TRƯỜNG ĐẠI HỌC KINH TẾ QUỐC DÂN

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HOUSEKEEPING OPERATION MANAGEMENT

GROUP ASSIGNMENT 1

Lecturer : PhD. Trần Huy Đức

Class : POHE Hospitality Management 63

Group : 1

Members : Phạm Minh Thư

Bùi Cẩm Ly
Nguyễn Thị Hương Quỳnh
Nguyễn Diệu Linh
Nguyễn Thị Thủy
Đặng Thị Linh Trang
Hứa Nhã Uyên
Phạm Ánh Xuân
Hoàng Thị Quỳnh Thư
Hoàng Thị Ngọc Bích

HÀ NỘI, 2023
TABLE CONTENTS
A. Introduction............................................................................................................1
B. Contents...................................................................................................................2
I. Sustainability............................................................................................................2
1. Definition of sustainability.......................................................................................2
2. Types of sustainability..............................................................................................2
2.1. Environmental sustainability..................................................................................2
2.2. Economic sustainability..........................................................................................3
2.3. Social sustainability................................................................................................3
3. Sustainability in hospitality industry........................................................................3
4. Importance of Sustainability in hospitality industry................................................4
5. Benefits of Sustainability in hospitality industry.....................................................5
6. 3I’s Framework of Accommodation Sustainability Management (FASM)............5
6.1. Institution................................................................................................................5
6.2. Implementation.......................................................................................................6
6.3. Implication.............................................................................................................. 7
II. Sustainable practices of Accor Hotels Group.......................................................8
1. Accor Hotels Group..................................................................................................8
1.1. Overview................................................................................................................. 8
1.2. Macro environment analysis...................................................................................9
2. The 3I’s application of Accor Hotels Group..........................................................16
2.1. Institution..............................................................................................................16
2.2. Implementation.....................................................................................................18
2.3. Implication............................................................................................................21
3. Recommendation....................................................................................................24
3.1. A success booking, a tree planting........................................................................24
3.2. “Green card”.......................................................................................................24
3.3. C2C Campaign (ChanceToChange).....................................................................25
C. Conclusion.............................................................................................................26
References..................................................................................................................28
 A. INTRODUCTION

The tourism industry relies heavily on a variety of environmental features and

factors such as abundant and unspoiled natural resources and outstanding recreational
settings. Thus the success of these respective sectors can be heavily interdependent on
their positive interaction with the natural and social environment. Yet, the presence of
the tourism industry is known to have significant negative impacts on the quality of the
environment and settings in the destinations.
Many researchers acknowledge that the tourism industry is no longer able to
ignore its adverse socio - cultural and environmental effects. The “sustainability” of
the tourism industry has been gaining prevalence since the 1980s. Additionally,
environmentally preferable travel continues to be a growing trend in the hospitality
and tourism industry. A number of recent market research studies have indicated that
leisure travelers are increasingly making travel decisions based on the availability of
accommodations with practices that reduce their environmental impact. To satisfy this
growing demand for greener accommodations and attractions, many businesses have
taken strides to reduce their environmental footprint by implementing sustainability
and green practices. 
The benefits gained from implementing environmental initiatives have been
well documented. An environment friendly hotel can gain competitive advantage and
otherwise benefit from cutting costs, cultivating a positive image, increasing employee
loyalty, and retaining customers.
This research intends to comprehend how luxury hotels, specifically Accor,
adjust to this new reality, to comprehend what practices are adopted environmentally,
and to comprehend how managers evaluate the benefits and outcomes of these
practices.

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 B. CONTENTS

I. Sustainability

1. Definition of sustainability
Nowadays, because of the environmental and social problems societies around
the world are facing, sustainability has been increasingly used in a specific way.
Sustainability is usually defined as the processes and actions through which
humankind avoids the depletion of natural resources, in order to keep an ecological
balance that doesn’t allow the quality of life of modern societies to decrease. 
In this way, the term “sustainability” has been broadly applied to characterize
improvements in areas like natural resources overexploitation, manufacturing
operations (its energy use and polluting sub-products), the linear consumption of
products, the direction of investments, citizen lifestyle, consumer purchasing
behaviors, technological developments or business and general institutional changes.
An action causes little, less, or no harm to the natural world - under the belief
ecosystems will keep on operating and generating the conditions that allow for the
quality of life of today’s modern societies not to decrease.
Sustainability consists of fulfilling the needs of current generations without
compromising the needs of future generations, while ensuring a balance between
economic growth, environmental care and social well-being. The term “sustainability”
was first used in the Brundtland Report (United Nations, 1985). Their definition of
“meeting the needs of present generations without compromising the ability of future
generations to meet their own needs” has become the most widely acceptable. 

2. Types of sustainability

2.1. Environmental sustainability

Environmental sustainability focuses on the conservation of biodiversity

without foregoing economic and social progress.
The principle of maintaining ecological integrity and ensuring that Earth’s
environmental systems remain balanced as natural resources such as air, water, soil,
forests, and animals are being consumed by humans.
The foundations of environmental sustainability are: safeguarding water, saving
energy, reducing waste, using recyclable packaging, limiting or eliminating the use of
plastics, using sustainable transport, reusing paper and protecting flora and fauna.

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 Example: reducing environmental impact through regenerative agriculture with
zero carbon emissions, the use of renewable energies and the reduction of waste.

2.2. Economic sustainability

Economic sustainability refers to the organization’s ability to manage its

resources and responsibly generate profits in the long term.
The goal for humans on Earth to maintain independence and be able to get a job
or acquire other resources to meet their needs. Economic systems must be in place and
accessible to all.
Example: To achieve a balance between sustainability and the company’s
economic performance in 2010, Unilever increase package recycling, promote the use
of recycled materials and responsible consumption awareness campaigns.

