Holiday Inn 2009 Annual Report Download - page 13

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Business review 11
* Source: IHG analysis and STR.
To take an active stance
on environment and
community issues in
order to drive increased
value for IHG, owners
and guests.
To create a more
efficient organisation
with strong core
capabilities.
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.
To generate higher
returns for owners and
IHG through revenue
delivery and improved
operating efficiency.
How we win
Key performance indicators Current status and
Strategic priorities (KPIs) 2009 developments 2010 priorities
Financial returns
Our people
Guest experience
Responsible business
• 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 26 to 28
for further information.
• Green Engage sustainability
management system developed
(patent pending); rolled out to over
900 hotels by 31 December 2009;
• extensive consumer research
undertaken to quantify ‘green’
opportunity with consumers; and
• CR approach defined and agreed –
see CR review on pages 26 to 28
for additional details.
• Continued to cascade
Great Hotels Guests Love in
hotels and corporate offices;
• meeting ongoing resourcing
requirements to match hotel
growth in scale markets;
• managing employee engagement;
and
• continued focus on attracting
and retaining talent.
• Drive greater efficiency and
simplicity through better use
of technology; and
• focus on developing skills
to support our key goals for
responsible business, guest
experience and financial returns.
• First 1,697 relaunched Holiday Inn
and Holiday Inn Express hotels
open around the world; and
• industry-leading Priority Club
Rewards (PCR) loyalty programme
with 48 million members,
contributing $5.6bn of global
system rooms revenue.
• Complete Holiday Inn repositioning
roll-out;
• continue to simplify brand
standards process to improve
owner returns without impairing
guest experience; and
• continue to enhance experience
for PCR members in hotels and
across global reservations
channels; increase IHG business
from PCR members.
• Increased proportion of revenue
delivery through IHG global
reservations channels and PCR
members direct by four percentage
points to an average 68% of global
hotel rooms revenue in 2009;
• major procurement savings made;
• increased use of offshore
transaction processing; and
• technology infrastructure
developed to support owner
management and loyalty
marketing.
• Increase global salesforce
effectiveness;
• continue further procurement
programmes to identify
efficiencies;
• begin migration to next-generation
revenue management IT systems;
and
• continue focus on our owned
and managed estate margins
and return on capital employed
(ROCE), especially in our key
InterContinental assets.
Percentage system contribution revenue
(reservations channels and PCR
members direct)
As percentage of rooms revenue
2007 2008 2009
60% 64% 68%
Employee engagement scores
2008 2009
68%
2007
65% 69%
Global RevPAR growth/(decline)
Comparable hotels, constant US$
2007 2008
2009
6.9%
0.9% (14.7)%
IC: InterContinental HIEx: Holday Inn Express
RevPAR growth ahead of market (%pts)*
8.9%
IC CHINA
All brands APAC 4.3%
IC Global 2.1%
HIEx US 1.7%
All brands Middle East 0.9%
IC EMEA 0.7%
• Continue to roll out the Green
Engage sustainability management
system to 100% of our owned and
managed hotels and expand into
the franchised estate in all three
regions; and
• focus on innovation within new
and existing brands to deliver
valued ‘green’ related hotels
and services to guests.
BUSINESS REVIEW