Tourism is a significant industry that has a significant contribution in the global economic development and employment generation. In 2016, the tourism industry alone contributed globally US$2.3 trillion and 109 million jobs. Taking into consideration the industry’s extended indirect and induced influence, in 2016, the industry contributed in the global economy US$7.6 trillion and provided 292 million jobs. This was similar to 10.2% of the world’s GDP, and roughly 1 in 10 of all jobs. 76.85 of the travelling expenditure was due to leisure travelling, in comparison with 23.2% business travelling. From the sector’s contribution to GDP, domestic travel contributed 72%, which is a huge contribution in comparison with international travel which accumulated to the remaining 28% (Wttc.org 2017).
In 2016, the direct contribution of tourism industry to GDP increased by 3.1% , making the growth faster than even the worldwide economy, which expanded at 2.5%, which made the tourism sector for the sixth consecutive time outperform the global economy (Wttc.org 2017).
In 2016, World Travel Monitor reported that the number of global outbound trips increased by 3.9%, with Asia leading the countries. The prediction for 2017 seems positive, with an expected growth by 4% and 5% (ITB-berlin.de 2017). Global forces like shifts in global economy, rising consumer demands, game-changing innovation, natural disasters, geo-political turmoil and pandemics have together altered the travel landscape in 2016 (Mumford, 2016). Mobile technologies are assisting travelers in inspiring them to travel more and providing more useful travel experiences. Relevant technology partnerships are delivering delightful user experiences. In terms of tourism industry, the work-life balance conflict exists too. The issues in relation to the industry are exacerbated as the sector is presently experiencing a labor shortage. The long unsocial hours, low status of jobs and low pay in this sector hardly manages to attract new staff or retain the existing ones. In terms of the new age consumers of the tourism industry, customer satisfaction is an important factor. As most of the hotels nowadays are using cyber marketing strategy for promoting themselves to the customers, online booking has also been integrated in their operations (Xiang, Magnini and Fesenmaier 2015).
As the industrialized world is going through a crisis, many have termed it as a global revolution. countries have experienced economic turnarounds and economies have started moving in the right direction. However, the recovery of the current economy fails to translate this revolution into improvement in employment conditions. The most positive side to this revolution is that backward countries have started producing low cost good services. Delocalization has enabled ever-improving standards of living with high quality, high technology, high productivity and low wages. Delocalization has helped bettering the network system among countries so that a better trade relation exists (Lambin 2014). The One Belt One Road Initiative(OBOR) is a strategy that has been developed for focusing on the connection and collaboration amongst Eurasian countries (Yunling 2015). Among the most emerging economies, Brazil, Russia, India, China and South Africa are the most significant one, together called BRICS. These five countries are either developing or newly industrialized but are fast-growing economies (De Vries et al. 2012).
We at InterContinental Hotel Group, as a global hotel group, find the need to explore new markets that have the potential to help us serve our customers better. We are open to adopting new ideas, compete in a new environment with new competitors and successfully survive the market. Our brands are developed with the aim to respond to guests’ needs. In this management report, we would find solutions to help us serve our global customers better.
Crowne Plaza Hotels and Resorts is a part of the InterContinental Hotels and Resorts Group (IHG Group). They believe in making business travel better for their customers. With the changing markets of the world, business has changed, and so has the work life. Businesses have become more digital, mobile, flexible and connected (InterContinental Hotels Group PLC 2017). To not be left behind, Crowne Plaza has acquired properties that are situated in some of the main urban centers, resort destinations and gateway cities all across the world. The brand is growing fast, on its way, understanding the needs from the hotels for the modern business travelers. Crowne Plaza focuses on people who are ambitious and looking to invest in something that can help them go up their career ladder. All Crowne Plaza hotels are ready with 24×7 premium fast and fresh food, accommodation, and business-ready services and spaces so that the guests are kept connected, productive, restored and rested. The group of hotels have more than 5000 hotels across the world, with their presence felt in around 100 countries. Already there are about 750,000 rooms and more hotels under development. There is only one purpose – to create Great Hotels Guests Love (Ihg.com 2017).