2.3. Social sustainability

In any community in which economic activities are carried out in a specific

environment, we find three interconnected forms of sustainability: environment,
economic and social. However, social sustainability in particular has the goal of
strengthening the cohesion and stability of specific social groups.
The principle of ensuring that basic human needs are attainable by all and that
there are enough resources available to all within a community. Strong social systems
can ensure healthy, happy communities whose human rights such as labor, health care,
and equality are respected.
Example: The company CEMEX offers decent housing to those most in need
through self-building programmes and loans with favorable access conditions.

3. Sustainability in hospitality industry

Sustainability is widely regarded as the key to a successful business in the 21st

century. Sustainability or social responsibility is fast becoming a prime concern for
public and private sectors alike, and the hotel industry is no exception. In simple
words, sustainability means that natural ecosystems can continue to support life and
provide resources to meet the needs of the present and future generations. Evidently,
the hotel sector puts increased pressure on the environment and is demanding on
natural resources. The hospitality industry has had a dramatic environmental impact on
the environment through energy and water consumption, and use of consumable
goods. The industry also relies on the same natural environment - unspoilt landscapes,

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sandy beaches, turquoise waters, glaciers, waterfalls, coral reefs and fresh air; all of
which serve as great tourist attractions. Therefore, there is an inherent danger that we
might harm the very basis on which hospitality is built. 
The industry has been quick to respond to these changes and is progressively
turning “green”. Policies and practices have been put into place in order to recycle,
reuse gray water, prevent waste, reduce energy use and lower carbon footprints.
Indeed, all major players within the hotel sector (Hilton Worldwide, Intercontinental
Hotel Group, Marriott, …) regularly publish their sustainability reports, whilst
reporting initiatives undertaken to reduce the negative impacts on the environment. 
The hospitality industry’s move towards “going green” as a growing emphasis
on minimizing its impact on the environment by applying environmentally preferred
practices to reduce waste and by using sustainable resources and supplies. Due to
increasingly serious environmental problems, governments in different countries have
introduced stricter environmental regulations and have encouraged companies to adopt
measures to protect the planet. Many hotels recognize that adopting green practices is
not only ethical but also beneficial in reducing costs, enhancing image, creating market
differentiation, demonstrating better social responsibility and building a good
reputation. 

4. Importance of Sustainability in hospitality industry

Cost effective
The emerging environmental technologies aim to achieve better performance in
producing better operational procedures. Cost effectiveness is one of the factors that
make green technology more alluring.
Better Guest Experience
There is awareness among the travelers about the harmful impact of pollution
on the environment. Hence they look forward to the hotels that are focusing on
minimizing the harm to the environment. They feel compelled to stay at a property that
efficiently uses the latest technology to reduce the energy waste and recycle the waste
materials. Thus, investing in environmental technology and better operational methods
will result in a positive impression on the guests.
Improved Brand Image
As per a study by Natural Marketing Institute, 58% of the consumers consider
the impact of goods and services produced by a company on the environment. This
study showed the consumers were more likely to purchase the goods from the
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company that practiced sustainable habits. This is certainly the reason why major hotel
brands have adopted sustainable practices to some extent that defines brands. The
younger generation looks up to the brands that show their efforts protecting the
environment. Therefore, with sustainable business practices, you can enhance the
reputation and the brand image of your hotel which will only lead to more profit.
Practicing sustainability in hospitality comes with many benefits. Aside from
attracting more customers and responding responsibly to what many consider a moral
imperative, in light of the current climate crisis, sustainable initiatives offer hospitality
businesses incentives. 

5. Benefits of Sustainability in hospitality industry

Sustainable tourism refers to a level of tourism activities that can be maintained

in the long term because it results in a net benefit to the social, economic, natural, and
cultural environments of the area where it occurs. Empirical studies analyzing the
relationship between environmental performance and the economic performance of
tourism enterprises show consistent evidence that it is worth being environmentally
conscious. 
The adoption of sustainability practices has positive effects on the performance
of organizations at various levels, such as employee satisfaction, company reputation,
improving the image, and loyalty of key stakeholders, that in turn provides long-term
competitive advantages. The benefits of sustainability for companies can be tangible
benefits in the form of reduced costs and risks of doing business as well as through
intangible benefits in the form of increased brand reputation, increased attractiveness
of talent, and increased competitiveness. 
There is also evidence of a positive relationship between sustainability and
organizational performance, and the importance of employee empowerment and
teamwork in achieving environmental improvement. Managers also invest in the
environmental development of their hotels to improve public relations and to promote
better relations with local communities. 

6. 3I’s Framework of Accommodation Sustainability Management (FASM)

The literature suggests that successful implementation of sustainability

practices in the accommodation sector lies in the core principles under 3I’s which is
Institution, Implementation and Implication.
6.1. Institution

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 The first stage Institution indicates the harmony between different internal
stakeholders who are responsible for making decisions at strategic level and
implementation at operational level. The two important levels under this stage are
strategic and operational. 
It has been witnessed that employees lose all the zeal and motivation to
implement sustainability measures when it is not aligned with corporate strategy. 
The owners and promoters need to be equally passionate about sustainable measures
and should hire a project team early in the process who could be innovative in their
ideas and can help in achieving the triple bottom line, which is environment
performance, Social Performance and Economic performance (Elkington, 1998). 
Hotels should also educate their employees regarding green design and how to
operate efficiently. A green luxury experience can be designed that communicates the
green experience without compromising on the luxury. 
Architects and Designers need to work closely with engineers to create such
products and services, which are pleasing and yet have low environmental impact. An
aim and clear understanding of the green certification process can help in using
certified products and services. 
The Internal stakeholders have the pressure from microenvironment where
customers, travel management companies have indicated their preference for green
accommodation. The macro environment as well as stakeholders like Government,
NGO’s and Green Associations have also played an important role in regulating
necessary practices and institute benefits to those who are following the green
practices.
6.2. Implementation

