The document provides an overview of key developments in the hospitality industry and evaluates Accor's strategies in response. It discusses how technological advances like online booking and social media have increased convenience for travelers and pressure on hospitality firms to adapt. It also mentions the growing focus on sustainable practices. The document then evaluates how Accor has leveraged technology through initiatives like a mobile app to improve the customer experience and has made sustainable development a strategic priority.

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Table of Contents
Introduction..................................................................................................................................... 2
Discussion....................................................................................................................................... 2
Key developments of hospitality industry................................................................................... 2
Evaluation of Accor’s strategies ................................................................................................. 4
Conclusion ...................................................................................................................................... 5
References....................................................................................................................................... 7

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Introduction
The report in hand is constructed in two major sections. In the first part, major developments
which are significant to tourism industries in general and hospitality sector in particular are
brought into discussion. Specifically, insights into how these developments influence businesses
of players competing in this field are also given in this part. The latter section of the paper is
going to take into analysis the appropriateness of current strategies implemented by Accor Group
in contemporary context of the industry. Strategic position of the Group, together with its value
proposition is also mentioned so as to provide a basis for the evaluation.
Discussion
Key developments of hospitality industry
To begin with, technological advancement, particularly the emergence of information and
communication technology has undoubtedly changed how people work, communicate and travel
dramatically. Consequently, development in the field of technology could be named as one of the
major forces driving changes in almost every industry including hospitality sector. (Bhatia, 2006)
As indicated in previous report, e-commerce is no longer an unfamiliar concept to the business
world today. Thanks to advances in technology, travellers are now provided with access to huge
source of information and tools, which enable them to have greater autonomy and flexibility in
arranging and managing their trips. For instant, wide arrays of services ranging from
transportation ticket, accommodation, tour guiding, to other relaxation and recreational service
offerings could be easily booked online. Likewise, online check-in, e-visas, together with other
automatic systems has also increased the convenience enjoyed by travellers. Besides, numerous
applications for smartphones, tablets, and the like, are developed, which facilitate travellers
greatly during their search for information as well as their actual travelling. Equally significantly,
the urge of social media and especially the increasing prevalence of social networks have
provided users from virtually every corner of the world with platforms where they could not only
share their travelling experiences and thoughts but also stay connected with the virtual
community of those with similar interests. (Law et al., 2014) Accordingly, players competing in
travel industry in general and hospitality sector in particular are put under pressure to adapt
themselves to changes initiated by technological development (Bhatia, 2006). For demonstration,

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as pointed out in previous report, online booking is accounting for the larger proportion of sale
volumes in comparison with other traditional forms of sales. Likewise, hospitality firms are
currently becoming more and more aware of different alternative channels to reach and
communicate with targeted market segment, including the exploitation of social network
platforms in addition to company’s website. Adequately considerably, the application of digital
technology in various management as well as operation activities has already been widely
practised by hospitality firms these days, which enables firms to significantly improve its
efficiency and effectiveness in meeting increasing market demands. (Law et al., 2014)
Apart from technological advances, another key development which is believed to be significant
to the growth of the industry is the growing familiarity of sustainable practices (Johnson et al.,
2008). Indeed, meanwhile tourism is considered as leading-edge industry in many countries due
to the contribution of the industry to national economies, the unfavourable impacts created by
tourism activities on the environment as well as host community could hardly be denied.
Tourism as an industry is claimed to be a significant contributor to critical environmental issues
such as high level of carbon dioxide emission or energy and consumption as well as waste
disposed to the environment, to name just a few. Whereas the pressure of the industry on the
environment is little questioned, environmental crisis such as global warming, climate change,
natural disaster, and others, impact the industry dramatically in turn. Additionally, influences
brought to host community by tourism industry are also pointed out, including the loss of cultural
identity, or conflict in use of public facilities, for instant. (Bhatia, 2006) Acknowledging the
unfavourable dimension of tourism, hospitality firms competing in the industry are becoming
increasingly aware of sustainable development as well as the integration of sustainable practices
into different business operation activities. Furthermore, sustainable development is even
included in the long-term strategies to be pursued by many hospitality companies. (Rheede &
Blomme, 2012) On the one hand, the pursuit of sustainable goals provides firms with a solution
to the matter of resource exhaustion as well as enables them to consolidate their growth in the
long run. The deployment of sustainable practices also cements positive corporate image as well
as strengthens reputation of the company, which could be taken as a critical competency for the
firm to outweigh other competitor players in the industry. (Johnson et al., 2008)

