ROMIL HARRISON 036

TANVEER SINGH 010

AKHIL CHOPRA 033
MAYANK PRAJAPATI 019
ROMIL HARRISON
BCIHMCT (2016-2020)
 INTRODUCTION

 Accor S.A., doing business as AccorHotels, is a French multinational hospitality

company that owns, manages and franchises hotels, resorts and vacation
properties. It is the single largest hospitality company in Europe, and the sixth
largest worldwide.
 Accor operates in 100 countries, with more than 4,800 hotels and 280,000
employees worldwide. Its total capacity is approximately 704,000 rooms. Accor
owns and operates brands that cover every segment of hospitality: luxury
(Raffles, Fairmont, Sofitel), premium (MGallery, Pullman, Swissôtel midscale
(Novotel, Mercure, Adagio,) and economy (ibis, hotelF1,). Accor also owns
companies specialized in digital hospitality and event organization (onefinestay, D-
Edge, ResDiary, John Paul, Potel & Chabot,).
 The company is headquartered in Issy-les-Moulineaux, France, and is a constituent
of the CAC 40 index in the Paris stock exchange.
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 Table and Figures Background

 The Accor Hotel Group (Accor) is a leading European multinational hotel and is
considered to be the third largest hotel group in the world, they in 2006 had over
4,094 hotels with approximately 480,036 rooms in 92 different countries (Patel,
2007). A major part of the sales came from the European sector which counted for
33% excluding France as this country was their main source of revenue wit 32%, the
other major sectors consisted of North America, Latin America and Other countries
which counted for 23%, 3% and 9% respectively but this was due to the fact that a
lot of Accor hotels were based in the European countries mainly France which
counted for 1,347 hotels and 25% of the rooms and second largest was the North
America which had 1,264 hotels and counted for 28% of the rooms (Accor Group ,
2006)
 Development strategy

 Accor’s strategy is to accelerate hotel development, through both organic growth and
acquisition. The expansion of the Accor network continues at a rapid pace, with a record
100,000 rooms opened last year.

Geographically speaking, we focus on reinforcing our positions in markets where we are

already leaders (Europe, Americas and Asia Pacific). However, we are also focusing in
emerging markets, notably in the Middle East, South-East Asia and Sub- Saharan Africa.
 GROWTH & MARKET SEGMENT

 .
 Data Analysis

 As mentioned before Accor brands could be divided in three sectors Upscale, Midscale and
Economy Brands and this was called the Multi-Brand strategy which meant that they offered
several brands for the same sector like Novotel, Mercure and Red Roof were mainly midscale
brands and Formule 1, Motel 6 and Etap were their budget or economy brands and this is a key
strategy that helped Accor built their brand as they focused not on building newer brands like
some of the other Chain Hotels but instead took over some of the already existing local brands
that helped then not only to increase the number of hotels but also gave them a solid knowledge
about the various markets and assisted in the development of these brand the existing country
(Patel, 2007). The other key success factor was their focus on the economy and budget sector as
the demand for low priced rooms with good service was increasing and considering the fact that
Accor was already an established brand in Europe added to its success in other continents. Accor
believed in managing, franchising or leasing their brand and tried not to own many hotels thus
they only owned 13% of their total number of hotels (Patel, 2007).
 Accor’s main sector of choice was Europe and mainly France but seeing the growth of some of the other
countries namely BRIC they tried to focus their resources towards these sectors and it is expected that by
2010 they will open 200,000 rooms which will count for 33% in mature markets and 67% in the newer
markets, these will mainly be economy and budget hotels of which 70% will be franchised or management
owned and the rest would be either owned or leased (Patel, 2007). Accor is also expected to dispose some
of the existing which by the end of 2008 should be a total of 535 hotels and will account of €3,225million
out of which €1,625million will impact on cash and €1,600million will impact on reducing the off-balance
sheet commitments and this would affect the holding structure in the mature markets as the percentages in
various sectors for managed and franchised would increase thus reducing the owned and leased hotels
drastically (Patel, 2007). The preferred operating structure would also change as the upscale brands would
be management contracts, midscale would be on variable rents, management contract and franchise
contract and the economy brands will become more of a variable rents, fixed rents and franchise contract,
this was huge change on the mature markets and would thus impact Accor’s Brand Image.
 Presentation of Alternatives

