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Holiday Inn Strategic Management

Keywords: trip inn swot examination, trip inn competitors

Management can be generally defined as a art and science of getting the things done from others. The prior definition explains a manager plans and guides a particular work which is performed by other people. In this assignment I am discussing about different strategic management process. Tactical management process is one of the extremely important management process that are been used by different organisation's.

Strategy :- Strategy are the resources employed by the managers to attain long term goals. In simple term, strategies will be the idea's which can be been employed by the management.

Strategic management :- Tactical management is a do of drafting, putting into action and evaluating cross efficient decisions in allowing to achieve its long term objectives.

There are different types of process involved with tactical management :-

Marketing is accepted internationally as a life bloodstream of any company. In this research I noticed that proper management reaches the same level as marketing which decides the future and prosperity of the organisation. Exercising the management of strategies is very essential in the competitive world. Successful professionals will have to know their business market situation and position and apply the strategies when required. I kept these objectives at heart and created some management attributes in myself while doing a research on this topic. Personally i think that I need more understanding of the management procedures. So in my research on strategic management I needed a good understanding of tactical management and methods.

Basically the idea of strategic management directly resembles components of foresights; this means planning a mind is a significant element available. Strategic management is recognized as a life blood vessels of any company. This task on strategic management includes the change and development in the organisation.

I also have understood that developing a clear idea of strategic management is vital in today's competitive business community. Company's more recently seek ways to attain a competitive advantages with other players on the market that they operate. The surroundings in which a company operates can offer circumstances where in fact the outcomes may maintain positivity or negative. Many organisational studies have provided numerous theories that help companies in taking new ways in working with their operations.

Strategic management is one particular important management theories and process that has been utilized constantly by any business to handle their management and decision making needs.

I have chosen Getaway Inn for example to illustrate the adaptation of proper management and its process. Within this assignment I have written about how holiday inn hotels analyse and critically evaluate the organisation practice to solve the problem connected with employing their strategies.

Main body :-

Now I will be giving a short history on christmas Inn hotel. Kemmons Wilson at first developed the idea after a family group road visit to Washington, D. C. , during which he was disappointed by the product quality and reliability provided by the roadside motels of this time. The name Holiday break Inn was given to the original hotel by his architect Eddie Bluestein as a tale, in reference to the Bing Crosby movie.

In 1957, Wilson franchised the string as Holiday break Inn of America and it grew significantly, pursuing Wilson's original tenet that the properties should be standardized, clean, predictable, family-friendly and quickly accessible to street vacationers. By 1958, there have been 50 locations across the country, 100 by 1959, 500 by 1964, and the 1000th Trip Inn opened in San Antonio, Tx, in 1968. The chain dominated the motel market, leveraged its impressive Holidex reservation system, put sizeable financial pressure on traditional hotels and placed the standard for its competition, like Ramada Inns, Quality Inn, Howard Johnson's, and Best Western. By June 1972, when Wilson was presented on the cover of energy magazine, there were over 1, 400 Getaway Inn hotels worldwide. Enhancements like the business's Holidome indoor pools switched many hotels into roadside resorts.

The company later branched into other related businesses, including Medi-Center assisted living facilities, Continental Trailways, Delta Queen and various related corporations. Wilson also later developed the Orange Lake Hotel and Country Membership near Orlando and a chain called Wilson World Hotels. The family of creator Kemmons Wilson still runs hotels within the Kemmons Wilson Companies of Memphis. Wilson retired from Trip Inn in 1979.

