Global Marketing Approach of Accor Hotels in the Hospitality Industry

This report discusses the global marketing approach of Accor hotels in the hospitality industry, including their yearly promotional campaigns, digital advertisement strategy, and consumer loyalty initiatives. It also explores the impact of globalization on the establishment and cultural factors affecting the company.

International
Hotel
Management

Table of Contents
INTRODUCTION.......................................................................................................................3
MAIN BODY..............................................................................................................................4
CONLUSION..............................................................................................................................8
REFRENCES..............................................................................................................................8

INTRODUCTION
Globalisation has affected the hotel industry with various opportunities for expansion and
barriers with increasing competition. This report is based on the Accor which is a French
international hospitality corporation and supervises biggest hotel chain in Europe with more than
5,100 hotels in 110 nations across the globe. The organisation also owns various digital
hospitality and event management firms. This report includes current industry position in
competitive global market, approach to global marketing and cultural elements affecting the
respective company. The marketing methods of the respective company in comparison to an
opponent organisation is also provided in this report.
MAIN BODY
Global marketing approach of Accor hotels
Accor hotels is global leader in the hospitality sector with more than 25 hotel, resorts
brands and 3600 franchises spread across 110 international markets. The hotel caters to all
economic classes by offering premium and affordable hotel chains. Since the beginning of
globalisation, the organisation has experienced swift growth in their global presence which has
significantly contributed to the growth of the organisation (Baradarani and Kilic, 2018) . The
establishment has used various marketing techniques to achieve such position in the industry
several of which are provided below:
 Yearly promotional campaigns: As construction of strong bonds with their consumer
and overall brand recognition of the company plays a significant role in growth and
success of the respective company, the main purpose of yearly promotional campaigns
conducted by the firm is to increase consumer retention by identification and utilisation
of opportunities associated with consumer relation (Baum, 2016) . Such marketing
plans are constructed and implemented on both international, localised and country
wide scales with emphases on single brands and multi-brands of the company. This has
helped the organisation gain recognition on a global scale and maintain successful
expansion across various international markets.
 Digital advertisement strategy: The organisation identified the value of creating
strong digital marketing presence early and has invested in building a robust digital
marketing strategy for several of their international brands (Flecha-Barrio and et. al.,
2020) . The organisation utilises both search engine marketing and social media

marketing as the organisation bought 12 million keywords and regularly sends millions
of personalised to effectively connect with their consumers. This has helped the
organisation in securing accessibility and forming brand image of the company in the
global market. Consumer loyalty initiatives: Le Club Accor Hotels is the loyalty initiative started by
the respective company and involves giving members points which can be redeemed
through partner organisations and airlines (Gehrels, 2016) . The members also receive
special discounts during peak season in hospitality industry such as major festivals and
personalised offers to increase revisits form customers. This is successful promotional
component of the organisation as than 74% of their consumers use this service for
making hotel booking.
Impact of globalisation on the establishment
The organisation has benefited from globalisation as it has been able to reach various
international regions and gained a highly advantageous position in the international hospitality
sector with the ability to construct and promote new hotel brands for various segments of their
consumer groups. The expansion of the hotel group with emphasis on premium hotels started in
the 90's but the organisation used their midscale and affordable hotel to as cash cow to maintain
their profits. The organisation redefined their business model in 2013 which included both
management of hotels and franchising of their various brands(Henschel, Gruner and Von
Freyberg, 2018) . Globalisation allowed the organisation to successfully expand their brands by
forming strategic alliance with various international and local firms to increase their power in
foreign markets.
The current market of the hotel comprises of midscale, premium and affordable hotel
and resort brand in order to gain consumers from every economic position. The organisation is
not only involved in dealership of various hotel brand but also owns several event management
and digital firms related to the Hospitality industry.
The future market in relation to this organisation consists of hotels and accommodations
built with new themes and technologically advanced infrastructure with emphasis on
sustainability and environment friendly practices in order to attract younger travellers and reduce
activities which increase pollution and wastage of substance (Ivanova and Rahimi, 2016) .
Positioning in the international economy

