HM 601- Consultancy Project for Hospitality Management Contents Introduction: 4 Organisational Background. 5 Key managerial challenges faced by Intercontinental 6 Shortage in the hotel staff: 6 Struggle to meet Corporate Social Responsibility targets: 6 Lack of responsible leaders. 6 Increasing Competition.. 6 Proposed action to overcome the challenges: 7 Developing their own leadership. 7 Inculcate Training and Retention activities. 7 Innovation and sustaining competition.. 7 Sustainability Goals. 7 Other Initiatives taken by Intercontinental Hotel Group to handle the management challenge of making Corporate Strategies: 9 Management theory to be applied in context of the challenges and overcoming them: 10 Conclusion. 11 Introduction: The present report is about the managerial challenges the hospitality industry is facing and specifically about the Intercontinental Hotel Group. There are proposed solutions which could be taken by the Group and the management theory has also been refereed which can improve the efficiency of the Intercontinental Group. Research has been undertaken to face the challenges during the pandemic outbreak of Covid. Organisational Background: Intercontinental Hotels Group was founded in 1777. The Hotel Group belongs to the United Kingdom and its headquarters is in Denham. The market cap of the Group is $ 12.3 Billion as per Forbes (2018). The Group operates and owns various hotels under its umbrella brand like Holiday Inn, Crowne Plaza, Stay bridge Suites etc. Major Key managerial challenges faced by Hospitality Industry: as Hospitality industry is flexible and dynamic in nature the competitive environment of travel and tourism provides the customer with the wide range of information and services and ultimately leads to the issue of customer loyalty as argued by Chung & Green (2017). Key managerial challenges faced by Intercontinental: Shortage in the hotel staff: During the pandemic Outbreak of Covid-19, the hotel management is facing the crisis of shortage of employees who left the hotel because of migrating to the other occupations or to the other countries for their livelihood. The employees in the hospitality sector of UK already following Brexit, switched the industries in the lock down as pointed out by Butler (2021). The cause of the shortage is lack of demands and the layoffs because fncreasing cost and relocation of employees The effect of the shortage of the hotel staff is increase in the attrition rate and the turnover of the employees from the hospitality industry. Struggle to meet Corporate Social Responsibility targets: There are several major grand hotels which promised to work for the purpose of meeting their corporate social responsibility goals and works with slogans. The slogan of Intercontinental is “Journey to tomorrow”. But according to the Cundy (2021) Hotels accounts for 1 per cent of total emissions of greenhouse gases. As global economies are going to start in post pandemic period the chains will face twice the difficulty level. Lack of responsible leaders: Hospitality industry lacks in responsible leadership. The industry needs leaders with new competencies, skills and knowledge. This industry specific hurdle is also faced by the Intercontinental. Increasing Competition: There are a variety of alternatives available for the target audience in the hospitality industry specifically in the Hotel industry. The major threats come from the Small and Medium Enterprises as they are the significant part of the UK’s economy as per Chung & Green (2017). Intercontinental is facing the competition from various newly established hotels in UK which carries innovation, sustainability and environment as their key goals. The cause of the challenge is clear and transparent that there is an increase in the competition from Hyatt Hotels, Wyandham destinations and Hotel Mariott. The effect of the cut throat competition and the weak markets is Intercontinental reported profits of 60 percent lower to € 135 million from € 340 million (Lea, 2019). Weaker demands in some nations: Intercontinental is facing weaker demands in some of the countries like France and China (Dsouza & Nadkar, 2019). The cause of the weaker demands is Yellow-vest movement in France in which people from rural areas protest for the hike in fuel prices they cannot afford. The effect of the demands is the decrease in the revenue of the hotels room rates and flat room revenue. Proposed action to overcome the challenges: Developing their own leadership: The hospitality industry needs to develop their own leaders from their own companies and not dependent on the outsiders and not creating the positive environments also the skills of leadership have to be generated. The skills like Team work, oral communication and readiness to learn are some of the top skills the leaders need as listed by Sousa et al. (2019). Inculcate Training and Retention activities: There are initiatives which could be taken by the Intercontinental Hotel Group to improve employees’ job satisfaction which is internal marketing, which can have crucial payoffs for any hotel as the rate of employee turnover will be reduced as demonstrated by Frye, Kang, Huh and Lee (2019), with the help of internal marketing the hotel can retain its employees during the pandemic period. Innovation and sustaining competition: The key resource to maintain competitive advantage is the innovation in the hospitality industry as per Backman, Klaesson & Öner (2017). Intercontinental needs to make their hotels technology and innovation oriented so that they can compete with the emerging Hotels in UK. The skills also be incorporated in the human resource of the company. Small Innovation centres can also be created to fulfil this cause. Sustainability Goals: For meeting the sustainable goals and fulfilling the corporate social