Hospitality infers offering service to others, and furthermore demonstrating unsurprising brightness and quality. It should moreover mean profitably offering some advantage at any price level, while displaying your own specific stand-out reasons for capability. By far at the most, hospitality ought to be the place people could even now be useful for individuals and they can outspread their own definite character and flair. The hospitality industry is a section of a colossal social event of organizations that are a part of the travel and tourism industry that gives the fundamental importance to travelers. The hospitality and tourism organizations are the paramount locations on the planet. The travel and tourism industry is composed of five segments: a) the tourism quarters (hotels, motels, camps, voyage ships), b) the transportation services (ships, planes, trains), c) food and beverage operations (diners, bars, food joints), d) retail stores (gifts, souvenir, articulations/makes shops) and e) the events (recreation, enlightening journeys, business, festivities, shake events) (Buhalis and Crotts 2013).
These days, people more than ever travel wholeheartedly across the world. The industry’s stress with security has extended unfathomably in view of a couple of terrorist ambushes far and wide, and furthermore by virtue of tourists’ kidnappings, burglaries and assaults. The tourism and hospitality industry is among the most contrasting of all organizations to the extent laborer masses and get-togethers of guests. It is indispensable for the staff to appreciate and identify particular social orders memorizing the true purpose to augment the possibility of their coordinated efforts with tourists of different social orders, religions, races, tints, ages, genders and sexual presentations (Bharwani and Butt 2012). As whole competition and market usage alter the expanding service section, quality anticipate an unwaveringly fundamental part in both pulling in and holding service clienteles. Technology is a primary purpose of advance that grants open entries for more unmistakable competences and compromise for enhanced guest services. Technology has altered into a tourism business action being shaped of essential resources and is measured as an instrument to manufacture competitiveness. The overall masses are gradually growing and various retirees have space plan savvy and money to travel and exploit hospitality services. Price and value are gigantic segments to the more astute guests of today. Clients and their insights about price have altered. Guests are impenetrable to compensating all the more (rather, they jump at the chance to get more for less) and tourism endeavors ought to take actions so as to handle this issue. Hoteliers ought to utilize their motel’s food and beverage, its spotless condition and quality, and also its vitality (Bowie et al. 2016).
There are numerous captivating trends happening in the worldwide travel industry nowadays, and a champion among the most striking is the creating impact of royal travelers from “emerging” market countries on travel spending and tourism. Aggregately, these countries are by and by starting to outpace their “made” market accomplices with respect to making royal families. In addition, also as plenitude in these markets carry on to swiftly develop, so does their expenditure on travel. There is an expected advancement of $1.3 billion in transportation expenditure in the period 2012 to 2020 (Sukhdev 2012). In particular, the emerging well-to-do spend more, all things considered, per consumption at retail stores than the old-style well-to-do. Additionally, these travelers tend to show amazing budgetary adaptability as their spending in the midst of fiscal downturns demonstrates little drops in purchase volumes while keeping up high ordinary purchase wholes. Travelers from emerging markets are fundamentally influencing the condition of travel objectives and system wander. Emerging markets are as of now the genuine engine of advancement for air travel. Data from IATA shows that air traffic in the US has been creating at a yearly rate of 2% while advancement is going on at rates of 6%-7% in the Asia-Pacific area and Africa, and at twofold digits in the Middle East (Iata.org 2016). Most of the enthusiasm for airports is by and by based on emerging market urban groups, as the fundamental 10 fastest creating airports on the planet are in these countries. Driving hotels, seeing this drift, are by and by concentrating a considerable measure of their fresh enthusiasm for Asia, with properties being opened in all price levels, particularly luxury brands. High improvement of the emerging markets would carry on forming the travel industry, so associations must arrange towards new areas and plans of activity to remain centered. This ask for wave will shape associations and establishment in the years to come (Gereffi 2013).
With global travelers foreseen to twofold by 2020, to about 1.6 billion, the most essential augmentations are depended upon to occur in markets like India, China, and South-East Asia. Eastern Europe concludes this photograph, trailed by the Latin American ultimately African markets. These markets are consistently suggested as “emerging markets”. As more settled markets twist up evidently create tourism objectives and travel suppliers rush to pick up by these new markets. Among these, India has the maximum potential to emerge as the most successful travel destination. Starting late the outbound travel market has been creating at a rate of 15-20% reliably. Later on, this improvement trend is required to be kept up, conceivably at a higher rate (Lasserre 2012).
