Marketing Mix of Accor Hotels and 7Ps (Updated 2024)

The Marketing mix of Accor Hotels analyses the 7Ps of Accor Hotels, which includes the Product, Price, Place, Promotion, People, Physical Evidence, and Process of Accor Hotels. Accor Hotels is a public company of French origins. It is associated with the hospitality and Tourism industry as it deals in resorts and hotels. The organization was founded in 1967 and is currently known as the largest group of hotels in the world, not including the United States. It faces competition from the following brands –

• Starwood Hotels and Resorts Worldwide, Inc
• Marriott International
• InterContinental Hotels Group PLC
• Hilton Hotels Corporation
• Choice International
• Cendant Corporation
• Best Western

About Accor Hotels

• Type: Hotel Company
• Industry: Hospitality
• Founded: 1967
• Founder: Paul Dubrule and Gerard Pelisson
• Headquarters: Issy-les-Moulineaux, France
• Area served: Worldwide
• Key people: Sebastien Bazin (Chairman) and Sebastien Bazin (CEO)
• Number of employees: 260,000

Accor Hotels Product Strategy

Accor Hotels is a multinational company that franchises, manages, and owns vacation properties, resorts, and hotels. The group is organized into three segments: economy, midscale, and upscale, and it offers a unique and qualitative experience to all its customers.

Accor Hotels has four thousand and three hundred hotels in its portfolio with twenty brands. Some of its upscale and luxurious brands include Sebel, Grand Mercure, Angsana, Pullman, Rixos, Sofitel, Banyan Tree, and Raffles, and the economy and the midscale range includes Ibis budget, Ibis styles, Ibis, Mama Shelter, Adagio, Mercure, and Novotel.

Accor Hotels has worked towards offering all its customers high-quality products and the best possible services that will help it retain customer loyalty. As part of its Accor Services, it provides service vouchers to the companies that have collaborated with it. It includes eye-care vouchers, childcare vouchers, ticket service, lunch vouchers, and restaurant tickets.

Accor Hotels has expanded its operations to include onboard train services, restaurants, casinos, and travel agencies. AccorHotels.com has launched a new scheme offering hotel and flight reservation options. This site has launched a search engine, MoodMatch, for traveling experiences.

All its hotels and resorts offer modern rooms with attached bathrooms. Special attention is paid to providing spacious rooms and bathrooms with all up-to-date amenities like television, calling options via telephone, side tables, a minibar, 24-hour service, and laundry service.

Accor Hotels, a major global hotel group, offers a diverse product mix that caters to various hospitality market segments.

The product mix of Accor Hotels in 2024 is as follows (Source).

1. Economy Hotels: This segment includes brands like Ibis, Ibis Styles, and Ibis Budget. These hotels offer basic, affordable accommodations focusing on essential amenities and comfort.
2. Midscale Hotels: Brands such as Novotel and Mercure fall into this category. They balance quality, comfort, and price, catering to business and leisure travelers seeking a more comprehensive set of amenities than economy hotels.
3. Premium Hotels: This segment includes brands like Swissôtel and Pullman. They offer high-quality accommodations and services targeting business and upscale leisure travelers.
4. Luxury Hotels: Accor’s luxury segment includes prestigious brands like Raffles, Fairmont, and Sofitel. These hotels offer top-of-the-line services and luxurious amenities, often in prime locations. They cater to high-end business and leisure travelers seeking exceptional experiences.
5. Lifestyle Hotels: Brands like Mama Shelter and 25hours Hotels are part of this category. These hotels are known for their unique, design-focused approach, often featuring quirky, individualistic styles and a vibrant social scene.
6. Extended Stay Hotels: Accor provides options like Adagio, offering apartment-like settings with hotel-like services for guests looking for longer-term accommodations.
7. Resort Hotels: Catering to vacationers, brands such as Club Med (if still part of Accor at your time) offer all-inclusive resort experiences in exotic and popular tourist destinations.
8. Boutique Hotels: The MGallery collection represents Accor’s boutique hotels, known for their distinctive character and connection to local culture and history.
9. Digital and Other Services: Beyond physical accommodations, Accor has expanded into digital services, loyalty programs, and business solutions for corporate clients.

This product mix allows Accor Hotels to cater to various customer needs and preferences across the global hospitality market.

