Encouraged by the global recovery of travel and accommodation, IHG Hotels and Resorts, Chief Executive Officer – EMEAA, Kenneth Macpherson, is looking forward to another successful year in 2023, despite the many varied and evolving challenges facing the industry.
“Consumers are prioritising spending on experiences such as travel above everything else, and not just in hotels, with airlines, cruise companies and other sectors also reporting improvements,” Macpherson told HM exclusively.
“In those markets that reopened first – such as the US, UK and Middle East – we’ve seen a healthy level of sustained demand for a consistent period of time, while others are now beginning to get there, too.”
Pointing to strong demand for leisure business as the main driver of recovery, Macpherson said he is pleased to see groups and meetings bookings now also coming back strongly.
While challenges abound, Macpherson is confident in the resilience of the industry.
“There are certainly many macro-level challenges facing us, including the war in Ukraine, high interest rates, inflation, disrupted supply chains and the shortage of talent – which I know is of particular concern in Australia,” he said.
“We cannot ignore these headwinds, but it’s important to remember that they don’t paint the full picture of our industry, the long-term drivers of which remain in good shape.”
In 2022, IHG focused on expanding and strengthening its brands, transforming its loyalty and technology offer, fine-tuning hotel operations, and making strides with its responsible business plan, Macpherson explained.
The business also celebrated the Diamond Anniversary of its brands in Australia.
“We’ve certainly come a long way since InterContinental Southern Cross Hotel Melbourne opened in 1962,” he said.
In 2023, the business will continue to work with government and associations to drive sustainable growth.
“Together, we look forward to another successful year in 2023, providing our guests with outstanding stays and many long-lasting memories in Australia and all around the world,” Macpherson added.
Read Kenneth Macpherson’s complete 2023 outlook in HM’s Industry Leaders Forum.