Veeren GowreaSWOT analysis of AccorHotels
This is a detailed SWOT analysis of AccorHotels. It aims to examine the strengths and the weaknesses of AccorHotels. It also aims to explore some of the opportunities and the threats concerning the company. AccorHotels is a French multinational hospitality company that operates in 100 countries around the world (AccorHotels, 2018).
Strengths of AccorHotels
Human resource
The Accor group gives importance to employee engagement, training and development, which reduces labour turnover. With 91% of employees following a training programme each year, the hotel keeps its employees happy. This is accomplished by its own 18 academies worldwide and partnerships with 100 other colleges or universities.
Loyal customers
The hotel’s loyalty programme has 40 million members who enjoy discounts and other perks from 50 partner organisations worldwide.
Global presence
The Accor group has been very focused on the geographic expansion since its inception, and currently operates in 100 countries around the world.
Brand Image
The brand portfolio of AccorHotels consists of 25 brands of which the flagship brands are Sofitel, Novitel in upscale range and Ibis in budget range. The hotel has adopted technological developments extensively across its upscale properties.
Leader in sustainability
It is very well-known amongst hospitality customers worldwide that the Accor group engages itself in sustainability, environmental management and corporate social responsibility very deeply which grants it a definite competitive advantage to attract the green customers.
Weaknesses of AccorHotels
Geographic representation
The group actually has 52% of its hotels in France and the rest of Europe, and the next region is Asia-Pacific with 27%. Other regions have 2-3% each. This concentration is being addressed and by 2022 the hotel expects to reduce Europe hotels to 45%. In addition, as Accor caters to all segments, many customers find it difficult to relate to Accor Hotels as a brand.
Opportunities for AccorHotels
Diversification
There is a very good opportunity for diversification into tourism as Accor is negotiating to buy all the share stock of the French government in Air France KLM airline.
Challenge to Airbnb
Accor is getting ready to challenge the Airbnb threats to traditional hotel business by investing into two new brands i.e. Travel Keys and Squarebreak (Key, 2017).
Threats to AccorHotels
Issues in Europe
As Accor is the biggest hospitality group in Europe, everything that happens in Europe affects it more than other competitors which are more balanced globally. Brexit, terrorism, social unrest, and the rise of populism in across Europe are some of these issues. Unemployment rates and low pay in France and Europe as a whole impact on Accor as it is the main hospitality organisation across the region.
Competitors
The main competitors are AccorHotels are Marriott, Hilton, and Hyatt. Just after Hilton had bought Starwood Hotels, Accor negotiated the purchase of Savoy-London and Raffles in Berlin, as well as Swissshotel.
Concluding statement
From the research conducted for this swot analysis of AccorHotels, it is clear that Accor is the biggest player in hospitality industry in Europe and this is not likely to be challenged so soon. The group has invested heavily into 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 organisations.
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Last update: 13 October 2018
References
References
AccorHotels (2018) Who we are, available at: https://www.accorhotels.group/en/group/who-we-are/our-history (Accessed 12 October 2018)
Key, A (2017) “Accorhotels challenges sharing economy brands like Airbnb with joint venture and consolidation projects” http://www.cityam.com/269186/accorhotels-challenges-sharing-economy-brands-like-airbnb [Accessed on: 04.07.2018]
Dutchnews, (2018) “France’s Accor Hotels group mulls taking stake in Air France KLM” https://www.dutchnews.nl/news/2018/06/frances-accor-hotels-group-mulls-taking-stake-in-air-france-klm/ [Accessed on: 04.07.2018]
Photo credit: Indeed
Author: Veeren Gowrea
Veeren Gowrea is a lecturer in Tourism & Hospitality management. He holds an MBA in Strategic Management and MSc in Human Resource Management from the University of Wales, UK. He also holds a Postgraduate Certificate in Higher Education (PgceHE) from Birkbeck, the University of London. He works as a visiting lecturer at a number of institutes in London.
M Rahman