Intercontinental Hotels vs. Accor Group: A Comparative Business Report

This report offers a detailed comparative analysis of Intercontinental Hotels and Accor Group, examining their key business strategies and service concepts. The report delves into the methods employed by each group to improve employee performance and job satisfaction, highlighting contrasting approaches to remuneration, incentives, and employee development programs. It scrutinizes the service concepts of both organizations, contrasting the luxurious, customer-centric approach of Intercontinental Hotels with the budget-conscious, self-service model of Accor Group. Furthermore, the report identifies and analyzes the target customer segments, value chains, and potential business risks associated with each company. The report concludes with specific recommendations for both Intercontinental Hotels and Accor Group, aiming to mitigate business threats and achieve organizational objectives.

Running head: INTERCONTINENTAL HOTELS VERSUS ACCOR GROUP
INTERCONTINENTAL HOTELS VERSUS ACCOR GROUP
Name of the student:
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1INTERCONTINENTAL HOTELS VERSUS ACCOR GROUP
Executive Summary
The prime objective of this report is to highlight the key business procedures of
Intercontinental Group of Hotels and Accor Group. This report performs detailed analysis on the
service concept that is prevailing in both the organizations and apart from that the target market of
both the organizations have also been deciphered in this report. Apart from that value chain analysis
have been performed on both the organizations thereby identifying the demerits of the organizations
and providing best possible remedies for combatting the business risks and threats and thereby
achieving business objectives and targets within a specified time span.

2INTERCONTINENTAL HOTELS VERSUS ACCOR GROUP
Table of Contents
Introduction...........................................................................................................................................3
Discussion.............................................................................................................................................3
Improvement in employee performance and job satisfaction of Intercontinental Hotels...................3
Improvement in employee performance and job satisfaction of Accor Group...................................5
Service Concept of Intercontinental Group of Hotels........................................................................6
Service concept of Accor Group........................................................................................................7
Target customers of Intercontinental Hotels......................................................................................9
Target customers of Accor Group....................................................................................................10
Value chain analysis of Intercontinental Hotels...............................................................................10
Value chain analysis of Accor Group..............................................................................................12
Recommendation for Intercontinental Hotels..................................................................................14
Recommendation for Accor Group..................................................................................................15
Conclusion...........................................................................................................................................16
Bibliography........................................................................................................................................16

3INTERCONTINENTAL HOTELS VERSUS ACCOR GROUP
Introduction
This report focuses on the key business strategies of Intercontinental Group of Hotels and
Accor Group. A contrasting outline has been demarcated between the two organizations on the basis
of their target customers and diversified service concept adopted by the organizations. This report
forecasts its lime light on the contrasting and diversified aspects of the two organizations
(AbuKhalifeh and Som, 2013). This has been illustrated that both the organizations are outstanding
pioneers in the expertise field of Hotel Industry.
This report incorporates the following subsets- the target customers i.e. the customers targeted
by the Intercontinental Group Of Hotels and Accor group, procedures to be adopted by both the
organizations for the enhancement of the employee performance in both the organizations and thereby
resulting in the accomplishment of the job satisfaction, service concept that are practiced by both the
organisations with a view to achieve the business objectives, acquiring diversified spectrum of target
customers in the case of both the industries, thorough analysis of value chain for both the
organizations thereby outcoming possible remedies and recommendations to address and identify the
business risks and threats associated with the business, the loopholes and drawbacks integrated within
the business framework for both the organizations and thereby rendering possible avenues of
combatting these drawbacks and achieving the industrial objectives.
Discussion
Improvement in employee performance and job satisfaction of Intercontinental
Hotels
Intercontinental Group of Hotels is a gigantic brand in the domain of hotel industries. This
group of hotels is capable of identifying the possible loopholes that are hindering the employees to
perform well for the benefit of the organization, thereby hampering the productivity ( Benavides-
Velasco, Quintana-García and Marchante-Lara, 2014). There are six outstanding procedures that has