The second stage is Implementation, which indicates the major areas as

construction, process and deliverables. It is important for green hoteliers to understand
the need and comfort of the guest right at the institution level and implement them
effectively. If contractors, designers and Engineers are hired right early in the process,
it may cost little more but it saves money and increases the existence of the building. 
Green practices are focused on energy and water conservation, Reducing and
recycling waste and indoor air quality. There has been a lot of data indicating the
higher wastage generated from an occupied room. Customers are willing to stay in
green hotels but not at the cost of comfort and luxury. Thus the implementation also
focuses on influencing the customer behavior towards laundry, linen and supplies. 

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 These behavioral changes require specific training to Front desk staff and
knowledge sharing with customers regarding hotels’ efforts to reduce environmental
footprints (Jackson, 2010). Through proper training, it will be easier for hotels to
communicate their green efforts to customers at different stages of the guest cycle like
in reservation confirmations, at time of check in, signage in rooms, etc. Hotels can
have similar systems like in airlines where they can inform customers on carbon
credits that they have contributed during their stay and reward them accordingly. 
The Implementation stage also gets influenced from external stakeholders
related to practices and policies that are being implemented in the hotel. Once the
green accommodation has been designed and constructed it’s important for employees
from all core departments especially housekeeping, maintenance to remain fully
engaged. We also need to keep reflecting and innovate green practices in the
organization so as to be more efficient and profitable. These innovations need not
necessarily cost more than its returns.
It is increasingly important for hospitality corporations to implement more
environmentally-conscious processes into Booking.com’s Sustainable Travel Report
2022, 81% of global travelers said that traveling sustainably is important to them, with
half citing climate change as their influence on making better choices for the
environment. 
6.3. Implication

The third principle is Implication, which highlights the importance of

sustainability measurement, Rewards and Risk. The sustainability measurement index
should have a holistic approach encompassing financial and non-financial benefits.
Literature has discussed the various elements like governance, sustainable practices,
labor, community outreach as well as quality of life. It’s very important to understand
and measure the impact of sustainable investment decisions and operations on both
environmental and economic performance. The benchmark and bar needs to be
meaningful and achievable. 
One can also measure its success through guest response and feedback on the
organization's green processes and operations. After measurement it’s important to
highlight the best practices and share awards and rewards with stakeholders. We can
also incentivize our employees, suppliers and other stakeholders who have participated
in green drive accordingly. 
It is also imperative to analyze the risks and barriers if any in achieving
sustainable goals and objectives. Risk can be understood as divergence from the
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anticipated outcome. It needs to be examined at all levels i.e., at Institute level and at
Implementation level. The Implication level emphasizes analyzing the divergent
outcome and possible barriers in achieving the desired results. One can have a risk
committee to analyze various risks associated at different levels and contingency plans
to overcome them.

II. Sustainable practices of Accor Hotels Group

1. Accor Hotels Group

1.1. Overview

Accor is a hospitality company which operates, invests, manages and franchises

hotel properties. Nowadays, Accor is known as one of the most successful global
hospitality businesses in the world.
Accor was founded in 1967 by two French, Paul Dubrule and Gérard Pélisson,
who opened their first Novotel in Lille Lesquin, and is headquartered in Paris, France.
Throughout 56 years of development, Accor is now the world’s third largest hotel
brand with over $6 billion in annual revenue. By 2023, according to Accor’s official
website, this group owns 5,400 hotels worldwide with more than 802,000 rooms, 40
hotel brands, 10,000 restaurants and bars and over 290,000 team members across 110
countries. 
Accor approaches a wide range of customers by operating in all segments of
hospitality. Accor’s luxury segment has 8 brands (Banyan Tree, Emblems, Fairmont,
onefinestay, Orient-Express, Raffles, Rixos and Sofitel); 11 brands in premium
segment (Adagio Premium, Angsana, Art Series, Grand Mercure, Gallery, Mantis,
Movenpick, Peppers, Pullman, Swissotel, The Sebel); 5 midscale brands (Adagio
midscale, Handwritten, Mantra, Mercure, Novotel) and 7 economy brands (Adagio
Access, BreakFree, Greet, Hotel F1, Ibis, Ibis Budget, Ibis Style). Accor is able to
adapt to the complicated fluctuating environment since this company is always making
an effort to innovate their products. By providing high quality service, Accor is
growing and affirming its position in the hotel industry. 

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 In Viet Nam, it has been 20 years since Accor joined the market, starting with
Metropole Hotel (Sofitel Legend Metropole Hanoi) – which is also recognized as the
first five-star hotel by Vietnam National Administration of Tourism. By now, there are
totally 28 hotels operated by Accor in Vietnam across the country, including Sofitel,
Pullman, Mgallery, Novotel, Grand Mercure,…for example: Hotel de la Coupole -
MGallery Sapa, Novotel Phu Quoc, Sofitel Legend Metropole Hanoi, Grand Mercure
Danang, Pullman Saigon Centre, Premier Village Phu Quoc, iBis Styles Nha Trang,
Angsana Lang Co (Hue)…

1.2. Macro environment analysis

1.2.1. PESTLE analysis

Accor operates in a dynamic environment where it is influenced by collective

social trends, government decisions, consumer spending behavior, regulatory
framework, increasing regulatory framework for environmental factors, increasing
environmental activism among consumers, technological changes, and ever evolving
legal system.

