Analysis of the Contemporary Hospitality Industry: AccorHotels Report

This report provides a comprehensive analysis of the contemporary hospitality industry, with a specific focus on AccorHotels and its IBIS brand. The report begins with an introduction to the hospitality industry, its scope, and its contribution to the UK economy. It then presents a PESTEL analysis, examining the political, economic, social, technological, legislative, and environmental factors influencing the industry. A detailed SWOT analysis of AccorHotels follows, highlighting the company's strengths, weaknesses, opportunities, and threats. The report also explores current and potential trends in the hospitality sector, including management and operational trends, the adoption of advanced technologies, online booking services, and the use of social media platforms. The conclusion summarizes the key findings and implications of the analysis. The report is designed to provide a deep dive into the hospitality sector, covering various aspects of the industry, and providing an understanding of the challenges and opportunities faced by businesses like AccorHotels.

Contemporary Hospitality
Industry

Cover Content
•Introduction
•PESTEL Analysis
•SWOT Analysis of Achorhotels
•Conclusion
•References

Introduction
• One of the diversified and wide industry is hospitality industry which comprises of
different sectorial firms which help in generating high returns from their business operations.
Various types of business included in hospitality industry are hotel chains, cafes, pubs, bars,
restaurants etc. In present scenario, hospitality industry is developing with very fast speed and
contributing in GDP and creating employment opportunities. This present report is based on IBIS
which is international hotel company owned by AccorHotels. This was founded in 1974 situated
in France. The objective behind this report is to provide brief description about hospitality
industry in UK with its scope, size, structure in economy

PESTEL Analysis
• Political Factors- These factors play very crucial role in economy of every country. Political
factors put direct and deep impact on the hospitality industry.
• Economic Factors- Various economic factors includes economic growth, interest rates,
exchange rates and taxation policies
• Social Factors-The social factors as compared to other factors also helps in making
hospitality industry flourishing. Different social factors comprises of culture, tradition,
demographics, attitudes, norms, roles, media activity and acceptance

• Technological Factors- change in technological factors highly affects the business
operations of hospitality industry to a very large extent
• Legislative Factors- These factors are very much responsible for growth and survival of
hospitality industry.
• Environmental Factors- Environment, weather and climatic conditions put direct and major
impact on growth and survival of hospitality industries

SWOT analysis of Accorhotels (IBIS)
STRENGTH
 Accorhotels has its presence in 92 countries, with 530000 rooms
along with 4400 hotels. This group caters to groups of all income
types which includes Ibis, Novotel, Sofitel, Fairmont, Raffles and
Banyan Tree. This shows that is covers a huge customer base.
 This chain of hotels maintains database of around 60 million
guests along with their preference so that they can fulfil customer's
expectations. This data is further used to manage digital campaigns
which are running on various social media platforms.
 Accorhotels have years of know-how, experience and expertise in
hospitality industry.
 Now AccorHotels is focusing on franchisees and contracts as this
further increases their profitability margins.
WEAKNESS
 Their is more emphasises given on sub-brands rather than
focusing on main brand so, this is creating disconnections from
customers mind regarding main brand Accor which is now hardly
known.
 AccorHotels is losing their business and profitability to small
hotels, online businesses like Oyo rooms, Airbnb.
 The company have suffered huge losses because now focus is
given franchising as it helps in cutting cost but this has led to
decline in quality of services because of lack of proper and
adequate attention.

OPPORTUNITIES
 Now-a-days Hotel management education has gained
very much popularity at international level so,
AccorHotels can grab this opportunity and build
academics and provide students with global experience
and knowledge.
 AccorHotels have opportunity of long term growth and
sustainability at both global and national level.
 Also, AccorHotels can plan for attractive packages for
customer's.
 AccorHotels has gained very much popularity in many
parts of world so, they can plan for expansion and
diversification in parts of Asia and Africa.
THREATS
 Their are many competitors for AccorHotels worldwide.
Some of rival firms are Starwood, Cendant Corporation,
Best Western, Hilton Corporation etc.
 For AccorHotels the threat can be economic conditions
at global level as this hamper sales for their luxury and
upscale segment.
 The business of AccorHotels can have negative impact
in both local and international market due to Brexit, US
and China trade war, instability in middle east.

Current and potential trends in the hospitality industry.
• In today's competitive world hospitality industry is tremendously growing and also earning good
returns on investment. This industry has high growth prospectus in market which further helps in
developing effective and innovative standards and policies to face fierce competition. As to face
competition industries in hospitality sector emphasises on providing quality of services so as to
gain competitive advantage and attract & retain more and more customer's for long term.
Innovative techniques and effective policies, standards have allowed hotels to sustainable growth
and survival in complex business environment. Also, this provides certain benefits to customers
as they get wide variety of options for products and services. It is being expected that till 2020
there will be higher returns along with development and enhancement of hospitality industry.

Current and potential trends in the hospitality industry.
•In today's competitive world hospitality industry is tremendously growing and also earning good returns on
investment. This industry has high growth prospectus in market which further helps in developing effective and
innovative standards and policies to face fierce competition. As to face competition industries in hospitality sector
emphasises on providing quality of services so as to gain competitive advantage and attract & retain more and more
customer's for long term. Innovative techniques and effective policies, standards have allowed hotels to sustainable
growth and survival in complex business environment. Also, this provides certain benefits to customers as they get
wide variety of options for products and services. It is being expected that till 2020 there will be higher returns
along with development and enhancement of hospitality industry.

Cont….
• There has been tremendous growth of hospitality industry across the globe. As business
environment is dynamic and complex there are many potential and future trends which
put impact on development of hospitality industry. Some of trends of this industry are
discussed further:-
• Management and Operational Trends
• Adoption Of Highly Advanced Innovative Technologies-
• Online Booking of Hospitality Services-
• Adoption Of Social Media Platforms-

Conclusion

References