This is the most important article I’ve analyzed so far and I strongly recommend it to read it. Based on 4,000 hotels in Europe and 10 year period, the authors proved that hotels achieved higher RevPar when they positioned their ADR higher that their direct competitors. Moreover, the consistent relative pricing over time didn’t affect the RevPar what means that variable pricing which is the core principle of nowadays Revenue Management is questionable.
Cathy Enz, Linda Canina, Jean-Pierre van der rest
The Center of Hospitality Research. Cornell University.
The following report provides a financial analysis of Intercontinental Hotels Group (IHG). Suitable ratios regarding profitability, liquidity, efficiency and gearing have been calculated and compared vis-à-vis one of its major rivals, Marriott International in order to provide an understandig of IHG’s relative financial position. Secondly, the report provides a discussion regarding some of the shortcomings of IHG’s financial statements from an investor’s point of view and highlights some of the non-tangible considerations that should be taken into account when investing in the hotel industry. Finally, the report puts forward conclusions stemming from the above mentioned sections.
Oxford Economics for the World Travel & Tourism Council