4INTERCONTINENTAL HOTELS VERSUS ACCOR GROUP
been adopted by Intercontinental Group Of Hotels to enhance the employee performance and
rendering them with job satisfaction.
 Intercontinental group of Hotels is required to initiate the approach of having clear-
cut communications with the employees thereby clarifying the desired expectations of
both the organization as well as the employees. There needs to be the provision for
arrangement of seminars and meetings on a short notice to educate the employees
about the modifications in the business policies and imbibe the knowledge of the
continuously upgraded technologies that will be brought into practice by the
organization within a short span of time (Benavides-Velasco, Quintana-García and
Marchante-Lara, 2014). Thus, frequent communications with the employees is very
crucial as through the procedure of effective communication.
 Intercontinental Group Of Hotels needs to be very particular about the appraisals of
their employees. Appraisal is required to be based on the contrasting factors –
Employee Performance and their tenurity. Appraisal index needs to be like 70 percent
weightage is given on the performance of the employee and rest 30 percent weightage
is given on the tenure for which they have been working for (Cabiddu, Lui and
Piccoli, 2013). These appraisals appear to be lucrative to the employees and they get
motivated to perform well for the purpose of availing the appraisals.
 Intercontinental Group of Hotels needs to prioritize the employee development.
Utmost care is required to be taken by the organization for improving the
performance of the employees. There is the requirement of the provision for constant
monitoring of the performance index of the employees and accordingly, feedback is
provided top them. Based on the provided feedback, there needs to be the
arrangement of employee performance training where their demerits should be
addressed and identified and proper resolutions are required to be adopted by the
organization to overcome these drawbacks (Chathoth et.al., 2013). Sufficient time
should be provided to the employees to overcome their difficulties and they would

5INTERCONTINENTAL HOTELS VERSUS ACCOR GROUP
also be rendered with performance improvement programs which enables them to
perform better thereby satisfying the organizational goals.
Improvement in employee performance and job satisfaction of Accor Group
Accor Group of Hotels is another pioneer brand in the hotel industry. This group of hotels is
characterized by the diversities in their approaches undertaken by them to enhance the employee
performance and at the same time is capable of rendering job satisfaction.
 Accor Group of Hotels needs to be very particular about the remuneration provided to
the employees. The remuneration should be irrespective of the performance index of
the employees. For an instance, an employee whose performance index is less than 50
percent for consecutive 3 months, there would be no deduction in the remuneration
provided to them, however, they will be sent to the Performance Improvement
Program training, where they will be provided with the guidelines to be abided by
them for the enhancement in their performance index (Demirçiftçi and Kızılırmak,
2016). This contrasting aspect that would be imbibed by Accor Group Of Hotels in
the upcoming future would be very beneficial for both the employees and the
organization.
 Accor Group of Hotels is a private sector body, still it is required to provides the
benefits and facilities like Government organizations like there should be the
provision of after service remuneration that is the employees would be affiliated to
enjoy a monthly based remuneration about 70 percent of the on service remuneration
even after their tenure is over i.e. after their retirement. Unlike the other hotel
industries, which also provides the benefits of bonus and extra allowances in the
occasion of performing on the days of National Holidays, Accor Group is also
required to offer the same benefits but in a revised format. If an employee of Accor
Group is capable to work on the occasion of National Holidays, they will be affiliated
for triple pay for those particular days accompanied by lucrative incentives (Durna,

6INTERCONTINENTAL HOTELS VERSUS ACCOR GROUP
Dedeoglu and Balikçioglu, 2015). These schemes of extra allowances and incentives
eventually would motivate the employees to perform well.
 Accor Group also aspires to provide the employees with break-fast and lunch
coupons so that the employees do not face any problems in going out and availing
their food stuffs. In this procedure, the expenses of the employees after food would be
saved and they would be able to save their remuneration for their customized needs.
Apart from that, the employees are also required to be equipped with the facilities of
one way transportation from their residence to the office (García de Leaniz and
Rodríguez Del Bosque Rodríguez, 2015). This contrasting aspect that is required to
be undertaken by the Accor Group would facilitate the employees to arrive in the
office premises within the scheduled time.
Service Concept of Intercontinental Group of Hotels
Equipped its outstanding service notion, Intercontinental Hotels assures the customers to
enjoy a picture-perfect trip experience. The global domain of Intercontinental Hotels ranks top in
terms of lodging with unrestricted and sparkling activities.
Customers will try the heterogeneous food and drinks from the foremost renowned cuisines of
the globe. The restaurants of the Intercontinental Hotels render exclusive "gourmet" amenities to the
customers and the guests (Ha and Jang, 2013). The customers will encounter and witness at
Intercontinental Royal SPA the profundity of recreation, relaxation and comfort in a realm that
prevents the fast-running time.
Massage substitutes from all over the globe, saunas, Turkish bath, swimming pools, fitness
centre, special therapies are renders by skilled squads. The domain of Intercontinental Hotels imitates
all aspects of life. It provides outline to an adaptable and multi-substitute array of amenities.
Recreation and entertainment provides the opportunities to take the customers beyond the boundaries
of this realm. Broods are the most exclusive visitors at Intercontinental Hotels. Scholastic activities,
fun and recreation have been carefully opted and are rendered at Intercontinental Club, where every
solitary aspect has been reflected in progress to guarantee that children lead a happy and amusing

