IHG 'Evolves' Brand, Changing Traveler Demo

InterContinental Hotels & Resorts announced on Monday a brand evolution that re-positions the 470-plus property portfolio as a lifestyle brand with each hotel offering a "an experience-driven bespoke concept" that caters to upmarket travelers, including business travelers, according to IHG VP of global luxury and lifestyle brands Tom Rowntree. 

Within InterContinental Hotels Group, IHG Hotels & Resorts is "developing a new service style and a program that meets the needs of the modern luxury consumer," Rowntree told BTN. In addition to the lifestyle focus, the brand will incorporate celebrating guest "moments" and introduced the concept of "insider expertise" through a new concierge service that expands the function to a more interactive experience that includes lobby libraries, displays and a mobile chat-based concierge network that layers over traditional concierge offerings by tapping local knowledge across the inhouse hotel staff. 

"We're … unlocking the knowledge that we have in our hotel and providing our experts the opportunity to flourish and share their own expertise and knowledge with the guests," said Rowntree said. He gave as an example the onsite restaurant chef offering their own "insider" take on the local restaurant scene. 

Rowntree acknowledged the InterContinental brand squarely targets an upscale business traveler, with needs such as client entertainment and complex logistical support—sometimes in unfamiliar destinations. As such, he said, the concierge service helps to identify prime local restaurants and other enriching experiences but can also assist with more traditional needs like booking airport transportation or key destination insights like transit time between meetings. 

Beyond work hours, the concierge gallery or chat-based insiders also help corporates navigate leisure time. "I've got one hour free; I really want to get out there and enjoy [the location]. What can I do? Where can I go? That's another element of the role of concierge," Rowntree said.

Changing Demographic Drives Innovation

IHG's brand transformation hinges on the concept that modern luxury consumers and upscale corporate travelers have evolved. 

"The customer's changing. … By 2025, 65 percent of luxury consumers will be Millennials and Gen Z," Rowntree said, a generation accustomed to tailored shopping, personalized recommendations and experiences. It's also a generation looking to capitalize on business trips to incorporate personally enriching experiences. 

As such, IHG's new services include a focus on personal events with the Incredible Occasions program, which specializes in celebratory amenities for guests. 

Also on the horizon is IHG's upcoming partnership with travel wellness app Timeshifter, available later this year. Guests will be prompted to download the app with "an access code that gives them complimentary access for that visit when they're traveling to that location," Rowntree said. The partnership will be available at "key gateway cities" first, and then all IHG properties, according to Rowntree.

Changing traveler demographics and IHG's internal research coincided with company's plans to evolve its luxury and lifestyle services, as IHG recently partnered with Forbes travel guides to gain "insight on the customer and their expectations" specifically on "concierge services," Rowntree said, highlighting specific areas where the luxury lifestyle group plans to evolve to meet changing traveler needs.

IHG's luxury lifestyle portfolio includes six brands, a category representing 21 percent of the company's pipeline, which has "doubled over the course of the last five years," Rowntree added. 

IHG isn't the first to identify these trends and refresh its brands and brand structure accordingly. Accor split off its luxury and lifestyle portfolio into a division last year, changing from what it called a "generalist" model to a "multi-specialist." The French hospitality giant assigned the division a new leadership team in January, focused on local culture and hospitality. Hyatt Hotels Corp., too, has focused on its luxury and lifestyle portfolio, with the acquisition of Dream Hotel Group and other moves. 

IHG's portfolio includes more than 479 properties across 70 countries.

— Elizabeth West contributed to this report.