IHG(R) Trends Report Challenges Brands to Build 'Trust Capital'

PR59255

LONDON, Jan. 20 /PRN=KYODO JBN/ --

    'Trust Capital' is now the '4th C' of organisational value - alongside

Human, Financial and Intellectual Capital - and a key factor for consumers in

making brand choices

    InterContinental(R) Hotels Group [http://www.ihg.com ] (IHG) today launched

its 2015 Trends Report [http://www.ihgplc.com/trends_report ], Trust Capital:

The new business imperative in the Kinship Economy, which identifies the

growing importance for companies to build both brand and organisational trust.

IHG is publishing its report during the World Economic Forum (WEF), in Davos,

which highlights the erosion of trust in public and private sector institutions

as one of its key trends.

    Many companies focus on the 3Cs of organisational wealth: Financial

Capital, Intellectual Capital and Human Capital. Today, corporations must add a

fourth 'C': generating, gathering and growing Trust Capital which represents

the confidence consumers have in the credibility, integrity, leadership and

responsibility of an organisation and its brands.

    IHG's 2015 Trends Report [http://www.ihgplc.com/trends_report ] focuses on

how organisations can build Trust Capital, unveiling a blueprint that

organisations can follow to build trust with different demographics and across

different geographies.

    This insight is based on a series of related studies spanning a three-year

period and involving nearly 40,000 interviews with international travellers

worldwide. It is the third in a series of reports focusing on consumer insights

impacting the hospitality industry and business in general. In 2013, IHG

published 'The New Kinship Economy'

[http://library.the-group.net/ihg/client_upload/file/The_new_kinship_economy.pdf

], which highlighted a transition from brand experiences to brand

relationships in the hospitality sector. The 2014 report, 'Creating Moments of

Trust - the key to building successful brand relationships in the Kinship

Economy' [http://www.ihgplc.com/index.asp?pageid=938 ] built on this work and

suggested that to win guest loyalty in the future, hotels need to deliver a

global, local and personalised experience.

    Richard Solomons, Chief Executive Officer, IHG, said:

    "As we look around us, there are so many shifts taking place. In a digital,

24/7 world, where personalisation is increasing and consumers have a new

definition of value, the trust that people have in both brands and the

organisation behind them is more important than ever.

    "Our research has shown that building 'Trust Capital' plays a critical role

in delivering sustainable, high quality revenue growth. To build trust,

organisations must ensure they adopt a trust agenda, focus on personalisation

whilst being aware of the boundaries and develop a deep understanding of how

guest needs are changing by demographic and by geography.

    "For IHG [http://www.ihg.com ], maintaining our focus in these areas will

help us to continue to build genuine guest loyalty and rewarding relationships

between our guests and our brands, now and into the future."

    Key Insight: Changing Demographics

    The report provides some important insights into our changing world that

are having a direct impact on the way consumers build Trust Capital. One key

trend is that consumers are getting older and younger all at the same time but

not in all the same places. The demographic picture shows a large group of

Boomers (born 1946-1964) and a large group of Millennials (born 1982-2000).

    These two groups have very different mind-sets, world-views, different

desires when travelling, and different approaches to brands and trust. The real

opportunity for brands is strategically managing both of these groups at the

same time. According to the research:

    - Millennials prefer close, experiential relationships with brands whereas

Boomers look for brand relationships that go smoothly, with no hitches or

glitches:

    - 23% of Millennials say they want to stay in hotels that say

something about them, versus 11 % of Boomers

    - Millennials are more apt to be 'invisible Travellers' than Boomers

-       people who can move through the guest journey without caring for

people-enabled contact:

    - 67% of Boomers say they would prefer to call a hotel and speak with

'real' people on-site for information, versus 56% of Millennials

    - Millennials and Boomers have different desires when travelling as a       

family. Millennials look for places that have family-centric activities where

their children will be well taken care of and will have fun. Boomers prefer

everyone to be together in a multi-generational way.

    The report argues that the changing nature of the family is also impacting

how the consumer builds trust. It reveals that the Kinship Economy now has two

kinds of kinship: kin, those who are our true family and kindred spirits.

Appealing to a person's two "networks" in relevant and differentiating manners

is a positive (and cost-effective) way to gain and retain consumers.

    For more information on IHG's 2015 Trends Report please visit

http://www.ihgplc.com/trends_report

    Notes to Editors:

    About IHG

    IHG (InterContinental Hotels Group) [LON:IHG, NYSE:IHG (ADRs)] is a global

organisation with a broad portfolio of nine hotel brands, including

InterContinental(R) Hotels & Resorts, Hotel Indigo(R), Crowne Plaza(R) Hotels &

Resorts, Holiday Inn(R) Hotels & Resorts, Holiday Inn Express(R), Staybridge

Suites(R), Candlewood Suites(R), EVEN(TM) Hotels and HUALUXE(R) Hotels and

Resorts.

    IHG manages IHG(R) Rewards Club, the world's first and largest hotel

loyalty programme with over 82 million members worldwide. The programme was

relaunched in July 2013, offering enhanced benefits for members including free

internet across all hotels, globally.

    IHG franchises, leases, manages or owns over 4,700 hotels and 697,000 guest

rooms in nearly 100 countries, with almost 1,200 hotels in its development

pipeline.

    InterContinental Hotels Group PLC is the Group's holding company and is

incorporated in Great Britain and registered in England and Wales.

    Visit http://www.ihg.com for hotel information and reservations and

http://www.ihgrewardsclub.com for more on IHG Rewards Club. For our latest

news, visit: http://www.ihg.com/media , http://www.twitter.com/ihg ,

http://www.facebook.com/ihg or http://www.youtube.com/ihgplc

    The IHG Blueprint for generating Trust Capital:

    1) Adopt a Trust Agenda within the organisation, led by the CEO, or 'Chief

Trust Officer'.

    2) Recognise that trust is not the same as reputation - both are

equally  important and should be treated so.

    3) Focus on personalisation, but know your limits.

    4) Acknowledge that every consumer is value conscious and that

consumers determine value, not companies.

    5) Focus on the consumer's new way of assessing brand value.

    6) Focus on building value through 'one-think decision-making'.

    7) Distinguish repeat behaviour from real brand loyalty.

SOURCE: InterContinental Hotels Group (IHG)