Accor The Fast Growing Hotel And Tourism Marketing Essay

Accor The Fast Growing Hotel And Tourism Marketing Essay Currenly Accor has hotel and service related business in nearly 90 countries with 4100 hotels where more than 500000 rooms has been built where customers being offered hotel stays to the specific needs of each business and leisure customer. ACCOR worldwid Hotel activities 4127 hotels and thalaso sites Sofitel-121 hotels Pullman- 46 hotels Novotel-395 hotels Mercue-699 hotels ibis-861 hotels All seasons-75 hotels Etap Hotel- 403 hotels Formula1- 351 hotels Motel6-1001 hotels studio6-59 hotels Hotel without brand-45 hotels Thalasa sea and Spa-16 centre Services for our companies and public institutions As a worlds best service provider ACCOR has been providing several flagship product, Ticket restaurant, Accor service designs, develops and manages services for more than 490000 corporate clients and public institutions. At least 33 million users and 1.2 million affiliated service providers of 40 countries are benifited by the ACCOR. Part-1 of the Assignment Basis of competitive advantages ACCOR has started its business with the opening of the first Novotel in Lille in 1967. Since their opening a pioneering spirit of conquest has driven ACCOR to achieve its goal. It is a great success for the ACCOR that they made this spirit of conquest shaped into groups culture. And this culture shaped by a constant concern for people and commitment to the highest performance standard. For more than 40 years, across all brands and regions, Accors five core values of innovation, a spirit of conquest, performance, trust and respect have been shared and expressed every day by its 150,000 employees. Managers leverage these values to provide support for team members as part of the Groups ongoing transformation and development. Innovation is trademark The spirit of conquest is growth engine Performance is the key to continued success Respect is basis of all relationships Strategic choice of ACCOR ACCOR business strategies are being reviwed and amended constantly according to customer demand and other circumstances such as govt policy, political stability etc. Bowmans Strategy Clock- (Referece analysis- www.scribd.com, title- Bowmans stretagic clock, making sense of eight competitive positions) IN new open markets, customers purchasing thier products from many number of companies, and customers have a tremendous amount of choice. So, its accor duty to find the competitive edge and meet customer needs to get competitive advantage over the rival competetors. ACCOR has made their business stretagy to diferenciate themselve from the others. ACCOR aims to fulfill customers demands according to customers need by perceiving added value. ACCOR value innovation hotel: Reference: www.maaw.info (Title- curve value, management and accounting web) Accors Formule 1 Hotels are based on a new concept where standard hotel features are eliminated (e.g., restaurants, lounges and receptionists except for peak check-in and check-out times). They use automated tellers instead of receptionist for customers to check-in and check-out. Their rooms are small and include a bed and only the bare necessities. The rooms are modular blocks that are economical to build and provide good sound insulation. This new concept cut the average cost of building a room by 50% and staff costs dropped from 25-35% of sales to 20-23%. The company captured a large percentage of the budget hotel business and expanded the market to people that would not otherwise have stayed in a hotel. The most successful companies were those that used value innovation in all the platforms where innovation can take place including product, service and delivery. Compaqs innovations in the computer server industry are used to illustrate the idea. To avoid what Kim and Mauborgne refer to as the trap of competing, Compaq focused on creating customer value, rather than what their competitors were doing. In 2006 ACCOR has launched a complete transformation of its strategic vision, redifing its borders and introducing new business models in both core business- hotels and services. With fewer owned hotels and a broad portfolio of complementary, attractive brands, Accor Hospitality has established itself as a provider of high value-added services and set ambitious development objectives for 2011. Accor Services is stepping up the technological shift that will reassert its global leadership in prepaid services. Despite the sudden, sharp slowdown in the world economy in 2008 and 2009, Accor is leveraging its new strategic vision to drive continued growth, expansion and innovation in both its businesses, backed by the dedication and professionalism of its employees. The six foundations of Accors strategy stepping up the transformation process a growth and innovation dynamic powerful, complementary, recognized brands unique skills to support the brands people, the companys most important asset growth that creates opportunities for everyone Stepping up the transformation process Reference- www.accor.com Intensifying the hotel property strategy In 2006 ACCOR has lauched a real estate strategy based on adepting hotel ownership structure on a case by case basis. Each hotels region, profitibility and market segment are taken into consederation under this strategy. 