 Despite coming with four alternatives the writer would only recommend one alternative to Accor
considering their present growth strategies and this would be to enter these countries using franchising and
management contract for standardized brands like Novotel, Formule 1, Motel 6, Etap, etc. or owning and
leasing some customized brands like Sofitel, Mercure, etc. by this the writer is try to explain that Accor has
an advantage which is that they are a well known brand around the world but choosing the right market for
their various brands is a totally different aspect. To enter the six countries that were mentioned before it
would be wise for them to differentiate which brands they would like to have in the cities and the ones that
would help them to control the rural community, e.g. the Customized brands like Sofitel and Mercure could
be specific to the Cities and would thus be franchise or management contract based where as Novotel,
Formule 1, Motel 6, Etap, Studio 6, Red Roof Inn, etc. can be located around the rural areas and could be
more standardized to meet the local communities needs and would be better if it were owned or leased
thus having more control brands image.
Marketing mix of Accor Hotels
 PRODUCT

 Accor Hotels is a multinational company that franchises, manages and owns vacation properties, resorts, and hotels.
The group is organized into three segments economy, midscale and upscale and offers a unique and qualitative
experience to all its customers.
 Accor Hotels have four thousand and three hundred hotels in its portfolio with twenty brands. Some of its upscale and
luxurious brands include Sebel, Grand Mercure, Angsana, Pullman, Rixos, Sofitel, Banyan Tree and Raffles and the
economy and midscale range includes Ibis budget, Ibis styles, Ibis, Mama Shelter, Adagio, Mercure, and Novotel.
 Accor Hotels have worked towards offering all its customers high-quality product and best possible services that will
help it in retaining customer loyalty. As part of its Accor Services, it offers service vouchers to the companies that have
collaborated with it. It includes eye-care vouchers, childcare vouchers, ticket service, lunch vouchers, and restaurant
tickets.
 Accor Hotels has spread its operations to include onboard train services, restaurants, casinos and travel agencies.
AccorHotels.com has launched a new scheme under which it offers hotel and flight reservation options. This site has
launched a search engine MoodMatch for traveling experiences.
 All its hotels and resorts offer modern rooms with attached bathrooms. Special attention is paid to offering spacious
rooms and bathrooms with all up to date amenities like television, calling options via telephone, side tables, mini bar,
24-hour service, and laundry service.
 PLACE

 Accor Hotels has more than 250,000 collaborations that help it to operate successfully in the global arena. It has
shifted its primary focus from asset-light operating system to management contracts and franchise network.
 This has helped it in becoming one of the top global operators in the hospitality industry. The hotel group has
accepted that digitalization is here to stay and can make a huge amount of difference. It has turned it to its
advantage and is now focussed on online sales. The brand has launched a personal and unique mobile app with
multi-function capabilities.
 Booking has now become easy and fast. With a single click, one can search for hotels, restaurants or even
activities planned by the group. Last minute bookings or cancellations are hasslefree. If someone needs a room
for few hours he will not be required to pay for the whole day but this is applicable only if booked via its app.
 Employees are an integral part of any sector and Accor Hotels employs nearly 250,000 staff as its employees that
work day and night to offer immaculate services to its guests.
 PRICE

 By the end of the financial year 2017, Accor Hotels had posted its revenues and net income at Euro 1.93 billion
and Euro 481 million respectively. It is the only group of hotels that have something to offer across
every market segment from upscale to the economy. It caters to the needs of leisure travelers, businessmen,
individuals, groups and families looking for a comfortable stay and special treatments.
 Accor Hotels has a varied pricing strategy as it caters to different sections of society. For its upscale and
vacation properties, the brand has adopted premium pricing policy as it delivers the best quality and
unmatched services and products.
 For its midscale properties the brand has adopted mid-premium pricing strategy and for economy properties
reasonable and affordable pricing policy. Actually, it has adopted value-added pricing policy and offers pricing
option depending on the type of its hotel and the product and service it offers at that location.
 As part of its promotional policy, the group offers festive and seasonal discounts in several of its hotels. It has
adopted bundled pricing strategy in some hotels and offers a breakfast buffet, overnight stay, and several
amenities via Extra Saver Package.
 PROMOTION

