Question
How do IHG's multiple brands enable the company to address the needs of specific consumer and business markets? In which stage(s) of the consumer buying
How do IHG's multiple brands enable the company to address the needs of specific consumer and business markets?
In which stage(s) of the consumer buying decision process would IHG's digital marketing and social media activities likely have a significant influence?
Why would IHG create a separate hotel brand specifically for China?
What are the advantages and disadvantages of each IHG brand having its own social network accounts?
With nearly 800,000 guest rooms in 100 cities worldwide marketed under 13 different hotel and resort brands, the InterContinental Hotels Group (IHG) is appealing to multiple target markets of customers, families, and business travelers. The multinational company's brands include InterContinental, Kimpton Hotels, Hotel Indigo, Even Hotels, Crowne Plaza, Holiday Inn, Holiday Inn Resorts, Holiday Inn Club Vacations, Holiday Inn Express, Avid, Candlewood Suites, Staybridge Suites, and Hualuxe Hotels. Each brand has its own image, decor, and services geared to the needs of a specific market segment.
The upscale InterContinental hotels are luxurious and located in internationally known metropolitan areas. They feature a full range of services to fit the needs of affluent consumers and business executives. Kimpton Hotels and Hotel Indigo are two of IHG's boutique brands, marketed to consumers and businesspeople who want distinctive accommodations and amenities. The buildings are unique, the rooms have stylish flair, and the on-site restaurants reflect the heritage and flavors of their city locations. The Even Hotel brand caters to health-conscious guests, with fitness and food options that enhance wellness and promote healthy lifestyles.
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Crowne Plaza hotels, located in major gateway cities, have the latest digital conveniences and meeting accommodations needed by business travelers, both domestic and international. The lobbies and other public spaces have the space and flexibility to accommodate either work or social activities. Holiday Inn, Holiday Inn Resorts, and Holiday Inn Vacations are marketed to consumers, particularly families, seeking an affordable and fun getaway experience, while Holiday Inn Express targets consumers and business travelers who want a simple but comfortable room at an affordable price. Customers in this market segment are not interested in the full range of services usually offered at upscale hotels and prefer not to pay the higher room rates.
Avid, a recent addition to the IHG portfolio, is marketed to price-conscious, technology-savvy consumers who appreciate the convenience of mobile check-in and checkout and want to be able to stream entertainment from their own digital devices through the hotel's smart TV. Guests at Avid Hotels enjoy a quality mattress and soundproofing for a good night's sleep, and they have the option of sipping premium-brand coffee along with the complimentary breakfast. Rooms at Avid are priced up to $15 less than Holiday Inn Express, with "grab-and-go" food items for travelers who are headed home or to a meeting.
Both Candlewood Suites and Staybridge Suites are designed for travelersin many cases, businesspeoplewho will be spending more than a few days away from home. Each guest suite has a kitchen and a comfortable sitting area for after-hours relaxation during a long-term stay. Hualuxe hotels, new and exclusive to China, offer luxury rooms and services tailored to the needs of business managers and individuals at various status levels. The entire experience of staying in a Hualuxe property has been planned with local customs and perceptions in mind, as well as meeting the expectations of what a well-known, multinational hotel corporation should offer to its guests.
Although more than half of IHG's $1.7 billion in annual revenue comes from its properties in North and South America, China is the company's second-largest market, and its fastest-growing. Hualuxe is one of six hotel brands that IHG markets in China, where the company sees significant opportunity based on trends such as rising middle-class income and higher demand for business and tourist travel. As a result, IHG has been steadily expanding its presence in China. In 2013, the company had 200 hotels across the country; today, it has more than 400 hotels, with dozens more being built every year. New IHG hotels will be opening in time to host the influx of sports fans who will attend the 2022 Winter Olympics in Beijing, for example. The company also operates an intensive hospitality training program to educate new employees and managers so they can deliver customer service as required by IHG's quality and performance standards.
In China, as in other markets, IHG invites customers to download a proprietary app for reserving hotel rooms via smartphones and tablet computers, getting driving directions to the hotels, and receiving discount offers. The company's analysis reveals that customers in China book a higher percentage of hotel reservations through the app than customers in any other market, reflecting especially high penetration and usage of mobile devices within China. In addition, IHG's cloud-based reservations system can be customized to each customer's personal preferences and usage patterns, adding convenience and speeding transactions for customers in all markets.
When communicating with customers in both consumer and business markets worldwide, IHG relies on a combination of digital marketing and social media, as well as traditional advertising and personal selling. For example, the global campaign "Stories of the InterContinental Life" consisted of online videos and podcasts showcasing exciting and unusual travel possibilities in destinations like Beijing, Panama City, and Montrealcities where InterContinental hotels are located. Another campaign, "Neighborhood 15," highlighted fascinating things to see and do within 15 minutes of Hotel Indigo properties in Bali, Singapore, and other areas. This digital campaign was supported by social media promotions and tied into the hotel's tag line, "The Color of Discovery."
Holiday Inn targets families that travel with young children with a special website, "Little Big Travellers" (https://littlebigtravellers.holidayinn.com/en), focusing on Asian, Australian, and Middle Eastern markets. The site is positioned as a resource for Millennial parents seeking inspiration, ideas, and practical advice for traveling as a family. Parents can view videos, learn more about particular destinations, and download activity starters like Chatterbox Conversation Cards, cards with specific words or phrases to stimulate family discussions about travel. For the Chinese market, Crowne Plaza has implemented several digital marketing communications campaigns focusing on the brand's sophisticated image and promoting specific benefits desired by domestic travelers in that market.
All IHG brands are active on social networks. Holiday Inn, for instance, posts on Facebook, Instagram, Twitter, and YouTube. Crowne Plaza, Kimpton Hotels, and Avid Hotels, among other IHG brands, also use LinkedIn to connect with business travelers and recruit job candidates. Hotel Indigo has generated social media conversations by partnering with the ASOS fashion brand to promote specially designed clothing for men and women inspired by the culture and neighborhoods surrounding its hotel locations. The ASOS clothing collection for Hotel Indigo Denver Downtown, for example, is designed with a nod to Denver's Gold Rush heritage. Consumers who see or buy the clothing can join the conversation by tagging their social media comments with
Through the IHG Rewards Club, visitors at any of the company's hotels and resorts can earn points for each night they stay. Club members also enjoy extras like bonus points and discounts. They can also earn points through travel partners like Hertz and through thousands of restaurants, then redeem points to pay for hotel stays or airline tickets. All of the hotel's brands participate in the rewards program, which encourages loyalty and gives customers yet another incentive to choose IHG every time they travel.
Recently, the rewards program was expanded to include restaurant meals booked via OpenTable and food deliveries ordered via Grubhub. Knowing that some customers are at Candlewood Suites and Staybridge Suites for weeks at a time, this arrangement offers "the chance to explore the neighborhood and try new restaurants when they don't want to cook in their suite," says IHG's head of loyalty, partnerships, and portfolio marketing. She adds that IHG is always looking for new ways to meet customers' needs "throughout the entire travel process, not just when they're staying at our hotels.
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