Political Factors

Taxation policies – Over the last two decades Accor has benefitted from lower
taxation policies throughout the western hemisphere. It has resulted in high profits and
increasing spending in the research and development. The increasing inequality in
France can lead to changes in the taxation policies. Secondly local governments are
also looking into Hotels & Motels specific taxation policies to contain the carbon
footprint of the Services sector.

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 Regulatory Practices – Accor has to manage diverse regulations in the various
markets it is present in. Over the last few years France and other emerging economies
have changed regulations regarding not only market entry but also how companies in
Hotels & Motels can operate in the local market.
Importance of local governments in France – Unlike in most other countries,
local governments play a critical role in policy making and regulations in France.
Accor has to closely follow the states and territories it has presence in rather than
devising nation-wide policies in France.
Government of France has come under increasing global pressures to adhere to
the World Trade Organization’s regulations on Hotels & Motels industry. 
Armed Conflict – There are no imminent threats to France from the disruption
in the business environment because of military policies, terrorist threats and other
political instability. Accor has experience of handling operations in difficult
circumstances.
Changing policies with new government – Studying the current trends it seems
that there can be a transition of government in France in the next election. Accor has to
prepare for this eventuality as it will lead to change in governance priorities of
Services sector.

Economic factors

Economic Performance of France – the economic performance of France in the

near future 5-10 years will remain stable given – government expenditure, stable
demand because of disposable income, and increasing investment into new industries.
Exchange rate – The volatile exchange rate of France can impact Accor
investment plans not only in the short term but also in the long run.
Availability of core infrastructure in France – Over the years the French
government has increased the investment in developing core infrastructure to facilitate
and improve the business environment. Accor can access the present infrastructure to
drive growth in the Services sector in France.
Inflation rate – The easy liquidity in the market post the great recession of 2018
will lead to increasing inflation in the French economy. 
Downward pressure on consumer spending – Even though the consumer
disposable income has remained stable, the growing inequality in the society will
negatively impact consumer sentiment and thus impact consumer spending behavior.

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 Increasing liberalization of trade policy of France can help Accor to invest
further into the regions which are so far off limits to the firm.

Social factors

Societal norms and hierarchy – the society of France is different from the home
market of Accor. It should strive to build a local team that understands the societal
norms and attitudes better to serve the customers in France. 
Demographics – For the Services products, Accor has demographics on its side.
France is a young country and growing. Accor can use this trend to cater to various
segments of the population.
Media outlets play a critical role in influencing the public opinion in France.
Both traditional media and social media are rapidly growing in France. Accor can
leverage this trend to better market and position its products.
Gender roles – The gender roles are evolving in France. Accor can test various
concepts to cater to and support these evolving gender roles in France society.
Education level – The education level is high in France, especially in the Accor
sector. Accor can leverage it to expand its presence in France. 
Leisure interests – the customers in France are giving higher preferences to
experiential products rather than traditional value propositions in the Services sector.
Accor can leverage this trend to build products that provide enhanced customer
experience. 

Technological factors

Technological innovation is fast disrupting the supply chain as it is providing

greater access to information to not only supply chain partners but also to wider
players in the Services industry. 
Empowerment of supply chain partners – Technology has shortened the product
life cycle and it has enabled suppliers to quickly develop new products. This has put
pressure on Accor marketing department to keep the suppliers happy by promoting a
diverse range of products. It has added to the cost of operations of the Accor. 
Developments and dissemination of mobile technology has transformed
customer expectations in the Services sector. Accor has to not only meet and manage
these expectations but also have to innovate to stay ahead of the competition.

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 Maturity of technology – The technology in the Hotels & Motels sector is still
not reached maturity and most players are vying for new innovations that can enable
them to garner higher market share in France.
Latest technology based innovations implemented by competitors of Accor –
This can provide a good insight into what the competitors are thinking and where
Hotels & Motels business model future is.
5G and its potential – Accor has to keep a close eye on the development and
enhancement of user experience with increasing speed and access. This can completely
transform the customer user experience in the Hotels & Motels industry.

Environmental factors

Renewable technology is also another interesting area for Accor. It can leverage
the trends in this sector. France is providing subsidies to invest in the renewable
sector. 
Regular scrutiny by environmental agencies is also adding to the cost of
operations of the Accor. 
Customer activism – Greater awareness among customers have also put
environmental factors at the center of Accor strategy. Customers expect Accor to
adhere to not only legal standards but also to exceed them to become responsible
stakeholders in the community.
Paris Climate Agreement has set real targets for the national government of
France to adhere to. This can result in greater scrutiny of environmental standards for
Accor in France. 
Waste management especially for units close to the urban cities has taken
increasing importance for players such as Accor. France government has come up with
strict norms for waste management in the urban areas, for example: Limiting personal
transport causing environmental pollution due to emissions
Environmental norms are also altering the priorities of product innovation. In
many cases products are designed based on environmental standards and expectations
rather than catering to traditional value propositions.

Legal factors

Business Laws – The business laws procedure that France follows. Are these
norms consistent with international institutions such as the World Trading
Organization, European Union etc. 
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 Data protection laws – Over the last decade data protection has emerged as a
critical part of not only privacy issues but also intellectual property rights. Accor has
to consider whether France has a robust mechanism to protect against data breaches or
not. 
Time takes for business cases in court – some countries even follow
international norms but the time for resolution often runs in years. Accor has to
carefully consider the average time of specific cases before entering an international
market. 
Environment Laws and guides – The level of environmental laws in France and
what Accor needs to do to meet those laws and regulations.
Legal protection of intellectual property, patents, copyrights, and other IPR
rights in France. How Accor will be impacted if there is not enough protection.
Health and safety norms in France and what Accor needs to do to meet those
norms and what will be the cost of meeting those norms.