 Accor Hotels is a powerful brand that is known globally for its impeccable products and services. In order to
maintain its position, the company has set up several marketing plans. It has launched ad campaigns via
television, radio, newspapers, travel magazines and billboards.
 The brand recognizes the importance of social media and has launched its own website as well as an app for
easy and fast transactions. Its website along with Twitter account, Facebook page, Instagram, and YouTube offer
related information.
 In order to encourage online bookings, the brand offers several incentives. It has a loyalty program that provides
various benefits like fast check-out, discounted rates, free nights, upgraded rooms, welcoming drinks and
lounge services. Accor Hotels has entered into a partnership deal with Qatar Airways so as to enhance both of
their loyalty programs.
 As part of its eco-friendly initiatives, Accor Hotels declared several policies. It has decided to reduce its food
waste by 30% and has banned plastic straws. It has signed Women’s Empowerment Principles with United
Nations and will work towards women empowerment.
 The brand in the year 2015 became the official supplier of Roland-Garros and official partner of COP21. Accor
Hotels has been the recipient of several awards and recognition over the years. Recently in the year 2018, its
loyalty program Le Club Accor Hotels was the proud winner. Accor Group has won Best Hotel Program of the
year award, Best Promotion, Best Customer Service and Best Redemption Ability awards in the course of its
journey.
SWOT ANALYSIS
 Presence across segments: Accor Hotels has something to offer to customers with any budget. Their economy hotels include
Ibis, Formula 1, and Motel 6. In the mid-tier segment, the group has Mercure Hotels and Adagio. Their luxury brands include
Novotel, Sofitel, Fairmont, Banyan Tree, and Raffles. Thus by catering to all income types, the hotel has ensured a huge customer
base.
 Network: Accor Hotels has a huge chain of hotels, resorts, and vacation properties. Their operation span across over a 100
countries across North, America, Latin America, Europe, North Africa, Asia Pacific and South Africa and they have a total of 4300
properties. This network is spread across a range of hotels and thus caters to people who travel frequently on business or
pleasure.
 Business Model: In a bid to fuel rapid expansion while not increasing costs aggressively, Accor Hotels has developed a
franchising model. Thus today though Accor Group is one of the biggest players in the hospitality 2040 of their hotels are run by
franchisees. They have strict norms for franchisees to follow and the group keeps a tab on the operations of their franchised
properties ensuring that the quality is maintained.
 Guest interaction: The core business philosophy of Accor Hotels is that guests are always made to feel welcome. Some of the
features offered include lucrative loyalty programs, exclusive guest executives, and online check-in. All contact points right from
the registration to check out is monitored and continual improvement is targeted in each.
 Loyalty Programs: Accor Hotels is known to have one of the best loyalty programs in the business. Their frequent guests have
access to a number of privileges such as free nights in collecting 2000 points, complimentary upgrade to higher classrooms,
exclusive access to private sales, online check-in and privileged checkout.
 Unique digital hospitality: The hotel chain maintains a database of over 60 million guests tracking their preferences and
incorporating them into their services. The data thus collected is used to manage over a 100 country digital campaigns that run
on social media platforms such as Facebook or Twitter.
 Weakness

 Losing to online businesses: In the mid-tier and economy segments, Accor Hotels
is losing its business to small hotels and online businesses like Airbnb or Oyo
Rooms. The hotel chain has been investing heavily in enhancing their services as
well as their food and beverages section for which there has been a huge cash
outlay.
 Focus on franchising: Though franchising has helped the hotel chain cut its costs,
the service levels, especially in their luxury hotels like Novotel, Sofitel, Fairmont,
Banyan Tree, and Raffles, have suffered because of lack of adequate attention.
 Overemphasis on sub-brands: The sub-brands of Accor like Ibis or Novotel or
Mercuri are immensely popular and this is creating a disconnect .
 OPPORTUNITY

 Growth in emerging economies: There is a huge

scope for hoteliering business in emerging
economies in Asia and Africa and there is a surge
in tourists to these destinations. The growth of
business in these regions have also resulted in the
surge in the number of business travelers giving
a boost to brands like Ibis.
 THREATS

The main competitors of Accor

Hotels are Starwood Hotels, Best
Western, Cendant Corporation, Hilton
Hotels Corporation etc.
COMPETITION

 Starwood Hotels and Resorts Worldwide, Inc

 Marriott International
 InterContinental Hotels Group PLC
 Hilton Hotels Corporation
 Choice International
 Cendant Corporation
 Best Western
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