Thursday, March 28, 2024
Being among the pioneering international hotel chains to venture into the Chinese market, IHG Hotels & Resorts (IHG) remains steadfast in its pledge to be “in China, for China.” Holding a prominent position within the industry, IHG stays ahead by anticipating trends in tourism and guest preferences. Recently concluding its “Dream Bigger, Travel Bigger” 2024 Greater China Expo Roadshow in Beijing, Shenzhen, and Shanghai, IHG is further boosting the resurgence of the business travel sector while showcasing its robust expansion across the Greater China region.
A Journey of Growth Rooted in Industry Excellence
For 49 years since its inception in the Greater China market, IHG has consistently emphasized the region’s development. By December 31, 2023, IHG had over 1,200 hotels operational or in progress in Greater China, encompassing nearly 180,000 rooms. With deep insights into the Chinese business travel landscape, IHG has established eight sales centers across Greater China, enhancing procurement efficiency for clients and fostering growth in the business travel segment. IHG One Rewards, among the world’s largest hotel loyalty programs, now boasts over 130 million members, marking a historic milestone.
Earning recognition from both owners and guests, IHG has significantly expedited its hotel expansion pace, reducing the time to open 100 hotels from 24 years to a mere 18 months. Earlier this year, IHG celebrated the inauguration of its 700th hotel in Greater China, symbolizing significant progress. While focusing on development and innovation in major cities, IHG also taps into the potential of emerging markets. By the close of 2023, approximately three-quarters of IHG’s total room inventory resided in second to fourth-tier cities, with over 90% of the pipeline inventory in similar regions—highlighting IHG’s sustained growth and promising prospects.
Strategic Initiatives Aligned with Domestic Trends
The China Government Work Report of the Two Sessions reiterated the importance of implementing policies to promote digital and green consumption, alongside other measures aimed at stimulating economic growth.Furthermore, culture and entertainment tourism have been recognized as essential sectors for nurturing inventive consumption patterns. The China Tourism Academy has underscored 2024 as pivotal for China’s tourism and economic development. Given the favorable macroeconomic conditions and market demand, the timing of the 2024 Greater China Expo Roadshow is opportune. Throughout the Expo, IHG showcased a diverse range of booths, enabling attendees to delve into the company’s innovative services and environmentally friendly initiatives.. The event facilitated meaningful dialogue with business travel guests, partners, and owners, underscoring IHG’s commitment to crafting high-quality development strategies in line with the evolving trends in the Chinese tourism market.
Ms. Rita Jiang, Vice President of Commercial, IHG Greater China, said: “The Chinese hotel and tourism market is experiencing a rapid rebound, especially in the business travel sector, which has entered a robust recovery phase characterized by diverse trends and a noticeable uptick in emerging markets. IHG is strategically leveraging the strengths of our brand matrix and rich product offerings to establish a prominent presence in the business travel market. Furthermore, we are actively collaborating with partners to promote high-quality business travel development.”
Improving Cost Efficiency through Platform Consolidation and Technological Integration: IHG seamlessly integrates its services with Travel Management Companies (TMC), establishing direct connections to offer comprehensive business travel solutions. The “IHG Corporate Travel Portal” WeChat mini-program evolves continuously to accommodate the demands of corporate events and online meetings, effectively catering to the booking requirements of corporate clients for business trips. Additionally, IHG offers various digital solutions, including global travel discounts and diverse loyalty rewards, while engaging with business guests online. In response to the preferences of a modern generation of business guests, IHG has introduced IHG Studio 2.0, enhancing guest experiences while simultaneously improving cost efficiency for owners.
Embracing ESG: With a growing focus on green and low-carbon solutions for business guests, IHG has integrated its commitment to sustainable development into every aspect of the guest experience. IHG has introduced the “Meeting for Good” program at its hotels, providing guidelines for hosting sustainable meetings and events. These guidelines encompass eliminating single-use items, reducing food waste, and implementing energy-saving strategies. In collaboration with Ant Forest, IHG continues to raise awareness about environmental conservation and advocates for low-carbon accommodations, fostering a culture of “Responsible Travel.”
Overseas Business Travel Solutions: With domestic and international policies driving overseas expansion, there is a surge in demand for business travel, leading to an increased need for corporate travel management. As one of the world’s leading international hotel groups, IHG boasts over 6,300 hotels across more than 100 countries and regions, with an additional 2,000 properties in the pipeline. Leveraging its extensive global network, IHG collaborates with TMCs both domestically and internationally to address challenges faced by corporate clients in overseas business travel markets. Additionally, IHG has introduced overseas hotel display features on the “IHG Corporate Travel Portal” WeChat mini-program, enhancing the international business travel booking experience.
Unlocking Higher Returns with a Strong Resource Engine: During this year’s owner’s roadshows, IHG secured contracts for 24 new hotel projects, encompassing both Essential and Premium brands such as Holiday Inn Express, Holiday Inn Hotels & Resorts, and EVEN Hotels. These projects mark IHG’s entry into new regions and represent continued expansion in other key markets.
Mr. Kent Sun, Chief Development Officer of IHG Greater China, said: “As one of the most attuned international hotel management groups, IHG collaborates with owners to continually develop products that meet the needs of the market and its consumers. With distinctive brand features and flexible partnership models, we have achieved new growth and breakthroughs while working with owners to achieve a stable and mutually beneficial long-term investment solution.”
Empowering Diverse Investment Models: IHG’s success in the Greater China market is fueled by a blend of managed and franchised property models. The tailored “Franchise+” approach, designed for Chinese owners, offers robust investment support while maintaining cost efficiency. IHG’s franchise model now encompasses Holiday Inn Hotels & Resorts, Holiday Inn Express, Crowne Plaza Hotels & Resorts, EVEN Hotels, and voco hotels. Particularly noteworthy is the impressive growth of the voco brand in Greater China since its 2020 debut, with over 20 hotels in the pipeline.
Revitalized Products: IHG remains committed to product innovation while honoring its brand identity. In late 2022, the launch of Holiday Inn Express 3.0 rejuvenated the brand’s commitment to ‘simple and smart travel experiences’. HUALUXE Hotels & Resorts recently introduced its upgraded version 2.0, tailored specifically for the Chinese market, with the inaugural property, HUALUXE Shenzhen Bao’an, set to open soon. The distinctive multifunctional layout of voco Hotels caters to diverse consumer needs, offering fresh perspectives on hotel operations and revenue enhancement. Additionally, a new room design and cost structure for Holiday Inn Hotels & Resorts aim to reinforce the brand’s competitiveness in investment costs, promising enhanced guest experiences.
Continuous Talent Development: Upholding the mission of “True Hospitality for Good,” IHG prioritizes attracting and nurturing talents aligned with its values and behavior guidelines. The company fosters a diverse, equitable, and inclusive work environment to enhance employee well-being. Through various initiatives, IHG promotes talent development within the industry, addressing skill shortages, improving staff efficiency, ensuring quality business travel services, and elevating industry standards.
Sunday, April 28, 2024
Sunday, April 28, 2024
Sunday, April 28, 2024
