Case Study 2: Analysis

From ancient times to the present, the hospitality industry has done exceptionally
well. As the economy heals from the pain of the pandemic, the movement of people from
one place to another heightens. People all over the world are more eager to do business,
visit casinos and spas, and stay in hotels and resorts as a result of COVID-19 lockdowns.
The industry was anticipated to increase to 950 billion US dollars in 2021, although it
was not anticipated that this amount would match pre-pandemic levels. (SRD, 2022) In
total, technology development has contributed to the expansion of the aforementioned
industry, since 81% of tourists desire improved digital customer service from hotel
brands. These various factors are considered vital to the success of many hospitality
companies globally.

During these contemporary times, doing business with the aid of technology
creates an effective formula to cater to the ever-changing needs of customers. This has
surely been the case with Intercontinental Hotels Group (IHG). The firm, which had been
the top hotel chain in the 1960s, caught up to its rivals in the late 1980s and early 1990s
after more than 20 years of falling behind. Part of its success can be attributed to
corporate decisions over how much and where to invest in technology.

One of the remarkable technological innovations that IHG has adapted is

penetrating deeply into the e-commerce approach to business. That includes having
modern property management systems installed by the corporation in place of out-dated
ones in all of its hotels. According to data from 2000, the company tested a low-cost,
web-enabled PMS that drastically changed the cost structure of property management.
Moreover, the corporation studied the use of credit cards for guest room access, which
allowed visitors to forego the customary check-in process in the lobby. Another
innovation was the Tech Pack, a fully integrated technology package that Bass offers to
operators of its brand-new Staybridge Suites extended-stay hotels. Everything needed to
get the hotels up and operating, from call accounting software to revenue management
applications, is included in this kit.

Additionally, the business partnered with wireless "ASP" (application service

provider) Air2Web to create a platform capable of spanning a range of wireless carriers,
networks, and devices, enabling visitors to find hotels and purchase rooms from any
wireless device. This made it possible for the business to support numerous end users and
simplify system access. In the early 2000s, IHG incorporated Bluetooth technology into
one of its hotels. The system can automatically recognize and check guests who enter the
hotel lobby using a Bluetooth handset device. The abovementioned innovative
technological incorporations made by IHG are just a few of the numerous modern steps
they took as the company continuously evolved to fit the needs of the time.

On the other hand, an entirely new, interconnected global business landscape has
been made possible by digital transformation, offering new markets and opportunities.
But this digital boom has also increased the opportunities for hackers and con artists to
get into networks and damage businesses. (Diffily, 2022) In the past few years, many
incidents of cyber-attacks on hospitality businesses have taken place, breaching the
sensitive personal information of customers.

Making the ins and outs of IHG more and more digital opens a wide vulnerability
for hackers to steal not just from the business but also from innocent customers.
Technology can indeed provide more convenience in any business, but it can also destroy
the integrity and quality of any company when loopholes are surveyed or studied from
time to time.

That’s why IHG should and must continue to incorporate the latest and most
effective cyber security applications such as firewalls, virus detectors, data encryption
features, and the like. Through these means, customers are not only pampered with
physical services. They are also in a good state of mind knowing that the personal data
they give to the businesses is kept safe and secure. This kind of feature in hotels is quite
costly, but it will surely pay off in the long run. It is possible to manage and thereby
decrease the effects of cyber-attacks by being prepared for and able to handle such
situations. The most crucial thing, according to Christopher Bolger, senior risk manager
at Venture Insurance Programs, is to continuously upgrade the security procedures that
hospitality businesses choose to use. This should be done by IHG to maintain its status as
one of the leading companies in the hospitality industry.

IHG’s achievements throughout the years of its existence are highly

commendable. Their dedication to providing the best quality services to their customers
can never be undermined. In the coming years, many technologies will surely be
developed, which will greatly help businesses of all types to foster even more.
Technology, in the right hands, can be a fantastic ally in any endeavor. Yet, keep in mind
as well that it can be the worst, unseen adversary in the hands of someone with impure
intentions.