An InterContinental hotel Photo: IC
An InterContinental hotel Photo: IC An InterContinental hotel Photo: CFP
Last Tuesday, Kenneth Macpherson, chief executive for Greater China at InterContinental Hotels Group (IHG), reviewed the 2016 performance of IHG, saying that the group is seeing very favorable policies and support from the Chinese government, which provides the hotel industry with continuous and sustainable opportunities.
According to statistics, tourism contributed 11 percent to the Chinese economy in 2016, with tourism revenue increased by 15 percent between 2013 and 2016. Over 28 million people were directly employed by the industry in 2016, accounting for 10 percent of the total employment; the number jumps to nearly 80 million if support industries are included. "We can see how government policies are really driving this growth," said Macpherson.
As one of the world's largest hospitality companies, IHG did well last year, increasing its global comparable Revenue Per Available Room (RevPAR) by 1.8 percent and net room growth by 3.1 percent, including 8.8 percent in Greater China.
In 2016, it opened 29 new hotels and signed another 82 in the Chinese mainland, Hong Kong and Macao, with RevPAR increasing by 2.2 percent. The Chinese mainland's RevPAR was up 3.9 percent and first-tier cities in the mainland up 6.3 percent.
Sustainability & responsibility
Last year also saw the third InterContinental hotel in Beijing's Sanlitun and the fifth InterContinental hotel in Shanghai at the national exhibition and convention center, which makes Shanghai the city with the world's most intercontinental hotels.
So far the group has 292 opened hotels in nearly 100 cities and locations in the Chinese mainland, Hong Kong and Macao and 239 hotels "in the pipeline," moving into tier-one, tier-two, tier-three and key or important destinations.
The group also provided support for people impacted by natural disasters, including the Tianjin explosion in 2015, the Yancheng tornado in 2016, and is also actively engaged in many community projects. "When we think about our business, we do believe that it is incredibly important to develop it sustainably and responsibly," said Macpherson.
Each year there is an IHG Foundation week. In 2016, 42,000 employees contributed to over 170,000 different acts or participations, for which IHG contributed one US dollar per act. Last year Macpherson personally organized and participated in a bicycle ride from Haikou to Sanya with his colleagues, covering 380 kilometers in three days, to create a platform to inspire his colleagues to get involved in the foundation.
Your rate
Macpherson said the group will continuously improve its guests' experience and journey, especially in regards to technology such as cooperating with WeChat and Alipay and upgrading and enhancing its own direct booking channels. Last year IHG announced that it was the first global company in the industry to use Alipay, first in Greater China and eventually across the world.
From March 1, IHG will officially launch Your Rate by IHG Rewards Club in the Greater China market, an exclusive rate offered only to IHG Rewards Club members when they book through IHG's direct channels, mobile app or call centers. "This is an important milestone for IHG Rewards Club. It's all trusted loyalty for our valued guests," Macpherson said.
"In the US and many markets around the world, we've already seen a 16 percent increase in enrollment into IHG Rewards Club, which is the world's largest loyalty program. In January of this year we celebrated the hundred million member of IHG Rewards Club."