responsibility. Intercontinental can implement the Green Human resource management and relevant HR practices which motivates the employees to take initiatives to the environment goals and maintain sustainability in the service providing cycle. The other initiatives which could be implemented is employee involvement which is bringing employees on forefront and providing them the green opportunities and encouraging them for new ideas and environment friendly practices as per Phama, Tučková & Jabbourb (2018). Other Initiatives taken by Intercontinental Hotel Group to handle the management challenge of making Corporate Strategies: On April 15, 2021 the Group has signed an agreement with the Iwate Hotel and Resorts about starting 3 hotels in Japan in Appi region. The purpose is to cater the needs of every traveller and also the local and international demands. The agreement will serves the purpose of providing services to the luxury, midscale and upscale segments Hospitality Net (2021). objectivesTimeframeCostoutcome1. Digital transformation2 years€ 8 billionThis will help in handling the cut throat completion by the online presence of other hotels and resorts.2.Focus on the reinvention by training the staff2 year€ 12 billionBy reinventing the guest and focus on the lack of demand in some countries.3. Renewing the motivational plans1 year€ 1 billionThe staff will be motivated and the absenteeism and turnover can be decreased Acton Plan for Intercontinental Hotels and Resorts Management theory to be applied in context of the challenges and overcoming them: Behavioural theory: the human related approach or the behavioural theory of management was propounded by Elton Mayo in which there were correlation established between the improved workplace surroundings and employee performance. As the human resources are one of the key assets in the hospitality Industry, Intercontinental should focus on behavioural theory which promotes the team and group relations also the green human resource practices should be associated with the behavioural theory. The company should promote the Employee Engagement activities and worker participation.The Planned Behaviour theory for attracting cutomers: Theory of Planned Behaviour (TPB) is the extended version of the theory of reasoned action (TRA) which was developed by Ajzen in 1985. By application of this theory the company can measure the attitude of the individual and the correlation between the attitude and performed behaviour. The consumer study of individuals who are long term oriented will be aware and go for that services that are eco-friendly and will not harm the environment as per Verma & Chandra (2017). Intercontinental Hotel Group can maintain their customer loyalty and retention by studying and implementing the theories in the organisation. Conclusion From the above analysis and discussion we can conclude that Hospitality Industry needs reengineering in terms of management, thinking and innovation. Various articles tell that this industry due to Covid is going through hard times. There are difficulties which include migration of workers, fulfilling corporate social responsibilities and many more. In the context of Intercontinental Hotel Group it can be said that Group has to renovate itself and implement sustainable activities so that it can compete with the emerging hotels in the markets. The Group should also incorporate some sustainable practices at the workplace. The Human resources primarily is the key foundation of all the above recommendations. References: Backman, M., Klaesson, J. and Öner, Ö., 2017. Innovation in the hospitality industry: Firm or location?. Tourism Economics, 23(8), pp.1591-1614. Chung, K. and D’Annunzio-Green, N., 2018. Talent management practices in small- and medium-sized enterprises in the hospitality sector. Worldwide Hospitality and Tourism Themes, [online] 10(1), pp.101-116. Available at: . Cundy, A., 2021. Hotel chains struggle to meet green targets As guests return, sustainability goals compete with the imperative to recover lost income. Financial Times, [online] Available at: [Accessed 5 May 2021]. Dsouza, K. and Nadkar, T., 2019. Weaker France and China demand weigh on InterContinental. Reuters, [online] Available at: [Accessed 3 June 2021]. Forbes, 2018. InterContinental Hotels. [online] Available at: [Accessed 5 May 2021]. Frye, W., Kang, S., Huh, C. and Lee, M., 2020. What factors influence Generation Y’s employee retention in the hospitality industry?: An internal marketing approach. International Journal of Hospitality Management, [online] 85. Available at: . Hospitality Net, 2021. IHG Hotels & Resorts Signs Biggest Japan Conversion Deal in More Than a Decade. [online] Available at: [Accessed 5 May 2021]. Lea, R., 2019. Profits halved as problems stack up at IAG. [newspaper} The Times, Available at: [Accessed 3 June, 2021]. Pham, N.T., Tučková, Z. and Jabbour, C.J.C., 2019. Greening the hospitality industry: How do green human resource management practices influence organizational citizenship behavior in hotels? A mixed-methods study. Tourism Management, 72, pp.386-399.https://doi.org/10.1016/j.tourman.2018.12.008 Sousa, Maria & Santos, Vasco & Sacavem, Antonio & Pinto dos Reis, Isabel & Sampaio, Marta Sofia Mota Correia Sampaio. (2019). 4.0 Leadership Skills in Hospitality Sector. Journal of Reviews on Global Economics. 8. 105-117. 10.6000/1929-7092.2019.08.11. Verma, V. and Chandra, B., 2018. An application of theory of planned behavior to predict young Indian consumers’ green hotel visit intention. Journal of Cleaner Production, [online] 172, pp.1152-1162. Available at: .
- Assignment status: Already Solved By Our Experts
- (USA, AUS, UK & CA PhD. Writers)
- CLICK HERE TO GET A PROFESSIONAL WRITER TO WORK ON THIS PAPER AND OTHER SIMILAR PAPERS, GET A NON PLAGIARIZED PAPER FROM OUR EXPERTS