HAT303 Hotel Operations: Accor Brand Portfolio Analysis Report

This report presents a comparative property portfolio analysis of the Accor Hotel Group, focusing on the upper and budget scale brands. It examines key aspects of hotel operations, including provided facilities, available services, room rates, revenue streams, housekeeping functions, and food and beverage outlets. The analysis delves into the distinct market segments targeted by each brand scale, highlighting the differences in pricing strategies, service quality, and revenue generation models. The report also explores supplementary services, marketing strategies, and the overall customer experience offered by each brand, providing a comprehensive overview of the Accor Group's approach to hotel management and its ability to cater to a diverse range of customers. The analysis draws upon information about the Accor Group's financial performance, marketing initiatives, and customer loyalty programs to provide a well-rounded understanding of the company's operations.

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Hotel and Accommodations Management
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Hotel and Accommodations Management
Introduction
Hotel and Accommodations Management is a topic of study that mainly aims at
equipping managers with the crucial skills and knowledge to enable managers to run hotels
smoothly and efficiently. The hotel and accommodations management concepts help hotel
organizations to achieve sustainability through economic success, technological advancement,
social influence as well as environmental conservation and protection. Each hospitality company
has its unique strategy that aims at creating and sustaining a competitive advantage over their
competitors. Some of the hotel and accommodation management concepts are leadership and
branding that helps propel an organization as well as create good customer loyalty. Accor Hotels
is a public company associated with Tourism and Hospitality, and the company originated in
France, (Demirçiftçi and Kızılırmak, 2016.pp.50). The company is among the largest group of
hotels in the world even though it faces competition from other brands. The Accor brand has a
mixed marketing strategy organized into the upper scale, middle scale, and the budget scale,
(Khan, Hakeem, and Naumov, 2018, PP. 15). This report is property analysis of the upper scale,

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and the lower scale brand based on the facilities provided, available services, room rates, revenue
streams, housekeeping functions among many more.
Property Portfolio Analysis of the upper scale Accor brand
The upper-level Accor brand represents consists of the premium services that are offered
targeting the high-income earners in the society as the leading market segment. The upper-class
Accor brand consists of the high-end hotels and resorts that meet the leisure preferences of the
high-income earners. The pricing of this scale is different from that of the middle and lower scale
bran. This scale uses the premium pricing strategy that focuses on delivering quality products
and services that are unmatched to their major competitors in this market niche, (Dogru, Mody,
and Suess, 2019, PP. 20). The upper scale Accor brand keeps much focus on the quality of the
service and product delivered to the customer and not only meet the guest expectations but even
surpass those expectations to create a memorable experience for the guest, (Sen and Kaushik,
2016.pp.485). To achieve this, housekeeping functions and the room rates must allow the
organization to offer exceptionally high-quality services and products but still within the
budgets. In the year 2017, the Accor group of hotels recorded total revenue of Euro1.93 billion
and net profit of Euro 481 after deduction of the production costs and taxes.
The upper scale Accor brand has been swift to react to the market needs and wants of
their market segment to ensure that the organization commands good customer loyalty. This has
been made possible through a partnership with key players in the market such as Qatar Airways
to promote good travel experience of their guests. This category of the brand also offers so many
incentives through the loyalty program that allows so many benefits to the guests such as
welcoming drinks, fast check-in and check-outs, quick room services lounge services among
many more. The hotels that are grouped under this brand category are mostly located in the

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leading tourist destinations such as Dubai and France. The upper scale Accor brand is
responsible for the development of the entire Accor brand and has led to the organization to win
several awards in the hotel and tourism industry. The hotel has won the best Customer Service,
Best Redemption ability, and the Best Promotion award in the year 2018, (Kovács, 2019). The
hotel loyalty program Le Club Accor Hotels was also the winner of the most successful
programs, (Nikolskaya et al., 2018 pp. 490). The revenue stream for the upper scale Accor brand
is high due to the premium pricing policy adopted for this category. The food and beverage
outlets are very few but very sophisticated in designs, and the price of products and services is
high. The quality of food and the prepared beverages such as juices are made from the best
quality products to ensure the produce the best.
Property Portfolio Analysis of the budget scale Accor brand
The budget scale Accor brand targets an entirely different market segment form that
focused by the upper scale Accor brands; thus, the services and products offered by these brands
will matter considerable. The budge scale Accor brand main customers are guests who want to
get leisure activities at a considerably cheaper rate. This category of Accor brand uses the
economical pricing strategy that ensures that the offer products and services at the lowest prices
possible as long as the price would not compromise the required quality standards. In order to
attract and maintain its customers in this category the brand has a bundled pricing strategy in
selected hotels where overnight stay, breakfast buffet, and other services are offered to the guests
at an extra saver package, (Tanford, Shoemaker and Dinca, 2016.pp.1965)The revenue stream
from the budget scale Accor brand is small because of the economic marketing strategy. Even
though the services and products are offered at a cheaper cost, the quality stands must be within
the required range, but the quality will always be lower compared to the upper scale Accor

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brands. The housekeeping functions in this sector are very less since activities such as laundry
services which add cost to the guest are scrapped off.
The budget scale Accor brand has several food and beverage outlets in the most strategic
places. Since the accommodation packages are very few in this category, the budge scale Accor
brand has to use a large number of outlets to increase the Avenue collection. The room rates for
the hotels in this category are meager. This category has also applied social media marketing
through Facebook, Twitter, YouTube, among many more channels to reach out to its target
market, (Hudson and Hudson, 2017). To encourage online booking in its official websites,
incentives such as discounts and upgraded rooms are offered. The products and services provided
in this category is low compared to the upper class and middle-class brand segment, but the
organization ensures the quality is limited within specific ranges.
Conclusion
The Accor group of the hotel has a market mix of product and services that make it
target a wide range of customers. To achieve this, the company has divided the brand into the
upper scale Accor brand, the middle scale Accor brand, and the budget scale Accor brand. The
upper scale Accor brand consists of premium services and products that also come at a premium
cost. The hotels in this category are located in major tourist destinations in the world. The budget
scale Accor brand offer quality services and product at an economical price range. The
housekeeping functions in this category are few. The organization has initiated policies and
strategies that ensure that the customers get qualitative and unique experiences across all the
three sections of the brand.

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References
Demirçiftçi, T., and Kızılırmak, I., 2016. Strategic branding in hospitality: Case of Accor Hotels.
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Dogru, T., Mody, M., and Suess, C., 2019. Adding evidence to the debate: Quantifying Airbnb's
disruptive impact on ten key hotel markets. Tourism Management, 72, pp.27-38.
Hudson, S., and Hudson, L., 2017. Marketing in action: Hotels responding to 'bleisure' trend.
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Khan, H., Yusuf, M.D., Hakeem, A., Md, S., and Naumov, N., 2018. The Use of Branding and
Market Segmentation in Hotel Marketing: A Conceptual Review. Journal of Tourism
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Kovács, G., 2019. Responsibility Vs. Star-Related CSR in the Hungarian Hotel Sector. In Yellow
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Nikolskaya, E.Y., Kovaleva, N.I., Uspenskaya, M.E., Makshakova, N.I., Lysoivanenko, E.N. and
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Sen, K., and Kaushik, T., 2016. Recent innovative measures across different functions in the
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Tanford, S., Shoemaker, S., and Dinca, A., 2016. Back to the future: progress and trends in hotel
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