The Accor Group Strategy

Angela L.

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The Accor Group Strategy

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Themes

The Accor Group strategy, hotel market, market positioning, variety of brands, Raffles, Orient Express, Delano, Sofitel, long-term sustainability, business travellers, performance, risk management, Porter's strenghts, McKinsey Matrix, PESTEL analysis, SWOT analysis

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Abstract

Accor, a group widely recognised in France for its presence in the hotel market. Accor has a wide variety of brands with different market positioning.
The group's subsidiaries can thus be separated into 4 categories:
- The "Luxury" category with the following brands: Raffles, Orient Express, Banyan Tree Hotels and Resorts, Delano, SO/, Sofitel Legend, Fairmont, SLS, Sofitel, The House of Originals, John Paul, Rixos, and Onefinestay;
- The "Premium" category includes the following brands: Mantis, MGallery, Art Series, Mondrian, Pullman, Swissôtel, Angsana, 25 Hours, Hyde, Mövenpick, Grand Mercure, Peppers, The Sebel;
- The "Mid-Range" category, made up of Mantra, Novotel, Mercure, Adagio, Mama Shelter, Tribe;
- And the "Economy" category has Breakfree, Ibis, Ibis Styles, Ibis Budget, Jo & Joe, Hotel F1.
Thanks to this wide variety of brands to its credit, offering up to 704,000 rooms, the Accor group is present in more than 100 countries and now employs more than 280,000 people. This is the reason why it is positioned as the leading European hotel group and is ranked 6th globally.

Presentation
SWOT analysis
PESTEL analysis
McKinsey Matrix
Loyalty strategy
Porter's strengths in the French hotel market
Risk management

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[...] The status says "SILVER" which is acquired from 10 nights booked, or from 800 Euro of purchases (which corresponds to 2,000 Status points). The status says "GOLD" which can be obtained from 30 nights booked or Euro 2,800 of purchases (which corresponds to Euro 7,000 in Status points). The status says "PLATINIUM" that customers can acquire from 60 nights booked or purchases of Euro 5,600 (which represents 14,000 Status points). The status says "DIAMOND", which is the last possible status, and which is given after spending at least Euro 10,400 in eligible expenses (which represents 26,000 Status points). [...]

[...] Based on the DAS mentioned above, we can distribute them as follows: Competitive position (Strengths) STRONG AVERAGE LOW Value of the activity (Attractiveness) STRONG DAS Accor services/professionals DAS Economic and very economical hotel industry AVERAGE DAS High and Mid-Range Hotels DAS Luxury hotels LOW We can, therefore, see that certain segments need to be improved in order to be more profitable. But overall, the group is relatively well-positioned in the market across all of its strategic business areas. Because thanks to the strategy implementing a strong refocusing policy since 2004, the group has already disposed of the least profitable segments and having little chance of becoming so again. [...]

[...] Which forces the group to constantly innovate its offers. The high demand from customers, even from customers looking for "low" prices. The influence of seasonality on certain areas, cities or countries, can make the occupancy rate very irregular. PESTEL analysis The PESTEL analysis is a model which makes it possible to identify the business environment, in order to analyse the influence (whether positive or negative) which is exerted on an organisation or a company by macro factors such as the environment. [...]

[...] Although the franchise system is a force in terms of strength development with a limited cost, this implies strict management since the group includes 2040 franchised hotels, and certain segments (such as luxury hotels) have, therefore, been seriously lacking in adequate attention. The loss of profit in the middle and economy segments to the benefit of small hotels and online businesses such as Airbnb or Oyo Rooms. The extremely popular sub-brands of the group cause a disconnect in the minds of customers between the brands of the Accor group (so customers hardly know the Accor group). Opportunities Threats Growth in emerging economies has great potential for the hospitality market. [...]

[...] These measures allow the company to move from a transactional relationship to an emotionally based relationship with customers. Accor, as a travelling companion, wishes to focus on the consumer and bring high added value to the daily lives of customers through promises of experience, such as "Work", "Live", "Vibrate". Through the slogan: "Life Styled for you", the company is based on 4 different pillars: The implementation of new member statuses enhance customer loyalty and push them to consume more and to be affected by more offers. [...]

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