v

Digital Marketing
Assignment 1 – Accor Hotels

Joseph Abramson – 11236236

Akhil XX

1
Executive Summary:
In this piece we craft a digital strategy for AccorHotels to deal with the digital disruption of the
hotel industry. More specifically, to provide an unparalleled customer experience from start to
finish Accor must take advantage of three major digital trends: personalization, increased
mobility and the rising importance of social media. To that end, we make five actionable
recommendations: keep digital and non-digital segmentation strategies consistent, bolster the
loyalty program, use social media to improve e-reputation, employ AI to provide a personalized
guest experience and use mobile data to provide timely, convenient location-based information.
Key Issue:
How should Accorhotels (Accor) respond to the digital disruption of the hotel industry? More
specifically: (1) how does the shift to digital impact the customer journey of Accor’s guests; (2)
how should Accor use digital content; and (3) how should Accor adapt its processes, culture and
organizational structure? In the remainder of this piece we map out a digital strategy for Accor to
address these issues and help it achieve the goals of improving profitability and customer
satisfaction.
Framework: SWOT (for details see Appendix – Figure 1)
Accor has numerous strengths, including its large size, presence in all major segments and global
reach. At the same time Accor suffers from a lack of a clear digital strategy and more limited
alliances with collaborators like airlines provides
From this competitive position, Accor faces several key threats. Digital disruption has resulted in
a power shift away from hotels. Online travel agents (OTAs) have increased the power of
consumers by making cost and quality comparison transparent and easy. The sharing economy,
through firms like Airbnb, has also substantially increased the amount and fluidity of supply.
Both threats are deflationary and decrease industry pricing power. We will speak to opportunities
as well as these specific threats in more detail in the Recommendations and Risks sections.
Issue 1: How does the shift to digital impact the customer journey of Accor’s guests?
The industry has come a long way since the time when customers lacked information and were
dependent on travel agents to an era of online reviews and bookings, giving more power to
customers. New actors include: OTAs like Priceline, review sites such as TripAdvisor and
alternate lodging options like Airbnb.
Consequently, there has been a revolution in the consumer journey in hotel to research, booking,
staying, departing and inspiration. (see Appendix – Figure 2). Today, a typical consumer’s
journey begins with research about hotel options online. He takes these steps with help of
Priceline and browses peer reviews on TripAdvisor before committing to the final booking.
During the actual stay at the hotel, he evaluates different hotel services like the concierge, with
some submitting feedback afterwards at a review website. Overall, the start and finish are
critical.
Issue 2: How should Accor use digital content?
To provide an unparalleled customer experience from start to finish Accor must take advantage
of three major digital trends: personalization, increased mobility and the rising importance of
social media.

