SG-5 Marketing_AccorHotels and the Digital Transformation.pdf

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Marketing Management AccorHotels 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 on conquering the french hospitality market and then trying to go international by starting in Poland in 1973 followed by UK, Holland, Germany, and The US (1). Now Accor currently has 510,000 rooms in 92 countries worldwide. Accor covers three market segments: upscale (16%), middle class (45%) and economy (39%) (1). With nearly four thousand hotels worldwide and fifty years of experience, Accor as a brand has a global reputation and a great history. Accor has experience in diverse markets that have shifted over the decades, differentiating the brands, targeting new markets, and recently changing management in 2005. One of the biggest obstacles they are facing is digital transformation (1). Digital transformation is changing the state of the hotel market, shifting big players in the hotel market, and changing customers' behavior (1). In the following analysis, we will try to elaborate on the existing problems further and also provide some recommendations regarding cases. Problem statement We know that Accor is a large group known in many countries, but with these advantages, Accor was late in digital transformations, for example when Accor was still using the old fashioned client card to review, there were already many review websites with a more comfortable way and trust appeared . New digital players who have entered the hotel industry are disrupting the market and defy the traditional hospitality method. It created a significant challenge by the sharing economy invented by the Airbnb start-up, thread the hotel chains. As a response, Accor will carry out various digital transformations that will impact company culture and all business models that will compete with competitors from digital. 1
Marketing Management According to Global Hotel Revenues (Figure 2), from 2008 to 2016, there’s an increase in Global Hotel Revenues revenue, which in 2008 was 447 billion USD and in 2016 was 550 billion 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 wrong with the strategic decision that Accor made. There’s another competitor who has also had decreased revenues-Intercon (1), so we are looking for some similarities between Accor and Intercon. According to Competition in Terms of Market Segments (Figure 3) we see that Accor and InterCon are serious in getting the midscale segment which Accor 37% and InterCon 71% (% of chain’s room) (1). There’s data anomaly from Wyndham compared to two other competitors, Wyndham also focused a little on the middle segment (28%) but its revenue has increased from 4 billion USD to 5.5 billion USD in 2008 to 2016 from Global Hotel Revenues (Figure 2) (1).

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