Q1.Should Accor Become Equity And/or Commercial Partner in Room Key? Why or Why Not? Critically Analyze The Pros and Cons of Each

Q1.Should Accor become equity and/or commercial partner in Room Key?
Why
or why not? Critically analyze the pros and cons of each.
In my analysis Accor, one of the world’s leading hotel operators with a portfolio of 14
hospitality brands (including Sofitel, Novotel, and ibis) must evaluate whether the
effort will result in an adequate return for the company and allow it to better compete
in the online marketing space for travel reservations. Assessing Room Key alongside
its own significant investment in a Digital Hospitality program, Accor must decide
whether Room Key is an intermediary that can help it better reach and service
customers while adding value to its existing distribution system. Accor’s decision plays
out in a dynamic environment in which nearly every touch point along a customer’s
purchase journey is under attack from new types of competitors who are picking off
and intermediating various activities previously under the purview of the hotel
companies. As such, Accor is considering Room Key and its own Digital Hospitality
programs as potential ways to disintermediate OTAs and other competitors, better
serve its customers, and extract more value from their go-to market strategy.

Accor would pay a 10% commission to Room Key if they were an equity partner and
a 15% commission if they were a commercial partner.
The way to eliminate the third party OTAs or intermediaries is to have customers book
directly through the hotel's website after they search to find the price, location, and
hotel they want. The problem is that it still requires a fee and the business would have
a hard time surviving in the high competition arena.

Accor should be a commercial partner in Room Key.
By looking at how digital transformation has provided customer technology
and tools that make them better at making decisions and more informed
experts and offer a variety of options. Customers look
with new, different, personal, and emotional experiences. Therefore, respectively
to meet these expectations the company needs regular updates
itself. Developments make the company more flexible
and intensify the growing power of online agencies, search engines and
other accommodation solutions.
Accor can get customers to use the room key. Accor may lose i
time for customer service. When the customer understands the file
Product value also recognizes this product and is a customer service
it may reach them. The fact that Room Key offers a choice
makes it attractive to customers. Although loyal customers of
the product will always choose that product but the freedom to have
The choice attracts more customers. Also, more customers as well
rating what the hotel highly recommends will help them benefit
customers.

Pros of becoming partner-
1. After becoming an equity partner has a vested interest in the success of the
business.
2.The ‘buy in’ amount would inject capital into the business.
3.Accor would buy stocks of the company as an equity partner
4.Profits would be divided equally between all partners.

Cons of becoming a partner-
1.Disputes as there will be times when Accor and other partners would not agree on a
particular business decision.
2.Loss of Autonomy
3 Liability -In addition to sharing profits and assets, a partnership also entails sharing
any business losses, as well as responsibility for any debts, even if they are incurred
by the other partner.
4. Lack of Stability.

Q2.Where else along the customer decision making journey should Accor focus
its digital
efforts? Who else is playing that space and how well Accor can collaborate or
compete against them?
This component was designed to enhance customer convenience at every touch
point by streamlining the customer’s experience with electronic payment
solutions,one-click booking, online check-in and check-out, offers targeted to guest
preferences, and communication after the stay to encourage social networking.
“Welcome by le Club Accorhotels is a broad ranging program, starting with online
check-in and ending with a fast checkout for participants. Its purpose is to remove
paperwork, reduce formalities, and make sure that the customer gets a personalized
welcome...Customer reactions so far have been very enthusiastic as 93% of guests
who have tried the welcome service want to use it again,”
The employee and partner focused solutions included a dynamic pricing and
revenue management system, tablet and smartphone apps that simplified
employees’ duties and enabled them to share best practices with others, and
business intelligence and analytics that provided easy access to and analysis of the
large volumes of customer and operating data that the parent company collected
each day across its brands.
AccorHotels has also undergone a radical transformation in its structure and
business model, having transitioned from being asset-light to asset-heavy
under Bazin and now returning to being asset-light.
AccorHotels also has enlarged its portfolio of brands from 13 to 27 in Bazin’s

five years at the helm and has made a significant number of acquisitions and equity
investments outside its traditional hotel business, including home-rental businesses
such as Onefinestay to co-working brands such as NextDoor, from concierge
services provider such as John Paul and digital services companies such as
Fastbooking, AvailPro and Gekko.

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AccorHotels also has enlarged its portfolio of brands from 13 to 27 in Bazin’s

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