Intercontinental Hotel Group
Global Media Agency Renegotiation

Background

InterContinental Hotel Group (IHG) is home to some of the world’s most prestigious and well-known hotel brands, with a deep history and heritage. IHG operates nine hotel brands, more than 4,700 hotels, nearly 674,000 rooms in almost 100 countries. It has more guest rooms than any other hotel company in the world. Brands include: InterContinental, Hualuxe, Crowne Plaza, Hotel Indigo, Even Hotels, Holiday Inn, Holiday Inn Express, Holiday Inn Resort, Holiday Inn Club Vacations, Staybridge Suites, Candlewood Suites.

Challenge

IHG decided to renegotiate terms with its global media incumbent agency, Mindshare, and asked ID Comms to lead and provide expert guidance throughout the process The geographical scope of the project included the Americas, Europe, MEA and Greater China.

Action

ID structured the process around a four-step framework:

  1. Defining customised scope of work relevant for each of the four regions covering the Americas, Europe, MEA and Greater China
  2. Developing a consistent overall global remuneration model and facilitating alignment and agreement from stakeholders centrally and across the four regions
  3. Developing an overall renegotiation proposal that would provide the impetus for the negotiation process
  4. Supporting the core IHG team throughout the renegotiation process and right through to contract signature

Results

A renewed global agreement between IHG and Mindshare with clearly defined and accountable deliverables based on:

  • A redefined agency resource structure to reflect current scope of work, across all regions;
  • A redesigned remuneration model, consistent across all regions, structured to provide a performance based incentive to reward value generation; and
  • Improved media trading position securing immediate media value improvements across all regions.
“ID Comms were instrumental in helping us secure the contractual agreement we were looking for. Throughout the entire process ID Comms were professional and supportive, their guidance and expertise was invaluable to us.”
Global Procurement - Head of Category
Summary
The world’s biggest hotel company IHG wanted to review its media agency contact with Mindshare.
IHG asked ID Comms to work with it to provide expert guidance and lead the process.
A four-step framework examined scope of work, consistent remuneration globally, allowing the development of a renegotiation proposal and provision of expert support.
The new contract provided greater clarity, correct resource and performance incentives for Mindshare.
IHG has benefited from immediate media value improvements across all regions.
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