PESTEL Analysis is a strategic management tool that Accor leadership can use to
make better decisions.   Political, Social, Economic, Technological, Environmental
and Legal factors that impact the macro environment of the firm that it operates in.
Accor operates in a dynamic environment where it is influenced by – regulatory
framework, government decisions, consumer spending behavior, increasing
environmental activism among consumers, collective social trends, technological
changes, increasing regulatory framework for environmental factors, and ever
evolving legal system.
1.2.2. SWOT analysis

Strengths

Strengths are the firm's capabilities and resources that it can use to design,
develop, and sustain competitive advantage in the marketplace.
First mover advantage in the increasingly crowded market place. The new
products are rapidly increasing Accor market share in the Hotels & Motels industry.
Success of new product mix - Accor provides exhaustive product mix options to
its customers. It helps the company in catering to various customer segments in the
Hotels & Motels industry.

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 High margins compared to Hotels & Motels industry's competitors - Even
though Accor is facing downward pressure on profitability, compared to competitors it
is still raking in higher profit margins.
Brands catering to different customer segments within the Hotels & Motels
segment - Accor extensive product offerings have helped the company to penetrate
different customer segments in the Hotels & Motels segment. It has also helped the
organization to diversify revenue streams.
Track record of innovation - Even though most players in the Services strive to
innovate, Accor has a successful record at consumer driven innovation.
Wide geographic presence - Accor has an extensive dealer network and
associates network that not only help in delivering efficient services to the customers
but also help in managing competitive challenges in the Hotels & Motels industry.

Weaknesses

Weaknesses of Accor can either be absence of strengths or resources of

capabilities that are required but at present the organization doesn't have. Decision
makers have to be certain if the weakness is present because of lack of strategic
planning or as a result of strategic choice.
High cost of replacing existing experts within the Accor. Few employees are
responsible for the Accor's knowledge base and replacing them will be extremely
difficult in the present conditions.
Extra cost of building new supply chain and logistics network - Internet and
Artificial Intelligence has significantly altered the business model in the Services
industry and given the decreasing significance of the dealer network Accor has to
build a new robust supply chain network. That can be extremely expensive.
Loyalty among suppliers is low - Given the history of Accor coming up with
new innovations to drive down prices in the supply chain.
Low investments into Accor's customer oriented services - This can lead to
competitors gaining advantage in near future. Accor needs to increase investment into
research and development especially in customer services oriented applications.
High turnover of employees at the lower levels is also a concern for the Accor.
It can lead to higher salaries to maintain the talent within the firm.
Declining per unit revenue for Accor - competitiveness in the Hotels & Motels
industry is putting downward pressure on profitability. A starting guide to manage this

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situation for company name is – objectively assessing the present value propositions of
the various products.

Opportunities

Opportunities are potential areas where the firm can identify potential for -
growth, profits, and market share.
Lower inflation rate - The low inflation rate brings more stability in the market,
enables credit at lower interest rate to the customers of Accor. This will increase the
consumption of Accor products.
Trend of customers migrating to higher end products - It represents a great
opportunity for Accor, as the firm has strong brand recognition in the premium
segment, customers have experience with excellent customer services provided by
Accor brands in the lower segment. It can be a win-win for the company and provides
an opportunity to increase the profitability.
Rapid Expansion of Economy As the US economy is improving faster than any
other developed economy, it will provide Accor an opportunity to expand into the US
market. Accor already has the know-how to operate into the competitive US market.
Increasing government regulations are making it difficult for un-organized
players to operate in the Hotels & Motels industry. This can provide Accor an
opportunity to increase the customer base.
Accelerated technological innovations and advances are improving industrial
productivity, allowing suppliers to manufacture a vast array of products and services.
This can help Accor to significantly venture into adjacent products.
Lowering the cost of new product launches through third party retail partners
and dedicated social networks. Accor can use the emerging trend to start small before
scaling up after initial success of a new product.

Threats

Threats are factors that can be potential dangers to the firm's business models
because of changes in macro - economic factors and changing consumer perceptions.
Threats can be managed but not controlled.
Competitors catching up with the product development - Even though at present
the Accor is still the leader in product innovation in the Hotels & Motels segment. It is
facing stiff challenges from international and local competitors.

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 Trade Relation between US and China can affect Accor growth plans - This can
lead to full scale trade war which can hamper the potential of Accor to expand
operations in China.
Distrust of institutions and increasing threat of legal actions for Accor - As the
WTO regulations and laws are difficult to enforce in various markets. Legal
procedures have become an expensive and long drawn process. It can lead to less
investment into emerging markets by Accor thus resulting in slower growth.
Growing technological expertise of local players in the export market - One of
the biggest threats of tie-up with the local players in the export market for Accor is the
threat of losing IPR. The intellectual property rights framework is not very strong in
emerging markets especially in China.
Changing demographics - As the baby boomers are retiring and the new
generation finding it hard to replace their purchasing power. This can lead to higher
profits in the short run for Accor but reducing margins over the long run as young
people are less brand loyal and more open to experimentation.
Changing political environment with the US and China trade war, Brexit
impacting the European Union, and overall instability in the middle east can impact
Accor business both in the local market and in the international market.

SWOT Analysis is a methodological approach to analyze the - Strengths &

Weaknesses that Accor possesses, and Opportunities & Threats that the firm faces
because of competitive and macro-economic factors prevalent in the United Kingdom.
Moreover, it provides key insights into both internal and external factors that can
impact the performance of Accor. It can help the management of the organization to
optimize performance, look for new opportunities, manage competition, maximize
return on resources employed, and minimize various business and policy making risks

2. The 3I’s application of Accor Hotels Group

2.1. Institution

For Accor, sustainable development is not a new concept. Since 1994, the
world famous hotel brand has become one of the first French corporations to have a
department in charge of environmental issues. Until 2002, a dedicated division
continued to exist with the mission of organizing and guiding the process of creating
sustainable experiences.

