IHG CONTINUES TO CONSOLIDATE LEADING POSITION BY STRATEGICALLY FOSTERING MARKET GROWTH (China)
"Dream Bigger. Travel Better” 2024 Greater China Expo roadshow concluded successfully. |
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IHG CONTINUES TO CONSOLIDATE LEADING POSITION BY STRATEGICALLY FOSTERING MARKET GROWTH (China)
"Dream Bigger. Travel Better” 2024 Greater China Expo roadshow concluded successfully. |
Category: Asia Pacific - China - Industry economy
- Figures / Studies
This is a press release selected by our editorial committee and published online for free on 2024-03-29
As one of the first international hotel companies to enter the China market, IHG Hotels & Resorts (IHG) upholds its "in China, for China" commitment.
With a leading position in the industry, IHG anticipates trends in the tourism market and guest needs. Recently, IHG concluded its "Dream Bigger, Travel Bigger” 2024 Greater China Expo Roadshow in Beijing, Shenzhen, and Shanghai.
This initiative further bolsters the revival of the business travel market and showcases IHG's robust expansion across Greater China region.
A Growth Journey Built on a Foundation of Industry Excellence
Since its entry into Greater China market 49 years ago, IHG has consistently prioritized high importance on the development of Greater China.
As of December 31, 2023, IHG has over 1,200 hotels open or in the pipeline in Greater China, totalling nearly 180,000 rooms.
With extensive experience in the Chinese business travel market, IHG has established eight sales centers across Greater China, enhancing procurement services' efficiency for customers and bolstering the growth of the business travel channel.
IHG One Rewards, one of the world's largest hotel loyalty programs, now boasts over 130 million members, reaching a historic high.
With high recognition from both owners and guests, IHG has significantly accelerated its hotel expansion rate, reducing the time to open 100 hotels from 24 years to just 18 months.
Earlier this year, IHG celebrated the milestone of opening its 700th hotel in Greater China, symbolizing a substantial advancement.
While IHG has focused on development and product innovation in top-tier cities, the group is also exploring untapped potential in emerging markets.
By the end of 2023, approximately three-quarters of IHG's total room inventory was in second to fourth-tier cities, and over 90% of room inventory in the pipeline – highlighting IHG's sustained growth momentum and developmental prospects.
Strategic Initiatives Align with Domestic Market Trends
In this year's China Government Work Report of the Two Sessions, there was reiterated emphasis on implementing policies to foster digital and green consumption, among other initiatives aimed at spurring economic growth.
Additionally, culture and entertainment tourism have been identified as pivotal sectors for nurturing and expanding innovative forms of consumption.
The China Tourism Academy has also highlighted 2024 as a significant year for China's tourism and economic development. Against this backdrop of favourable macroeconomic conditions and market demand, the emergence of the 2024 Greater China Expo Roadshow is timely.
At the Expo, IHG presented a diverse range of booths allowing participants to gain a deeper understanding of the innovative services and green environmental initiatives provided by the company.
The event facilitated in-depth communication with business travel guests, partners, and owners, underscoring IHG's commitment to formulating high-quality development strategies that align with the evolving trends in the Chinese tourism market.
One-Stop Business Travel Management Solution
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."
- Enhancing Cost Efficiency through Platform Consolidation and Technological Integration: IHG seamlessly integrates its offerings with Travel Management Companies (TMC), establishing direct connections that provide comprehensive business travel solutions. The "IHG Corporate Travel Portal" WeChat mini-program continuously evolves to meet the demands of corporate events and online meetings, efficiently addressing the needs of corporate clients for booking business trips. Additionally, IHG offers various digital solutions, including global travel discounts and diversified loyalty rewards, while engaging with business guests online. Catering to a new generation of business guests, IHG has launched IHG Studio 2.0, enhancing guest experiences while increasing 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 facet of the guest experience. IHG has launched the "Meeting for Good" program at its hotels, providing guidelines for hosting sustainable meetings and events. These guidelines include eliminating single-use items, reducing food waste, and implementing energy-saving strategies. In partnership with Ant Forest, IHG further advocates environmental protection awareness and encourages low-carbon accommodation thereby fostering "Responsible Travel."
- Overseas Business Travel Solutions: As domestic and international policies have spurred overseas expansion, there has been a surge in demand for business travel, increasing the 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. Utilising its extensive global network, IHG collaborates with TMC 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, optimising the international business travel booking experience.
Unlocking Higher Returns with a Strong Resource Engine
During this year's owner's roadshows, IHG signed 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 debut in some 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."
- Empowerment through Diverse Investment Models: Driven by the dual engines of managed and franchised property models, IHG has achieved outstanding commercial growth in the Greater China market. The "Franchise+" model, tailored for Chinese owners, provides comprehensive investment support while effectively controlling costs. Currently, IHG has expanded its franchise model to include Holiday Inn Hotels & Resorts, Holiday Inn Express, Crowne Plaza Hotels & Resorts, EVEN Hotels, and voco hotels. Remarkably, the voco brand has seen remarkable growth since its introduction in Great China in 2020, with more than 20 open hotels in the pipeline.
- Revamped Products: IHG is dedicated to ongoing product innovation, building on the legacy of its quality products while staying true to its brand essence. In late 2022, IHG launched the Holiday Inn Express 3.0, revitalizing the brand's 'simple and smart travel experiences' for guests. Specifically tailored for the Chinese market, HUALUXE Hotels & Resorts recently launched its upgraded version 2.0. The inaugural property, HUALUXE Shenzhen Bao'an, will soon open its doors, inviting a new generation of consumers to immerse themselves in the essence of Chinese aesthetic lifestyles. The dual-period multifunctional facility layout unique to the voco Hotels enhances hotel efficiency, meets diverse consumer scenarios, and brings new ideas for hotel operations and revenue enhancement. Furthermore, a completely new Holiday Inn Hotels & Resorts room design and cost structure are about to be introduced, further strengthening the brand's competitive advantage in investment costs in the industry, with the hope of creating more beautiful memories with guests.
Continually Fostering Talent Development
As one of the largest employers in the global hotel industry, IHG adheres to the mission of "True Hospitality for Good," continuously attracting and nurturing talents that align with the group's values and behaviour guidelines.
IHG creates a diverse, equal, and inclusive working environment that enhances employee well-being. The group promotes talent development within the industry through multiple avenues, addressing the talent shortage crisis, enhancing staff efficiency, safeguarding business travel services, and driving the industry towards higher standards.
About IHG
IHG Hotels & Resorts [LON:IHG, NYSE:IHG (ADRs)] is a global hospitality company, with a purpose to provide True Hospitality for Good.
With a family of 19 hotel brands and IHG One Rewards, one of the world's largest hotel loyalty programmes, IHG has over 6,300 open hotels in more than 100 countries, and a development pipeline of over 2,000 properties.
- Luxury & Lifestyle: Six Senses Hotels Resorts Spas, Regent Hotels & Resorts, InterContinental Hotels & Resorts, Vignette Collection, Kimpton Hotels & Restaurants, Hotel Indigo
- Premium: voco hotels, HUALUXE Hotels & Resorts, Crowne Plaza Hotels & Resorts, EVEN Hotels
- Essentials: Holiday Inn Express, Holiday Inn Hotels & Resorts, Garner hotels, avid hotels
- Suites: Atwell Suites, Staybridge Suites, Holiday Inn Club Vacations, Candlewood Suites
- Exclusive Partners: Iberostar Beachfront Resorts
InterContinental Hotels Group PLC is the Group's holding company and is incorporated and registered in England and Wales. Approximately 345,000 people work across IHG's hotels and corporate offices globally.
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