The hotel industry is usually segmented according to price point and IHG is focussed on the three segments that generate over 90 per cent of branded hotels revenue, namely midscale (broadly three star), upscale (mostly four star) and luxury (five star). However, to build preferred Brands, we believe we need to advance our understanding of our guests and their needs to ensure our brands remain contemporary and relevant.
We have therefore completed a fundamental occasion-based needs segmentation analysis to understand why guests book hotels – looking at who they are, the occasion they are travelling for and their needs when travelling. Many guests no longer have a single purpose for their hotel stay – for example, business trips turn into family holidays, and we need to meet these demands, focusing more on the needs of our guests, to deliver loyalty and brand preference. We used this analysis to develop the brand proposition for our two new brands, HUALUXE Hotels & Resorts and EVEN Hotels, and we continue to work on this needs-based segmentation to help inform our view of the hotel market and our brand strategies going forward.
Building brand preference
We are undertaking some significant work to help us build brand preference. With our goal of building bigger, better and strong brands, to keep them contemporary and relevant, we are improving our knowledge of guests. We will be doing this through market segmentation. Classifying our brands in conventional industry terms such as upper upscale means nothing to guests. Upper upscale or the nuance between a limited service hotel and a select service hotel are categories that guests don't buy.
Needs are occasion based. And these vary enormously. Do you have children with you? Are you planning a wedding? Is this a business trip? Is it a weekday or the weekend? We've completed a fundamental occasion based needs segmentation analysis to give us a better guest's eye view and expectation of the hotel and resort market.
Going forward, we will use this work to inform our brand strategies.
We will continue to clarify and differentiate our vision for each of our brands to deliver better results through more effective customisation, localisation and even personalisation of the brands within IHG's strong portfolio.
We've been establishing brand frameworks for each of our hotel brands to further define their strategic direction, brand promise, guiding principles, brand identity, design and service guidelines.
Unlike packaged goods, our branded experiences are not manufactured in a factory. Our branded experiences are brought to life in the hotel. What guests actually experience is the only relevant reality – and brand preference is created one guest at a time, in each hotel, each day, face-to-face. This means that the ultimate brand manager is the hotel General Manager. Therefore, we are investing resources to ensure that our General Managers can deliver our brand promise.
Our strong portfolio of preferred Brands are key to IHG's success. In 2013, we will continue to innovate and develop our established and new hotel brands to meet the evolving needs of our guests, as well as create value for our owners and shareholders.
- InterContinental Hotels & Resorts is IHG's five star brand located in key cities and resort destinations across more than 60 countries worldwide. With over 60 years of experience, our talented people, supported by outstanding facilities, help us differentiate in a competitive segment by understanding that well-travelled and affluent people want to be connected to what is special about a hotel and its destination. The brand's ethos is to empower our people to share their knowledge so guests further enjoy great experiences that enrich their lives, broaden their outlook, and make the most of their time with us. Hotels under this brand tend to be managed by IHG;
InterContinental Hotels & Resorts factsheet (PDF 1.02Mb)
- Crowne Plaza Hotels & Resorts, in the upscale four star segment, specialises in offering modern business and meeting facilities with a unique service style to provide productive and energising
experiences to guests who live life to the fullest and believe travel is essential for their journey to success. IHG is committed to the sustainable evolution of each of its brands, and as such, is working hard to strengthen Crowne Plaza's position in the market over the coming years. A multi-year brand development programme was
announced in 2011 to reflect the commitment of IHG and owners to improve the guest experience. The majority of hotels under this brand tend to be operated under franchise agreements in the US and Europe, and are managed by IHG elsewhere in the world;
Crowne Plaza Hotels & Resorts factsheet (PDF 1.02Mb)
