Digital Transformation

How AccorHotels manages its strategy face to a constant increase of competitiveness?

Since Sebastien Bazin’s arrival in 2013 as the CEO of AccorHotels, the showed its ambitions to invest in its development and in the innovation in the  every market where the company operates.

2017 has probably been the most strategic year since a long period of time. This year AccorHotels merged 9 different and competitive groups from the luxury market. The diversity of their scope goes from hotel/catering to transport.

Throughout 2017 AccorHotels gradually integrate strategic companies under its umbrella (or within its brand) that quickly became essential to the growth of this hotel giant. These integrations were mostly well received internally despite some questions from employees fearing that this strategy would be seen highly aggressive strategy with the purpose to leave no chance for its competitors.

Indeed, this impressive number of new acquisitions in this short period of time can raise concerns in terms of corporate culture and collaboration. How can we integrate so many groups that all already have their own internal culture, processes and strategy in such a short time while the brand also needs to develop a common culture and a sense of belonging to such a large company? These are real organizational and managerial issues that become, at each acquisition, more complex for the Group.

To illustrate all these purchases, here is an infographic of the chronology of the key months in which AccorHotels made its many acquisitions.

All these recent acquisitions show very clearly the issues about the tourism sector and the speed its development of. Indeed, these recent acquisitions of the Group can be seen as a race with one only aim, secure its leadership and its domination within the tourism world and hospitality in general.

This increasingly aggressive competition, the AccorHotels Group can easily be compared to an imposing ship that faces difficulties in taking strategic and quick turns comparatively to its smaller competitors that can adjust themselves faster to the market. Thus, by making all these acquisitions and, the hotel giant decides not to leave any chance to its competitors by covering all segments of the market. As a result, from a weakness to adjust, AccorHotels made it a strength thanks to its investments, which leave only crumbs to its competitors.

But creativity sometimes happens around the corner: some AccorHotels’s business units are currently working on projects that will allow anyone to go to a hotel to… buy products or consume services without having booked any room!

That is the challenge of the CEO: Encourage the French to enter a hotel hall to acquire goods and services of everyday life! We are far from the simple booking of a stay. Moreover, the Accor Local application already offers cooking, yoga or recreational areas for children. It is a revolution that is committed to break the codes and transform our vision of traditional hospitality.

Soon we will have to enter a hotel to satisfy any other need instead of spending one night there. The idea is simple: increasing entries, creating well-being in magical places or the quality of service is impeccable.

Notes:

AccorHotel continues its acquisition strategy in 2017. Indeed, in 2018, the Group merged the 5 stars Mövenpick Hotels & Resorts chain. This new purchase represents 80 hotels within 23 countries and allows AccorHotels to increase its influence on the market.

Find all the AccorHotels’s strategy in the following link: https://www.accorhotels.group/en/hotel-development

 

 

 

About the author

Thibault Meyer