56% of hotels are now operated under management contracts, franchise agreements or variable-rent leases. Proactive response to structural changes in society- ACCOR hotels and services are able to anticipate and integrate new economic and social developments, creating an increasingly varied portfolio of paperless products and services. ACCOR strategy is to negotiate technological shift proactively delivered delivered via smart cards, the internet or the mobile phones. Powerful, Complementary, Recognized Brands: ACCOR has several types of hotels such as value innovation hotels with some key facilities Formule1 to five star Sofitel. They are being built new brands such as Pullman in the upscale market and all seasons in the non standardised economic segment. the repositioning of Sofitel in the luxury segment,. Unique Skills To Support The Brands: ACCOR strategy has been made on the basis of innovation and performance. Accor has developed experties and skills with professional innovative approach for the last 40 years. ACCOR innovative team is capable to deliver real value-added in hotel development, innovation and design, construction maintainance, management and finance, purchasing, training and Human resources, technological support, marketing and distribution. ACCOR has created a unique system with interconnection among the above mentioned unites. People, the companys most important asset: ACCOR Corporate culture has made a strong bridge among the team members in respect of their difference in their ages, cultural positions within the organization. Accor has always give attention to its employees with the help of hands on management style and a commitment to skills enhencement, training, recognition and job mobility. Growth That Creates Opportunities For Everyone: ACCOR is a fast growing hotel and service based company. Every year thousands of rooms is being made as part of their business expansion. So, hundrades of people are getting chance to work in ACCOR. ACCOR has been working for the local people to develop their skills as part of their social activities. Part-2 of the assignment Management Green Issues: ACCOR hotel group has topped the first Tomorrows Value Rating of Worlds ten largest hotel groups. The value rating assessment has been carried out by Two Tomorrows, the leading sustainability consultancy. According to the research ACCOR has designed a comprehensive approach to managing team who is facing sustainability challenges with highly professional and efficiency. http://www.twotomorrows.com/ Two Tomorrows, the leading sustainability consultant said the new rating targets to increase debate activities on sustainable business, not only that it aims to identify and reward best practices and spur health competition among the largest global important companies. The Tomorrows Value Rating results in the following hotel ranking- Rank1 Company Name 1 Accor Hotel Group 2 Intercontinental Hotels Group 3 Marriot 4 Global Hyatt 5 Choice 6 Carlson 7 Hilton 8 Wyndham 9 Starwood 10 Best Western Thomas Krick, Global Programme Manager of the Tomorrows Value Rating said Accor has explored some commendable solution to sustainability challanges. Their piloting innovative energy saving technologies and building, and working with communities to maximise local procurement, thereby ensuring that local benefits from its present. So, it has already recognised that Accor is getting huge competitive advantages from its environmental friendly activities. Managing green issues- Accor activities Though most of the big hotel groups have noted the environmental issues. But management approaches are very immature. Climate change, employment practices, community welfare, wast and sustainable buildings are the most recognise issues which has been taken into consideration by the Accor hotel groups. Though others hotel groups announced the same measures but the evidence of diligent management of the issues is really scarce. Accor activities to manage green issues has been explained below- Local development (www.accor.com) Accor has been working in different developing countries in order to fight poverty. Nearly 75% people around the world living below the poverty line those are depend on agricultural income. Accor strategy is capitalising on its purchasing volume, Accor supports local agricultural business and fair trade. Accor contributes locally to jobs and training. Achievements Through a partnership with the NGO PlaNet Finance in Morocco, Accor ensures a professional training for 100 disadvantaged youths and supports argan oil cooperatives.   Through a partnership with the NGO Agrisud , the Sofitel Royal Angkor in Cambodia has been buying its food products since 2004 from small local producers, while they receive training to develop their expertise and diversify their crops.   The F1, Etap Hotel, Ibis and Mercure and Sofitel hotels are offering fair trade products to their guests in more than 17 countries   mainly coffee, tea and chocolate. Fight against epidemics (www.accor.com) Accor has set up a project in all of its hotel to increase awarness and prevention effors to limit the spread of AIDS. According to accor.com there are 33 million people living with HIV virus and 90% of them are unaware of that. A number of training and awarness programmes has been conducted by the Accor hotel authority to increase awarness among the both staff and guests about epidemic of AIDS and meleria. Accor is actively trying to increase awarness about the meleria problem in Africa with the holp of their 13500 staffs. Demographic evolution, climate change and travel increase make it easier for new diseases to appear and spread. Thus, the Accor group decided to significantly bolster its involvement in the prevention of all emerging diseases. Food www.accor.com Accor is mobilising its restaurants to promote good habits among the public. Because chronic deseases such as cancer, diabetes, etc are the main resons of death in the world. Accor is working with nutritionist to comply all ballanced diet on their food menue. ECO priorities ECO Action: United Kingdom: The Etap Hotel Birmingham has been recovering rain water since 2006, which saves 780m3 of water every year. (78k) Energy www.accor.com Several measures has been taken by the ACCOR to reduce enery consumptions which put them as a eco friendly hotels group. Their action has given them huge competive advantage on rival hotels groups such as intercontinental Hotel Group. According to ACCOR hotels web site 100% of the ACCOR owned hotel are equiped with energy-efficient lamps before 2009. 