The first half of 2023 has been promising for InterContinental Hotels Group (IHG) as it witnesses a resurgence in business travels. Their daily booking rate has surged by 7% in comparison to the first half of 2022.
Based in the UK capital, the hospitality giant recorded an 11% increase in the daily rate for the initial six months of 2023 when stacked against 2019 figures. The occupancy rate is also inching closer to the 2019 numbers, with a minor gap of 1.3%.
Newly appointed IHG Chief, Elie Maalouf, remarked, “The tourism sector is bustling. We’ve seen revenue metrics ascend continuously, even surpassing the pre-pandemic highs for the past year. Regions spanning from Europe to Asia exhibit a steady uptick in leisure tourism, with a notable resurgence of corporate travels.”
The data also spotlighted the re-emergence of group events, with reservations outpacing 2019 stats for half the year. By June 2023, the global earnings from these reservations peaked 36%, in contrast to pre-pandemic numbers.
Even with global economic fluctuations, IHG observed persistent consumer enthusiasm, with no major drop in demand.
IHG’s mid-year revenue soared by 24%, settling at $2.23 billion, with net earnings doubling up to $459 million vis-à-vis the prior year.
In the European, Middle Eastern, African, and Asian markets, revenue metrics saw a remarkable 42% spike in 2023’s first half. The post-pandemic recovery phase has rejuvenated corporate and group bookings.
The UK market, benefitting from early lockdown lifts, recorded an 18% surge in the second quarter. London took the lead with a 22% rise, while regional areas experienced a 16% hike. IHG further mentioned that recovery rates varied depending on the travel easements.
The second half of 2023 may pose more challenges in comparisons due to economic vagaries. However, IHG remains optimistic about continued positive revenue growth across all regions.
