Skift Take

If Amadeus and InterContinental Hotels Group build a new guest reservations system for the "community," will the hotel industry community buy in and introduce the system? That's the hope, anyway.

InterContinental Hotels Group is making big technology investments as it partners with Amadeus in developing a cloud-based guest reservation system that the hotel chain plans to introduce at its properties in 2017.

Although it has been modified aplenty in intervening years, IHG’s reservation system traces its roots to Holiday Inn’s Holidex reservation system, which was introduced in 1965.

Amadeus and IHG plan on co-developing the reservation system, which would be offered industrywide in a manner similar to the way Amadeus marketed its Altea reservation system to the airline industry.

Calling its strategic partnership with Amadeus “pioneering,” IHG CFO Paul Edgecliffe-Johnson said the chain has the “unique opportunity to input on the design and functionality as well as being the first to roll it out across our hotels in 2017. In the short time, we’ve already made good progress with what will be an industry-changing initiative.”

IHG is backing up its commitment to the reservations system with technology investments. Speaking during InterContinental’s second quarter of 2015 earnings call July 30, Edgecliffe-Johnson said following entering into the partnership with Amadeus in April, InterContinental expects to increase its capital investments to $100 million in 2015, up from $60 million in 2014.

Whether other big chains and smaller hotel groups will contract for the new reservations system remains to be seen.

In other Amadeus news, its Newmarket hospitality business acquired Hotel SystemsPro, a U.S. company that provides catering and maintenance software to the hospitality industry. Terms of the deal were not disclosed.

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Tags: amadeus, intercontinental hotels group, reservations

Photo credit: InterContinental Hotels Group is partnering with Amadeus to develop a cloud-based guest reservations system. Pictured is the 600th IHG Academy program at the Holiday Inn Express – Powless Guesthouse in Fort Sam Houston, Texas. InterContinental Hotels Group

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