+

Modern development strategies of hospitality business : example of the hotel operator Accor Group.”

Prepared by Ekaterina Bachurina I year student of the Master course International business

+Plan of the presentation

Introduction

Relevance of the topic

Research methods and tools

Company’s profile

Global marketing strategy in practice

Conclusion

+ Introduction

The topic of my thesis is:

“Modern development strategies of hospitality business : example of the hotel operator Accor Group.”

Plan of my dissertation:

1. Marketing development strategies

2. Functional marketing strategies

3. Management development strategies

4. Development strategies Accor Group

resorts to and relevance of international

hospitality business expertise for Russia

+Relevance

2002:

Direct contribution to world GDP - 2.1 trillion $

Direct contribution to employment - 101 million jobs.

Direct, indirect and induced impact :

6.6 trillion $ to world GDP 9% of total economy GDP in 2012

260 million in jobs1 in 11 jobs

760 billion $ in investment 5% of total economy investment

1.2 trillion$ in exports5% of world exports.

+Relevance

Shift in the ‘world order’ of Travel& Tourism as Asia, Latin America and Sub-Saharan Africa has been among the fastest growing markets;

Meeting demand of savvy clients;

Russia has become a member of WTO and formed the Custom Union with Belorussia an Kazakhstan.

+Research methods and tools

Qualitative methods :

o Observation methods,

o Document review,

o Literature search;

Quantitative methods :

o Talking with people,

o Questioning,

o Email surveys and internet surveys.

+Accor: company profile

Accor is the world's leading hotel operator and market leader in Europe.

+Accor: Brand Portfolio

+One of the strategies in practice

Globalization marketing strategy.

This strategy mainly contains of the following components:

Consolidation of capitals through M&A

Franchising, management and alliances

Diversification and integration

Global, multination strategy and partial adaptation strategy

+ Consolidation of capitals through M&A

2012: the Group added 266 hotels (38,085 rooms) to its portfolio through acquisitions and organic growth.

Cementing the Group’s leadership in Europe and swiftly developing its presence in emerging countries;

Demergers

Franchising, management and alliances are more preferable

Hotel portfolio by ownership structure

+

Franchising and management

Topline and marginal growth

Risk diversification Excess to foreign

markets

+Alliances and partnerships

This type of cooperation is concerned with business segments that offer a potential for synergies or that target the same customer base known for its mobility: transport, leisure activities, information and travel-related services.

Cost cutting;

Increase of visibility and recognition of their brands;

Creating value for customers.

Accor

Service

Ticket restaura

ntOther

products

Hotels

ApartmentsAparthotels

Adagio-The Sebel

Complementary activities

Training services

and consultin

g

Accor Academ

y

Davidson

Trahaire

Motivano UK

Surf Gold

Restaurants

Thalassa sea & spa

Casinos

Groupe Lucien

Barrière SAS.

Diversification

Asset-management program aimed at reducing its hotel portfolio’s capital intensity and cash-flow volatility.

+Integration

Customers

Integration forward clients – developing

Integration backwards supplier – doesn’t exist – only sustainable development request and partnerships

+Globalization and standardization

Superior services

Closer to customers

Global brand quality

+Globalization and standardization

Advertising campaign

Standard Adapted

Services

Standard

Ibis Mercure

Adapted

Sofitel Mei Jue (Grand Mercure)

Development strategy:Tailoring its brands more closely to local preferences and enhancing their

flexibility

+Pure adaptation

MGallery brand

”Heritage”

”Signature”

”Retreat”

+Conclusion

Global strategy is vitally important for Accor group

M&A:-relevant for emerging markets

Harnessing external growth opportunities, i.e. partnerships or acquisitions, to consolidate the Group’s leadership in the most attractive markets with asset-light operations.   Prevailing importance of operating by franchise agreements;

Ramping up franchise development in the midscale and economy segments

Investing selectively in high-margin projects in prime locations, especially in the economy segment in Europe,

Partnerships- as the key component of sustainable growth;

Tailoring its brands more closely to local preferences and enhancing their flexibility. 

Thank you for your attention!

If you have any questions please feel free to ask!