Accor Hotels Pricing Strategy

By the end of 2017, Accor Hotels had posted its revenues and net income at Euro 1.93 billion and Euro 481 million, respectively. It is the only hotel group with something to offer across every market segment, from upscale to the economy. It caters to leisure travelers, businessmen, individuals, groups, and families looking for a comfortable stay and special treatment.

Accor Hotels employs a dynamic and multifaceted pricing strategy that reflects its diverse brand portfolio and caters to many customer segments. Here’s an overview of their approach:

1. Value-Based Pricing: Accor strategically sets prices based on the perceived value of their services in different segments. Luxury brands like Sofitel and Raffles command premium prices due to their high-end services and amenities, while economy brands like Ibis offer more budget-friendly options.
2. Dynamic Pricing Models: The group uses advanced revenue management systems to adjust prices in real time based on demand, seasonality, and market competition. This ensures competitiveness and maximizes revenue, especially in high-demand periods.
3. Segmentation-Based Pricing: Accor differentiates its pricing based on customer segments. Corporate clients may receive negotiated rates, while leisure travelers might access various promotions and discounts. This segmentation ensures that prices are aligned with specific customer needs and expectations.
4. Loyalty Program Incentives: Through its loyalty program, ALL – Accor Live Limitless, the group offers exclusive rates and discounts to members, encouraging repeat bookings and brand loyalty. This strategy helps maintain a steady customer base and enhance long-term revenue prospects.
5. Geographical Pricing Variation: Prices are also tailored according to geographic locations. Hotels in high-cost cities or premium destinations have higher rates than those in less expensive or less frequented locations, reflecting guests’ economic conditions and spending power in different regions.

Overall, Accor’s pricing strategy is designed to optimize revenue while catering to the diverse needs of its customers, reflecting the group’s expansive portfolio and commitment to customer satisfaction.

Accor Hotels Place Strategy

Accor Hotels has spread its network to include five continents and one hundred countries. Its headquarters are based in Paris, France. Some of its most popular destinations are Istanbul, Frankfurt, Lisbon, Budapest, Hong Kong, Prague, Rome, Rio de Janeiro, Warsaw, Sydney, Milan, Brussels, San Francisco, Hamburg, Shanghai, Amsterdam, New York City, Vienna, Singapore, Munich, Bangkok, London, Berlin and Paris. The hotel group now has four hundred properties in 2,000 destinations.

Accor Hotels has more than 250,000 collaborations that help it to operate successfully in the global arena. It has shifted its primary focus from an asset-light operating system to management contracts and a franchise network.

This has helped it become one of the top global operators in the hospitality industry. The hotel group has accepted that digitalization is here to stay and can make a tremendous difference. It has turned it to its advantage and now focuses on online sales. The brand has launched a personal and unique mobile app with multi-function capabilities.

Booking has now become easy and fast. One can search for hotels, restaurants, or activities the group plans with a single click. Last-minute bookings or cancellations are hassle-free. If someone needs a room for a few hours, he will not be required to pay for the whole day, but this is applicable only if booked via its app.

Employees are an integral part of any sector, and Accor Hotels employs nearly 250,000 staff members who work day and night to offer immaculate services to its guests.

Accor Hotels’ place strategy is as follows:

1. Global Presence with Local Adaptation: Accor Hotels has a widespread global presence, with properties in major cities, tourist destinations, and emerging markets worldwide, while adapting its services to local cultures and preferences.
2. Strategic Locations: The hotels are strategically located in areas that are accessible and desirable to travelers, such as city centers, airports, business districts, and popular tourist spots.
3. Diverse Property Types: Accor offers a range of property types to cater to different market segments, including urban hotels, resorts, and extended-stay facilities, ensuring a presence in various geographic and market niches.
4. Digital and Mobile Platforms: Emphasizing digital innovation, Accor provides robust online and mobile platforms for bookings and customer engagement, ensuring easy accessibility for customers wherever they are.
5. Sustainable and Eco-friendly Properties: Accor is increasingly focusing on sustainability, with many hotels adopting eco-friendly practices and being located in places that support sustainable tourism, aligning with modern consumer values.

Accor Hotels Promotion Strategy

Accor Hotels is a powerful brand known globally for its impeccable products and services. To maintain its position, the company has set up several marketing plans. It has launched ad campaigns via television, radio, newspapers, travel magazines, and billboards.

The brand recognizes the importance of social media and has launched its website and an app for easy and fast transactions. Its website, Twitter account, Facebook page, Instagram, and YouTube offer related information.

