In mid-February, Accor announced two major changesin its strategy at its Annual Shareholders’ Meeting. Two changes that demonstrate the instability of the group.

The first is the new name of the group. The name AccorHotels is less than 5 years old and it has never been accepted, neither in the public opinion, nor even internally. Back to the original name: Accor.

The second is the new loyalty program: All – Accor Life Limitless. Really? Yes, yes. After Sofitel Preferred Guest, Accor Preferred Guest, A Club, Le Club AccorHotels, here is the new loyalty program, less than 4 years after the previous one. That changes what? We don’t know. We just know when, well about the end of 2019. The AccorHotels Club was already the worst of the hotel loyalty programs, purely revenue-based on both the earning of points and their use.

A productive general assembly, but for whom?

Sponsoring the PSG rather than investing in the core business

Let’s be honest: as in any hotel chain, Accor has a few nuggets around the world like most of the Sofitel Legend, some Sofitel Soand Sofitel. Pullman hotels are generally quality when they are not downgrades of former Sofitels. The launch of theboutique hotel brand M Gallery, although laborious, is a great success today.

But that’s where it ends:when you look at the heart of Accor’s hotels, i.e. the Novotel, Mercure and ibis, it’s a nightmare. Ambitious hotel concepts in each chainbut not deployed in the group’s various properties: as a result, experiences are not very homogeneous depending on the stay, generating frustration for frequent travelers. A shame for a chain, normally chosen for its consistency in the product.

So when we see that the brand prefers to invest in the sponsorship of a football club rather than in the deployment of its new hotel concepts in the network, it is worrying.

Accor still believes that French customers are captive and will continue to frequent its network. But new players like Airbnb have changed the rules of the game, and even large corporate contracts are no longer as juicy. Not sure of the durability of the reasoning.

Not sure of the perenniality of the reasoning.

If there was a prize for the worst loyalty program in the hotel industry, Accor’s various tests would place the chain in pole position…

Indeed, if the rules for reaching the different statuses are clear, the rest is much less so.

Points earning

Logically, like any hotel loyalty program, the more you spend the more points you earn. Again, as is the practice in the industry, all expenses are taken into account. Bonuses or challenges are also available. Totally in line with the best practices in Hospitality.

Use of points

Accor is one of the few in the industry to use this system, which is totally linked to the public room rate for the dates in question. The points are converted into a voucher that can be used at the hotel at the time of payment, and the additional amount can be paid on site.

A great idea that offers flexibility would you say? I would say especially financial idea, which allows to foresee exactly the impact of the points on the balance sheet, their ”  value  ” not changing depending on the hotel, and which reduces or even anihilates the impact on the member hotelier.

What about the customer? A complicated system, which does not allow at any time to make good deals, and complicated to use when a pre-payment is requested, which is still the case 9 times out of 10 nowadays. Lame!

Status earning

Classically, the program has 3 tiers: Silver, Gold and Platinum and each has increasingly higher benefits. Simple and effective. The qualification criteria are also very clear.

Benefits of the statuses

The benefits of the statutes are also very classic: upgrades, late check-out, missing the free breakfast which is becoming the norm.

Yes, but… When you read these benefits, they are always delivered with cautionary messages:

• Early check-in and late check-out are offered ”   on request and according to availability  “ – The benefit is therefore of little interest since the idea is to be able to count on it without booking additional nights. At Marriott, Hilton and Intercontinental, it is guaranteed. What does guaranteed mean? This means that if the hotel is not able to offer it to you, they give you $200 in cash. Generous by nature

• The welcome drink is offered for both occupants of the room… Except in France at Novotel, Mercure, ibis and ibis Style, therefore in the backbone of Accor, their cash machine. Translation : « We are so afraid of our franchise networks in France that we don’t dare apply our benefits ». Generous by nature…

• When I saw this ” blanket service »And I realized that it was the Turndown service, which consists in preparing the room for the night by closing the curtains and opening the bed. Pathetic, since this is only offered in high-end hotels and not only to members of the loyalty program (at least, I hope it is!). Translation : « We make the bed for you. Yes yes to everyone but also to Platinum, like you, buddy »

• Upgrade. Be careful, this is art. Read this : « Upgrade to the best room in the superior category, subject to availability ». A deployment of grammatical artifacts to tell you thatyou will only be upgraded by one category. From standard to superior, from superior to deluxe, from deluxe to executive, from executive to junior suite. And no more, in any case Accor does not commit to it. All top tiers in competing programs (even middle tiers at Marriott) are eligible for upgrades « in the best available room, including junior suites, subject to availability ». This has the merit of being clear. Translation : « You don’t think we’re going to give you a suite, poor guy who booked a standard room ». Generous by nature.

• Ironing Service – Up to 1 item per stay and only at Pullman hotels. And only if the shirt is clean, we are not going to wash it. Generous by nature. At Marriott Bonvoy, in hotels in Asia, it is 2 to 4 pieces of dry cleaning per day that are offered.

• Benefits in restaurants and hotel bars – With so many restrictions, it’s also art: : « 10% discount in Mercure restaurants if the member stays in the hotel – Valid for the duration of the stay, for up to 4 people excluding breakfast. Not available in France (ed. note: of course!), Italy, Spain, Portugal and Asia-Pacific. Generous by nature. In comparison, at Marriot Bonvoy for example, most hotels offer at least a 10% discount for loyalty program members. And often 20% for Platinum members and above…even if the guest does not stay in the hotel.

So you will admit that the program is not mature, to say the least. The benefits are not tangible and we have the impression that it is really built with the fingertips so as not to disturb the hoteliers who do us the honor of carrying our brand. And that it doesn’t cost too much, of course. Pathetic.

ALL… you need is love for your customers

So when yesterday, Accor sent an email to announce its new loyalty program, it is with a bitter taste that I received it. It proposes:

• A new status by invitation… Probably a pale copy of the Club 2000 at Air France, which will certainly take over the current Platinum status;
• Anew Diamond status that will require 26,000 status points, slightly less than double the number of points required for the current Platinum status… Without specifying the benefits it will bring – Given the level of spending required, we can expect the best of the best;
• Suite Night Upgrades, totally stolen from Marriott Bonvoy and World of Hyatt, and I’m waiting to see how they will be used… But limited to… 1 per year, if you are Platinum. Generous by nature.

Bottom line

We are still laughing when we see the benefits of such a loyalty program… In the end, Accor is so much like Air France in thinking that any benefit is a loss. Yet, 5% of the most loyal customers generate 90% of the margin in the Hospitality Business. A word to the wise, however.

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