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Strategic Hospitality Management Assignment
Pages 13 (3263 words)
Accor is one of the largest hotel corporations in the world. At present it owns more than 4000 hotels, with more than 450,000 rooms in 90 countries (Accor, 2003). More than a quarter of its hotel holdings are presently in the USA, with their flagship being the legendary budget motel chain Motel 6…
Opening up of national borders in countries such as China will also provide massive new markets.
Economic: Expansion into emerging markets is needed as the economies of Europe and North America are relatively stagnant. Massive economic growth is occurring in emergent economies, with special emphasis on the development of a middle class.
So Europe as a whole (including France) has a total of about 50% of Accor's business, but the Asian market has only 9%. Considering the populations of Asia and their growing middle class, this seems a somewhat skewed proportion with ample room for improvement.
The Accor Board is planning on continued expansion with 10,000 rooms per annum over 2007/2008. This represents a fairly modest 2.2% rise per annum. This growth is planned across both established markets, such as in Europe and North America, and emerging markets in the developing world, such as Latin American, the Middle East and Asia.
The country chosen for expansion in the established market is Switzerland. The brand that will be expanded is the budget ETAP band. Switzerland is a logical and promising choice for the following reasons.
"Switzerland's economy is based on a highly qualified labour force performing highly skilled work. The main areas include micro-technology, hi-tech, biotechnology and pharmaceuticals, as well as banking and insurance know-how. ...
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