Holiday Inn Critical Analysis - Essay Example

Holiday Inn Report Table of Contents Holiday Inn Report Introduction 3 Business Model 3 Profile 4 The Marketing Strategy of Holiday Inn 5 Growth 7 Conclusion 7 References 9 Introduction Holiday is a chain of hotels spread across the world which falls under the Intercontinental Hotels Group (IHG). It originated from a U.S motel chain which was later acquired by IHG. Today it is one of the largest hotel chains, with 3414 hotels spread globally and over 100 million guests’ nights per year. Business Model Holiday inn has been a success story throughout its history of existence. The founder, Kemmons Wilson discovered that the motel offered small expensive and unpredictable service quality. This was a big concern for him so he decided to change it. The unmet customer needs had to be fulfilled in order to successful. There after Holiday Inn was found to cater to those needs. It offered the service standards such as air conditioning and ice makers at affordable room rates. These features made the hotels popular they started gaining recognition (Luckerson, 2012). His idea was to create a standardized hotel chain and offer it to other business persons for franchisee. The idea took off because of the evolution of highways and the increasing amount of travelers who were looking for a reliable brand with decent quality at an affordable price. Thus Holiday Inn follows the business the three legged Stool Business Model. Where the three aspects namely, people, process and tools are all important for the business to survive and each of the aspects are given equal importance. Customer Profile There are mainly two types of guests or customers in this scenario. The first are the corporate customers who travel frequently because of their business trips and the second type are the leisure customers who are mainly looking to spend some relaxing time away from work and home. Corporate Customers  Corporate clients are representatives that utilize the inn for gathering, business meetings and staying overnight. The holiday inn have had 50 years of gathering and meeting knowledge, they have an advantageous reputation for giving elevated expectations of service, whilst offering incredible worth for cash. The holiday inn gives space to any business occasion, if it being instructional classes, a significant meeting or may be a product launch. The clients expect a no fuss service as their principle goal is to work together. In the holiday inn 95% of the clients are corporate clients, they are there throughout the week meeting other individuals to examine business. Corporate clients may hold their Christmas and Easter parties in the lodging, so they need accessible rooms at those times. The holiday inn meets these necessities by verifying it gives the above. They likewise give free refreshments in any case to business clients who are going to meetings. This makes them look "great" with the goal that the clients will return once more. Leisure Customers  Leisure clients are individuals that go to the lodging primarily on holiday and leisure purposes. They are frequently new to the area. Leisure clients expect to have welcoming staffs and to be "over accommodating" as they like themselves to be pampered as they want their cashs value. Assuming that they dont prefer something then they will whine. Leisure clients anticipate that staff will have great learning of the neighborhood vacation spots, so for a holiday inn to be found close great attractions they will lure more clients. The holiday inn meets these prerequisites by saving data focuses in noticeable spots. Throughout the weekend the inn just takes care of leisure clients these are individuals who have descended to visit family and companions or they have come as vacationers. The lodging is occupied throughout the entire year yet particularly throughout the school holidays (Christmas and Easter) it is especially occupied with additional leisure clients coming in, Leisure clients hope to have the decision of rooms accessible to them family rooms, non smoking, incapacitated rooms and child offices in the room. The Marketing Strategy of Holiday Inn Holiday inn came up with a new marketing strategy that asked their visitors to "LOOK AGAIN" at the brand. Through a free research led by a vital brand consultancy Landis Global Market Research, Holiday Inn found that the four characteristics that are of most hugeness to business explorers are: providing free fast web access full-administration, meeting offices a powerful dedication program Holiday Inn offers each of the aforementioned center business comforts, on the other hand, broad exploration uncovered that most business travelers have a tendency to compare Holiday Inn with its legacy as a family leisure hotel with services like the swimming pool. The "Look Again" campaign plans to adjust out recognition of the customer in regards to the brand so they see it as a first choice for business travel and likewise, leisure. The strategy fortifies the qualities of the present day Holiday Inn and prompts to visitor to Look Again to see the route in which the famous brand they think they know has kept on evolving to meet their necessity, say Mark Snyder, senior VP of brand administration of Holiday Inn inns and resorts in Americas. The accentuation laid on components like free rapid web access or agreeable, advanced in-room workspaces, for example, may appear to be basic on the surface, however for a brand with a legacy and character like that of Holiday Inn, they are in fact more compelling. Holiday Inn has a history of standing out as far as innovation, and needs to verify that this chance is concerned. This differentiation in them makes them stand out from other hotel chains. Staffing and Training at Holiday Inn The initial process of recruitment is similar to almost all the organisation. When there is an opening for a job role, the job description and requirement is advertised to gather the resume’s of interested candidate. They also consider recommendation from the employees which can reduce time in the recruitment process (Hill & Jones, 2013). The next phase of recruitment is to conduct the interviews. In the holiday inn meetings are firstly taken by the HR team and after that by the managers of the respecting departments for which the candidate has applied. This two stage meeting is typically attempted for more elevated amount or higher talented opportunities. In the holiday inn this sort of interview is conducted for the higher management positions, for example the general manager. Unskilled laborers are selected from spot like the nearby job agencies. This is the obligation of branch chiefs for the recruitment of untalented laborers. When, the candidates are chosen after their successful interviews, the training process begins. At holiday inn all new employees undergo an induction program. This is the place where the new joiners are acquainted with the organisation and how the organisation functions. In the holiday inn it is the responsibility of the HR department to enroll new staff. An induction day is likewise essential to any business as the aspirants are given health and security issues of their occupation. They are likewise indicated distinctive focuses, for example, fire exits and exit rules and they are additionally advised whom they should look up to in the event that they require some guidance or necessity to make a grievance. Growth According to Richard Solomons, the Chief Executive Officer of Intercontinental Hotel Group, Holiday Inn is a growth engine and it will continue to grow in future (Businessweek.com, 2014). They are the fastest growing companies with Middle East being the highest according to the growth. Being a global company, they are used to coping with the ups and downs in the market. They are very positive with the growth of the company as there is thorough momentum in the hospitality industry. Conclusion The whole report talks about the world famous hotel chain Holiday Inn and the various aspects of business associated with them. It can be seen that Holiday Inn has been a successful story all throughout its history because of it simple yet strong business model. They are the world’s largest chain of hotel with a simple idea of a standardized franchising system. They will continue to grow and are very positive about the future prospects of Intercontinental Hotel Group. References Businessweek.com. (2014). Intercontinental says holiday inn a growth engine. Retrieved from: http://www.businessweek.com/videos/2014-02-18/intercontinental-says-holiday-inn-a-growth-engine Hill, C. & Jones, G. (2013). Strategic management theory: an integrated approach. [e-book] Mason, USA: South Western, Censage Learning. http://books.google.co.in/books?id=LdgKAAAAQBAJ&pg=PT258&lpg=PT258&dq=business+model+%2B+Holiday+Inn&source=bl&ots=RFf3nEduWu&sig=mgxpZlwgnL0BFPwWTXgGwhYDTFo&hl=en&sa=X&ei=csQWU9PyGsmUrAeMu4GwDQ&ved=0CD4Q6AEwAQ#v=onepage&q=business%20model%20%2B%20Holiday%20Inn&f=false Luckerson, V. (2012). How holiday inn changed the way we travel. Retrieved from: http://business.time.com/2012/08/01/how-holiday-inn-changed-the-way-we-travel/ Read More