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 All those early efforts continued to materialize over time. In 2010, Accor hotel
group officially launched a sustainable development program called “Planet 21” with
ambitious goals, demonstrated through 21 specific commitments with clearly
quantified goals, located in 7 social, environmental and community support areas,
including: Health, Nature, Carbon Reduction, Innovation, Locality, Recruitment and
Dialogue; carried out on a global scale, demonstrating the group's interest in reducing
emissions and enhancing biodiversity, in tandem with the ultimate goal - providing the
best experience for visitors. . The Group chooses April 21 every year as Planet 21 day
with diverse response activities of the group's personnel.
Accor Hotels Sustainability Director Arnaud Herrmann said talk about the
Planet 21 expansion that took place in 2016: “This is proof that our commitment to
'Acting Here' has come to fruition. Group employees know that this is possible, and
they are also actively supporting initiatives in local areas to have a positive effect on
partners, visitors and the community. Whether it's about reducing food waste,
encouraging tree planting or converting energy, we take a 'test and learn' approach that
helps us achieve our goals more efficiently.”
The Planet 21 Program is clearly a part of the company's strategy and has the
authority of the Group's highest level:
 Policy endorsed by the CEO and overseen by the Ethics and Corporate Social
Responsibility (CSR) committee, which includes the deputy CEO and several
Excom members.
 Monthly dashboards were sent to the Excom and passed down to all managers with
specific goals for each business unit.
 CSR Bonus system, which accounts for 10 to 20% of the variable compensation of
more than 20.000 managers.
  The programme is established on four main pillars that draw on its early format
sustainability report (Accor, 2016), specifically working with employees, involving
our customers, innovation with partners and working with local communities. The
company lists its commitments under the four pillars in evidencing its responsibility
beyond their everyday business operations. To be more specifically, “Planet 21
Research” from Accor claims to assure its plant for the planet, contribute to the fight
against the sexual exploitation of children and commitment to eco-design and healthy
and sustainable food. The company’s objectives for 2021 are “Acting with our guests”
by planting a tree during their stay, “Act for our employees” by increasing their
employee engagement index each year, “Act with our partners” by supporting one
major innovation each year to develop alternative and sustainable models and “Act
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with our communities” by involving communities once a year in a solidarity project
for each hotel. This commitment links Accor’s statement to SDGs 8 and 10.
Additionally, in terms of food and beverages, Accor commits to reducing food waste
by30% by recycling orange peel from breakfast to make marmalade and to eliminate
carbon emissions from hotels (among other initiatives). Furthermore, the company
shares its research, guest studies and other data regarding their socio-economic and
environmental footprint worldwide. For example, an inquiry published in the
company’s special edition study on its socio-economic footprint (Socio-economic
footprint, 2016) observed that some 83% of the wealth created remains in the countries
that generated it and that 880,000 people work for Accor worldwide. In terms of its
environmental footprint, the company provides a broad perspective from the impact of
menu options on cattle farming to the shipping of goods that are necessary for a hotel
to operate.
Accor Hotel Group, with a chain of luxury hotels in Vietnam in general and
Accor hotels in the North of Vietnam in particular, has been carrying out charity
programs, community support, environmental protection and encouragement. physical
enhancement activities, not only with hotel staff, but also with colleagues, partners and
customers through Accor Group's Planet 21 program.
On April 22, 2021, hotels belonging to Accor Group in the North of Vietnam
are pleased to continue to accompany Diversey Vietnam and its partners in 2
meaningful activities, “Soap for Hope” (Soap of Hope) and “Linen for Life”. The
success of the program is due to the enthusiastic response of the hotels participating in
the program, including hotels belonging to Accor group. Not only volunteers
participate in fabric making, the hotels in the program also regularly organize
recycling activities at the hotel; coordinate in organizing activities, community
development centers, schools, etc. to educate and communicate for staff, hotel guests,
children and those who care about the sense of recycling and protection. environment;
at the same time contributing to spreading the "warmth" of the program to more
people.
Despite the exceptional circumstances in 2020, the Group has maintained its
sustainability trajectory so far thanks to the commitment of hoteliers and the
robustness of the “Planet 21” program. The Group went even further and gave new
impetus to the program by making sustainable development one of the four
fundamental strategic challenges for the coming years.

2.2. Implementation

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 Accor Hotels, the world's leading hotel operator, today presents the results of
Planet 21, its sustainable development program, and renews its commitments looking
to 2020.
Sébastien Bazin, the Group's Chairman & CEO, stated, "The commitment and
energy demonstrated by our teams in deploying Planet 21 worldwide, are both
valuable levers for our sustainable performance. After five years, the results of the first
phase of the plan are very encouraging. Today, we want to scale up our ambitions by
banking on innovation and accountability. Planet 21 Season 2 must enable us to create
wealth sustainably and curb our negative impacts through the mobilization of our
employees, guests, partners and local communities. Our vision is to drive the change
towards positive, more responsible and inventive hospitality, wherever we are."
2.2.1. Planet 21|2011-2015: A solid track record
The Group achieved solid results regarding the actions taken over the 2011-
2015 period. In five years, it has delivered two-thirds of the program's 21 objectives
and over
90% of its hotels have embarked on a continuous-improvement drive. Planet 21
allowed the Group to unite its teams and engage its guests and partners in a structured
approach which is recognized by several ethical stock market indices.
It has made significant progress, in particular as regards well-being in the
workplace, child protection, biodiversity, and water and energy consumption
management. In five years, water consumption has been cut by nearly 9%, energy
consumption by 5.3% and carbon emissions by 6.2%. At the end of 2015, all its hotels
were committed to protecting children from abuse (in-house awareness program,
WATCH) and more than 4.5 million trees had been planted worldwide since 2009.

