IHG is the largest hotel company in the world with roughly 5000 hotels across 8 brands.
Challenges
Performance of Holiday Inn brand was struggling. Company needed to understand reasons for decrease in performance and develop recommendations to quickly turn around results
- Some of the hotels were doing well while others were losing occupancy and rate
- Each hotel competes within a unique market
- Hotels are competing against different hotel brands within their sub-market or street corner
Approach
- Developed framework for assessing individual hotels across the portfolio
- Created analytical approach for classifying hotels into 8 segments based on share growth, occupancy level and average daily rate
- Conducted additional analysis at the individual hotel level to provide insight into brand and property performance
- Identified impact of new hotel supply, changes in competitive set, changes in channel (direct, web, call center, other) and changes in customer segment performance
Results
- Recommended potential improvements to improve hotel revenue and profit growth
- Enabled Holiday Inn to improve brand performance on both the occupancy and rate dimensions to drive relative growth index versus competition
