ACCOR HOTELS’

DIGITAL
TRANSFORMATIO
N
Group 1: Section A

Aashish Sharma| Gurudatta Vasavya | Lavanya Kashyap | Sarthak Singal | Sunmeet Sethi

PGPBL0201 PGPBL0207 PGPBL0210 PGPBL0219 PGPBL0225

1. What do you expect from an
accommodation provider (as a
Leisure Traveller and Business
Traveller)?
 Leisure Traveler
Scenic beauty
of the place would be one of the visual Local Culture
attraction for choosing a place of stay. A opportunity to stay close to
Leisure traveller would want to have a locals as one might want to
stay away from the hustle and bustle of understand the culture of the place
the city

Pocket friendly
Leisure traveller would be travelling No fixed Schedule
for longer durations and the cost
Leisure traveller are not hell bent on
wouldn’t be borne by the organisation,
dates as they can move around their
hence the traveller would be under
schedule and so the accommodation
money crunch
provider can tap the flexibility of the
traveller’s schedule
 01 02
Luxury : Business Traveller would Location: Business Traveller
be interested in more luxury as money would want the place to be within the
would be borne by his/her organisation city so that least time is wasted during
and they would expect all the services
01 02 travel

03 04
Fixed Schedule Brand name
Business 04 Business Travelers would want to stay
Travellers have fixed schedule and so
03 at a very known and reputed place
accommodation provider needs to have
enough options to tap the customer in Traveler
times of high demand

05 05 06 06
Food Booking experience
Business Travelers would want to stay Ease of booking in an important factor
at a very known and reputed place for a Business Traveler
2. How does Airbnb meets Customers’
expectations? How does Accor meets
Customers’ expectations?
 Airbnb meeting Customer Expectations

Leisure Travelers

Cheaper alternative Authentic More room Transparency

Experience space (Ratings)

Business Travelers
Collaborations
Laptop with Corporate
24/7 access friendly Travel
(WIFI) Partners (CWT)
Accor meeting Customer Expectations

Leisure Travelers

Marketing innovation
Economic lab
Unified mobile app
Range (IBIS) (Mama shelter)

Business Travelers
Premium
Acquisitions of
and 24/7 concierge service
Luxury chains
Midscale (Onefinestay)
range
3. How different are the value propositions of both the firms?
What are the strengths and weaknesses of these two
business models?
 Value Proposition

To provide an adventurous and authentic local

experience to millennials at affordable price by
creating an online marketplace for people to list,
discover and book suitable accommodation.

To provide customer centric experience by delivering

technology oriented and tailor-made services for each
customer.
 Strengths & Weaknesses

Strengths Strengths
• Technology Scalability • Worldwide hotel
operators.
• Diverse and engaged guest `

community. • Established brand

name in hospitality
• Affordable accommodation industry.
provider.

Weakness
Entrepreneurial
activities differ • Low agility factor
substantially
Weakness • Not popular among
• Customer Safety millennials
• Building trust factor • Wide range of product
portfolio is
cannibalizing Accor
the parent brand name
4. What are the critical success factors of Airbnb
and how sustainable are they?
 Success factors of Airbnb
Product
Transparency maintained
by appropriate potrayal
of amenities and high-
quality pictures of listings.
Business Equation:
Disappointment =
Expectation - Reality
Pricing
3% fee charged to hosts,
9%-12% charged to guests
Dyanmic Pricing that offered
hosts pricing recommendations
based on available demand,
supply, features of the
accomodation.
Customer Experience
Airbnb offered authentic
experience by providing a
way to discover living like a
local.
Ratings and review system
for both hosts and guests.
Targeting High Loyalty and
After gaining substantial Satisfaction
market share in budget and More than a platform, Airbnb
leisure travel segment, became a trendy movement, a
Airbnb for Business got lifestyle. It appealed to young,
launched to target business leisurely travelers considering
travelers. adventurous accommodation.
5. Assess the strategy of Accor and
how should it compete with Airbnb
going forward?
 What will be our speed and Where the Product
sequence of move is Active
• Speed of expansion : Arenas • Product Categories:
Aggressive
Hospitality, online booking
e-market place
• Sequence of initiatives ? Two
Fields of Expertise – Staging Arenas • Channels: MobileFirst,
HotelServices and
Staging Economic Vehicles AccorHotels.com,
HotelInvest (Nov2013),
Logic Fastbooking
Digital Transformation –
Leading Digital Hospitality
• Market segments: Luxury
& Upscale segment,
• (Oct 2014), A new Brand
Differentiators Midscale Segment,
Name and a New Customer
Economy
Promise – Feel Welcome
(2015) , Acquisitions (2016)
• Geography: Worldwide
(Mostly Europe)
Economic
Logic
Vehicles
How will returns be How we will get there
obtained • Internal developments : Chief Disruption and
Growth Officer, Shadow Comex , Jo&Joe ,
• Lowest costs through scale
Differentiators Focus on revamping Food and Beverages ,
advantages? Premium customer
Community service to locals, Cultural
segment , expansion through Transformation
franchising and managed model • Joint ventures: Mama Shelter. Strategic
venture : Unified Portal
• Lowest costs through scope and How we will win • M&A: FRHI, Squarebreak, Oasis Collections,
replication advantages? Transaction Onefinestay, John Paul, Travel Keys, Wipolo
and payment cost might reduce due to • Image : customer centric, New slogan “New promise” , DT and awareness • Two fields of expertise (HotelServices and
customers coming from online mode about Digital Transformations. HotelInvest)

• Customization : Voice of the Guests , Loyalty program “Le Club

AccorHotels”

Data Analytics
Accor now is extracting
information from the
customer database to
provide tailor made
services for its customers.
Competing with Airbnb
E-marketplace
The strategy to become an e-
Marketplace (acquired
Fastbooking) for Accor Hotels and
for independent hotels is platform
that will help AccorHotels take on
Airbnb.
Investment in R&D
Accor Hotels has now been
investing 4%-5% of its revenue in
R&D, which is unheard of in the
Hospitality industry.

Itineraries & Investing & Disinvesting

Customer Centricity
Accor Hotels acquired Wipolo to help its
customers make itineraries for their travels.
This is a different value proposition from Airbnb.
Accor developed a customer centric culture. With
their 7-stage customer journey, Accor puts the
needs of the customer first.
7-Stages: Dream, Selection, Booking, Planning,
Travelling and Staying, Sharing the experience
and, Loyalty.
Accor is bullish on acquiring and investing
in hotel chains or ventures that can provide
best experiences to the growing millennial
customer base.
Booster: Accor is actively disinvesting in real
estate ownership to provide financial
resources for the sharing economy strategy of
Accor.
 Thank
you!
Have a
ay
gre at s t

Group 1: Section A

Aashish Sharma| Gurudatta Vasavya | Lavanya Kashyap | Sarthak Singal | Sunmeet Sethi
PGPBL0201 PGPBL0207 PGPBL0210 PGPBL0219 PGPBL0225