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2.2.2. Planet 21|2016-2020: same direction, higher aims
As part of a policy of progress and transparency, the Group asked its customers
for their views on these issues, updated its environmental footprint and assessed its
socio-economic footprint for the first time to assess the challenges it faces and
construct its new 5-year program. The program for 2020 was drawn up in consultation
with the teams. It reinforces some of the Group's fundamental commitments, such as
curbing its environmental footprint, and identifies new objectives which dovetail with
both the changes to the business model and its strategic priorities, such as Food &
Beverage and the sustainable management of its property portfolio through
HotelInvest.
Planet 21 [2016-2020] is structured into four areas of action enlisting its
employees, customers, partners and local communities, and two priorities, namely
food & beverage and buildings.

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 Source: AccorHotels
To provide the hotels with effective support as they deploy this new plan,
Charter 21, the in-house sustainable development management system for hoteliers,
has evolved and been renamed Planet 21 in Action. The new system aims higher and is
more accommodating as regards local specifics and operational realities. It is more
flexible and is based on a participative approach allowing each hotel to set its own
objectives and map out its own action plan. A common baseline comprising 16
mandatory actions, sets a demanding first level of commitment (bronze status). To
upgrade their status (to silver, gold and platinum), hotels then select the actions they
wish to implement from a wider range of initiatives. This system encourages
ownership of the issues at stake as well as employee and guest accountability
regarding social and environmental responsibility.

2.3. Implication

2.3.1. Advantages of CSR 

Innovation is the process of introducing novel concepts and ideas that benefit
both the company and society.
Cost-cutting: The idea of recycling and protecting the environment by wisely
using natural resources rather than artificial ones helps to reduce costs for businesses.
The best way for businesses to build brand loyalty in a cutthroat market is
through brand differentiation as consumers are more interested in protecting the

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environment and the environment. It goes without saying that applying environmental
protection strategies through various programs helps a business build its brand.
2.3.2. Achievements
Planet 21’s Result in 2016
The Group achieved solid results regarding the actions taken over the 2011-
2015 period. In five years, it has delivered two-thirds of the program’s 21 objectives
and over 90% of its hotels have embarked on a continuous-improvement drive. Planet
21 allowed the Group to unite its teams and engage its guests and partners in a
structured approach which is recognized by several ethical stock market indices.
It has made significant progress, in particular as regards well-being in the
workplace, child protection, biodiversity, and water and energy consumption
management. In five years, water consumption has been cut by nearly 9%, energy
consumption by 5.3% and carbon emissions by 6.2%. At the end of 2015, all its hotels
were committed to protecting children from abuse (in-house awareness program,
WATCH) and more than 4.5 million trees had been planted worldwide since 2009.

Planet 21’s Result in 2020

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2.3.3. Rewards
Received Condé Nast Traveler’s World Savers Awards, 2011.
Tourism for Tomorrow Award 2010 given to Accor by the World Travel and
Tourism Council (WTTC) to award the Group’s best practices in sustainable tourism
around the world.
LEED (“Leadership in Energy and Environmental Design”) certification for the
Motel 6 Northlake-Speedway, which rewards construction of the establishment’s high-
performance, sustainable buildings.
Certification of the future Suite Novotel Issy-les-Moulineaux, one of the first
hotels to be certified to France’s High Environmental Quality (HQE®) standards for
service sector buildings.       
2.3.4. Risks.
The Accor Hotel Group conducts business throughout Europe. Obviously, when
organizations grow and enter new markets, risk increases. According to the theory,
risk may be advantageous for a company since it provides possibilities for learning
how to deal with challenges. Each department in a firm might be at risk. In one part of
risk management, the earlier choice and proper plan to reduce the risk for the future
are crucial. Internal risk also applies to the tourist and hospitality industries as a whole.
Health and safety risk: 
 From a commercial perspective, one of the biggest health and safety risks in
hotels is food poisoning due to poor supply chain management and failure to
adhere to local food and safety regulations. Fire is another potential problem,
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 therefore it's important to consider the building's construction, where the fire
assembly is located, and whether or not there are any fire prevention measures
in place. This type of danger to health and safety might be a big problem for the
company, which could result in harsh sanctions.
 Mitigate: Frequent base inspections of the whole hotel group's operational
system, regularly trained staff, and stringent rules and criteria for supply chain
management may all help to mitigate.
Database security risk:
  Modern technology is heavily incorporated into the operations of the tourism
and hospitality industries. The database information system is utilized by all
departments in the hotel industry. Examples include yield management,
operating software, the reservation industry, online information, email internet
system, as well as storing client data for future use. Thus, database security is
more crucial than any other type of business. As any firm, Accor views
preventing this database security risk in a suitable manner as a vital duty since it
affects the client. By rolling up an encryption system, Accor prioritizes the
protection of consumer data.
  Mitigate: Mitigating the risk of identity theft is one of the goals of Accor
hotels' new encryption system. This system will protect customer's personal
information, including their credit card details, from potential thieves.
 Risks of property damage
 The company that insures or protects the property of Accor hotels takes
precautions to keep people and property safe. This is important because if
something happened to the property or business of an Accor hotel, it would be
difficult or impossible to repair or refurbish it.
 Mitigate: To prevent any property damage, the Accor takes professional advice
or support in order to make sure that all of the Accor-branded hotels,
employees, and no other customers' personal belongings are safe when they are
in contact with the Accor group.
 Political risk:
o The way that Accor does business internationally affects the way that it
makes decisions about its hotels. Because different countries have different
laws and regulations, Accor has to take all of that into account when making
decisions about its businesses.

