1. travel
2. hotels

Innovation cycles have massively reduced in digital environment
and create a truly unpredictable future
LEAD TIME BEFORE REACHING 50M ACTIVE USERS
38
27
17
12
4
3.5
1.5
0.3
YEARS
YEARS
YEARS
YEARS
YEARS
YEARS
YEAR
YEAR
RADIO
1958
MOBILE
1983
INTERNET
1993
GOOGLE
1998
iPOD
2002
FACEBOOK
2004
iPAD
2010
GOOGLE +
2011
Accor’s Digital Day

We are experiencing a pivotal moment in the history
and use of technology…
Accor’s Digital Day
80%
Of all data was created in last
18 months
13B
Connected devices in 2010 ...
1.3B
MONTHLY users as of Jan 1, ~ ½ on mobile devices
25%
Of teenagers connect within 5
min of waking up
10 x
By
2020
50B
By
2020

New digital attackers are changing the rules
and disrupting traditional value chains
GRADE 4
GRADE 3
GRADE 2
GRADE 1
Total digital
substitution risk
Digital-native models new
competitors requiring adaptation
Hybrid Digital-Physical customer
experience
Operations & costs impact of
digital disruptions
• Music
• Media (press, magazine)
• Insurance Non-Life
• Advertising
• Insurance Life
• Travel distribution
• Retail chains
• Retail banking
• Airlines
• Automotive
• Consumer Products
• Education
• Health
• HOTELS & RESTAURANTS
• Manufacturing
• Telecom
• Transportation & Logistics
• Construction
• Mining
• Oil& Gas
• Utilities
• Pharmaceuticals*
RESPONSE MAGNITUDE AND NATURE WILL NOT BE THE SAME
SPEED AND "SYSTEMIC" SHIFT REQUIRED WILL NEED CALIBRATION
Accor’s Digital Day

New digital attackers are changing the rules
and disrupting traditional value chain
NEW DIGITAL ATTACKERS
Production/ Product Mgt./
CRM/ Sales
High
Level of change
Medium
Disruptors
Innovators
Low
Agregators
Low
Medium
High
Share of value chain
Accor’s Digital Day

Our approach to digital transformation
HOW TO WIN IN DIGITAL
Diagnostic
Vision
Understand how
digital is changing
your industry
Assess where you
are today calibrate
level of urgency
Roadmap
Deploy “sure bets”
Define Accor
strategic position
in the digital world
build vision for
success
Adapt governing
structures
+ ressources
Designwto disrupt
(at the right
speed)
Test “game
changers”
Integrated
customer
experience
& profitable
growth
Change your mindset: Create a culture of learning, risk-taking and innovation
Mobilize for success: Optimize organization, IT, and partnerships to support digital strategy
Accor’s Digital Day

#ACCORDIGITALDAY
ACCOR
LEADING DIGITAL HOSPITALITY
1
2
3
4
DIGITAL IS
NOW
ACCOR’S
DIGITAL PLAN
DIGITAL ON
THE MOVE
SUCCESS
FACTORS
DIGITAL TECHNOLOGY
THE NEW ELECTRICITY
ENRICHING OUR LIVES AND MAKING THEM EASIER
ALWAYS CONNECTED
RELEVANT AND PERSONAL
EFFICIENT AND INTUITIVE
9
#ACCORDIGITALDAY
ACCOR
LEADING DIGITAL HOSPITALITY
1
2
3
4
DIGITAL IS
NOW
ACCOR’S
DIGITAL PLAN
DIGITAL ON
THE MOVE
SUCCESS
FACTORS
#ACCORDIGITALDAY
THE WORLD IS DIGITAL
1
11
75%
4 Billion
1.19 Billion
10 Million
of the population
has a mobile phone
video views
active users
players per day
IT’S NO LONGER A HYPER-CONNECTED SEGMENT, IT’S A MASS MOVEMENT THAT’S EVOLVING VERY RAPIDLY
Digital is Now > The World is Digital
12
Ongoing changes, unimaginable 5 years ago
3D PRINTING
MOBILE PAYMENT
COMMUNITIES
MOOCS
CONNECTED THINGS