7INTERCONTINENTAL HOTELS VERSUS ACCOR GROUP
holiday; menus incorporates nourishing supper and beverages, and nursery amenities will augment
value to the peace of mind of parents (Hanzaee and Mirvaisi, 2013).
The guests will sense that enthusiastic cadence of sports accurate in gut of the visitors. The
visitors will enjoy the prospect of performing many kinds of sports incorporating fitness, football,
archery, tennis, outdoor sports water sports, under the most deluxe circumstances and environment.
Service quality has constructive related affiliation with satisfaction of the customers of the
Intercontinental Group of hotels. In generalised aspect, service quality encourages satisfaction of
customer and vice versa satisfaction of customer encourage quality. There is no uncertainty that in the
concentrated rivalry of today’s world, once a a hotel industry like Intercontinental Group Of Hotels
wants to persist, they are required to enhance the quality of service that assists them to accomplish a
diversified benefit over their contentions (Hon, Chan and Lu, 2013).
Service concept of Accor Group
Right from the time the guests arrive the gate of the Accor hotel, they cannot assist discerning
the self-service and concept of budget. There are no representatives to park car of the guests. Only
parking bays are marked, where the guests are required to go and park their vehicles. There is no
concierge to haul their belongings to the room. There are aerodrome styled trolleys to assist the guests
convey their baggage to their room (Hsiao and Chuang, 2016). The employee of Accor Hotels is
outfitted in T-shirt and black jeans which is very distinct from the official coat and tie that facades
office squad apparels at Accor hotel. The restaurant renders services like only buffets to the guests.
They serve a pommel banquet, dinner and lunch. The foodstuff is modest, affordable and tasty (Jones,
Hillier and Comfort, 2014). The coffee and tea provided at brunch are served from a vending machine
and the desserts like the ice cream is trademarked. There is no provision for room service. There are
tea and coffee manufacturing kits with an electric driven kettle within the room. There is a vending
machine in the atrium that bestows drinks, snacks, toothpaste, soap. For the purpose of drinking
water, there is the availability of Aquaguard in the cuisine where the guests are permitted to fill their
water bottle, by themselves. There is non availability of iron within the room.

8INTERCONTINENTAL HOTELS VERSUS ACCOR GROUP
There is a communal iron on every level for those who aspire to iron their outfits. The size of
the room is just about correct. The fans and lights are purposeful and integral aspect of the framework
of the building (Karatepe and Karadas, 2015). There are no fancy and brass desk lamp and lights. No
fancy and brass lights refers no enhancing the cleaning, brass, dredging and brushing them The
motive is to lower the costs associated with maintenance and save on costs incurred by manpower.
Embracing of Lean Six Sigma supports to enhance the productivity of Accor Group of Hotels
through restructuring of its operative procedures. The culminated game is to possess the quality
services of Accor Group Of Hotels provided to customers faster and in a more proficient method
without negotiating quality (Karatepe 2013). In a simple manner, the Lean Six Sigma exemplary will
enhance revenues by permitting the Accor Group of Hotels to attain more with less resources.
From a standpoint of marketing, it also assists, with enactment of Lean Six Sigma approaches
allowing hotels to broadcast the fact that enhanced procedures and problem-solving methodologies
permit the Accor Group Of Hotels to provide an improved range of amenities and services to guests.
The usefulness and efficacy out coming from Lean Six Sigma in the hotel business will lead
to enhanced service quality, higher determination among employees and enhanced customer
satisfaction.
Target customers of Intercontinental Hotels
The preliminary step undertaken by Intercontinental Hotel was to construct a brand new data
hayloft and real-time data market that would permit Intercontinental Hotel to bout the data the hotel
was collecting through exclusive, registered, trademarked and third-party sources to prevailing
customer data (Karatepe 2014). This step undertaken by Intercontinental Hotel also made it feasible
to achieve immediate admittance to data for the purpose of analysis or promotion of construction
purposes.
The next step undertaken by the Intercontinental Hotels was to inflate outbound crusades
beyond the territorial limits of email. Technology renovates (using Unica) computerized internal
promotion procedures, generated localization proficiencies (for franchisees to generate programs

