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INDIVIDUAL ASSIGNMENT
Critically evaluate what the problems were for Accor Hotels, the importance of
digital transformation & content, and how Olivier Arnoux developed his strategic
plan of attack for enriching customer experiences through the power of digital
marketing?
Outline:
1) Introduction
6) Conclusions
1) Introduction
The French hotel chain Accor has a global presence and a long history, with almost four
thousands hotels in the entire world and almost 50 years of experience. Accor has
experienced diverse market changes throughout the last decades, shaping differently its
Brand and targeting new market segments, and finally changing its leadership quite
frequently since 2005. One of the biggest challenge currently facing concerns the digital
transformation which has totally disrupted the hotel environment and changed the actors
playing in the market and the behavior of the users. As a result, the customer journey is
today totally transformed and involves numerous online platforms and new source of
contents, which have made the customer more informed and powerful. Consequently,
Accor needs to plan an innovative online and offline marketing strategy in order to add
value to the customer experience and to emerge from the competitors. In the following
analysis Accor Hotel strengths and weaknesses will be explored, and recommendations
for the future marketing strategy will be assessed, taking into account the challenges
offered by the digital era and the new external variables of the online customer journey.
Accors is an hotel chain founded in Lille, France, in 1967, which experienced a great
expansion of the market share throughout five decades, being currently present with
Accor addresses three market segments: the Luxury market (16%) with Sofitel, The Sebel,
Pullman, Mgallery and Grand Mercure brands; the midscale one (45%) with Novotel,
adagio, Mamashlter and Mercure brand; and the economy/basic segment (39%), with Ibis
and HotelF1 brands. It is worth of notice that the above mention structure differs from the
market segmentation trends assessed in the hospitality sector (see following Exhibit 1).
Exhibit 1
After a long period of management changes, the CEO Sebastien Bazin introduced a more
efficient Asset light plan for the company, establishing from 2013 the following business
structure: 40% Manage hotels - 40% Franchised hotels - 20% Owned hotels.
Competitive Landscape
From the Accors competitor analysis emerged that competitors are the following
worldwide, structured and global hotel companies: Starwood Hotels and Resort worldwide
Inc., Marriott International Inc., Hilton Worldwide, InterContinental Hotel Group Plc and
Wyndham Worldwide Corp. All the five brands performed strong business figures and
long experience in the luxury, middle scale and budget market segments. An important
strategic company in the Tourism sector, as Airlines, Cruises lines, high profile Restaurant
Nowadays the tourism and hospitality sector has been deeply shaped by the latest
technological wave which have transformed the competitive landscape, the amount and
the type of actors involved in the purchasing process as well as the consumer behavior.
The phenomenon is not new, similar transformations have been experienced by other
industries, and hotel one is currently facing an adaptation phase. The common disrupting
factors are the introduction in the market of the sharing platforms, the mobile payment and
the broad and fast connectivity opportunities, both for sellers and consumers.
The main digital variables are going to be analyzed as follows: new actors in the market
and new type of content production has influenced the customer journey in each phase.
COSTUMER JOURNEY
New Actors
The market is nowadays composed by new digital players which have affected negatively
the former dominating role of the brick and mortar travel agencies. Social networsk as
Facebook, Twitter and Instagram, now play a huge role in inspiring with visual content,
engaging and informing consumers with reviews a useful guide content. Online Travel
Agency (OTA) gave the opportunity to compare benefits and experiences of each hotels
and book the best option; Metasearch sites have the aim of compare prices in the most
transparent way, Review sites give the chance to read peer-to-peer comments and have
some internal insights, Travel blogs and forum inspires the consumer about the whole
journey and sharing platform as Airbnb does not represent a minor competitor, since it has
overcome Marriott, Starwood and Hilton hotel chains in terms of capitalization of the
satisfying accurately each consumer need, in each phase of the purchase-cycle, through
New Content
The rapid production and accumulation of content online is the second main digital
variable which has a great impact on the customer journey. The online content production
can be divided by two groups, depending of the source: the content produced by the Hotel
The owned content has the aim of educate the audience about the hotel characteristics
and benefit, with descriptions, photos, videos, available extra-services, engaging the target
with added value information and emotional inspirations. On the other hand, the content
could be also persuasive, orientated towards the conversion (i.e. transparent price list,
The content produced by the consumers has a crucial role because it involves the trust
among users, which has always impacted largely the social dynamics andnespecially the
consumer behavior. Authentic photographs and honest reviews are the main ingredient of
the e-reputation of hotels. This phenomenon is driven by altruistic purposes, since users
do not have a direct benefit from it, they post reviews in order to help other consumers
feeling part of the community, on the one hand, and to share good and bad experiences in
order to help the hotel to improve services or report a failure experience, on the other
hand.
