Accor Hotels SWOT analysis – SWOT analysis of Accor Hotels: Accor Hotels is a conglomerate within the hospitality industry that is affiliated with some of the most prestigious hotel brands like Novotel, Sofitel, Fairmont, Banyan Tree, and Raffles. Based in France the hotel group has resorts, hotels, and vacation resorts.
The conglomerate has around 4300 properties that employ around 2.5 lakh individuals in 100 countries. The company has an annual revenue of 1.93 billion Euros and has establishments catering to both the high-end segment, mid-tier, and the economic sector, making sure that they are catering to the needs of a large number of customers.
Their budget Ibis brand Ibis has become a renowned business-class hotel and has been awarded a variety of honors and awards in this area. Mercure is Accor group’s most popular mid-tier hotel and has 500 properties spread over 50 countries. The hotel is expected to provide extraordinary service experiences that make guests feel at home each time they visit the Accor property.
Accor Hotels fun facts: France is the top destination for Accor Hotels’ travelers with more than 1,500 hotels in France alone.
About Accor Hotels – SWOT analysis of Accor Hotels
Company: Accor S.A.
CEO: Juan Carlos Delgado
Founder: Paul Dubrule | Gérard Pelisson
Year founded: 1967
Headquarters: Issy-les-Moulineaux, France
Annual Revenue: EURO€4.0 Billion
Profit | Net income: EURO€1.988 Billion
Number of employees: 260,000
Products & Services: Accor S.A. is a French multinational hospitality company that owns, manages, and franchises hotels, resorts, and vacation properties.
Accor Hotels Competitors
Competitors: Hilton Grand Vacations | Hilton Worldwide | Hyatt Hotels | Pierre Vacances | Marriott International | Best Western | Cendant Corporation | Choice International
SWOT analysis of Accor Hotels – Accor Hotels SWOT analysis
SWOT Analysis Of Accor Hotels is brand-based. SWOT Analysis of Accor Hotels evaluates the brand’s strengths, weaknesses, opportunities, and threats. Advantages and disadvantages can be attributed to internal factors while opportunities and threats can be attributed to external factors. We will be discussing Accor Hotels’ SWOT Analysis. Below is the detailed SWOT Analysis of Accor Hotels.
Let’s talk about Accor Hotels’ SWOT assessment.
Strengths of Accor Hotels – Accor Hotels SWOT analysis
- The presence across all sectors: Accor Hotels has something to offer customers on budgets of all sizes. Their budget hotels comprise Ibis, Formula 1, and Motel 6. In the mid-tier, the company has Mercure Hotels and Adagio. The luxury brands they have are Novotel, Sofitel, Fairmont, Banyan Tree, and Raffles. So, that they cater to all kinds of incomes the hotel has managed to build an enormous customer base.
- Network: Accor Hotels operates a massive chain of resorts, hotels, and vacation homes. They operate in more than 100 countries in North, America, Latin America, Europe, North Africa, Asia Pacific, and South Africa and they have an overall total of 4300 properties. This is spread across several hotels, catering to travelers who travel often on business or for pleasure.
- Business model: In an attempt to accelerate growth while not increasing costs in a hurry, Accor Hotels has developed an approach to franchising. So today, even though Accor Group is one of the major players in the hospitality industry, its hotels are operated by franchisees. They have strict rules for franchisees to adhere to, and the company keeps an eye on the activities of the franchised properties, making sure that the quality of the service is maintained.
- Interaction with guests: The fundamental business purpose of Accor Hotels is that guests always feel at home. The amenities offered include loyalty programs that are lucrative and exclusive to guest executives as well as online checking-in. Every contact point from registration to checkout is tracked and continuous improvement is aimed at every.
- Loyalty programs: Accor Hotels is known for having one of the most effective loyalty programs available. They have frequent guests who can avail of a variety of benefits, including free nights when they accumulate 2000 points, free upgrades to higher-level classrooms, exclusive access to private sales, online check-in, and an exclusive check-in.
- Digital hospitality that is unique: The hotel chain keeps a database of more than 60 million customers tracking their preferences, and incorporating these into their offerings. The data gathered can be used to oversee more than 100 countries of digital campaigns, which use social media platforms like Facebook and Twitter.
Weaknesses of Accor Hotels – SWOT Analysis Of Accor Hotels
- The loss to online businesses: In the mid-tier and the economy segment, Accor Hotels is losing its business to smaller hotels as well as online companies like Airbnb and Oyo Rooms. This hotel group has invested massively in improving its services, as well as its food and beverage section, and has made a huge expenditure of cash.
- The focus is on franchising: While franchising has assisted the hotel chain to reduce its costs, their quality of service, particularly at their top hotels like Novotel, Sofitel, Fairmont, Banyan Tree, and Raffles has been hampered due to a lack of care.
- A lot of emphasis on sub-brands: The brands that are subordinate to Accor such as Ibis as well as Novotel and Mercuri are extremely popular, and it is leading to a rift in consumers’ minds about the main brand and consumers are not aware of the name Accor.
Opportunities of Accor Hotels – Accor Hotels SWOT analysis
- The growth of emerging markets: There is a lot of potential for hotelier businesses in emerging economies like Asia as well as Africa which is reflected in an increase in the number of tourists visiting these places. The rise in business in these areas has also led to an increase in business travelers, giving an increase to companies like Ibis.
Threats of Accor Hotels – SWOT analysis of Accor Hotels
- Competitors: The main competitors of Accor Hotels are Starwood Hotels, Best Western, Cendant Corporation, Hilton Hotels Corporation, etc.
From the research conducted for this swot analysis of AccorHotels, it is clear that Accor is the biggest player in the hospitality industry in Europe and this is not likely to be challenged so soon. The group has invested heavily in the catering sector due to the culinary traditions of French cuisine. It has also adopted a strategy of diversification and partnership with related sectors to hospitality, namely tourism, airlines, catering, and even lettings and property developing organizations.
This is the SWOT analysis of Accor Hotels. Please let us know if you have additional suggestions to add.
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