9INTERCONTINENTAL HOTELS VERSUS ACCOR GROUP
modified to their milieu and client connexions), and cohesive call center information and
accomplishments with outbound promotion management (Kucukusta, Mak and Chan 2013). As an
integral part of this phase, Intercontinental Hotels also reorganized its previously multi-agency
exemplary into a single world wide agency.
Only 40% of business of Intercontinental Hotels generate from members of its Priority Club.
Hence, Intercontinental Hotels now use their brand new data ambience to address, recognize and
register cherished non-members through Web behaviors, cookie data (Marković, and Raspor Janković
2013). Intercontinental hotel generates lifecycle promotions, personalized onsite proposals and
embattled media purchases aimed at non-members.
Target customers of Accor Group
Considering engagement and involvement of customers as a major concern, Accor is sturdily
devoted to render personalized, remarkable client involvements that fully assimilate the utilization of
social media to involve the customer.
Accor apprehends that through amplified customer involvement emanates elevated customer
fidelity and ultimately, elevated commercial revenues (Pan 2015). Accor is uninterruptedly beholding
for pioneering avenues to further involve their customers with a view of providing the crucial
customer experience that will have them inveterate again and again.
As a demonstration to Accor being on the principal edge of technology, in 2015 Accor
propelled the Accor Hotels app for Apple Watch. The Accor Hotels app for Apple Watch is
accessible in 10 languages and functions in assembly with the smartphone app (Pfitzer, Bockstette
and Stamp 2013). The app endorses the Accor Hotels and involves users by permitting them to
accomplish contemporary bookings on Accorhotels.com
In the early 2015, it was honoured with three Springboard accolades for distinction in its work
to entice and preserve employees (Salvioni 2016). In 2016, The Novotel Wollongong Northbeach has
acquired three prime accolades at the Pacific Franchise Awards for Accor Hotels.

10INTERCONTINENTAL HOTELS VERSUS ACCOR GROUP
Value chain analysis of Intercontinental Hotels
The value chain exemplary proposed by Porter is extremely prevalent in the world of
business. However, Intercontinental Group of Hotels Plc must not perceive this as an inflexible,
impartial structure by allocating the identical prominence to all events. The operative Analysis of
Value Chain necessitates Intercontinental Hotels Group Plc to apprehend that not all events or
purposes necessitate identical inspection level (Sun, Tong and Law 2017). Investigation of logistics
that are in-bound in nature necessitates an organization to concentrate on each characteristic of
renovation from materials which are raw in nature to completed product. Some citations of logistics
that are inbound in nature are regaining raw material, preserving the inputs and internally dispensing
the raw material and constituents to initiate production.
Outbound logistics incorporates the actions that convey the commodity to the clients by
progressing through diversified arbitrators (Vlachos and Bogdanovic 2013). Some of the outbound
logistics actions are warehousing, material handling, order processing, scheduling, delivering and
transporting to the terminus. Intercontinental Hotels Group Plc is capable of analysing and optimizing
the outbound logistics to reconnoitre competitive gain sources and accomplish its business growth
purposes.
Fig 1: Value Chain Analysis for Intercontinental Group of Hotels
Source: (Ţigu and Călăreţu, 2015)

11INTERCONTINENTAL HOTELS VERSUS ACCOR GROUP
Value chain analysis of Accor Group of Hotels
The value chain of Accor Supplements is integral fragment of a grander value system of the
organization that incorporates companies either downstream (distribution channels) or upstream
(suppliers) and in some scenarios both (Sen and Kaushik 2016). Manager at ACCOR requires to view
every action as fragment of that value system and how accumulation of every action or diminishing
every actions influence the ACCOR value chain.
These actions of Accor Supplements are allied with storing, receiving and broadcasting the
inputs of the commodities. It can incorporate handling of materials, warehousing of physical products,
as well as design to preserve and receive information of customer for digital media company (Wu and
Ko 2013). Accor Supplements at contemporary has subcontracted majority of its logistics activities
that are inbound in nature.
These activities are incorporated by Accor Supplements to generate modes through which the
purchaser can purchase the products of a firm. These actions incorporates –selection of channel,
pricing, advertising, marketing, sales force management and promotion.
Accor Supplements requires to render post sales amenities and maintenance for effective
utilization of the commodity (Vlachos and Bogdanovic 2013). Service actions of Accor Supplements
can incorporate – commodity forward and backend configuration of software, installation services,
after sales maintenance, fragment supply, and training.