To encourage online bookings, the brand offers several incentives. It has a loyalty program that provides various benefits like fast check-out, discounted rates, free nights, upgraded rooms, welcoming drinks, and lounge services. Accor Hotels has entered into a partnership deal with Qatar Airways to enhance its loyalty programs.

As part of its eco-friendly initiatives, Accor Hotels declared several policies. It has decided to reduce food waste by 30% and banned plastic straws. It has signed Women’s Empowerment Principles with the United Nations and will work towards women’s empowerment.

In 2015, the brand became the official supplier of Roland-Garros and the official partner of COP21. Accor Hotels has received several awards and recognition over the years. Recently, in the year 2018, its loyalty program, Le Club Accor Hotels, was the proud winner. Accor Group has won the Best Hotel Program of the Year award, Best Promotion, Best Customer Service, and Best Redemption Ability awards throughout its journey.

Accor Hotels’ promotion strategy is as follows:

1. Multi-Channel Marketing Campaigns: Accor Hotels leverages traditional and digital marketing channels, including social media, email marketing, and advertising campaigns, to reach a broad and diverse audience.
2. Partnerships and Collaborations: The company engages in strategic partnerships with airlines, travel agencies, and other businesses to offer bundled services, enhancing visibility and appeal to various customer segments.
3. Loyalty Programs and Personalized Offers: Accor capitalizes on its loyalty program, ALL – Accor Live Limitless, to provide personalized promotions, encourage repeat business, and enhance customer loyalty.

Some Recent Video ads and Print ads of Accor Hotels are:

Accor Hotels People Strategy

When discussing the “People” element of the Service Marketing Mix for Accor Hotels, it’s essential to consider the various aspects contributing to their service quality, customer satisfaction, and overall brand image. Here are key points that highlight the “People” aspect of Accor Hotels:

1. Employee Training and Development: Accor Hotels strongly emphasizes training and developing its staff to ensure high-quality customer service. This includes hospitality training, customer service skills, and specialized training based on the position (e.g., culinary, housekeeping, front desk operations).
2. Customer Service Excellence: The staff at Accor Hotels is known for their professionalism, friendliness, and commitment to providing excellent customer service. This is a crucial aspect of the “People” component, as interactions with staff significantly impact guest experiences.
3. Diverse and Multicultural Team: Reflecting the global presence of Accor Hotels, their teams are diverse and multicultural, allowing for a more inclusive environment and the ability to cater to the needs of guests from various backgrounds.
4. Employee Satisfaction and Retention: Accor Hotels focuses on employee satisfaction and retention strategies, recognizing that happy employees contribute to better service and customer satisfaction. This includes competitive salaries, benefits, recognition programs, and career advancement opportunities.
5. Brand Ambassadors: Employees at Accor Hotels are considered brand ambassadors, representing the values and standards of the brand in every guest interaction. Their professionalism and service quality reflect directly on the hotel’s image and reputation.
6. Customer Feedback and Improvement: Accor Hotels values customer feedback and involves its people in continuous improvement. Staff are trained to handle feedback constructively and implement changes to enhance service quality.
7. Safety and Security: Staff at Accor Hotels are also integral to ensuring the safety and security of guests. This includes training in health and safety protocols, emergency response, and providing a secure environment for guests.
8. Empowerment and Decision Making: Empowering employees to make decisions to improve customer satisfaction is a key strategy at Accor Hotels. This empowerment enhances the guest experience, as staff can resolve issues promptly and efficiently.
9. Innovation and Adaptability: The people of Accor Hotels are encouraged to be innovative and adaptable, adapting to new technologies and trends in the hospitality industry to meet changing customer expectations.
10. Community Engagement and Sustainability: Accor Hotels involves its employees in community engagement and sustainability initiatives, reflecting the brand’s commitment to social responsibility and environmental stewardship.

