Holiday Inn Case Study

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2. Fundamental of Holiday Inn 2.1 Company Background: Holiday Inn is founded since August 1, 1952 and under the banner of InterContinental Hotels Groups since 2003. There are total four brands within the Holiday Inn family, which are Holiday Inn Hotel, Holiday Inn Express, Holiday Inn Resort and Holiday Inn Club Vacations respectively. Holiday Inn provides variety service to cater difference needs of customers with more than 3,500 hotels all over the world. Mitchell (no date) state that Holiday Inn Hotel was constructed in Memphis in 1952, it had quickly develop and expand and became the hotels criterion for travelers. Kemmons Wilson, a local home builder in Memphis, aroused the idea of establish Holiday Inn during once of his travelling journey.…show more content…
120 rooms with air conditioning, television and telephone were offered in his original hotel. Hotel had an outdoor swimming pool for customer entertainment and children under 12 can stay with their parents in the hotel free of charge. The $76 billion highway development from local government in1956 provided his business the perfect opportunity to expand his business, as families took to the new freeways to explore the country. Wilson began recruiting investors since 1953, and the company offered its stock publicly in 1967 to generate capital for the chain's continuing expansion. The first European hotel, Holiday Inn Leiden was also opened the in 1967 and Holiday Inn became the first hotel chain to exceed $1 billion in revenues in 1972. Mitchell has also mentioned that Holiday Inn was the pioneer of using franchise to develop their business in hotel industry, which it began in 1957. This expand method helped the organization grow from 50 locations in 1958 to 500 in 1964 to 1000 in 1968. In 1985, Holiday Inn was acquired by the Bass beer corporation when it incorporated various hotel brands such as the all-suite, Embassy Suites and the luxury brand, Crowne Plaza. Holiday Inn is willing to try and embrace new technological innovation during its expansion, in 1965 it contracting International Business Machines to design and implement the chain's Holidex system. This computerized system made booking more efficient for guests and desk clerks alike, and provided a constant flow of information between the chain's hotels and the home office in Memphis. In 1995, Holiday Inn became the first chain hotel to allow guests to book directly through the hotel's

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