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 o Mitigate: It will help to reduce political risk if the strategy and vision are
created in accordance with the current political climate in the nation.

3. Recommendation

3.1. A success booking, a tree planting

In the Planet 21 programme, Accor Hotels Group was successful in

encouraging their customers to save energy in order to fund tree planting. However,
customers do not know how many trees they planted. They should know how they
affect Accor's planting plans because a visible result keeps the customers more
motivated to continue their action. That’s why we recommend this action “A success
booking, a tree planting” for Accor Hotels Group. Specifically, when a guest books a
room in Accor Hotels Group, 1% of the total room rate is taken for planting a tree.
Therefore, guests can visibly witness their contribution in the plan. Accor can also
encourage their guests to plant trees with them on accurate days. 

3.2. “Green card”

A “green card” is a card given to all Accor’s guests in order to accumulate

points when using “green service” in hotels. For example:
 When they book a room and join “a success booking, a tree planting”, they can
get points.
 When guests stay in their room and choose “DnD” in order to save energy
(soap, shampoo,...), they can get points.
 When they recommend customers experiencing Accor Hotels' sustainable
services, they can accumulate points
When guests accumulate score levels, they can get gifts from hotels (discount,
voucher, “green tree”, “green products” (such as unique soap, shampoo of Accor
Hotels Group)). Or with a certain score, customers can exchange for vouchers or a
discount for the next time they stay at the hotel. Besides, vouchers or discounts can be
used in all Accor Hotels Group or other associated companies.

3.3. C2C Campaign (ChanceToChange)

Accor Group encourages their customers to help the SOS's children villages to
have a better life. A certain portion of the money generated from the hotel's revenue is
sent to SOS's children villages each quarter of the year. To create job opportunities for
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these children, Accor is willing to offer some professional training programs. Accor
Group believes that it's also a sustainable development and a mission of the group. We
hope the customers feel that they also contribute to bring SOS's children villages with
happiness and chances to overcome their difficulties. In the future, if the children want
to work in the group, they can apply and devote their talent to Accor. In conclusion, it
can be seen that Accor Group always wants to deliver a “sustainable message" to the
customers through its operation, organizing and strategies.
A specific recommendation: In some hotels and resorts of Accor in Vietnam
(including: Hotel Royal Hoi An, MGallery by Sofitel, Grand Mercure Danang,
Pullman Danang, Premier Village Danang, Mercure Hoi An and Mercure Bana Hills
French Village), they cooperated to organize a “green market” where guests can buy
agricultural products directly from local farmers, as well as experience and buy
organic wines and handmade products. We recommend that a certain percentage of
profit from this action can be donated to local SOS’s children villages. Therefore,
guests not only have the experience with "sustainability and green" but also visibly see
their contributions to the C2C campaign.

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 C. CONCLUSION

The 3I's Framework of Accommodation Sustainability Management (FASM)

was developed with the research and evaluation of best Industry practices of top hotels
with regards to inventory, traveler's choice, and sustainability. It was developed as a
result of a literature review.
In recent years, climate change related to environmental issues and constraints
makes governments and industry stakeholders more aware of the need for change . As
a result, the hotel industry is becoming increasingly responsible for the environment,
paying more attention to energy efficiency, committing to incorporating environmental
policies, managing human resources, and providing environmental education to its
employees. Ecological orientation has become a prerequisite for achieving sustainable
tourism development.
Nowadays businesses especially the hospitality industry is emphasizing on the
importance of Corporate Social Responsibility (CSR) in business. CSR is not only
about doing good things, it also proposes business benefits and the best way to have
the attraction of media, publicity, respect in society and in its customers and customers
not only want to go to respected businesses, they persist in it. This way on one side
companies are doing good things to the community and customers and on the other
hand increasing their business. These are some reasons organizations pay attention on
their CSR policies and always try to improve them.
The main objective of this work was to investigate what social and
environmental sustainability practices were adopted by the Accor and what results
were obtained from their adoption, according to the management’s perception. The
type of tourist activity offered by the Accor highlights the environmental dimension as
one of the main factors for its development. Since the requalification, and beginning of
activities as nature tourism, the practices of environmental sustainability have
contributed to a superior operational and financial performance. The initial investment
already included technology to reduce water and energy consumption and has had
proven benefits.
Finally, there is a need for more research into some highly intriguing and novel
solutions that might help these campaigns go even further while gaining the support of
all stakeholders. That’s why we recommend “A success booking, a tree planting” for
Accor Hotels Group. One percent of the total room charge is taken when a guest books
a room with the Accor Hotels Group in order to plant a tree. In addition, we also

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recommend Accor '' green card'' to encourage customers to use more environmentally
friendly products. We also suggest the C2C campaign (Chance to Change) with the
aim of contributing a portion of profits to SOS's children villages and create
employment opportunities for these children.

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 REFERENCES

1. Accor’s official website

2. Thịnh Phạm, RobbReport Vietnam (14/3/2020), Phát triển bền vững trong ngành
dịch vụ khách sạn (Kỳ 2): Accor Hotels khởi xướng Planet 21 – hành trình vì tương lai

3. Accor, hospitalitynet (12/4/2012), Accor launches PLANET 21 - Sustainability

program involving all its hotels and customers

4. Phillip Kotler, Jhon Bowen, James Makens (2003), Marketing for Hospitality and
Tourism. 3rd edition.

5. Daniel Thomas Mollenkamp (23/6/2022), What is Sustainability? How

Sustainabilities Work, Benefits, and Example.

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