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Marketing ManagementAccorHotels and the Digital Transformation Group Report Assignment - Syndicate Group 5 Riasky Widar Dewanti - 29320087 Bella Nadhifah Agustina - 29320088 Fachry Arrazy - 29320090 Fadhila Afifah - 29320093 Reyner Farras - 29320097 Kevin Apriano Mulia - 29320101 Background of the case Accor was founded by Paul Dubrule and Gerald Pellison, in 1967. First, they focused onconquering the french hospitality market and then trying to go international by starting in Polandin 1973 followed by UK, Holland, Germany, and The US (1). Now Accor currently has 510,000rooms in 92 countries worldwide. Accor covers three market segments: upscale (16%), middleclass (45%) and economy (39%) (1). With nearly four thousand hotels worldwide and fifty years of experience, Accor as abrand has a global reputation and a great history. Accor has experience in diverse markets thathave shifted over the decades, differentiating the brands, targeting new markets, and recentlychangingmanagementin2005.Oneofthe biggest obstacles they are facing is digitaltransformation (1). Digital transformation is changing the state of the hotel market, shifting bigplayers in the hotel market, and changing customers' behavior (1). In the following analysis, wewill try to elaborate on the existing problems further and also provide some recommendationsregarding cases. Problem statement WeknowthatAccorisalarge group known in many countries, but with theseadvantages, Accor was late in digital transformations, for example when Accor was still usingthe old fashioned client card to review, there were already many review websites with a morecomfortable way and trust appeared. New digital players who have entered the hotel industryare disrupting the market and defy the traditional hospitality method. It created a significantchallenge by the sharing economy invented by the Airbnb start-up, thread the hotel chains. As aresponse, Accor will carry out various digital transformations that will impact company cultureand all business models that will compete with competitors from digital. 1
Marketing ManagementAccording to Global Hotel Revenues (Figure 2), from 2008 to 2016, there’s an increasein Global Hotel Revenues revenue, which in 2008 was 447 billion USD and in 2016 was 550billion USD, so there’s an increase of 103 billion USD in hotel industry revenue (1). Surprisingly,Accor decreased in revenue from 11 billion USD to 6 billion USD, so there’s something wrongwith the strategic decision that Accor made. There’s another competitor who has also haddecreased revenues-Intercon (1), so we are looking for some similarities between Accor andIntercon.According to Competition in Terms of Market Segments (Figure 3) we see that Accorand InterCon are serious in getting the midscale segment which Accor 37% and InterCon 71%(%ofchain’sroom)(1).There’sdataanomalyfrom Wyndham compared to two othercompetitors, Wyndham also focused a little on the middle segment (28%) but its revenue hasincreased from 4 billion USD to 5.5 billion USD in 2008 to 2016 from Global Hotel Revenues(Figure 2) (1).