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Accor: Strengthening The Brand With Digital Marketing

Accor is a leading global hotel operator with 14 brands that is exploring digital marketing through its website, mobile apps, and online travel agencies. Online travel agencies disrupted the hospitality industry along with meta search engines and Airbnb. Accor uses OTAs to attract new customers while providing extra value for loyal members booking directly. Room Key is a startup that allows customers to search and book hotel rooms directly from trusted brands, avoiding fees and earning rewards. Accor must evaluate if signing on to Room Key would reduce customer acquisition costs and OTA commissions by attracting new customers, or if their efforts are better spent elsewhere in digital transformation.

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818 views1 page

Accor: Strengthening The Brand With Digital Marketing

Accor is a leading global hotel operator with 14 brands that is exploring digital marketing through its website, mobile apps, and online travel agencies. Online travel agencies disrupted the hospitality industry along with meta search engines and Airbnb. Accor uses OTAs to attract new customers while providing extra value for loyal members booking directly. Room Key is a startup that allows customers to search and book hotel rooms directly from trusted brands, avoiding fees and earning rewards. Accor must evaluate if signing on to Room Key would reduce customer acquisition costs and OTA commissions by attracting new customers, or if their efforts are better spent elsewhere in digital transformation.

Uploaded by

vijayadarshini v
Copyright
© © All Rights Reserved
We take content rights seriously. If you suspect this is your content, claim it here.
Available Formats
Download as DOCX, PDF, TXT or read online on Scribd
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Accor: Strengthening the Brand with Digital Marketing

Accor, a leading global operator with portfolio of 14 hospitality brands exploring digitally
through their company’s portal Accor.com, its 14 brand websites, its mobile applications&
its online distribution agreement with OTAs. The hospitality business was disrupted by
OTAs, Meta search engines& Airbnb. Still, Accor used OTAs to tap new customers& provided
additional value for loyal members for bookings directly through Accor. For every two
seconds one booking was made on Accor’s website.
To compete better in the online marketing space, they should determine whether to sign
on to Room Key required evaluating the strength of the start-up’s value proposition, as the
service would deliver value to Accor only if it attracted new customers to Accor’s properties,
thereby reducing customer acquisition costs & reducing the commissions paid to the OTAs
for booking business
Room Key featured with simple, easy-to-navigate booking experience& its value proposition
offered travellers to search& book hotel rooms conveniently from trusted brands with all
the benefits of direct bookings like the lowest rates, helping them avoid hidden fees &/or
change penalties, allowing them to earn hotel reward program points& to request a specific
room, providing them with the information& higher quality brand experience of shopping
on a hotel owned website. It also offered users flexibility when they had to change a
reservation.

Accor is in a dilemma whether Room key fits their digital transformation because it is
important for the company to assess whether the efforts would help them to better stand
the pace against the market competitors for travel reservation. Also, there is no significant
difference between the commission charged by major OTAs and Room key. It is important
for the company to look more about the digital transformation.

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