2
Data allows personalization. Personalization leads to more effective segmentation. Both internal
and external data permit Accor to provide highly personalized and unique service at all points of
the customer journey. Customization can increase customer satisfaction and differentiation,
therefore customer stickiness. AI can also be used to provide predictive analytics, such as
individualized restaurant/event recommendations upon arrival.
Mobile data adds location and timeliness to the mix, which allows Accor to adjust to the
different stages of the customer journey. Location allows for further customization and
satisfaction of human needs. For instance, local guides can be downloaded with personalized
recommendations making the customer experience truly unique.
Social media data is also critical. Defensively, social media sites need to be monitored using
alerts and dashboards. Online reviews are particularly important - 76% of hotel customers are
willing to pay more for a room with a higher rating (Carmelon Digital Marketing). But social
media should also be used offensively. Accor should build its brand image through the creation
of online communities. Influencers must be won over and brand ambassadors created.
Issue 3: How should Accor adapt its processes, culture and organizational structure?
To compete in an increasingly fast-paced digital world Accor must become more agile. This will
require training and integration of employees as well as a more decentralized structure to
increase nimbleness. As such, we would suggest monitors in each local hotel keep track of local
reviews and have the power to act accordingly. In line with the Star model (see Appendix –
Figure 3) Accor must make sure that organizational structure and culture remain consistent with
both digital and non-digital strategies.
The key is to achieve a consistent evolution of the company along the five axes (strategy,
structure, processes, rewards and people). For example, for a superior customer experience,
changes employee responses necessitate alterations in the rewards program and hiring practices.
Recommendations:
• Digital and non-digital segmentation must remain consistent. Digital corporate strategy is
an extension of analogue strategy. Hence, it should be consistent whether it is in the digital or
analogue realms. Training and processes must be put into place to ensure that strategy and
segmentation remain consistent. For example, the message to the luxury segment of
differentiation via a unique, high quality experience should be extended into the digital realm.
• Bolster the loyalty program to boost profits and customer retention. The loyalty program is
the key instrument for combatting OTAs. Profit is substantially higher if rooms are reserved on
Accor’s website and 90% of loyalty customers book there. Unique non-monetary rewards such
as exclusive benefits like concierge service must be provided in addition to monetary rewards.
Mobile apps can also go a long way toward personalization of rewards.
Loyalty customers should also be turned into brand evangelists with rewards for referrals and for
sharing stories. Sharing loyalty points across categories (airlines, car rental, credit cards) can also
boost appeal. Most importantly, AI can be used to find patterns in rich loyalty data further
improving the customer experience.
• Use social media to improve e-reputation. Defensively social media sites need to be reviewed
closely using alerts and monitoring, especially of online reviews. Offensively, Accor should

3
incentivize storytellers and evangelists to share positive experiences. An example may be
creating an online travel community or partnering with TripAdvisor. Stronger reputation for
quality and unique experiences will help differentiate Accor from Airbnb as well as other hotels
sourced through OTAs.
• Employ AI to provide a personalized guest experience. Personalization will increase
differentiation and help fend off threats from OTAs and Airbnb. For luxury guests a personized
concierge may be provided with in-depth knowledge garnered from data. For economy guests,
the concierge should be based upon a fully digitized personal assistant with knowledge and
recommendations based upon mobile, social media and other date sources.
Each stage of the customer journey should be personalized from sending pictures during the
initial dream stage to getting customer feedback after the trip has been completed. In between,
AI should be used to provide relevant recommendations to improve the customer experience
such as restaurant or event recommendations.
• Use mobile data to provide timely, convenient location-based information. It is largely
through location-based GPS data that Accor can customize the guest experience to the different
stages of the customer journey. Specific applications that increase convenience, thus customer
satisfaction include: mobile check-in and check-out, maps and directions, airline check-in and
boarding passes and location-based coupons.
Risks and Mitigation:
The three primary risks are:
• Digital undermines segmentation strategy. It is much more difficult for a single company to
retain strong segmentation between luxury and economy brands in the digital realm given
increased customer knowledge. That said, as long as Accor remains consistent within its brand
segments this should not be particularly problematic. For instance, if Sofitel remains luxury in
both the digital and non-digital realms, it should not undermine the brand if customers find out
that the parent company also owns Ibis.
• Airbnb deflationary pressures intensify. The potential for Airbnb to add supply particularly
during heightened demand when pricing power is strong, is problematic. The sharing economy is
a major risk since its value proposition is so attractive to all participants. To combat this Accor
needs to intensify its use of data to provide a truly unique and personalized experience, which
will differentiate it from lower quality offerings like Airbnb. The sharing economy is a greater
threat for the economy segment due to greater price sensitivity. As a result, Accor is likely to
suffer, however the impact may be mitigated through our personalized digital assistant, quality
reputation as reflected in reviews and our improved loyalty program.
• OTAs continue taking share. Once again customization through data, particularly mobile,
social media and loyalty data, should help increase uniqueness and differentiation. Moreover,
partnerships can be set up with collaborators such as airlines, car rental companies and credit
cards to reduce OTA power. In the end, OTAs are just commodity services with strong network
power, but limited value added, so a differentiation strategy should prove successful.
Bottom line:
Our digital strategy is likely to overcome these risks to help Accor achieve its objectives.

4
Appendix:

Figure 1

Figure 2

5
Figure 3

6
7
8
9