Although still a healthy company, changing business conditions and demographics noticed Holiday Inn lose its market dominance in the 1980s. Holiday Inns, Inc. was renamed "Trip Company" in 1985 to echo the progress of the company's brands, including Harrah's Entertainment, Embassy Suites Hotels, Crowne Plaza, Homewood Suites by Hilton and Hampton Inn. In 1988, Holiday Company was purchased by UK-based Bass PLC (the owners of the Bass beer brand), followed by the remaining domestic Vacation Inn hotels in 1990, when creator Wilson sold his interest, and the hotel group was known as Holiday Inn Worldwide. The remainder of Holiday Company (including the Embassy Suites Hotels, Homewood Suites by Hilton and Hampton Inn brands) was spun off to shareholders as Promus Companies Incorporated. In 1991, Bass launched Holiday Inn Express, a complementary brand in the limited service segment. In 1994, Bass launched Crowne Plaza, a transfer to the upscale hotel market. In 1997, Bass created and launched a new hotel brand, Staybridge Suites by Getaway Inn, stepping into the UNITED STATES upscale expanded stay market. In March 1998, Bass obtained the InterContinental brand, increasing in to the luxury hotel market. In 2000, Bass sold its brewing property (and the rights to the Bass name) and improved its name to Six Continents PLC. InterContinental Hotels Group (IHG) was created in 2003 after Six Continents put into two princess companies: Mitchells & Butlers PLC to take care of restaurant resources, and IHG to focus on soft drinks and hotels, like the Holiday break Inn brand.

Business marriage with Gulf Oil

In 1963, Holiday Inn signed a long-term offer with Gulf Oil Corporation in which the lodging string would agree to Gulf bank cards to demand food and lodging at most of its hotels (in the United States and Canada). In exchange, Gulf would build service stations on the premises of many Holiday Inn properties, especially those along or near major U. S. and Interstate highways. Many more aged Vacation Inns locations (including some no more area of the chain) still have the service train station properties intact today, either still in procedure or shut down. With the exception of a few locations in the eastern U. S. , almost no of the still-open stations are now Gulf stores. The portion of the contract which allowed Gulf credit cards to be used for repayment of food and lodging at Trip Inns was copied by contending lodging chains and major petrol companies during the mid-to-late 1960s. The majority of those agreements fizzled out with the 1973 essential oil turmoil. The Gulf/Vacation Inn arrangement finished around 1982.

The brand Holiday Inn is currently held by IHG, which licenses the name to franchisees and third parties who operate hotels under management agreements.

In January 2002, The Wall membrane Street Journal reported that the company, led by Ravi Saligram, was producing a new 130-room "Next Generation" prototype hotel to restore the brand. It would include a bistro-like restaurant and an inside pool. The to begin these prototype hotels, the Holiday Inn Gwinnett Centre, was built-in Duluth, Georgia, in 2003.

On 24 Oct 2007, IHG announced an internationally relaunch of the Holiday Inn brand. The relaunch is "focused on delivering consistently best in school service and physical quality levels, including a redesigned welcome experience and personal bedding and bathroom products. . . " The first relaunched Getaway Inn is likely to open in america in the springtime of 2008. The complete relaunch process is designed to be complete by the end of 2010.

In Sept 2008, IHG announced the creation of a fresh timeshare brand, Vacation Inn Club Holidays, a tactical alliance together with the Family of Orange Lake Resorts.

As advised before strategic management is a couple of activities undertaken in the region of time. One of the first duties in strategic management is environmental examination. Environmental evaluation is the study of organisations environment to pin point environmentally friendly factors that can significantly influence the organisational operations. It provides a frame work with understanding an organisations environment with the purpose of assisting to find the key issues and different means of coping up with the complexness and change. A business organisation operates within an external and inside environment. The factors which influencing the exterior environment is recognized as PESTEL.

PESTEL stands for political factors, cost-effective factors, public factors, scientific factors, ecological factors and legal factors.


