Holiday Inn 2008 Annual Report Download - page 11

Employee engagement scores
(Engagement survey commenced
April 2007).
2007 2008
65% 68%
* CAGR – compound annual growth rate. ** Source: IHG analysis, STR and Deloitte.
BUSINESS REVIEW
Business review 9
How we win
Key performance indicators Current status and
Strategic priorities (KPIs) 2008 developments 2009 priorities
Responsible business
To take an active stance
on environment and
community issues in
order to drive increased
value for IHG, owners
and guests.
• As we roll out new systems, the
consumption of energy and water
as well as waste will be tracked
in all our owned and managed
hotels; we expect to report further
on this next year – see Corporate
Responsibility (CR) review on
pages 23 and 24 for further
information.
• Green Engage energy management
system developed (patent pending);
• Extensive consumer research
undertaken to quantify ‘green’
opportunity with consumers; and
• CR approach defined and agreed –
see
CR review on pages 23 and 24
for additional details.
• Roll out the Green Engage energy
management system, including
improved hotel construction
techniques; and
• Focus on innovation within new
and existing brands to deliver
valued ‘green’ related hotels
and services to guests.
Our people
To create a more efficient
organisation with strong
core capabilities.
• Great Hotels Guests Love metrics
defined and cascaded;
• Requirement to add around
140,000 people in scale markets
quantified and sourcing strategy
in place;
• Senior recruitment and succession
planning accomplished, especially
at Executive Committee level; and
• General manager attraction
and retention programme
and systems launched.
• Ensure alignment at hotel level to
IHG’s core purpose of Great Hotels
Guests Love; and
• Increase investment in key
countries to compete for talent,
particularly for general managers.
Guest experience
To operate a portfolio
of brands attractive
to both owners and
guests that have clear
market positions and
differentiation in the
eyes of the guest.
IC: InterContinental HIE: Holday Inn Express
CP: Crowne Plaza HI: Holiday Inn
RevPAR growth ahead of market (%pts)**
10.7%
All brands – CHINA
IC – EMEA 6.5%
IC – US 2.2%
HIE – US 1.8%
All brands – UK 1.6%
HI – US 0.5%
CP – US 1.0%
Global RevPAR growth
Comparable hotels, constant US$
2006 2007 2008
9.8%
6.9%
0.9%
• First 274 relaunched Holiday Inn
and Holiday Inn Express hotels
open around the world;
• InterContinental positioning
success as guest satisfaction
scores relating to InterContinental
concierges rise in all regions; and
• Industry-leading Priority Club
Rewards (PCR) loyalty programme
with 42 million members,
contributing $5.9bn of global
system room revenue, an increase
of 13% over 2007.
• Roll out the Holiday Inn
repositioning;
• Simplify brand standards process
to improve owner returns without
impairing guest experience; and
• Enhance experience for PCR
members in hotels and across
global reservations channels;
increase IHG business from
PCR members.
Financial returns
To generate higher
returns for owners and
IHG through revenue
delivery and improved
operating efficiency.
System contribution revenue
Actual US$bn
2006 2007 2008
CAGR*
10.1%
5.7
6.8 7.6
Total gross revenue (TGR)
Actual US$bn
2006 2007 2008
CAGR*
7.9%
15.2
17.8 19.1
• Increased revenue delivery through
IHG global reservations channels
by 10.6% to $7.6bn of global system
room revenue in 2008;
• Increased use of offshore
transaction processing; and
• Technology infrastructure
developed to support owner
management and loyalty
marketing.
• Increase global salesforce
effectiveness;
• Identify and achieve major
procurement savings;
• Begin migration to next generation
revenue management IT systems;
and
• Continue focus on our owned
and managed estate margins
and return on capital employed
(ROCE), especially in our key
InterContinental assets.