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<strong>Hotel</strong> <strong>Marketing</strong><br />

Accor Days, 19th April 2002<br />

1


The Accor marketing system<br />

Coherent and strong hotel brands all backed up by the Accor brand:<br />

coverage of market segments 0* to 5*<br />

geographic coverage: 90 countries<br />

A modern, consistent open-ended technical architecture:<br />

Accortel: a global telecommunications system<br />

standard hotel computer systems (4 PMS referenced)<br />

a single reservation system (TARS)<br />

efficient Web technology<br />

Efficient Area policy covering our network, whatever the management mode<br />

A global sales network with a single business management tool<br />

A client loyalty strategy based on targeted programmes<br />

A partnership policy boosted by the Accor brand<br />

2


The Accor marketing system<br />

Strategic and operational marketing, fully coordinated<br />

The Accor brands are clearly positioned<br />

Average room rate<br />

Upscale<br />

150 € - 300 €<br />

Midscale<br />

70 € - 150 €<br />

Economy<br />

23 € - 70 €<br />

No star 5 stars<br />

The brand marketing and distribution policy is defined by International <strong>Marketing</strong> and<br />

implemented by Operational <strong>Marketing</strong>:<br />

economy: direct marketing, i.e. reservations with the hotel and via the direct reservation<br />

channels (Audiotel, site Web Accor...)<br />

midscale and upscale: all channels, with appropriate mix according to the brand<br />

and the country. Distribution channels (direct, Travel agencies, Tour<br />

operators, companies….)<br />

3


The Accor marketing system<br />

Computer system policy: an operational requirement<br />

A standardized, fully deployed computer system:<br />

All headquarters connected to Accortel<br />

3,000 hotels connected to Accortel<br />

More than 850 hotels equipped with Tars on-line, plus all sales offices and call centers<br />

(approximately 70% of the Sofitel, Novotel, Mercure and Ibis turnover)<br />

Motel 6 and Red Roof Inns distributed through the same reservation system (Accel)<br />

The PMSs of practically all the affiliated hotels comply with the standards<br />

Every day: 37,000 room nights reserved through central channels<br />

82,000 visits to the internet sites<br />

11,000 consultations on the Intranet<br />

120,000 e-mails exchanged<br />

4


The Accor marketing system<br />

Accor reservation: client confidence that he/ she will be given the last<br />

room available<br />

The TARS reservation system gives access to all distribution channels, with real-time indication of the<br />

inventory currently available:<br />

in the reservation centres<br />

in the hotels<br />

for salespersons via ASA<br />

SNCF<br />

Minitel<br />

Voice servers<br />

<strong>Hotel</strong><br />

TARS On Line<br />

Internet<br />

TARS on<br />

line<br />

Call centre<br />

<strong>Hotel</strong><br />

TARS On Line<br />

TARS on line now ensures high responsiveness:<br />

promotions, special rates initiated in the hotels<br />

ASA*<br />

International<br />

sales forces<br />

5<br />

Travel agencies<br />

Tour Operators<br />

(via the GDS,<br />

seamless)


The Accor marketing system<br />

The Accor hotel websites: an increasingly popular facility<br />

The Accorhotels site offers rich and easily accessible features:<br />

hotel reservation<br />

professional area<br />

loyalty programme<br />

promotions<br />

6


Results are significant and improving<br />

In 2001 Number of visitors: 28,000,000 (x2 vs 2000)<br />

Number of room nights: 2,000,000 room nights through Internet (+92% vs 2000)<br />