The political, cost-effective and sociable context stood as a large problem for the company of Holiday Inn when they entered the market. the holiday inn procedures are highly influenced by the plans set by the federal government in which ever before territory or country they operate. Most of the Vacation Inn are manipulated by restrictions of operations and guidelines of specific properties. The Holiday Inn group will also give attention to concerns such as health and safety employment, regulations, worker coverage and environment. From my studies I believe all these elements have emerged in the control of federal government that authorises licensing of hotels in various states. Being in a small business environment they need to follow the employment procedures and tax obligations where they operate. As the company is widely expanded and well developed they need to co-operate with the tactics set by politics body. After my research I believe the corporation should get full co-operation from the political power to succeed in local and international market. as many private enterprise when holiday break inn was opened up the management had very casual sense of course setting up a few very long time goals without implementing proper strategy. How ever by implementing a fresh situation in their strategy with established a global competitive advantage in hotel industry as holiday increased all over the place and the hotel accommodation was in demand following this the management of Getaway Inn realised the need and development of planning strategies. The management achieved a competitive gain position and enhanced the vacation inn group's performance in relation to its rival. Company have taken a very good advantage of this point and served the forex market segment on a regular basis. They have given market what they want according to the expectations. I think by going right through company history the Holiday Inn is propagate all over the world. This vast development is because of its good inexpensive stability.

The company has its concerns relating economic factors. The branches and franchise like Trip Inn has the tendencies to see the hard boats in instances where the market of the particular countries is strike by inflation and changes in trade rates. Due to the throw-away income of the citizens in developed countries the holiday inn group provided prior importance in marketing their business as a result of economic stability of these countries.

Holiday Inn is a global wide chain and its international useful strategies will always yield profitable earnings. The potential customers are from all around the globe. It really is been known that the vacation inn company has given the marketplace such as Europe, Asia, America with regards to their social-cultural needs. Holiday break Inn, like all the hotels has established a good system in identifying the needs of the marketplace. The company uses the idea of product, personality, behavior of the customer and purchasing to its gain.

Now I will speak about the technical factors influencing the company. This is because of the technical advancement due to which the company could reach in a very short span to many people about their various products and service information. Customers can contact Trip Inn by many means such as emails, telephone, travel agents, website etc. holiday break inn is providing their guests with all modern amenities and facilities with their rooms to supply the best accommodation experience. Their hotels around are fully prepared with modern amenities and complex advancement. The above mentioned analysis helped me a lot to regulate how much the elements of PESTEL were helpful and positive for the development of the company

After the evaluation of PESTEL and depending after that outcome I've also carried out SWOT analysis of the company Holiday Inn which gives me exact position of the business on the market.

SWOT means power, weaknesses, opportunities and risks. They are the factors influencing the internal environment. SWOT examination is extremely useful for understanding and decision making for those source of situation running a business and organisation. It also provides a body work for critiquing strategy position and path of the company.

I believe that it is therefore important to judge the surroundings opportunities in relation to the strengths and weaknesses of the company resources.

Strengths: - as stated in the annals of the company it clearly suggests that the vacation Inn Corporation is a well established company and industry head in hospitality. Trip Inn is well varied hotels in the high end, business and middle costed classes in their product mixture. Holiday Inn also poses a good integration features such as using the companies that produce its furniture and has invested in online reservation travel enterprises. In addition, it has easy access to all or any its customers to get information and also offers a excellent booking system.

Weaknesses: - according to my research Getaway Inn may be narrowly centered making it susceptible to the down turn in the global current economic climate and other globally catastrophes that could limit global travel. Trip inn hotels may also be venerable to employee's attacks and crack down on undocumented workers. I think the aggressive development policies may put the company in trouble during the global down convert. A number of the branches or franchises do not follow the holiday inn set benchmarks, recruitment process successful accounting systems.

Opportunities:- Holiday break Inn corporation is a global pioneer in hospitality industry. Their position is strong fiscally and they are widely expanding all over the world. They offer a range of distinctive and specialised services with their guests. There is also an opportunity to expand or get a cruise lines company. The vacation inn company should take advantage of emerging marketplaces especially with business clients and middle priced markets. The vacation inn company has a strong affiliation with REIT (real estate investment trust) or similar company that provides a solid regress to something easier for hotels. It offers a solid skilled work force around.