CROWD FUNDING
Digital is Now > The World is Digital
13
#ACCORDIGITALDAY
TRAVEL INDUSTRY IS DIGITAL
1
14
Major
upheavals
MARKET
Digital is Now > Travel Industry is Digital
TECHNOLOGICAL
CUSTOMER BEHAVIOR
15
Major
upheavals
GOOGLE everywhere
OTAs grow
TRIPADVISOR leading
MARKET
AIRBNB: a new paradigm
Digital is Now > Travel Industry is Digital
16
Major
upheavals
•
Mobile rules
•
Connectivity
•
Development Speed
•
From Big Data to Predictive Analytics
•
Organizational agility
TECHNOLOGICAL
Digital is Now > Travel Industry is Digital
17
Major
upheavals
•
Multi brand / segment
•
Connected
•
Autonomous
•
Community-oriented
CUSTOMER BEHAVIOR
Digital is Now > Travel Industry is Digital
18
Dream
Today
Customer
journey
approach
Book
Select
Before
Product approach
Return
Digital is Now > Travel Industry is Digital
Prepare
Stay
Share
19
Outstanding players at every stage of the customer journey
Dream
Book
Select
Prepare
Stay
Return
Digital is Now > Travel Industry is Digital
Share
20
#ACCORDIGITALDAY
ACCOR
LEADING DIGITAL HOSPITALITY
1
2
3
4
DIGITAL IS
NOW
ACCOR’S
DIGITAL PLAN
DIGITAL ON
THE MOVE
SUCCESS
FACTORS
#ACCORDIGITALDAY
ACCOR’S AMBITION
2
22
Expand our hospitality excellence throughout the customer journey
Dream
Book
Select
Prepare
Stay
Return
Accor’s Digital Plan > Accor’s Ambition
Share
23
Seamless
Journey
CUSTOMER
3 TARGETS
Transparent
Relationship
PARTNER
Accor’s Digital Plan > Accor’s Ambition
FOR A NEW DIGITAL
ACCOR EXPERIENCE
EMPLOYEE
Digital
Empowerment
24
CUSTOMER
3 TARGETS
A DIGITAL
ECOSYSTEM
PARTNER
2 PILLARS
BIG DATA
Accor’s Digital Plan > Accor’s Ambition
EMPLOYEE
DISTRIBUTION SYSTEM
& IT INFRASTRUCTURE
25
8 programs included in the plan
CUSTOMER
PARTNER
A DIGITAL
ECOSYSTEM
Various
Projects
8
EMPLOYEE
Digital Programs
BIG DATA
DISTRIBUTION SYSTEM
& IT INFRASTRUCTURE
Accor’s Digital Plan > 8 Programs
26
8 programs focusing on serving our targets and reinforcing our pillars
Customer focused
Seamless Journey
1
MOBILE
FIRST
2
CUSTOMER
CENTRIC
Employee focused
5
Digital empowerment
Partner focused
6
Transparent relationship
System focused Robust & agile
Data focused Industrial grade
Accor’s Digital Plan > 8 Programs
7
3
SEAMLESS
JOURNEY
4
MICE &
B TO B
EMPLOYEE
FRIENDLY
OWNER &
FRANCHISE CENTRIC
INFRASTRUCTURE
TRANSFORMATION
8
BI & ANALYTICS
27
Seamless Journey
Customer focused
1
MOBILE
FIRST
2
CUSTOMER
CENTRIC
Employee focused
5
6
System
& Data focused
INFRASTRUCTURE
TRANSFORMATION
Accor’s Digital Plan > 8 Programs
4
MICE &
B TO B
EMPLOYEE
FRIENDLY
OWNER &
FRANCHISE CENTRIC
Partner focused
7
3
SEAMLESS
JOURNEY
8
BI & ANALYTICS
28
Customer Value to prioritize our programs
Operational model
Culture
Filling beds
Independent Hotel
Individual hotel
RevPAR
Occupancy rate
Performance
+
Digital Hotel Chain
« Serving customers »
Customer Value
Collective
performance
29
A representative sample of 1.5M clients was created for analysis
Selected Client Database
(Number of clients, millions)
40M
Clients in central CRM
17M
Le Club Accorhotels members
6.3M
Focus on 9 selected countries*
1.5M
Employee focused
Criteria: recruitment year, nationality, regularity, frequency
of stays, hotel category mix.