80% of the subsidiary hotels are equiped at the same time. Solar panels has been installed over the entire network in 200 ACCOR hotels before 2009. According to hotel environment charter, 19 energy optimizing measures has been recomanded to implement in each hotel facility such as use of energy-efficient refrigeritors, optimized outside lighting, solar panels to heat swiming pools and more. On the other hand rival Intercontinental Hotel Group says their owned/managed hotels set thir aim to reduce energy use by up to 10% in 2009. They said over the next three years (2010-2012) Intercontinental Hotel Group will save energy 6% to 10%. on a per available room night basis. So, ACCOR measures to reduce energy consumptions clearly give them a competitive advantages over the Intercontinental Hotel Group. Water Use: Water consumption per region (m3) 2008 Americas m3 2008 281.6 EMEA m3 2008 59.7 Asia Pacific m3 2008 2.1 (source- www.ichplc.com, Title- Water consumption) ACCOR hotel group works every day with the help of thier extensive hotel network to find sustainable formula to manage their water use. The goal is to use through innovative reutilization technologies. Evry year millions of people fall in sick due to drink untreated water in the developing countries such as Bangladesh, vietnam. ACCOR is working to ensure complience with rigorous sanitary standards in its hotels. ACCOR claimed their owned hotels consume 10% less water per room rentaed than in 2006. 100% of owned hotels and 87% of subsidiary hotels has been equiped according to flow regulators. Waste (Source- accor.com) Accor gives priority to products that use less packaging and are less toxic for the environment at the end of their life cycle. ACCOR has been using different process in its facilities to remove more waste and increase the recycling segments. Only 10% of waste products are recycled in the world. ACCOR has set their target to recycle 70 percent paper, cardboard and glass. 95% of the owned ACCOR hotels aims to recycle their batteries and compact fluorescent ligh bulbs/tubes by 2010.   Our approach to waste management is based on the 3Rs: reduce, re-use and recycle.   Waste reduction has the most economic and environmental benefits (e.g. reduction in Greenhouse Gas emissions) followed by re-use, recycling/composting and energy recovery. Biodiversity 1 out of every 4 mammals, 1 out of every 5 fish, and 1 out of every 8 plants are in danger of extinction The beauty of a natural site typically attracts visitors, to the point that tourist hotels are often located in fragile ecosystems. Accor is therefore committed to the preservation of the natural environment by regularly mobilizing its staff. Groupwide programme This section presents all the areas in which accor is acting to improve its impact on the environment and on society: Construction Construction of buildings are blames for 40% if energy consumption and 40% of the worlds CO2 emissions. Main items are heating, lighting and water. Accor will complete to open its 1800 new hotels under their news ecofriendly construction rules. Ecodesign Packaging item creats hundrads of thousands tones of wast in the world every day. Though there is signicant chance to reduce the volume of waste it is not been taken seriously by the big companies who are responsible for this wast related problem. Accor is in constact contact with their suppliers to rethink products, reduce unnecessary quantities and giving priority to recycle materials. Purchasing Accor purchases approximately 3 billion euros in products each year. Present in 90 countries, Accor has significant leverage for change through its purchasing. The Group thus wishes to verify that its suppliers respect its environmental and social commitment. Accor is supplied by over 2800 suppliers around the world. ACCOR strategies to get into new market has been analysed on address six key issues-choice of products, choice of strategic markets, mode of entry, transplanting the corporate DNA, winning the local battle, and speed of global expansion. These six issues helps ACCOR go about building global presence in a systematic manner. Part-3 of the assignment Direction for growth Part-4 of the assignment Recommendation- Guest involvement in Green concept- It can be a good idea to involve ACCOR guest to their green concept. I believe it will help ACCOR hotels to make them a sustainable hotel group in the world. It is my suggestion to chose all old ages guests to invite them to plant tree on the ACCOR hotel premises with hotel and customer partnership basis. The concept can be like a old age customer will be invited to plant a tree that tree will be looked after by the company. But the customer of his/ her next of keen will get of 10% of its partnership. A picture of their tree plantation will be displayed in museum style room. Every year the guest will keep in touch and the progress of the tree will be informed. Every year their family will be invited to an event based on their forestation partnership project. I believe after 15-20 years this project can bring huge revenue for the company. If the customer die their next of keen will be more emossional. I hope their family members will come very often to see that nature friendly activities. I made this elaborately which is very difficult to explain in few words. Justification of the recommendation: Strategic objectives of the recomandation- Selecting third world countries for mid range hotel- Usually there are two types of hotels are being built in third world countries especially in Bangladesh, Vietnam, Sri Lanka and others developing countries. An example can be cited on Bangladesh to justify my recommendation.