, therefore easily noticeable from a distance and all glass covered building allows visitors to have a look at the surrounding streets and buildings (Rutes & Richard 225). The interior of the hotel is superbly designed. The lobby, public spaces and guest rooms are designed to accommodate many people while also attractive to the eyes. Likewise, the level of cleanliness of the lobby, public spaces and guest rooms is something to marvel about because everything is spotless. Lifts have been constructed within the hotel to ease the movement of different visitors to and from different corners of the hotel. Moreover, the guest rooms are designed to contain king sized beds, double showers and usual extra toiletries ((Executive Housekeeping Today 140). In addition, a number of facilities can be found within the hotel and they include a fitness center for those guests who love to keep in shape. The fitness center within the hotel also some of the latest machines used for different purposes. The hotel also offers the facility of food and drink. For drink purposes, there is neatly designed bar at the hotel and restaurant where visitors can take their meals. Moreover, there is also the option of breakfast in the room and restaurant with dining menu. Internet facilities are also being offered at the hotel. WiFi is available in all major locations of the hotel and the cost which is roughly fourteen dollars is also economical for visitors staying at the hotel. The hotel also provides parking facilities with private parking on the site at a cost of fifty six dollars per day. Other facilities which are also available inside the hotel include services which entail such things like vending machines for drinks and snacks amongst others ("Times Square Hotels | Crowne Plaza Times Square Manhattan”). The hotel also has meeting places which can be used for various purposes. The meetings spaces are located in Times Square and they are ideal for such purposes like trade shows, business meetings, weddings and other social events. Meetings are conducted in the ballroom which is a spacious and flexible as Times Square meeting space with a total of 4182 square feet having the capacity to accommodate four hundred and eighteen guests. Likewise, there are small spaces which are ideal for private business meetings, small celebrations amongst others on the list (Executive Housekeeping Today 140). Bristol hotel is one of the hotels neighboring Crowne Plaza hotel. It offers a five star hotel experience therefore visitors of the Crowne Plaza hotel may find it convincing whenever they miss accommodation in at the Crowne Plaza hotel. However, visitors may not like the prices associated to finding accommodation at the hotel because it is expensive as compared to the latter. The total number of rooms available at the hotel is seven hundred and ninety five rooms. Likewise, the number of employees working at the hotel is considered to be hundreds with more than ten managers positioned to handle different sectors of the hotel. The hotel is also prone to the problems of cancelled reservations which were made by visitors. This really inconveniences them because their expectations of visitors are always not as expected. Moreover, the hotel is also faced with problems of large number of visitors visiting the hotel on a daily basis hence have to refers some of their visitors to other companies and this is always bad for their image as the visitors may prefer other hotels in which they are referred to over them. Lastly, the hotel has to deal with damaged properties caused by visitors on daily basis such as repairing such things like showers amongst others. Most issues encountered by the company are not always reported to the company because the management tasked with managing the hotel takes care of everything by taking appropriate decisions like making repairs and charging clients on damages incurred. However, cases which are reported to the corporate level company are those which make headlines and an order has to follow by the relevant positions in the process. The typical daily responsibilities of the employees within the hotel involves such things like preparing meals, ensuring that laundry services are conducted for the beddings used by the visitors amongst other services like security which ensures that visitors enjoy their experience at the hotel. There are different shifts for working and an employee is expected to work for eight hour day which translates to forty hours within one week. However, they are not limited from working extra shifts if they so desire. Their competition includes bars and food joints located along the street and within the town of Manhattan as most visitors who decide to take a walk within the city may decide to have their fill of food and drinks outside and not in the hotel. Moreover, other hotels which provide similar services and are considered as five star hotels like the Bristol hotel which is not far from them in terms of distance. The different managers interviewed said that they supervised individuals per sector in the hotel and that the amount of people each manager was selected to supervise was strictly based on the amount of task required at the sector. The front door manager admitted to supervising more than ten employees. Most employees working at the hotel were impressed about their relationship with their superiors. They admitted that they would approach their managers at any moment of their day and discuss various issue which were affecting them or issue out an idea of how things were to be conducted. Moreover, they also stated that the managers were corporative and majority was always ready to offer solutions to the different employees who approached them with issues. However, employees were not happy about their job due to various insecurity reasons. They pointed at the strategic location of the