2% of total volume<br />

As of end of March N umber of visitors: 6,500,000<br />

Number of room nights: 560,000 (+109% vs 2001)<br />

2.5% of total volume<br />

7


The Accor marketing system<br />

The Accor Area policy: a high-leverage advantage<br />

The Accor Area policy now covers more than 80 areas worldwide<br />

Monthly or bimonthly meetings (hotel managers, operations managers, salespersons,<br />

revenue managers)<br />

Assignment of Area objectives<br />

Commercial arbitration<br />

30 areas have revenue managers<br />

And now, starting of the RMS (Revenue Management Systems) deployment phase<br />

And launching of a "market room" in Paris (operations department, sales, revenue management,<br />

group reservation gathered on a single location)<br />

8


The Accor marketing system<br />

Integrated sales structure: domestic and international sales in a<br />

single network<br />

The global network of sellers covers all market segments and applies the business policy defined by<br />

the International <strong>Hotel</strong> Sales Management<br />

Segment Sales<br />

Management<br />

Business Sales<br />

Sales areas<br />

/ Countries<br />

Leisure Sales<br />

Airlines Sales<br />

Sofitel Sales<br />

South America<br />

Southern Europe<br />

U.K.<br />

Sales Manager<br />

Asia-Pacific<br />

France<br />

Sales Support<br />

Departments<br />

Sales Support/Distrib.<br />

ASA / Promo<br />

Publishing/Production<br />

Projects /HR Support<br />

Northern Europe<br />

Developing countries<br />

Germany<br />

North America<br />

9


The Accor marketing system<br />

Accor loyalty programmes based on a detailed analysis of the<br />

customer segmentation<br />

B2B : American Express Corporate cards: France, Germany, Great Britain<br />

(162,000 cards)<br />

B2C : Compliment Accor American Express deferred debit payment card (more than<br />

40,000 cards)<br />

Subscription cards: Accor Favorite Guest (21,400 cards)<br />

Sofitel, Novotel, Mercure, Ibis (67,600 cards)<br />

Loyalty cards: F1 (42,000 active members)<br />

RRI (230,000 active members)<br />

Sofitel (this card is being launched)<br />

A common currency on most of the B2C<br />

cards: the Compliment cheques<br />

Accessibility on the Internet, for most<br />

of these B2C programmes<br />

N°012 345 67 89<br />

Validé / Valid<br />

until 06/2002<br />

20 €<br />

10


The Accor marketing system<br />

Participation in the loyalty programmes of major airlines is an indispensable complement to the<br />

Accor loyalty programmes. It is also a growing source of business, with more than 300,000 room<br />

nights in 2001<br />

Air France<br />

American Airlines<br />

Quantas<br />

Cathay Pacific<br />

Emirates<br />

and others under development<br />

11


The Accor marketing system<br />

Accor brand awareness: powerful leverage for the group’s<br />

partnership strategy<br />

The Partnership policy increases the visibility of our brands and is a high leverage advantage in terms<br />

of new business<br />

AIR FRANCE: Visibility - Fréquence Plus – call forwarding from call centers<br />

(under development) – promotions<br />

SNCF: T + H: 100,000 room nights in 2001 (nearly 35,000 in late March)<br />

DANONE : Breakfast and afternoon snacks for children, Danone Cup<br />

PERRIER: French Open and competition in 7 European countries with Novotel<br />

INTERNET: Andbook/ Worldres and Opodo - Go Voyages<br />

12


The marketing system<br />

By the end of 2001, results were tangible:<br />

Resistance of the business, and particularly of the average room rate after 09.11.01<br />

The Revpar of TARS on line hotels is increasing faster than that of non-TARS on line hotels (+2%<br />

to +8% beyond the Revpar growth of non-equipped hotels)<br />

Growing contribution from the central systems now accounts for approximately 20 to 25% of<br />

the total hotel occupancy rate (excluding domestic salesforces):<br />

• Accores: production doubled over 5 years<br />

• Contribution from international sales production (+8% vs 2000)<br />

• Internet: nearly 2,000,000 room nights / 2% of total volume<br />

13


The Accor marketing system<br />

Conclusion<br />

The creation of a standardized and open computer system gives all Accor hotels access to all<br />

distribution channels worldwide<br />

Efficient steering and controlled implementation of the <strong>Marketing</strong> & Sales policy<br />

real-time information<br />

network control, and communication to the hotels<br />

Arbitrations are made every day at all levels for consistency between strategies, allowing resources to be<br />

reallocated as appropriate<br />

The Accorhotels brand, that is present in all hotels, and the web and the various communications<br />

ensure enhanced visibility and strike force for the hotel marketing system<br />

14

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