Accor has unveiled its economy brand “dynamization” strategy. The French hotel group has chosen to revolutionise its economy brand portfolio around the ibis brand.

Published: 14 Sep 2011

Accor has unveiled its economy brand “dynamization” strategy. The French hotel group has chosen to revolutionise its economy brand portfolio around the ibis brand.

The company shared the portfolio will consist of:

“ibis, ibis styles and ibis budget intend to become the brands that offer the highest level of comfort and well-being in the economy hotel segment,” stated the group.

The group believes that the implementation of this new segmentation – which will be completed worldwide by early 2013 – will increase the clarity, consistency and strength of the three economy brands and will enable Accor to achieve critical mass in several markets.

Self-enhancing image

“I have decided to challenge some of the basics of our business model: change is not an option, it is a necessity. The first part of our project concerns the economy segment,” said Denis Hennequin, chairman and CEO. “Consequently, ibis, Etap hotel and all seasons will evolve into a group of three strong, innovative, modernised brands and become ibis, ibis styles and ibis budget. “ibis” is now the keystone of our economy portfolio.”

The company pointed out that constantly evolving life styles and consumption modes was the starting point of Accor’s reflection on its economy brands.

“Consumer expectations have evolved significantly. The vertical segmentation of economy to upscale brands is a thing of the past. Now, all brands must be able to project a self-enhancing image to their customers and offer modern, contemporary, stylish services,” stated the company. “For that reason, Accor felt that the group’s economy hotel products and services needed to be re-invented so they could transcend their market segment and cater for the changes in consumer expectations.”

The company is planning a communication campaign to accompany this rebranding initiative in 2012. Its objective will be to capitalise on the image of the ibis Mega Brand by highlighting the shared DNA through three structuring concepts: modernity, simplicity and well-being, while clearly differentiating the distinct offers of each of the three economy brands.

According to a report filed by online.wsj.com, Accor will invest €150 million in rebranding its Ibis, All Seasons and Etap hotels under the single Ibis brand.

In the US, the group will accelerate its revamping of the low-budget hotel chain Motel 6.

Accor

The group also stated that Accor is now a pure-player hotel group’s brand. The Accor brand will now play a larger role, particularly with the general public. On the one hand, it will convey the Group’s commitments to wider audience, particularly in human resources, sustainable development and multiculturalism, thus generating more value for all hotel brands. On the other hand, in the Internet battle field, as a transverse commercial brand, it will be associated with the most strategic direct distribution channel, namely Accorhotels.com, and with the loyalty program A|Club renamed Le Club Accorhotels.

Lastly, to strengthen the bond of trust and the credibility of its brands, Accor will also become an endorsement brand with a new endorsement system, the “by Accor” signature which will be used in all the brands’ communications.

Accor expects its earnings before interest and taxes, or Ebit, to reach between €510 million and €530 million this year. The company’s Ebit for 2010 was €446 million.