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Accor: Strengthening the Brand with Digital Marketing Case Solution

Solution Id Length Case Author Case Publisher
1502 607 Words (3 Pages) Jill Avery, Chekitan S. Dev, Peter O'Connor Harvard Business School : 315138
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Accor is one of the leading hotel operators in the world with a portfolio of 14 hospitality brands and a presence in numerous countries around the globe. The hospitality industry has changed in the recent years with the advent of the internet and online travel agencies (OTA’s) were competing extensively in the digital marketplace. Although Accor does have its presence online in the form of the Travel Accor Reservation System, however, Room Key, a startup would be a new distribution channel that helps Accor compete online. The decision is whether or not to tap into this new opportunity?

Following questions are answered in this case study solution

  1. Problem Statement

  2. Purpose / Objective

  3. Alternative Solutions

  4. Recommended Solution

Case Analysis for Accor: Strengthening the Brand with Digital Marketing Case Solution

2. Purpose / Objective

There are several reasons, both long-term and short-term for Accor to tap further into the digital marketplace to compete effectively against the numerous indirect and direct competitors that have plagued the industry. Every touch point in the customer's purchases journey had several competitors that had to be competed against. The short term objective is primarily to increase revenue, limit customer turnover and to increase visibility. Moreover, it is important in the long run since the digital world has been taking over the traditional system of bookings and reservations and is poised to become a premier distribution channel in the future.

3. Alternative Solutions

Accor has the following two alternatives available to it to proceed further in the digital environment:

i. Signing on to Room Key

Signing on with Room Key has its advantages and disadvantages for Accor. Although a startup the company has been showing signs of success and visibility will increase for Accor. Moreover, Room Key offered brands a lower fee than the other OTA’s in the market. Conversely, Room Key, being a new brand, it was not a recognized brand and would take time to develop a strong brand image. The company also lacks the budget and expertise to compete against the stronger OTA's, which may hamper growth. 

ii. Continuing with Accor’s Digital Hospitality Program

Accor could also avoid signing up with Room Key and focus on its digital hospitality program that is, further refining the Travel Accor Reservation System (TARS). This would enable the organization to invest in the system and further refine it and not risk a bad investment if Room Key was not that successful. Conversely, it could also lose out on the additional market share and online presence if Room Key were to be successful in competing against OTA’s, given that the fee charged was also lower.

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