Holiday Inn 2010 Annual Report Download - page 15

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Business review 13
OVERVIEW BUSINESS REVIEW
THE BOARD,
SENIOR MANAGEMENT AND
THEIR RESPONSIBILITIES
GROUP FINANCIAL
STATEMENTS
PARENT COMPANY
FINANCIAL STATEMENTS USEFUL INFORMATION
Strategic priorities
Key performance
indicators (KPIs)
Current status and 2010
developments
2011 priorities
Financial returns
To generate higher
returns for owners
and IHG through
increased revenue
share, improved
operating efficiency
and growing margins.
Total gross revenue (TGR)
Actual US$bn
2008 2009 2010
19.1 16.8 18.7
System contribution to revenue
(r
eservations channels and PCR
members direct)
As percentage of rooms revenue
2008 2009 2010
64%
68% 68%
• Further procurement efficiencies
made;
• enhanced Customer Relationship
Management with new
technology and campaign
management tools to involve
non-Priority Club Rewards
members; and
• enhanced communications with
Priority Club Rewards loyalty
programme members with
refreshed loyalty systems.
• Capitalise on recovery of group
and meetings business;
• strengthen global sales force
effectiveness;
• optimise revenues from third party
and IHG websites;
• ensure IHG’s industry leading
system of delivering demand
and revenue to hotels retains
competitive advantage; and
• strengthen loyalty programme,
with enhanced member offer.
Our people
Creating hotels that
are well run, with
brands brought to
life by people who
are proud of the work
they do. Employee engagement scores
2008 2009 2010
68% 69% 73% • Launched and cascaded our
Vision to become one of the
world’s great companies;
• developed management tools to
deliver a branded guest experience;
• further emphasis on our culture
of learning and development,
with industry recognition;
• ‘Celebrate Service’ week – a
global event to recognise our
people, in partnership with the
IAHI ownership community; and
• managing employee engagement.
• Cascade of branded management
tools to whole IHG estate, including
our franchised hotels;
• ongoing partnership with IAHI
ownership community for people
events;
• continued focus on developing
skills to deliver our Vision and
branding capability; and
• opportunities for employees and
communities to be involved with
Olympics partnership.
Guest experience
To operate a portfolio
of brands attractive to
both owners and
guests that have clear
market positions and
differentiation in the
eyes of the guest.
Global RevPAR growth/(decline)
Comparable hotels, c
onstant US$
2008
2009
0.9% (14.7)% 2010
6.2%
• Global pilots to identify
opportunities to create branded
hallmarks with guest appeal;
• near completion of the Holiday
Inn relaunch; and
• grew our industry-leading
loyalty programme to 56 million
members, contributing $6.5bn
of global system rooms revenue.
• Leverage strong position of
Holiday Inn relaunch with roll-out
of global marketing initiatives;
• ensure growth plans of each brand
aligns fully with corporate Vision;
• focus on strength of Priority Club
Rewards and visibly enhance
offering to its members in hotels
and across global reservations
channels; and
• increase IHG business from
Priority Club Rewards members .
Responsible business
To take a proactive
stance and seek
creative solutions
through innovation
and collaboration on
environment and
community issues,
and to drive increased
value for IHG, owners,
guests and the
communities where
we operate.
Hotels signed-up to ‘Green Engage’
Hotels, cumulative
2008 2009 2010
Pilot stage
911
1,122 • ‘Green Engage’ developed (patent
pending): rolled out to over 1,000
hotels by 31 December 2010;
• collaborated with the University
of Oxford’s Department of Plant
Sciences to understand better
how hotel design and
development impacts the
environment; and
• Corporate Responsibility
approach defined and agreed.
• Continue to roll out ‘Green
Engage’ to our owned and
managed hotels, and expand into
the franchised estate in all
regions;
• work with stakeholders, such as
Harvard University, to educate
decision-makers on IHG’s
economic impacts; and
• continue to embed our
community strategy, including
establishing the IHG Academy
programme and activating our
strategic partner in providing
disaster recovery.
How we win