Holiday Inn 2013 Annual Report Download - page 8

IHG’s Winning Model
IHG’s Winning Model is our framework
for delivering superior value creation
through our brands, our people and our
systems. We deliver preferred experiences
for guests through our targeted brand
propositions, consistently delivered by
over 350,000 talented colleagues across
the world. Our brands are brought to life
by our people and last year we launched
twonew training programmes for hotel
General Managers to ensure the strongest
possible connection between what each
brand stands for and the delivery of the
brand experience at the front line,
encouraging General Managers to
behave like Brand Managers.
Our brands already deliver superior
and consistent experiences, which we
measure by continuous guest satisfaction
surveys, and which, in 2013 told us that
we drove increased guest satisfaction
globally across each of our brands.
This drives revenue per available room
(RevPAR) premiums and, in turn, better
returns for our owners. We are very
proud of the large number of industry
awards our brands win and are focused
on ensuring that they stay relevant to
the changing needs of our guests.
To help do this, we conduct extensive,
industry-leading research to ensure we
have the best possible understanding of
our guests’ needs. This unique insight is
allowing us to better differentiate our
hotel experiences and is a key driver of
our ability to continue to grow ahead of
the market.
Furthermore, our annual Trends Report
demonstrates the insight and consumer
understanding that helps us adapt to, and
stay ahead of, the latest trends both within
the hospitality industry and more widely.
This year’s report, 'Creating Moments of
Trust' – the key to building successful
brand relationships in the Kinship
Economy’, suggests that the rise of
technology-aided personalisation means
that to continue to win and maintain guest
loyalty in the future, hotels need to deliver
global, local and personalised appeal for
their guests.
Hotel brands that are able to become
truly ‘3D’ – by delivering local, global and
personal experiences through trusted
global brands – will build the trust that
is needed to sustain lasting relationships
with guests and outperform in the future.
This marks a step-change in the thinking
that has dominated the travel and
hospitality industry over the last two
decades, a period during which hotel
brands have traditionally concentrated
on being 2D – solely global and local.
An important part of building trust is offering
a strong loyalty programme that is tailored
to guests needs. To enable us to better meet
the different needs and occasions of our
guests and to strengthen our proposition
to owners, on 1 July 2013, we relaunched
our loyalty programme with a new name:
IHG Rewards Club. This name clearly
communicates to consumers that all of
our brands are part of the same IHG brand
family. No other hotel loyalty programme
gives its members more places to use their
points than IHG, and from July 2013, we also
added new benefits, including being the first
hotel company to offer free internet to
members in all our hotels globally.
2013 marked our tenth year as a standalone company. During this
period, we have delivered market-leading shareholder returns,
more than doubled our fee revenues and significantly increased
returns on capital employed. Our focus on high-quality growth
delivered by our Winning Model, underpinned by Disciplined Execution,
has enabled us to drive a good revenue and profit performance again
in 2013, despite the ongoing challenging economic conditions in some
of our markets.
“ 2013 marked IHG’s
tenth anniversary as
a standalone company,
and was another year
of strong performance.”
Operating profit before exceptional items
Total gross revenue in IHG’s System
Revenue up 4% to $1,903m*
New IHG Rewards Club members
added (total members 77.4m)
+10%: $668m*
+2%: $21.6bn†
6.4m
*
Includes three liquidated damages receipts in
2013; $31m in The Americas, $9m in Europe
and $6m in AMEA.
†
Total room revenue from franchised hotels and
total hotel revenue from managed, owned and
leased hotels (not all attributable to IHG).
6 IHG Annual Report and Form 20-F 2013
Chief Executive Ocer’s review