Holiday Inn 2013 Annual Report Download - page 28

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IHG continues to focus on delivering value to owners by pricing
our fees in a way that reflects the services, tools and brand value that
we deliver and we therefore drive a competitive branded fee structure
to support owners in achieving premiumreturns. As explained on
page 16, a franchised and managed business model requires us to
focus on fee revenues and fee margins (both KPIs).
Guests, employees and owners are increasingly looking for
confirmation that the business they interact with share their
values and act responsibly. We are therefore committed to
responsible business practices, and our corporate responsibility
programmes are integrated with our business and our owner
proposition. As set out on page 27, this is also a key priority area
for the IHG Owners Association and are therefore KPIs for IHG.
For our KPIs see pages 38 and 39.
The principal risks associated with Owner proposition are set out on
pages 36 and 37.
IHG Owners Association
The IHG Owners Association represents theinterests of nearly
2,000 of our owners who together own 3,000 IHG hotels globally.
We work together to improve total revenue for our hotels and
RevPAR, further strengthen IHG’s brands and enhance the
guest experience.
As set out in the Chairman of the IHG Owners Association’s message
on page 27, we have worked together with the IHG Owners Association
in 2013 to make further progress on our agreed priorities.
Superior owner proposition
IHG is committed to delivering a compelling and preferred offer to our
hotel owners through a combination of strong owner relationship
management and effective operational support.
We recognise the importance of owners in a managed and
franchised business model and we therefore focus on building
excellent relationships with our owners, through the IHG
Owners Association.
We compete with other hotel brands when an owner chooses a
brand for their hotel and we have therefore developed a strong
owner proposition and a range of tools and services to drive
revenues and make us the first choice for owners.
Our owner offer
Our owners are provided with a range of tools and services to
assist them in all areas of their operations, for example, providing
them with access to our revenue systems which work to drive
higher revenue streams to hotels, and our booking and reservation
channels, to increase guest bookings (thereby increasing system
contribution to revenue and total gross revenue, explained on page
25). This is one part of our broader online Hotel Solutions site
enabling owners to search for, identify and get assistance with a
large range of hotel-based issues, such as human resources and
reservations. This network of knowledge is accessible by all IHG
hotels worldwide and ensures that IHG continues to deliver
solutions for our owners’ needs.
We also manage brand consistency risk for our owners by focusing
on driving brand standards – an important set of guidelines for
each brand that support the delivery of a consistent branded hotel
and guest experience and thereby assist in increasing guest
satisfaction (measured through Guest HeartBeat) and driving
brandpreference and growth in RevPAR (both KPIs).
At our 2013 annual Owners Conference in Las Vegas, we had over
5,500 owners and General Managers attending and we took the
opportunity to inform these key stakeholders about our future
strategy and receive their feedback.
Progress against IHG Owners Association Priority 4:
Todevelop the strongest General Manager talent
in the industry
We have invested heavily in our approach to hiring,
training and developing General Managers. To assist
with this, we launched:
• General Manager Programme: This helps new General
Managers become great brand ambassadors, deliver
preferred brands, inspire their teams and achieve
great results. The programme offers branded selection
tools to assist owners and recruiters hire the right
General Managers for the right brand and hotel and
thereafter provides a General Manager with a tailored
learning experience.
• Journey to Brand Manager – General Manager
Professional Development Programme: This helps
experienced General Managers to focus on how a General
Manager can consistently deliver the brand experience to
drive results and maximise the profitability of our hotels.
2013 IHG Americas
Investors & Leadership
Conference, Las Vegas,
Nevada, US
26 IHG Annual Report and Form 20-F 2013
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