The hospitality industry has changed with the change in technology. The way of interaction with customers and employees has changed to enhance customer satisfaction (Choi et al 2016). Several concepts of global marketing are followed by hotels to improve their branding and market positioning. This paper aims at analysing theoretical concepts used by Accor and evaluating the relationship between customer loyalty, branding and advertising. Expansion in the global market requires effective marketing and managing customer satisfaction by different marketing theories as applicable in the hospitality industry. The application of a global marketing strategy provides solutions for the management to work in a rapidly changing environment (Singh and Arora 2019).
Accor is identified as a leading company in the hospitality industry in Australia. It possesses hotels in the biggest cities in the country. The average revenue of Accor is €3,610 million as measured in 2018 (Accor 2020). Accor currently operates in 110 countries with 4,900 hotels. The major aim of the organization is to provide an innovative experience to its customers and commitment to sustainable practices (Accor 2020). The organization focuses on the brand value to create global marketing that can be understood by its rich brand portfolio “What we do: elevating life with brands” (Demirçiftçi and Kızılırmak 2016). Numerous opportunities are identified by Accor for the individuals to shine through growth and inclusive culture. The current employees of Accor are 280,000 (Accor 2020). Another major focus of the organization is to cater to diversity by fostering a culture of inclusion. 18 Accor Academie campuses are available for individuals to get training and showcase their talent (Accor 2020).
Ambitions of Accor are:
Extend the leadership and global presence: Continuous innovative efforts assert the presence of Accor in the new geographical areas by gaining high potential.
Provide a state of the art technology: Meet the customers’ expectations and provide solutions to their unmet needs.
Build leading and iconic brands: Enhance organizational reputation through the brand portfolio (Accor 2020).
Act for meaningful hospitality: Endeavour to gain a positive impact on the local and global platform for sustainable efforts and Solidarity Accor endowment fund.
Develop the potential for leadership among 280,000 skilled and talented employees (Accor 2020).
Global marketing is considered a process to adjust marketing strategies to adapt to the conditions of the other country (Hudson and Hudson 2017). It works on a worldwide scale to take commercial advantage and meet global objectives. To manage the worldwide branding and advertisements, companies use interactive theory framework. This is a useful concept of global marketing that provides brand knowledge and brand value to enhance the marketing concept of the hospitality industry. An online branding tool is identified as a fundamental design for the modern marketing strategy and it is based on the customer interaction and enhancement of the satisfaction (Bowie et al 2016). The global marketing concept leaves a positive impact on the brand image and creates effective awareness among consumers. Furthermore, Social media marketing provides a better view to meet customer satisfaction. A positive relationship can be maintained with the customers through an interactive communication model (Camelia et al 2019). It helps in meeting with the unsatisfactory solutions and makes them satisfactory.
Additionally, Accor is working worldwide and deals with different consumers to provide them with a meaningful experience and perform as an augmented hospitality group (Accor 2020). Its unrivalled portfolio provides a significant change from luxury to economy. Accor has worked with sustainable practices in society and manages the inclusive culture. Moreover, the organization has a unique and multi-function mobile application to manage marketing in the worldwide scenario (Winzar et al 2018). The vision of Accor represents its approach towards customers and promoting the inclusive culture. The aim of “augmented hospitality” is also identified with the objectives of Accor. The use of digital technology has accelerated the growth of the hospitality industry and transformed the competitive landscape (Barreda et al 2016). Accor is using online travel agencies as mediators (Accor 2020). To increase customer interaction and providing them with a better experience, Accor has created online platforms to provide accommodation solutions and respond to the new customer's aspirations for personalized and authentic services (Jasinskas, Streimikiene, Svagzdiene and Simanavicius 2016).
Most of the companies use advertisements to enhance brand value and improving customer loyalty. These concepts are interlinked and can be identified through effective research. The brand experience leaves an effect on the brand image and customer loyalty (Erkmen, Hancer and Leong 2017). With the new technology, customers prefer the brand name and it depicts their experience of living. Satisfactory results can be achieved through effective communication and managing contact with customers. Accor focuses on customer-centric approach and fulfills the consumer needs through effective practices. An asset-light business model is adopted by Accor to manage the value-creation mechanisms and promote hotel operations with its brands (Accor 2020). Maximization of the revenue is identified as a result of the marketing, distribution systems, and loyalty programs as organized by Accor. It is considered as additional but mandatory fees for creating loyalty by the organization. Accor has focused on customer loyalty through branding and promoting services through advertisements. It can be identified that the services, experiences, and rewards create customer satisfaction in the hospitality industry. By offering the brand value, Accor has shifted its balance portfolio to luxury and lifestyle segments (Myo et al 2019).
Through an effective and enhanced leadership position, it has targeted acquisitions. For the owners and guests, better customer experience is offered to increase customer loyalty. Innovative ideas and approaches have created an effective customer experience and manage the transformation model (Choi et al 2016). To increase digital presence, Accor has invested in several web platforms and applications. Seamless customer experience can be delivered through an innovative approach and flexible outcomes. Brand identity creates positive commitments and enriched values that help in maintaining sustainable efforts (Rather and Sharma 2016). The organization has maintained the strategies to get the opportunity for integrated thinking. More value can be demonstrated through a new potential level of consumers (Rather 2018). The tourism sector is experiencing high and continuous growth for 70 years. The diversified destinations and the number of travelers have led to an extensive growth of 6% which is marked as 10.4% at the global level in 2018 (Accor 2020). A popular brand is a strength for the organization than aspiring other travelers to gain a better experience. Competition in the tourism industry is based on the aspirations of the guests. Innovation creates a better ability to retain customers and experience comfort and personalization (Kuncoro and Sutomo 2018). The customer-centric approach of Accor has promoted its brand image and accelerated growth.
Branding strategy is considered as effective in the hospitality industry. It has shown guest loyalty as loyal guests are fewer prices sensitive and identified as more profitable (Zuhri and Palupiningdyah 2018). In this sense, strategic branding can help the organization and managing an effective and long-term relationship. Strategies identified by Accor show the online distribution, digital marketing, online marketing, loyalty program, and sustainable development program. For the advertisement and promotions, the company has invested €225 million for the beneficial results from branding in the digital area (Accor 2020). Different marketing activities are also considered as effective for the Accor to promote customer loyalty and gain the benefit of brand image.
It can be recommended that Accor must focus on its portfolio as created for the luxury of the economy. With the brand image the prices of the brand's increases. It can also create customer dissatisfaction. The organization must focus on sustainable development but customer satisfaction is also necessary for the growth of the organization. Some promotional activities can be more effective for Accor that can attract more guests and enhance the customer’s overall experience. A wide range of choices can be created by the organization to manage cheaper and innovative service solutions. The emergence of powerful ecosystems can create better-designed services to enrich the customer’s overall experience.
It was seent that advertisement has a positive impact on the brand image which leads to better customer satisfaction and enhances customer loyalty. Accor is focused on a customer-centric approach to maintain customer loyalty. Brand value and brand positioning are encouraged by Accor to promote luxury and innovative services to guests rather than economic services. Customer loyalty is a major factor in the hospitality industry to maintain higher growth and promote customer effective solutions. Digital technology is identified as popular to promote brand image and maintaining customer satisfaction levels. Accor has used different strategies to promote brand image which includes online distribution, digital marketing, online marketing, loyalty program, and sustainable development program. It needs to maintain the prices as affordable for all the guests rather than focusing on luxury services. It can boost up the services and provides better customer loyalty.
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