The successful setting up of Accor in Brazil

Résumé du document

Accor is a French company, born after the merger in 1983 between Novotel (created in 1963) and JBI (Jacques Borel International, created in 1967). Today, the company can be found in 140 countries all over the world, hires 168 500 people and had a € 7622 million turnover in 2005. There is the hotel business and complementary services, with 3829 hotels in 90 countries, covering the whole market, from cheap hotels to luxury hotels (Sofitel, Novotel, Mercure, Suitehotel, Ibis, Red Roof Inn, Etap Hotel, and Formule 1). These activities account for a turnover of 1830 millions € in 2005. On the other hand, there are services to businesses and local authorities run by Accor Services. This field serves 13 millions customers in 32 countries and has turnover of 597 millions € in 2005. The Novotel group, forerunner of Accor, opened its first hotels abroad from 1972, only five years after the opening of the first Novotel Hotel in Lille (France). In 1973, Novotel was present in 6 European countries (England, Netherlands, Spain, Switzerland, Belgium and Germany).

Extraits

[...] In this case, the risks for Accor are very weak since the company did not engage funds and that it get paid for its services. This kind of management is logically privileged in Latin America, with 74% of the hotels. With the “rented hotel”, Accor is not owner of the building. The group rents the building to an investor and pays him a fixed or variable rent. Lastly, subsidiary hotel” is owned and run directly by Accor or one of its subsidiary companies. In 1994, Accor held 50% of its hotel rooms. [...]

[...] Difficult beginnings of the Novotel establishment in Brazil The decision to establish Novotel hotels was made during a strong growth of Brazilian economy Brazil was sometimes used as an example, back at the time of the “Brazilian miracle” (between 1964 and 1974), for other developing countries. During the military occupation (1964-1985), Brazil adopted a model of development which enabled it to get industrialized, to develop its exports and to strengthen its GDP.[3] The government of soldiers decided to develop agricultural and industrial exports by calling upon external capital and launching capital intensive industry. The success of this model was mainly based on the support of foreign industrialists. [...]

[...] This success was based on the development of specific services, adapted to the local context. The difficulty of exporting French concepts is the proof that the global companies, so powerful are they, cannot be freed from cultural practices, social standards and specific economic situation in each national market. The experiment of Accor in Brazil also shows that a successful establishment needs freedom left to the subsidiary company in its strategic choices new hotels will be open from there to 2008, for an investment of almost 300 million euros. [...]

[...] Relational marketing is another important activity of service of Accor in Brazil. Through the agency Incentive House, the group offers companies “gift vouches” to make customers and employees faithful to the company. This service, created in Brazil in 1984, has since been developed in 15 other countries of which France. Effective strategies to develop hotel trade by limiting the risks From the beginning of its establishment in Brazil, Accor took into account weaknesses of national and international. The places of hotels of the group indicate that customers have a rather high purchasing power. [...]

[...] The merger finally happened in 1983. The new group, Accor, became the world number 1 for the emission of Restoring Ticket. This merger made it possible to save the hotel activity Accor Brazil: the company Ticket Restaurant, established in Brazil since 1976, decides to take part with 5 million dollar to the refunding of the debt of Novotel. The development of hotel business and its opportunities and threats, influenced by economic crisis It is in a both socially and economically difficult context, Accor decides to widen its range of hotels in Brazil. [...]