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Accor makes big investment in new digital strategy

Accor on Thursday unveiled a new multi-faceted digital strategy in which it plans to invest €225 million (US$284 million) over the next five years.

Calling the “Leading Digital Hospitality” plan the company’s “global response to digital challenges,” Accor said it was designed with three targets in mind — customers, employees and partners — through the pillars of IT infrastructure and data management with an aim to rethink and incorporate digital technology throughout the customer journey, improve the services offered to investor partners and consolidate the Group’s distribution market share.

The plan includes four customer-focused programs:

  • “Mobile First” will introduce a single mobile application incorporating all of Accor’s services before, during and after hotel stays.
  • “Customer Centric” will develop databases to ensure personalized guest follow-up and services and will centralize feedback on a single platform known as the “Voice of the Guests.”
  • “Seamless Journey” will include electronic payment solutions, one-click booking, online check-in and a virtual card for loyalty program Le Club Accorhotels.
  • “MICE & BtoB” will develop digital solutions for businesses such as online booking of seminar facilities and will increasingly incorporate business-to-business services on accorhotels.com.

The plan also includes programs for Accor’s employees and partners:

  • “Employee Friendly” aims to simplify welcome tasks using tablets and smartphones, develop online training solutions, and encourage experience sharing via “AccorLive,” the in-house social network.
  • “Owner & Franchise Centric” will offer comprehensive dynamic pricing and revenue management solutions, a dedicated portal to access personalized information and services and an optimized billing process, starting in 2015.

Finally, the following IT tools and systems will be implemented in 2015:

  • “Infrastructure Transformation” will focus on optimizing systems to speed up the rollout of new services and keep pace with rising transaction volumes.
  • “Business Intelligence & Analytics” will aim to ensure operational decisions are increasingly based on analysis of data, particularly that collected in hotels. 

Sébastien Bazin, Accor’s chairman and CEO, told HOTELS the implementation of this strategy is time-sensitive — because of the growing predominance of mobile, because of the growing importance of data collection and because of the prominence of the latest set of web newcomers. “There is a new set of newcomers, which we call the disruptors — those who basically want to break the code and the rules, the Ubers, the Airbnbs of the world,” Bazin said. “Watch out, because those guys will change a lot of our own business model. Am I fearful? Of course not. I still believe we can partner with all the new web players, and we will, but it is a very strong wake-up call where timing is of the essence.”

On Thursday Accor also announced it acquired French start-up company Wipolo, a travel software company that offers mobile and web-itinerary management services.

Accor added that of the €225 million (US$284 million) to be invested in Leading Digital Hospitality, capital expenditure will account for 55% of the total and operating expenditure for the remaining 45%.

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