Accor's strategic vision
In 2006, Accor launched a complete transformation of its strategic vision, redefining its borders and introducing new business models in both core businesses - hotels and Services.
With fewer owned hotels and a broad portfolio of complementary, attractive brands, Accor Hospitality has established itself as a provider of high value-added services and set ambitious development objectives for 2011.
Thanks to its capacity for innovation, Accor Services is stepping up the technological shift that will reassert its global leadership in prepaid services.
Despite the sudden, sharp slowdown in the world economy in 2008 and 2009, Accor is leveraging its new strategic vision to drive continued growth, expansion and innovation in both its businesses, backed by the dedication and professionalism of its employees.
The six foundations of Accor’s strategy
Stepping up the transformation process
Intensifying the hotel property strategy.
To meet the challenge of development, Accor introduced a new real estate strategy in 2006 that has been pursued at a sustained pace and led to the disposal of more than 600 hotel properties in three years. This asset-right strategy is based on adapting hotel ownership structures on a case by case basis, taking into account three key criteria: each hotel’s region, profitability and market segment. This new business model has made the Group less sensitive to economic cycles, since 56% of hotels are now operated under management contracts, franchise agreements or variable-rent leases, compared with 35% in 2001.
Responding proactively to structural changes in society in the Services business
With more women in the workforce, an aging population, longer working lives, and diminishing purchasing power, society is changing and with it the needs of businesses, local governments and individuals. Drawing on its capacity for innovation in prepaid services and a business model that benefits all stakeholders, Accor Services is able to anticipate and integrate new economic and social developments, creating an increasingly varied portfolio of paperless products and services. The challenge is to successfully negotiate the technological shift to services that are delivered via smart cards, the Internet or mobile phones.
A growth and innovation dynamic
Accor Hospitality: opening 40,000 rooms a year
Accor’s objective is to double the annual pace of hotel openings to reach 40,000 new rooms a year. This is the Group’s most ambitious development program ever, extending across all market segments and continents, with 60% of openings in the economy and budget segment and 60% in emerging countries. Accor is meeting the challenge of development while complying fully with its commitments to protecting the environment and supporting host communities.
Accor Services: conquering the prepaid market
Backed by unique market expertise acquired through its traditional flagship products (the Ticket Restaurant® meal voucher and the Ticket Alimentación® food voucher) and considerable potential demand for its products, Accor Services is continuing to diversify its offering with an expanded portfolio of products deployed in its 40 host countries.
Today, Accor Services has a broad range of 50 prepaid products and services in the areas of benefits for employees and constituents, rewards and incentives, and expense management. More than €500 million has been allocated to develop the business between 2006 and 2010.
Following the creation of Prepay Solutions in February 2009 in partnership with MasterCard, Accor Services is positioned as a forefront player in the prepaid market, which is expected to represent some €135 billion by 2015. The challenge is to develop innovative solutions that satisfy fast-growing demand from companies and retailers for secure, prepaid cards that are accepted in open or customized networks.
Powerful brands that are recognized in their markets
Accor Hospitality: constantly reinventing the hotel of tomorrow
Driven by the growth in international travel and the rise of a leisure-based culture, the hotel industry has undergone extraordinary changes in recent decades. While travelers still want a friendly, comfortable place to stay, they’re now also looking for intense feeling and enriching experiences. With more than 4,000 hotels and 500,000 rooms in 90 countries, Accor is constantly reinventing the hotel of tomorrow.
This is reflected in:
- the creation of new brands with Pullman in the upscale market and all seasons in the non-standardized economy segment,
- the repositioning of Sofitel in the luxury segment,
- ongoing innovations among the mature brands, including Novotel, ibis and Mercure. The goal is to maintain a competitive advantage in terms of comfort (with redesigned beds, as well as new room concepts for Etap Hotel and Motel6), new technologies and connectivity solutions in hotel living areas.
Accor Services: innovation and new growth drivers
For more than 40 years, Accor Services’ success has been driven by benefits for employees (such as Ticket Restaurant®) and constituents (Ticket Services®). However, a new generation of services has been created to respond to the expectations of users, employers and local authorities in the areas of rewards, gift vouchers, and business expense management. More recently, thanks to the strategic alliance with MasterCard, new turnkey prepaid solutions have emerged, including:
- gift cards for companies and consumers.
- cards that enable governments to pay social benefits to their constituents.
- cards for managing business expenses.
- cards for un-and under-banked individuals.
Unique skills to support the brands
With its more than 40 years’ experience, Accor has developed expertise and skills platforms capable of delivering real value-added in:
- Hotel development
- Innovation & design, construction and maintenance
- Management and finance
- Purchasing
- Training and human resources
- Technological support
- Marketing
- Distribution
These interconnected units extend across all businesses and countries, creating a truly unique system. By sharing best practices and pooling costs, the platforms enhance Accor’s performance while also benefiting partners and guaranteeing superior service to customers.
People, the company’s most important asset
The outgrowth of a unique history, Accor’s corporate culture is the cement that binds our team members while respecting differences in their ages, cultures positions within the organization. In a services company, employees’ smiles represent an especially valuable asset. Maintaining this smile dynamic and enabling it to shine both inside and outside the organization is a top priority. That’s why Accor has always paid special attention to the well-being of its 150,000 employees, through a hands-on management style and a commitment to skills enhancement, training, recognition and job mobility.
The three main challenges confronting Human Resources teams are to
- identify and train new talent to support the Group’s development strategy,
- retain and motivate employees to do their best, as they also seek to grow and attain fulfillment,
- enhance the professional skills of employee job tracks and support the brands to help drive revenue growth.
Growth that creates opportunities for everyone
While Accor’s objective is to speed its global expansion, this goal must be met while also respecting the Earth and its inhabitants. An integral part of the Group’s strategy from the outset, sustainable development today involves all of Accor’s businesses, host countries and employees. The cornerstone of this commitment is "the Earth Guest" program, which federates initiatives around eight top priorities:
- Local development
- The fight against epidemics
- Protecting children
- Nutritional balance
- Reducing energy use to help combat global warming
- Conservation of water resources
- Effective waste management
- Protect biodiversity