The segmentation targeting is a framework used by enterprises to increase their profits by
identification of target consumer base and positioning commodities for such customers.
Application of STP method in relation to the French hotel chain Accor is defined below:
Segmentation
This phase involves finding relevant basis for consumer groups and determining the
characteristics and expectations for each group (Josephi, Stierand and Van Mourik, 2016). In
context to respective firm, segmentation is on financial basis and involves consumer from
middle, lower and elite economic backgrounds.
Targeting
This involves assessment of target markets and in context of the respective enterprise the
target market consists of casual and family travellers along with corporations holding business
events (King, 2016) .
Positioning
The positioning of Acccor hotels in the global economy is determined to be leading
member of the hospitality industry giving superior services to both business and casual
consumers and various partner organisations.
Comparison of marketing methods used by the company with opponents
BASICS Accor Hotel Inter continental Hotel
Product The Accor hotel is not only involved in
franchise of various hotel chains such as
Banyan Tree, Orient Express and many
others but has also expanded their product
portfolio to event management and digital
services in hotel industry.
IGH hotel group has more than 5000
hotels around the globe. The centre
product in case of this hotel group is
various branded hotel franchises such
as Holiday Inn and hotel indigo.
Price The establishment has adopted both
premium and affordable pricing strategy
depending on their hotel. The company sells
their elite hotel chains at high price to
attract consumers from elite society
(Melnychenko, Sheienkova and Kudlai,
The hotel uses dynamic pricing
strategy for their large section of hotel
brands and facilities offered by
particular room. The hotel construct
their pricing strategy considering rate
of their loyalty program.

2016) .
Place The organisation has constructed hotels and
resorts in major tourist region across 110
nations and to maximise accessibility the
company has formed online channels for
booking rooms easily (Niewiadomski,
2016) .
The organisation has more than 5656
rooms available for booking in their
hotel chain present in 100
international markets and 20 new
hotels are under construction (Rahimi
and Gunlu, 2016) .
Promotion The hotel uses both online and off-line
mediums for promotions. The company also
sponsors various sports tournaments for
advertising their hotel chain and increasing
brand awareness. The hotel also uses search
engine optimisation to enhance their digital
marketing strategy.
The organisation has utilised various
social media platforms to promote
their brand. The main strategy behind
this decision is to interact with their
brand by constructing positive
personality on social media.
People The enterprise has recruited a workforce of
more than 250,000 employees and aims to
increase participation of women in the
workforce through HeforShe initiatives. The
organisation also provides their employees
training sessions to increase their
deficiency.
The hotel values their staff and gives
their workforce various advantages
such as discount on bookings,
insurance plans and reward
programmes to motivate and support
their workforce (Tatar and Eren-
Erdoğmuş, 2016) .
Physical
evidence
Each brand in the Accor hotel is designed to
give their consumers maximum satisfaction
as the employees focus giving quality
services by giving attention to detail and
designing their hotels with quality products.
The hotel recognises the importance
services and structure of the hotel in
improving consumer satisfaction and
each hotel is designed to exceed
consumer expectations.
Process The organisation has constructed an
effective reservation system known as
TARS to assist their sale with digital
reservations of rooms. This systems is
The organisation has formulated a
strong digital presence and is using
their websites for various brands to
interact with consumers and increase

present in multiple languages for consumers
of various international markets.
the accessibility to their target
customer base.
Cultural factors affecting the company
As the organisation deals directly with consumers on daily basis, the cultural factors such
as cultural backgrounds of their consumers and the regional cultural elements of the location in
which they are situated affects the brand image, employee satisfaction and consumer retention
for the consumers (Ushakov and et. al., 2020) . The cultural backgrounds of the employees
affects the productivity of their workforce as these employees and directly reflects on the
services delivered by the staff and overall consumer experience. The hotel has implemented
policies which train employees about cultural sensitivity in order to create positive experience for
consumers from a diverse range of backgrounds (Webster, 2016) . Apart from this the cultural
elements of the are in which the hotel is located plays a huge role in the reception and
profitability of that particular hotel.
CONLUSION
From the above report it is determined that globalisation has influenced the hotel industry
to increase their reach in various international markets by incorporating local cultures in their
daily functions and forming planned alliances with local organisations. This has helped various
hotel organisation to construct and maintain a strong global presence which has helped them
become leaders in the international hospitality sector. In the current age digital technology is
highly important in helping hotels increase their brand awareness and creating brand image
suitable for gaining huge amount of profits.

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