India has seen of late outbound travel market increase at a rate of 15-20% reliably. Later on, this improvement trend is required to be kept up, conceivably at a higher rate (Kothari, Kotabe and Murphy 2013). This increase has been spurred by:
The travel industry in India is projected to have a n increased growth rate of 20-25% in the short-term process. The key driving force of this growth would be economic development, with a potential of being the second largest economy after USA by 2050. The main factor that would help India is the large young workforce. The ever-growing workforce that would double to 80 million possibly by 2015 would definitely get assistance from the economic growth and expand their potential in the travel and tourism industry. Developing economic activities would help the tourism industry become more diversified (Schnabl 2012).
India as a country gives a colossal prospective to tourism to thrive. A standout amongst the most prepared social orders of the world and a vivacious economy it has prospective for numerous diverse sorts of tourism, for instance, heritage cum social tourism, restorative tourism, business tourism, eco cum encounter tourism, significant tourism, et cetera. The ability of India as a tourist focus point could be resultant of the way that it has a much-improved culture, diverse sorts of land regions and an amazingly rich social inheritance. The prospective gets an added lift because of outstanding advancement of Indian economy in the present years united by climb in typical household income and interests in establishment. Currently, in like manner tourism accept a basic part in Indian economy. The year 2009 was valued at 41.73 billion pounds and it set up 6% of the Indian gross domestic product. It establishes 5.8% of the whole engagement in India and uses 17.4 million individuals. However, in the meantime the statistics are incredibly unfavorable provided the sort of prospective Indian tourism has. Regardless of the way that the market invasion of Indian tourism is still low yet could grow fundamentally gave suitable method is consolidated with operation (Bharwani and Mathews 2012).
Political factors
Economic Factors
Socio – Cultural
Technological
Threat of new entrants – Medium as there exists low barriers of entry and exit, however it is tough to measure. Requirement for investment is high for hospitality industry. However, there is potential for tapping online options that are increasingly attractive (Fernando and Long 2012).
Threat of substitutes – Low as there is no direct competition for the hospitality industry. Rising disposable incomes has made it possible for spending in this sector by average customers to be increased (Mohapatra 2012).
Degree of rivalry – High as there is an increase in spending for advertising to attract more customers. Add-ons and offerings of hotels have increased because of low levels of product differentiation. Backward integration, however, is a threat for tour operators as online booking has become a convenient option (Fernando and Long 2012).
Bargaining power of consumers – High as for the fragmented buyer set there is low switching costs. Brand loyalty creation is difficult as there exists a plethora of options that the tourists can choose from. When consumers make their choices, price sensitivity plays a huge role (Mohapatra 2012).
Bargaining power of suppliers – Low as multiple suppliers are available in both the hospitality and travel industry. Moreover, quality and experience are of extreme significance and if suppliers do not cater according to the industry standards there exists the risk of being switched (Fernando and Long 2012).
Strengths
Weaknesses
Opportunities
Threats
Porter’s generic strategy matrix that highpoints cost leadership, differentiation and focus as the three elementary selections for firms, has ruled corporate competitive strategy. As demonstrated by this model, an association can pick how it needs to fight, in perspective of the match among its kind of competitive advantage and the market target looked for after, as the key determinants of choice. A business could increase performance either by attempting to be the low cost manufacturer in an industry or by isolating its line of products or services from those of various associations. In case of Crowne Plaza in India, the right option would be to use Porter’s Focus Strategy (Mckeown 2012).
A focus strategy is away for a segment of the market for a product instead of at the whole market. Businesses looking for after focus frameworks must have the ability to perceive their target market area and both evaluate and address the issues and needs of purchasers in that part enhanced than some other contender. Focus methods can be established on differentiation or lowest cost. A focus strategy underscoring lowest cost is extraordinary in the hospitality industry as it is tough to fulfill a specific guest section lacking some kind of differentiation. One could discover various instances of associations in the hotel industry that are using a focus strategy in perspective of the differentiation advantage (Tanwar 2013).
Based on the matrices in the Ansoff Matrix, Crowne Plaza can penetrate different markets with the help of a wide range of products and services at an affordable price. The products incorporate the prizes and benefits and moreover the workplaces gave in each one of the hotels. After penetration, the association started to develop new workplaces and moreover upgraded its performance in the market. Having extended pervasiveness and being a choice of a considerable number of customers, Crowne Plaza has a noteworthy opportunity to also go into the present market and achieve more cutting-edge markets and besides develop their products for the new and existing markets (Hussain et al. 2013).