- Hotel Indigo is our boutique and youngest brand, launched in 2004, and focused on a guest who appreciates art and design and who wants to experience something different. Hotel Indigo provides guests with the refreshing design and service experience synonymous with a boutique hotel. Each hotel is unique and reflects its local neighbourhood with design elements such as murals, a vibrant colour palette and locally sourced and seasonal menu items. During 2011, Hotel Indigo was awarded 'Highest in Guest Satisfaction Among Upscale Hotel Chains' in the J.D. Power and Associates 2011 North American Hotel Guest Satisfaction Index StudySM. Hotels under this brand are mostly operated under franchise agreements;
Hotel Indigo factsheet (PDF 1.05Mb)
- The Holiday Inn brand family, which comprises Holiday Inn, Holiday Inn Express and Holiday Inn Club Vacations, was the world's largest midscale hotel brand by number of rooms at 31 December 2011, and is IHG's most significant operation. Focused on creating an atmosphere where guests can relax, the brand is designed to support both business and leisure travellers. Working with our owners and through their continued investment, the Holiday Inn brand family has all but completed a $1bn refresh, updating its image by upgrading facilities, service and amenities, and ensuring the brand family continues to remain competitive within its midscale markets. Recently, J.D. Power and Associates ranked Holiday Inn 'Highest in Guest Satisfaction Among Mid-scale Full Service Hotel Chains' in their 2011 North American Hotel Guest Satisfaction Index StudySM. The Holiday Inn brand family adds to IHG's record of firsts, being the first international hotel chain both to open in China in 1984 and to launch a direct bookings website in 1995. The brand family operates predominantly under franchise agreements;
Holiday Inn factsheet (PDF 0.75Mb)
Holiday Inn Express/Express by Holiday Inn factsheet (PDF 0.63Mb)
Holiday Inn Brand Family factsheet (PDF 0.63Mb)
Holiday Inn Club Vacations factsheet (PDF 0.96Mb)
Staybridge Suites is our upscale extended stay brand for guests on longer trips, offering studios and suites complete with full kitchens and separate sleeping and work areas in a sociable, family-like atmosphere. It was the fastest upscale extended stay brand to reach the 50-hotel and 100-hotel milestones and in 2008, opened its first hotel in Europe, in Liverpool, UK. Since then, Staybridge Suites has expanded its footprint with locations including Cairo and Abu Dhabi in the Middle East and, most recently, in St Petersburg in Russia. Staybridge Suites is playing its role in IHG's sponsorship of the London 2012 Olympic and Paralympic Games by opening the Staybridge Suites London Stratford property. Located on the doorstep of the Olympic Village and at the heart of Europe's largest
shopping centre, this property will be one of the onsite hotels for the Games. Properties under this brand are operated under a mixture of franchise and management agreements; and
Staybridge Suites factsheet (PDF 1.15Mb)
- Candlewood Suites, acquired by IHG in 2003, is our North American-focused midscale extended stay brand that gives its guests all the essentials they need for a home-like stay at great value. Candlewood Suites has the most properties under development in North American midscale extended stay lodging and continues to keep its look and feel fresh. During 2011, the brand began a programme to develop a new and refreshed look and design to ensure its guest experience remains competitive and attractive. Properties under this brand tend to be operated under franchise agreements.
Candlewood Suites factsheet (PDF 0.91Mb)
- EVEN Hotels was launched in February 2012 following extensive customer research in order to create a brand that meets travellers' holistic wellness needs. EVEN Hotels is aimed at business and leisure travellers who are looking for a wellness experience in a hotel stay at a mainstream price point. IHG is investing up to $150 million in establishing the brand, owning and managing the first hotels to ensure the brand achieves its potential and market share growth in the US. During 2012, IHG signed the first EVEN hotel located in the heart of midtown Manhatten, New York.
EVEN Hotels factsheet (PDF 0.48Mb)
- HUALUXE Hotels & Resorts was officially launched in March 2012 and is the first international upscale hotel brand designed specifically for Chinese guests, to take advantage of both the supply and demand side opportunities we see in China. The brand is tailored to address the specific needs of domestic Chinese guests focussing on the unique aspect of Chinese etiquette, the importance of rejuvenation, status recognition and local customs and heritage. It will enable us to expand in China's key gateway cities but will also drive growth in its secondary cities where a specifically Chinese offer is appealing. The brand could open in key global gateway cities in the future as outbound travellers from China are forecasted to reach 100 million in the next 10-15 years. During 2012, we signed 15 hotels for the brand.
HUALUXE Hotels & Resorts factsheet (PDF 0.52Mb)