Threats: - Like all the business, the major danger for holiday break inn will be an emergence of a fresh competitor. The competition will be more active to advertise the idea of global brand name. Holiday Inn has its resources to preserve their global brand name. Generally the hotel industry faces a hazard from internet booking channels which represents a growing show of hotel room booking. To overcome these threats Getaway Inn has its centralised reservations system.

Looking at proper direction of the company the mission statement says GREAT HOTELS GUEST LOVE implies that vacation inn makes all initiatives to go beyond their customer expectation. This statement includes all aspects on hospitality company in a brief manner. The eye-sight assertion and the worth of the company states that every year vacation inn (IHG) and the management will be thought to be the best and most desired hospitality group. From my own experience while working with trip inn group I can say they are following their perspective and mission statements.

By watching their tactical formulation they have got adopted cost command strategies. They are really one of the lowest cost providers for their product. This makes many customers to become potential and dedicated. They have got targeted very wide market from high and society to middle and the lower one. While offering this wide selection of offers to the customers they are suffering from and achieved best value strategy. Within my analysis on christmas inn I found out the difficulties faced by them or in other words we can say their weakness. They confronted great challenges while coming into the Asian market segments. The reason behind this was they were not familiar with Asian market. To beat this problem they had to have a strong action plan by putting your signature on a joint relationship with Asian hotel businesses. This provided them a base to learn about the Asian environment and their establishment. Holiday break Inns vision for the future was a house that gives new degrees of customer convenience by stretching hotel systems for guest and employee gain access to using the hotels wireless infrastructure.


From my research since trip inn is expanding it pays to cope with proper authorities in the particular market segments where they plan to operate. The business has to accomplish and meet all the prerequisites for doing business. The company also needs to carry out a well conducted market research before penetrating the new sections of market. the company should obtain relevant information from the prospective market in addition to the individual customers of organisation. A comprehensive researching the market is a must before granting a franchise. I think similar research should be produced in areas like consumer behaviour and purchasing habits of the marketplace. Holiday Inn Corporation must re-evaluate its inner environmental factors like Talents, Weakness, Opportunities and threats to triumph over with a tactical direction modifying its objective and vision and at exactly the same time maintaining its principles. They are the few strategies that getaway inn must choose to appeal to more diversified clientele. Therefore to be able to survive and maintain the brand holiday inn corporation should be steady with the excellent service being always progressive. They should also create the role of middle professionals and let these to be more innovative.

I think the biggest challenge for Trip Inn is extension and franchises. The main features of Holiday break Inn Firm should be placed as a typical one for the franchisers to follow. Will the franchisers really establish the standards accompanied by Holiday Inn Company? What are the work that are to be put for the franchisers to check out the standards establish by Vacation Inn Company?

Holiday Inn is also which consists of technology to its advantage. The interactivity and the real time ramifications of communication is an excellent way to find suppliers.


Successful strategies always demand a company to find the market where their unique capabilities will gain competitive benefits. However the adoptive and incremental framework of proper management means that the business starting point leads the organization to a well balanced position. Corporate and business strategies of Getaway Inn have been able to use proper management to stay in the competition in the global market. I believe that the strategies as well as the command styles used by the management of Holiday inn have been the major reason behind their competitive position in the hotel market.

Though Holiday Inn is recognized as a innovator in hospitality sector there is a need of versatility. Slight changes in the market can result their businesses of the business enterprise. They should not rely on the previous success but instead they have to impressive and ready for any future uncertainties.

Holiday Inn Corporation targets services somewhat than accommodation itself. I truly agree that the real asset of the company is the staff. The staff will be the one who symbolize Holiday Inn hotels through their excellent services. So there is a need to ensure that the staff is always pleased with the behavioural integrity of workplace. The corporate strategy of Holiday break Inn has been able to guide the company from challengers and opportunities that shows up on the market environment in order to sustain the competitive advantage. Therefore I think the leaders of the company should continue their style to encourage their employees and become a major advantage for the success of the business.

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