Licensing is a way to deal with enter an outside market with a confined level of risk. Under all inclusive Licensing, a firm in one country allows a firm in another country to use its ensured development. Allowing resembles franchising beside that the franchising affiliation tends to be more particularly drew in with the change and control of the marketing program. The noteworthy disadvantage of approving is the issue of controlling the licensee on account of the nonappearance of direct obligation from the all-inclusive firm giving the allowance. Following couple of years, once the know-how is traded, there is a risk that the remote firm may begin to follow up alone and the overall firm may subsequently lose that market (Grünig and Morschett 2012).
Porter’s focus strategy can be implemented in the firm if they are either using differentiation strategy or an overall cost leadership focus strategy in a specific market segment or topographical location. IHG Group already has been using cost leadership focus strategy. Crowne Plaza would be easily using focus strategy for their new venture. With their already differentiated products they can enter the hotel industry in India and give tough competition to the existing hotel chains. For growth, Crowne Plaza can follow the licensing approach, by which they can enter the Indian market, without giving out their intellectual property rights completely but still remaining in control of IHG Group (Grünig and Morschett 2012).
Conclusion
On a concluding note, it can be stated that for Crowne Plaza, the appropriate destination country would be India. India is an up and coming country, with a burgeoning economy. The growth of the country is very high. Along with it, it has the labor force to support the economic growth. The brand is growing fast, on its way, understanding the needs from the hotels for the modern business travelers. Crowne Plaza focuses on people who are ambitious and looking to invest in something that can help them go up their career ladder. After thorough analysis of the external and internal environment of the hotel and its destination market, it has been found that focus strategy of Porter would be the right choice for the hotel’s market growth. In case of market penetration also, Crowne Plaza would be successful in India, as using their already differentiated products they can enter the hotel industry in India and give tough competition to the existing hotel chains. For growth, Crowne Plaza can follow the licensing approach, by which they can enter the Indian market, without giving out their intellectual property rights completely but still remaining in control of IHG Group. To further bring growth to the hotel and the group, some recommendations have been put forward. To ensure a successful venture in India, Crowne Plaza must follow these strategies and keep on improving the fame of the hotel group.
References and Bibliography
Baroto, M.B., Abdullah, M.M.B. and Wan, H.L., 2012. Hybrid strategy: a new strategy for competitive advantage. International Journal of Business and Management, 7(20), p.120.
Bharwani, S. and Butt, N., 2012. Challenges for the global hospitality industry: an HR perspective. Worldwide Hospitality and Tourism Themes, 4(2), pp.150-162.
Bharwani, S. and Mathews, D., 2012. Risk identification and analysis in the hospitality industry: Practitioners’ perspectives from India. Worldwide Hospitality and Tourism Themes, 4(5), pp.410-427.
Bowie, D., Buttle, F., Brookes, M. and Mariussen, A., 2016. Hospitality marketing. Taylor & Francis.
Buhalis, D. and Crotts, J., 2013. Global alliances in tourism and hospitality management. Routledge.
De Vries, G.J., Erumban, A.A., Timmer, M.P., Voskoboynikov, I. and Wu, H.X., 2012. Deconstructing the BRICs: Structural transformation and aggregate productivity growth. Journal of Comparative Economics, 40(2), pp.211-227.
Fernando, I.N. and Long, W., 2012. New conceptual model on cluster competitiveness: A new paradigm for tourism?. International Journal of Business and Management, 7(9), p.75.
Fernando, I.N. and Long, W., 2012. New conceptual model on cluster competitiveness: A new paradigm for tourism?. International Journal of Business and Management, 7(9), p.75.
Gereffi, G., 2013. A global value chain perspective on Industrial policy and development in Emerging markets. Duke J. Comp. & Int’l L., 24, p.433.
Grünig, R. and Morschett, D., 2012. Evaluating market entry modes. In Developing International Strategies (pp. 123-148). Springer Berlin Heidelberg.
Hussain, S., Khattak, J., Rizwan, A. and Latif, M.A., 2013. ANSOFF matrix, environment, and growth-an interactive triangle. Management and Administrative Sciences Review, 2(2), pp.196-206.
Iata.org. 2016. IATA -IATA Forecasts Passenger Demand to Double Over 20 Years. [online] Available at: https://www.iata.org/pressroom/pr/Pages/2016-10-18-02.aspx [Accessed 8 Sep. 2017].
Ihg.com. 2017. Crowne Plaza Hotel – Business Hotels Worldwide from IHG. [online] Available at: https://www.ihg.com/crowneplaza/hotels/us/en/reservation [Accessed 8 Sep. 2017].