12INTERCONTINENTAL HOTELS VERSUS ACCOR GROUP
Fig 2: Value Chain Analysis for Accor Group
Source: (Salvioni, 2016)
Recommendation for Intercontinental Hotels
It is not feasible that all the guests are CEO’s, celebrities or royalty, however it is very crucial
for Intercontinental Hotels to consider every customer like a VIP and they are required to ensure that
it will be a unforgettably positive involvement they will aspire to replicate. Intercontinental Hotels is
required to coach their workforce to be responsive, attentive and possess a feeling of determination
for each individual, regardless of the status of their guests. In return, the customers will recompense
Intercontinental Hotels with their loyalty, patronage and – even superior - recommendations.
This can appear like impossible mission in an organization like Intercontinental Hotels where
most team already functions beyond and above realistic hours. Coming to the salvage are brand new
technologies that provide high-graded training that doesn't need a protracted time-devotation. An

13INTERCONTINENTAL HOTELS VERSUS ACCOR GROUP
enhancing number of hotels are witnessing the reimbursements of blending outdated employee
training methodologies with just-in-time training elucidations such as Performance Support Systems
(PSS).
Performance Support is a solicitation that utilizes visual recognition technologies to visualize
the PMS screen just as the customer does, and uninterruptedly monitors the activities of the agents to
render real-time supervision. It can be premeditated to demonstrate balloon guidelines that are in
relevance to the active and open window of the agent’s. These guidelines guide the Intercontinental
Hotels on what to covey to the guest, what queries to ask, troubleshooting, and can also incorporates
signals for erroneously entered data.
Recommendation for Accor Group
Uniformity for the Accor Group does not infer that each guest should avail the identical
service. True service superiority needs personalization and making every client sense as though there
is no one else, at that instance, more crucial than him or her. Attendants at the Front desk that identify
the guests or call them by name, that are fervent to assist, that reminds their predilections, and that are
capable of providing cherished data are an enormous asset that creates a big difference.
The identical performance support technology that the Accor Group utilizes for just-in-time
preparation can also be utilized to render customised guest service at the ultimate level. Performance
Support functions in concurrence with their Property Management System to evaluate the profile of
their guests. It makes information and knowledge enormously available, by portraying shrouded
tooltips on top of the solicitation itself, at that very instance of requirement, so that agents of Accor
Group can concentrate on associating with guests on a delicate level with the purpose of creating
profound impressions.
Recent analysis illustrates that employee revenue is between the foremost in the hospitality
organization with the mediocre employee throughput in the US attaining 31 percent and as
extraordinary as 34 percent in the UK. This uninterrupted blend is very troublesome and leads to loss
of efficiency, low graded guest service, low morale – without mentioning and aching the bottom line.
To prevent this rampant, pioneer hotels like Accor Group are reconsidering their lodging approach.

14INTERCONTINENTAL HOTELS VERSUS ACCOR GROUP
Lodging reviews by the Centre for Ingenious Guidance expose that new employees who
appeared in a well-structured lodging program were 69% more expected to persist at an organization
like Accor Group for up to three years. While preceding new-employee commencement programs
were one day activities, today a strong lodging approach encompasses past the first day/week/month
to incorporate a persisting methodology.
Conclusion
This report concludes that both Intercontinental Group of Hotels and Accor Group of Hotels
are predominant pioneers in the domain of hotel industry. However, both of them have demerits
embedded within their infrastructure while in contrary they are equipped with positive aspects as well.
Recommendations have been provided in this paper for the purpose of combatting these drawbacks
and attaining supremacy in terms of business volume. Value chain analysis have been performed on
both the industries and their potentials, strengths and weak points have been addressed, identified and
remedies have been provided. Moreover analysis have been performed on the target customers and the
business procedures adopted by both the organizations.

15INTERCONTINENTAL HOTELS VERSUS ACCOR GROUP
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