-300k
Employee focused
- Significant size of sample
- 3 recent years of activity (11/12/13) for Customer Value Calculation
30
A customer centric equation to monitor our action plan
OUTPUT KPI
# of
identified
guests
X
•  # of Accor
identified
customers
•  # of Le Club
members
• Contribution to BV
•  % of active
members
- 
- 
CV =
# of
stays /
guest
Overall
1st year
recruits
•  # of stays /
active member
•  % of regular
members
INPUT KPI
PROJECTS
Enhance data capture
Boost recruitment in hotel
Boost recruitment outside of
hotels
Increase Le Club awareness
Enhance recruits targeting
Increase attractiveness of
Le Club benefits
Ensure personalized guest
experience in hotel
Enrich and personalize /
intensify guest dialog
Ensure fluidity / consistency
of guest journey
Push international stays
X
Spend /
stay
LEVERS
• ARR
• % of extra-spend
Optimize pricing
Push upsell pre / in-stay
X
HS fees
-
HS Costs
• % & mix of fees
• Channel mix
• Acquisition cost
Prepare future fee
structure revision
Drive relationship with OTAs
31
1
MOBILE
FIRST
The indispensable app for all travel and hotel needs
2015
MAJOR OUTPUTS
Accor’s Digital Plan > 8 Programs
•
One single app gathering all Accor
services before, during and after the stay
•
A booking platform for Accor restaurants
32
2
CUSTOMER
CENTRIC
Unleashing customer knowledge for a
tailor made service and increasing sales
MAJOR OUTPUTS
Accor’s Digital Plan > 8 Programs
2015
•
Customer profile transmitted throughout
customer journey from booking to hotel
stay, for extended personalization
•
Voice of the Guests: single platform for
GSS, ORM and UGC
•
A single on-line redemption platform,
beyond Accor hotel stays (ex: retail,
theater travel,…)
33
3
SEAMLESS
JOURNEY
Convenient at every stage of the journey
2015
MAJOR OUTPUTS
Accor’s Digital Plan > 8 Programs
•
Accor « wallet »: seamless payment
•
« One click » book & check-in on Accor app
•
Le Club Accorhotels virtual card
34
4
MICE &
BTOB
Building digital tools for this evolving business
2015
MAJOR OUTPUTS
Accor’s Digital Plan > 8 Programs
•
On-line booking for meetings
•
Salesforce solution roll out all the way
to the hotels
•
Integrate BtoB into accorhotels.com
35
Digital empowerment
Customer focused
1
MOBILE
FIRST
2
CUSTOMER
CENTRIC
Employee focused
5
6
System
& Data focused
INFRASTRUCTURE
TRANSFORMATION
Accor’s Digital Plan > 8 Programs
4
MICE &
B TO B
EMPLOYEE
FRIENDLY
OWNER &
FRANCHISE CENTRIC
Partner focused
7
3
SEAMLESS
JOURNEY
8
BI & ANALYTICS
36
5
EMPLOYEE
FRIENDLY
Connecting employees for a connected
customer experience
2015
MAJOR OUTPUTS
Accor’s Digital Plan > 8 Programs
•
Mobile welcome with PMS on tablets and mobiles
•
Smartphone & BYOD for employees
37
Transparent relationship
Customer focused
1
MOBILE
FIRST
2
CUSTOMER
CENTRIC
Employee focused
5
6
System
& Data focused
INFRASTRUCTURE
TRANSFORMATION
Accor’s Digital Plan > 8 Programs
4
MICE &
B TO B
EMPLOYEE
FRIENDLY
OWNER &
FRANCHISE CENTRIC
Partner focused
7
3
SEAMLESS
JOURNEY
8
BI & ANALYTICS
38
6
OWNER &
FRANCHISE CENTRIC
Making business with Accor the easiest, most transparent and data driven
2015
MAJOR OUTPUTS
Accor’s Digital Plan > 8 Programs
•
Dedicated portal for partners to access
personalized information & services
•
End to end billing service between
operator and partner
•
Dynamic Pricing and Revenue
Management offers
39
System and Data focused
Customer focused
1
MOBILE
FIRST
2
CUSTOMER
CENTRIC
Employee focused
5
6
System
& Data focused
INFRASTRUCTURE
TRANSFORMATION
Accor’s Digital Plan > 8 Programs
4
MICE &
B TO B
EMPLOYEE
FRIENDLY
OWNER &
FRANCHISE CENTRIC
Partner focused
7
3
SEAMLESS
JOURNEY
8
BI & ANALYTICS
40
7
INFRASTRUCTURE
TRANSFORMATION
Robust and agile
MAJOR OUTPUTS
Accor’s Digital Plan > 8 Programs
2015
•
Reduce time to market by implementing
an enterprise service bus between
distribution applications
•
Gain valuable customer insight with
stronger interface between PMS & CMS
•
Decrease response time for « look to
book » with in-memory availability data
