Published by MBA Skool Team, Last Updated: January 30, 2021
Marketing Strategy of Accor Hotels analyses the brand with the marketing mix framework which covers the 4Ps (Product, Price, Place, Promotion). There are several marketing strategies like product innovation, pricing approach, promotion planning etc. These business strategies, based on Accor Hotels marketing mix, help the brand succeed.
Accor Hotels marketing strategy helps the brand/company to position itself competitively in the market and achieve its business goals & objectives.
Let us start the Accor Hotels Marketing Strategy & Mix to understand its product, pricing, advertising & distribution strategies:
Accor Hotels Product Strategy:
The product strategy and mix in Accor Hotels marketing strategy can be explained as follows:
Accor Hotels are one of the largest chain of hotels having a global coverage. They have their products in the form of various Hotel rooms and services that they serve under many world-famous brands. As of June 2018, the brand offers are as follows:-
Luxury and Upscale Hotels: Raffles, Orient Express, Banyan Tree, SOFITEL Legend, Fairmont, Sofitel, Rixos, Mantis, MGallery, Pullman, Swissotel, Angsana, 25hours, Movenpick, Art Series, Grand Mercure, Peppers, The Sebel Apartments pipeline
Midscale Hotel: Mantra, Novotel, Mercure, Adagio Aparthotels, Mama Shelter
Economy Hotels: Ibis, Ibis Styles, Breakfree, Ibis Budget, JO&JOE, Hotel F1
Also at the heart of all this is the scintillating and lip smacking offering of over 9000 restaurants and bars which serve over 200 million meals per year, 500 Fitness centres and over 350 spas, many Thalassa Sea & Spa institutes which offer thalassotherapy and spas in relaxing and restful environments. They have a separate restaurant chain named Potel & Chabot which covers 600 international venues and event management under the name of Noctis which organises prestigious events inside France. Apart from hotels, there are several offerings as a part of its marketing mix product portfolio. The additional categories of businesses that they have entered into deals in Private Rental spaces, coworking offices on rent/lease to companies and individuals, concierge services, digital solutions to restaurant and hotel industries as well as their very own in house developed app used for making a variety of bookings. Throughout its existence Accor Hotels has provided its customer with high-quality product offerings which has been able to retain and attract loyal customers and corporate clients. With a plethora of services like casinos, restaurants and even train and air booking services through its website one can simply choose to stick with Accor for a lifetime.
Accor Hotels Price/Pricing Strategy:
Below is the pricing strategy in Accor Hotels marketing strategy:
With competitors that includes a long list of; Starwood Hotels, Marriot International, Continental Group, Hilton Hotels, Wyndham Hotels and so on.
It has to face stiff competition with not only the luxury international hotels world-wide but also the mid premium and economy local players as well. In a market that is driven by customer experience and comfort, Accor hotels has premium and luxury hotels lined up which have their own competition to cater to the clients and price here seems to be of least importance and more emphasis is given on the satisfaction of the deep pocket clients that visit these hotels. Also a lot of weight is given to the location and the market value of the properties whose room rates are directly proportional to them. The brand equity and brand value also lets the brands enjoy the premium that they command over their competitors. So after discounting all such factors it usually comes to the dynamics of hotel occupancy rates, profit margins required by the investors and the availability of rooms and competitors in the vicinity
Following is the distribution strategy in the Accor Hotels marketing mix:
The Accor Hotels started with Novotel in France which they later expanded to across 100 countries and 6 continents. The Accor Hotel brands are located in all the culturally, economically and nationally important tourist destinations worldwide like Paris, Singapore, Dubai, Mauritius, Hongkong, Jakarta, Bali, Mumbai, Shanghai, Toronto, Cairo etc. The most important business strategy that the group follows is that it follows a combination of owned properties, management contracts and franchise properties. This allows it to expand and diversify faster and provide the customers strong brands across countries.
It also buys out Heritage and aesthetically important properties and after suitable refurbishment they are brought under a suitable brand name and operated like Raffles Singapore among others.
Accor Hotels Promotion & Advertising Strategy:
The promotional and advertising strategy in the Accor Hotels marketing strategy is as follows:
The promotions at Accor Hotels are quite well taken care of. The group focuses on customer loyalty seriously and therefore has a dedicated loyalty program by the name of Le Club Accor Hotels which is based on the traditional loyalty points scheme which are accrued on visiting hotels and can be redeemed for booking rooms and services at any of its properties. Promotional schemes like promo codes, dedicated campaigns like “From The Heart” which focusses on increasing occupancy rates via discounts and also promoting the properties over the competitors, “Happy Monday” schemes which focus on booking of rooms for leaner part of the week like Mondays and Tuesdays during off-season which helps in customers to experience the properties at cheaper rates as well as boosts occupancy rates. All of these are efficiently run and give effective responses to the group as a whole. The group has a wonderfully built website where they promote all the brands under different budget segments and accept bookings. All the current schemes and offers are communicated on the group’s website as well as the individual hotel’s website separately. Tie-ups with payment gateways like MasterCard is there to make sure hassle free and incentivised bookings for the customers. The group is a signatory to the UN COP-21 Plan on climate change, member of UN’s Women Empowerment Panel and has a planned wastage reduction and sustainability program. The group has strong presence on the social media with YouTube, Twitter and Instagram accounts based on regions and a Facebook page with 1.8 million likes.
Since this is a service marketing brand, here are the other three Ps to make it the 7Ps marketing mix of Accor Hotels.
The physical evidence for the group can be manifested in the different properties and hotels that are situated around the world in some of the most picturesque destinations and top locations of culturally-economically important cities. Also the physicality is evident via its 9000+ restaurants and spa and sauna chains which are a part of the services that are provided in the hotels. Some of the iconic hotels include The Raffles, Singapore; Hotel Mercure Kingfisher Bay Resort on Frazer Island, Fairmont Pacific Rim, Vancouver among others.
Accor Hotels group employs more than 250,000 employees which include a 55% strong work-force under 35 and some of the highest employee engagement rates in the industry at 77%. The group takes pride in the training programmes it conducts for its employees which are done through 100 partner schools and universities worldwide and has own 800+ managers/trainers. The group offers over 100 different designations and plans to have a 35% women workforce at managerial positions by 2020.
Accor Hotel Group provides best in class services to the customers who can make bookings via a seamlessly integrated website and mobile application interface, redeeming and availing any discounts and loyalty points if any. The booking process is quite easy and hotel check-ins are simpler where customers need to just present a valid identity card and its done. Hence this concludes the marketing mix of Accor Hotels.
About Accor Hotels:
The Paris Headquartered multinational Accor Hotels is the world’s 6th largest chain of hotels. It is the biggest chain when it comes to operating outside of USA. It has its presence in 100 countries with a network of 4,500+ properties and 650,000+ rooms under a bouquet of 30 hospitality brands ranging from luxury, upscale to mid-segment and economy. It is a major constituent of the CAC40 index on the French Stock Exchange.
The FY 2017-18 annual report discloses revenue of £1.93 billion and a net operating income of £ 413 million. Established by, Paul Dubure and Gilles de Courtivron in August 1967, Société d'investissement et d'exploitation hôteliers (SIEH) hotel group started the first Novotel outside Lille in north of France and which after many hotels and by-outs later took to the name of Accor Hotels in 1983 and went on to become Europe’s largest hotel group.
This article has been researched & authored by the Content & Research Team. It has been reviewed & published by the MBA Skool Team. The content on MBA Skool has been created for educational & academic purpose only.
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