hotel and pointed out that it would be easily targeted by terrorist groups as compared to other hotels which were located in the middle of the city. Moreover, the employees pointed out they were employed based on the competency on using their knowledge to practice in such things like being able to find solutions to problem when they arise, effectiveness of their interpersonal communication and they ability to display attitudes and characteristics which were good for the image of the hotel. In other words they were required to be able to function in different situation thus emotional labor was a key factor considered when they were being employed. Part 3 Personal Analysis In my opinion, Crowne Plaza as brand of the InterContinental Hotels & Resorts has played a good role in representing the company through its brand. This is because quality expectations have been met at the hotel as the hotel services are highly rated by visitors who pay visits there. Moreover, Crowne Plaza hotel has managed to create a unique experience for its customers judging from its location in the middle of Manhattan town and proximity to the Rockefeller center. Visitors staying in the hotel have a lot to benefit from in terms of the adequate and state of art facilities presented by the management of the hotel. Likewise, different customer needs like meals and drinks are satisfied at the hotel and the quality of these services has contributed to customer loyalty in the hotel. Moreover, the hotel has managed to remain number one choice for visitors amongst other Times Square hotel in the town. In summary, the hotel has promoted the brand name by ensuring that the needs of the different customers are anticipated hence fulfilled in the process of operation. The hotel has provided personal attention to their customers and stakeholders making it unique from other hotels and a preference choice for most visitors traveling in the region for various purposes. Likewise, the hotel has showed appreciation to its different customers by issuing out loyalty discounts and cards. And lastly, the hotel has been able to provide alternatives for their customers while also checking for the satisfaction of their customers and making relevant changes in areas where they are rated to have lagged in ("Times Square Hotels | Crowne Plaza Times Square Manhattan”). As a general manager of the hotel, I would create changes in the operations to bring the hotel to the next level by ensuring that different customers are anticipated for. This will ensure that customers visiting the hotel have all their needs satisfied. An example would be preparing separate rooms for children under the age of seventeen years and pricing them affordably. Secondly, I would advice and teach the different employees of the hotel on the need to pay close attention to the customer needs and complaints raised at the hotel. This will help in changing and making the customer experience at the hotel better hence attracting a large number of customers. Thirdly, I would ensure that the hotel has alternatives for extra customers who fail to get booked in the hotel. This may involve setting up a smaller hotel close to the hotel in question and ensuring that transport services is provided to and from the hotel. Lastly, I would go beyond my expectations as a general manager to ensure that value is achieved in all sectors. This may involve raising the salaries of employees to motivate them into working harder and delivering value in the organization, interacting with the customers on personal level like giving them my contact number to address me personally whenever they encounter problems with the services offered at the hotel ("Times Square Hotels | Crowne Plaza Times Square Manhattan”). In creating these changes, I would estimate that the owner would incur roughly ten million dollars to implement the changes I propose like increasing the salary of the employees, building a new but smaller lodging facility opposite the hotel to accommodate extra customers and provide for transportations vehicles for these customers who are referred to our new lodging facilities. However, the profits or revenues which will be increased by implementing these changes will be ten percent more than what the company is currently is receiving as the changes will be based on estimations of the benefits the company stands to enjoy. Therefore, an increase of the revenues of profits collected by ten percent will be worth it for the different stakeholders involved as all sides will have something to be pleased about. A good example is that the employees will be motivated in their work, the owner of the company will have extra profits and revenues to invest in other sectors will be available and the clients will be pleased with services being offered at the hotel as the will be of effective and of high quality. Moreover, the clients will not be referred to other different hotels but will still consider themselves within the hotel as the services and other facilities will still be at their disposal. Works Cited Enz, Cathy A. Hospitality Strategic Management: Concepts and Cases. Hoboken, N.J: John Wiley & Sons, 2010. Print. "Corporate Responsiblity Report." InterContinental Hotels Group. 1 Oct. 2011. Web. 30 Apr. 2015. "InterContinental Hotels Group Plc - Travel and Tourism - World." Euromonitor International : Global Company Profile. 2009. Web. 30 Apr. 2015. . Executive Housekeeping Today. Gallipolis, Ohio: Published for the Association by Zimmerman & Leonard, 1980. Print. Rutes, Walter A, and Richard H. Penner. Hotel Planning and Design. New York: Whitney Library of Design, 1985. Print. "Times Square Hotels | Crowne Plaza Times Square Manhattan." Times Square Hotels | Crowne Plaza Times Square Manhattan. Web. 30 Apr. 2015. . "InterContinental Hotels & Resorts." Luxury Hotels Worldwide. Web. 30 Apr. 2015. Read More