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Last but not least, the presence of sharing economy together with its increasing prevalence is
referred to in the scope of this report as a remarkable development in travel industry as a whole
and hospitality sector in specific. By way of determination, sharing economy could be broadly
defined as a form of business model in which individuals are capable of renting or borrowing
assets possessed by someone else. Platforms such as Uber, Blablacar, Airbnb, Couchsurfing, to
name just a few, could be taken as vivid illustration for the application of this economic model.
(Anders & Windekilde, 2016) The rapid growth of sharing economy in recent years could be
taken as an important event to the development of travel industry, which presents travellers,
especially the low-end market segment, with greater opportunities to travel at lower expenses.
However, to hospitality providers, sharing economy could be perceived as an alternative to other
traditional forms of accommodation, which is clearly interpreted as higher degree of competition
in the industry, especially to the low-cost providers.
Evaluation of Accor’s strategies
Acknowledging the significance of developments witnessed by the industry as described above,
this section of the paper is going to take into view the appropriateness of strategies applied by
Accor Group in response to these external environmental forces.
First of all, it is rather important to mention the strategic position of Accor in the global
hospitality industry so as to provide a basis for the evaluation of its current strategies. Founded
first in 1967, Accor has fulfilled magnificent growth to be amongst world’s leaders of the
industry with over 3,700 lodging properties presenting in more than 90 countries all around the
world. Owning an extensive brand portfolio ranging from luxury to midscale and economic
brands, Accor has strived for becoming the world’s benchmark hotelier and engaged to provide
its people, guests and partners with unique experience. (Accor Hotels, n.d.a) On the ground of
brief insights into the competitive position of the group in correlation with other competitor
hoteliers worldwide, the report is going to continue with discussion regarding the firm’s
strategies in response to changes witnessed by the industry as indicated in previous section.
To begin with, Accor appears to make good use of technological advancement as a means of
achieving its operational excellence. Acknowledging the advantages offered by the application of
technological advances, Accor has made rational decision to leverage innovation as an important
pillar in its long term strategic route. For instant, the group is in fact recorded as the first hotelier

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worldwide who has provided partnering hotels with distribution and digital services. Likewise,
Accor’s booking portal, which is available in 28 languages by far, has received approximately
270 million visits every year. Another example for the firm’s emphasis on innovation is the
development of a mobile application named AccorHotels, which is designed for the primary
purpose of improving guest experiences at every stage of their stays with Accor’s properties.
(Accor Hotels , n.d.b) To evaluate, the exploitation of digital technology practised by Accor
could be considered as a rational strategic decision, which not only consolidate the firm’s
operational capability but also enable guest’s and partner’s satisfaction to be enhanced.
In addition to the application of technological advance, another critical aspect in Accor’s
strategic vision could be referred as sustainable development. As earlier mentioned, the theme of
sustainability is becoming increasingly concerned among practitioners in the field of hospitality
including Accor Group. Indeed, sustainable development and solidarity are identified as top
priorities in Accor’s vision for future to come (Accor Hotels, n.d.b). To demonstrate for Accor’s
commitment to the pursuit of sustainability, the group’s sustainable development program named
PLANET 21, which was kicked off by 2012, could be referred to. The program is constructed
with 21 sustainable commitments to be met by each and every property of Accor, which
represents for the firm’s pursuit of sustainable hospitality business. (Accor Hotels, n.d.c)
Last but not least, meanwhile the threat of competition raised by the increasing prevalence of
sharing economy seems to be minor to upscale players of the industry, the competing pressure
stood by those targeting at low-end market segments is rather more significant, due to higher
sensitivity to price amongst these value-for-money seekers. The phenomenon is believed to be
relevant for the group to take into account, as its business portfolio also includes the economic
brands such as Ibis family for example (Accor Hotels, n.d.a). Nevertheless, the group’s overall
pursuit of improvement in guest experience (Accor Hotels, n.d.b) could be considered as an
appropriate strategic move to respond to such competition threat.
Conclusion
By way of conclusion, the paper was conducted to bring into view three amongst major
developments in hospitality industry currently, including advancement in the field of technology,
increasing adoption of sustainable practices together with growing popularity of sharing

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economy phenomenon. All in all, Accor Group’s strategic approach, which primarily emphasizes
the role of innovation, sustainable development as well as enhancement of guest experience,
appear to be plausible to respond to such changes in the external environment and enable the
fulfilment of its further and solid growth in the long run.

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References
Accor Hotels (n.d.a). AccorHotels: company profile. [online] Available: http://www.accorhotels-
group.com/en/group/accorhotels-company-profile.html [Accessed 25 January 2016]
Accor Hotels (n.d.b). AccorHotels’ strategic vision. [online] Available: http://www.accorhotels-
group.com/en/group/accorhotels-strategic-vision.html [Accessed 25 January 2016]
Accor Hotels (n.d.c). The PLANET 21 Program. [online] Available: http://www.accorhotels-
group.com/en/sustainable-development/the-planet-21-program.html [Accessed 25 January 2016]
Anders, H. & Windekilde, I., (2016). Transaction costs and the sharing economy. Info. 18 (1),
pp.1 – 15
Rheede, A. & Blomme, R. (2012). Sustainable Practices in Hospitality: A Research Framework,
in Joseph S. Chen (ed.) Advances in Hospitality and Leisure (Advances in Hospitality and
Leisure, Volume 8) Emerald Group Publishing Limited, pp.257 – 271
Law, R., Buhalis, D., & Cobanoglu, C. (2014). Progress on information and communication
technologies in hospitality and tourism. International Journal of Contemporary Hospitality
Management. 26 (5), pp.727 – 750
Bhatia, A. K. (2006). The business of tourism: concepts and strategies. New Delhi: Sterling
Publishers Pvt. Ltd.
Johnson, G., Scholes, K. and Whittington, R. (2008). Exploring Corporate Strategy (8th Ed.).
Harlow, England: Pearson education Limited

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