InterContinental Hotels Group PLC. (2017). [online] Available at: https://www.ihgplc.com/ [Accessed 8 Sep. 2017].
ITB-berlin.de. 2017. ITB WORLD TRAVEL TRENDS REPORT. [online] Available at: https://www.itb-berlin.de/media/itb/itb_dl_all/itb_presse_all/World_Travel_Trends_Report_2016_2017.pdf [Accessed 8 Sep. 2017].
Harrington, R., K. Chathoth, P., Ottenbacher, M. and Altinay, L., 2014. Strategic management research in hospitality and tourism: past, present and future. International Journal of Contemporary Hospitality Management, 26(5), pp.778-808.
Keegan, W.J. and Green, M.C., 2015. Global marketing. Upper Saddle River, NJ: Pearson.
Kothari, T., Kotabe, M. and Murphy, P., 2013. Rules of the game for emerging market multinational companies from China and India. Journal of International Management, 19(3), pp.276-299.
Lambin, J.J., 2014. A Global and Local Economy. In Rethinking the Market Economy (pp. 111-131). Palgrave Macmillan UK.
Lasserre, P., 2012. Global strategic management. Palgrave Macmillan.
Madhusmita, M. and Padhi, P.K., 2012. Emergence of tourism in the sustainable growth of India: an empirical analysis. Commerce and Management, 1(8), pp.161-167.
Mckeown, M., 2012. The strategy book. Pearson Education.
Mohapatra, S., 2012. IT and Porter’s Competitive Forces Model and Strategies. In Information Systems Theory (pp. 265-281). Springer New York.
Mumford, L., 2016. The culture of cities. Open Road Media.
Schnabl, P., 2012. The international transmission of bank liquidity shocks: Evidence from an emerging market. The Journal of Finance, 67(3), pp.897-932.
Sukhdev, P., 2012. Corporation 2020. Penguin UK.
Swarbrooke, J. and Page, S.J., 2012. Development and management of visitor attractions. Routledge.
Tansey, P., Spillane, J.P. and Meng, X., 2014. Linking response strategies adopted by construction firms during the 2007 economic recession to Porter’s generic strategies. Construction Management and Economics, 32(7-8), pp.705-724.
Tanwar, R., 2013. Porter’s generic competitive strategies. Journal of Business and Management, 15(1), pp.11-17.
Teeratansirikool, L., Siengthai, S., Badir, Y. and Charoenngam, C., 2013. Competitive strategies and firm performance: the mediating role of performance measurement. International Journal of Productivity and Performance Management, 62(2), pp.168-184.
Terpstra, V., Foley, J. and Sarathy, R., 2012. International marketing. Naper Press.
Wttc.org. 2017. GLOBAL ECONOMIC IMPACT & ISSUES 2017. [online] Available at: https://www.wttc.org/-/media/files/reports/economic-impact-research/2017-documents/global-economic-impact-and-issues-2017.pdf [Accessed 8 Sep. 2017].
Xiang, Z., Magnini, V.P. and Fesenmaier, D.R., 2015. Information technology and consumer behavior in travel and tourism: Insights from travel planning using the internet. Journal of Retailing and Consumer Services, 22, pp.244-249.
Yunling, Z., 2015. One Belt, One Road. Global Asia, 10(3), pp.8-12.
Essay Writing Service Features
Our Experience
No matter how complex your assignment is, we can find the right professional for your specific task. Contact Essay is an essay writing company that hires only the smartest minds to help you with your projects. Our expertise allows us to provide students with high-quality academic writing, editing & proofreading services.
Free Features
Free revision policy
$10Free bibliography & reference
$8Free title page
$8Free formatting
$8How Our Essay Writing Service Works
First, you will need to complete an order form. It's not difficult but, in case there is anything you find not to be clear, you may always call us so that we can guide you through it. On the order form, you will need to include some basic information concerning your order: subject, topic, number of pages, etc. We also encourage our clients to upload any relevant information or sources that will help.
Complete the order form
Once we have all the information and instructions that we need, we select the most suitable writer for your assignment. While everything seems to be clear, the writer, who has complete knowledge of the subject, may need clarification from you. It is at that point that you would receive a call or email from us.
Writer’s assignment
As soon as the writer has finished, it will be delivered both to the website and to your email address so that you will not miss it. If your deadline is close at hand, we will place a call to you to make sure that you receive the paper on time.
Completing the order and download