Accor Hotels Process Strategy

The “Process” element of the Service Marketing Mix for Accor Hotels involves the methods and procedures used to deliver their services efficiently and effectively to guests. This aspect focuses on the operational aspects and service delivery mechanisms that ensure a seamless and satisfying customer experience. Here are key points highlighting the “Process” of Accor Hotels:

1. Online Booking System: Accor Hotels utilizes a user-friendly online booking system that allows customers to easily search for hotels, compare prices, check availability, and make reservations. This system is integrated with their loyalty program, enabling guests to earn points with every booking.
2. Check-in and Check-out Procedures: The hotel chain has streamlined check-in and check-out processes, including online check-in and fast check-out options, to minimize wait times and enhance guest convenience.
3. Service Delivery Standardization: Accor Hotels has established standardized procedures for all service delivery aspects, from room cleaning to dining services, ensuring consistent quality across its global network of hotels.
4. Customized Guest Experiences: The process includes personalizing guest experiences based on their preferences and history with the brand. This might involve room customization, personalized greetings, or tailored recommendations for dining and activities.
5. Feedback and Quality Control: Accor Hotels has a robust process for collecting and analyzing guest feedback through surveys, online reviews, and direct feedback during the stay. This information is used to improve service quality and guest satisfaction continuously.
6. Employee Training Programs: The hotel chain invests in comprehensive employee training programs, covering customer service, operational procedures, and emergency protocols to ensure staff are well-equipped to deliver exceptional service.
7. Loyalty Program Management: The Accor Hotels loyalty program, Accor Live Limitless (ALL), is a key part of their process, offering rewards, perks, and personalized experiences to frequent guests. The management of this program is designed to enhance customer loyalty and repeat business.
8. Sustainability Practices: Sustainable operations are integrated into the service delivery process, including energy-efficient practices, waste reduction, and sustainable sourcing, aligning with the company’s commitment to environmental responsibility.
9. Safety and Hygiene Protocols: In light of global health concerns, Accor Hotels has implemented enhanced safety and hygiene protocols across its properties, ensuring a safe and clean environment for guests and staff.
10. Technology Integration: Technology, including mobile apps, digital room keys, and bright room technologies, is a significant part of the process, improving guest convenience and operational efficiency.
11. Event and Conference Services: For guests hosting events or conferences, Accor Hotels offers comprehensive planning and execution services, including venue selection, catering, technology support, and personalized event management.

Accor Hotels Physical Evidence Strategy

The “Physical Evidence” component of the Service Marketing Mix refers to the tangible elements or the environment in which the service is delivered that help customers form an impression of the service. For Accor Hotels, physical evidence shapes guests’ perceptions and experiences. Here are key points highlighting the physical proof of Accor Hotels:

1. Hotel Architecture and Design: The exterior architecture and interior design of Accor Hotels vary across their range of brands, from luxury to economy, reflecting the unique identity and positioning of each. This includes the hotel buildings’ and rooms’ aesthetic appeal, functionality, and ambiance.
2. Brand Consistency: Across all properties, Accor Hotels maintains a consistent brand image through logos, color schemes, uniforms, and signage. This consistency helps reinforce brand recognition and assures guests of a certain standard of quality and service.
3. Room Quality and Amenities: The quality of rooms, including comfort, cleanliness, furnishings, and in-room amenities (e.g., beds, bathrooms, Wi-Fi, entertainment systems), directly impacts guest satisfaction and embodies the hotel’s service standards.
4. Public Areas and Facilities: Public areas such as lobbies, restaurants, bars, fitness centers, and spas contribute to the overall guest experience. Their design, maintenance, and functionality prove the hotel’s commitment to guest comfort and satisfaction.
5. Cleanliness and Maintenance: The cleanliness and upkeep of guest rooms and public areas are critical physical evidence affecting guests’ perceptions of quality and safety.
6. Service Touchpoints: Physical touchpoints such as check-in desks, dining settings, and concierge stations are integral to the service experience, and the design and efficiency of these areas can enhance service delivery and customer satisfaction.
7. Safety and Security Measures: Visible safety and security measures, such as surveillance cameras, security personnel, fire safety equipment, and emergency exits, reassure guests about their well-being during their stay.
8. Branded Materials: Branded materials, including stationery, brochures, key cards, and toiletries, not only serve functional purposes but also reinforce brand identity and contribute to the overall service experience.
9. Digital Presence and Technology: The hotel’s website, mobile app, and in-room technology (like digital concierge services and innovative room features) are part of the physical evidence, as they represent the digital interface between the hotel and its guests.
10. Sustainability Initiatives: Visible sustainability efforts, such as recycling bins, information about energy-saving measures, and eco-friendly products, reflect the hotel’s commitment to environmental responsibility, aligning with the values of eco-conscious guests.
11. Ambiance Elements: Elements such as lighting, music, scent, and temperature control in the hotel’s common areas and rooms play a significant role in creating a welcoming and comfortable environment for guests.

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