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The successful setting up of Accor in Brazil

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  1. Brief overview of Accor Group.
  2. Difficult beginnings of the Novotel establishment in Brazil.
    1. The decision to establish Novotel hotels.
    2. The economic crisis in Brazil as of the first years of the Novotel's establishment.
    3. Expansion inspite of an unstable political and economic situation and poor results of Novotel.
  3. Turning weaknesses into strengths: The adaptation of Accor activities to specific need of Brazil.
    1. Parthenon: A new concept born from local characteristics.
    2. Accor Brazil owes its success to tickets.
  4. Conclusion.
  5. Reference list.

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).

[...] 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. This strong increase aims at strengthening the presence of Accor Brazil on all segments of hotel market, from cheapest hotels to luxury hotels. The share of Ibis hotels and Sofitel should increase, unlike Parthenon chain. This strategy shows initially the will of Accor to develop its public image. [...]

[...] In 2005, the middle class accounted for only of the total population in Brazil whereas the weak purchasing power of most people made it almost impossible to pay for hotel nights. For example, a Frenchman with the legal minimum wage could sleep 30 nights in a Formule 1 hotel (the cheapest one), whereas a Brazilian could sleep for 4 nights. In addition, tourism potential of Brazil was barely developed in the 70s, in spite of the international success of the carnival of Rio. [...]

[...] Accor Brazil owes its success to tickets, to collective restoration and travel agencies rather than to hotel trade, however first trade of Accor Ticket restaurant and Titre alimentation (?eating vouchers?, sold by Accor to businesses for their employees) knew a big success in Brazil. This success was considerably facilitated by the setting, in 1976, of the ?Food Programme for the worker? by Brazilian authorities. This program stimulates Brazilian companies to subsidize food expenditure of their employees. The ?restoring ticket? made it possible to rationalize the management of this programme. [...]

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