The above mentioned two variables affect the costumer journey in each phase. The
consumer could be indirectly and direclty influenced by visual and descriptive content
(photos, story-telling video and texts, how to guide, etc.) when the holiday destination
has to be decided and the hotel still have to be booked. Travel Blog and Forums, as well
as Social channels plays a great role during this inspiration phase. When the active
research begins, the user will take advantage from OTAs and Metasearch site in order to
read review, compare price and book the best offer. During this phase the user is driven by
different need, not only price related, since the main concerns regard also the risk of
choosing a poor quality option. Also social media play a role because can generate brand
awareness and sense of loyalty towards a brand which is recognized by the community
influencers. It is worth of notice that the booking through a third party sites has high
commission costs for the hotel, which have the interest of keeping the consumer on the
website after the first purchase through loyalty program. Finally during and after the
staying period the hotel should encourage the consumer to give feedbacks and share
Taking into account the above mentioned variables, Accor is facing numerous challenges
because of the current digital disruption, and the main problem can be grouped as
follows:
Institutional trust has been substituted by peer trust: the consumer has gained power
transformation. The users have more information and can influence other users sharing
online.
Exhibit 2
The great accumulation of content online comes from different sources, is posted on
numerous channels, and is produced with different aims. Accor has to plan a digital
SWOT Analysis
SWOT
STRENGHTS OPPORTUNITIES
- Global Presence - Leveraging the interaction and feedbacks with guests
- Target each Market Segment in order to improve the service
- Asset-light management - Encouraging satisfied and loyal customer to share the
- Good level of feedbacks experience becoming influencers
WEAKNESSES THREATS
- Other players in the market have stronger partnership - The market is highly competitive with strong push to
- Old Style feedback collection innovate
- Accor team is not incorporating digital variable into in - New competitor with light asset costs, as Airbnb
the everyday duties -Customer gaining more power
- Online Information about the Brand are not completely
under Accor control
In order to complete the transformation towards a customer centric business, and tackle
the first identified problem (the shift of power), firstly, Accor should use social channels
and review site as a source of honest feedback in order to improve its product and service.
Secondly, Accor should improve and leverage the loyalty programs, addressing each
satisfied customer with personalized and targeted deals in order to encourage to use the
owned booking platform on the website (saving commissions costs to OTAs), and to share
The content challenge should be tackled on each phase (Monitor, Produce, Encourage)
addressing the consumer need with the right content and channel.
Firstly, Social Media Listening activities should be put in place in order to monitor the e-
reputation. Secondly, the Accor staff should be trained in order to integrate digital
capabilities and consume behavior understanding within the everyday duties. Thirdly,
each phase of the customer journey should be addressed with specific actions, targeting
each stage with the content and the platform above mentioned.
6) Conclusions
numerous digital challenges, represented by new actor in the market, as OTAs, Review
site, Travel blogs and Social network and the rise of mobile connectivity, which have
influenced the costumer journey in the hotel and tourism sector and shaped and
empowered the customer. The competition has risen, with new actor as Airbnb, and the
costs have grown due to the commission for third party websites. Accors needs are to
assess an innovative online marketing strategy with the aim of enriching the customer
experience and emerging from the competitors. After the analysis of the emerging digital
threats and Accor Hotel strengths and weaknesses, two main problems have been
For these reasons, Accors digital marketing strategy should be focused on two main
aspects: on the one hand, Accor should adopt a customer-centric approach, integrating
feedbacks and review and follow its e-reputation in order to improve the services. On the
other hand Accor should put in place marketing tactics in order to Monitor (i.e. SML tools),
Produce and Encourage content creation, in order to preserve the brand awareness.
Reference:
Dubois D., InYoung C., Niessing J., Wee J., (2016) AccorHotels and the Digital Transformation: Enriching
Experiences through Content Strategies along the Customer Journey, INSEAD