41
8
BI & ANALYTICS
Industrial grade data infrastructure to drive
each hotel and the overall business
2015
MAJOR OUTPUTS
Accor’s Digital Plan > 8 Programs
•
Analytics on customer journey and
customer profiling
•
Dashboard solutions for hotels
42
#ACCORDIGITALDAY
ACCOR
LEADING DIGITAL HOSPITALITY
1
2
3
4
DIGITAL IS
NOW
ACCOR’S
DIGITAL PLAN
DIGITAL ON
THE MOVE
SUCCESS
FACTORS
Digital is already on the move within Accor
CUSTOMER
A DIGITAL
ECOSYSTEM
PARTNER
BIG DATA
Digital on the Move
EMPLOYEE
DISTRIBUTION SYSTEM
& IT INFRASTRUCTURE
45
Digital is already on the move within Accor
CUSTOMER
Examples
•
Massive revamp of our on-line photos and videos
•
Increasing e-mailing personalization thanks to SMART, our self learning recommendation tool •
Operating a powerful booking engine: TARS
•
Providing 32 Accor web site country versions, with locally relevant content and payment •
Developing dedicated mobile functionalities
•
Trip Planning launch on accorhotels.com for 70 destinations across the world
•
Rolling out Welcome by Le Club Accorhotels in 1,000 hotels by the end of 2014
•
Providing a true digital in-hotel experience •
Developing Accor’s social media footprint
•
Building a stronger Le Club Accorhotels program
Digital on the Move > Customer Focus
46
Massive revamp of our on-line photos and videos
A new defined shooting and loading process
• 800 hotels with new iconography by end 2014, target 2,500 by end 2015
• 300 hotels with new videos by end 2014, target 860 by end 2015
Digital on the Move > Customer Focus
47
Increasing e-mailing personalization thanks to SMART,
our self-learning recommendation tool
14k
16
4
campaigns/year
languages
WW campaigns
Click and conversion rates are
3 TIMES HIGHER for offers pushed by
SMART vs traditional approach
Smart Marketing Automated Recommendation Tool
Digital on the Move > Customer Focus
48
Operating a powerful booking engine: TARS
TARS
€5,5Bn
Business
volume
260
Availability
requests per
second
24M
+30%
Visits
per month
Mobile device
visits
1,2
5M
59%
Reservations
per second
price updates
per day
Tars
contribution
54K
WEB/MOBILE
32
Points of sale
16
Daily
reservation
record
123
Currencies
processed
Languages
7
35%
On-line
payments
per min
Web
contribution
2014 estimate
Digital on the Move > Customer Focus
49
Providing 32 Accor web site country versions,
with locally relevant content and payment
+
2014: ARABIC
30% REVENUE FROM
MIDDLE EAST
Digital on the Move > Customer Focus
INDONESIA
50% OF REVENUE
THROUGH BAHASA SITE
50
Developing dedicated mobile functionalities
71%
Booking increase
2 clicks
to book
31%
Conversion on same day
40%
Bookings target
Digital on the Move > Customer Focus
51
Trip Planning launch on accorhotels.com for
70 destinations across the world
Digital on the Move > Customer Focus
52
Trip Planner
53
Accor affirms great ambition towards customers and loyalty
Digital on the Move > Customer Focus
54
Rolling out Welcome by Le Club Accorhotels
in 1,000 hotels by the end of 2014
Worldwide roll out
2014 Ramp up
Northern
Europe
189
16
North
America
France
136
304
71
9
Turkey
1 020 H
100%
Central
Europe
39
Eastern
Europe
633 H
Southern
Europe
62%
381 H
32
173
Latin
America
Asia
16
191 H
Africa &
Middle East
Pacific
35
19%
SEPTEMBER(
Digital on the Move > Customer Focus
37%
OCTOBER(
NOVEMBER(
DECEMBER(
55
Welcome
56
Providing a true digital in-hotel experience
•
Free Wifi in 3,000 Accor Hotels
(n°1 in the industry)
•
1 million Free Wifi connections per day
•
1,800 web corners
- Mac for Novotel
- Dell for ibis
- Samsung for Pullman
•
6 years partnership between Novotel and Microsoft
- Xbox Station in 310 Novotel hotels
- Kinect Experience in 120 Novotel hotels
- Play Table: roll out begins
Digital on the Move > Customer Focus
57
New in-hotel services through Accor apps
Accor Hotels
Away on Business
2.2M
Accor Press
Virtual Concierge
Moody Test
In-hotel apps
downloads
Digital on the Move > Customer Focus
58
Developing the social media footprint: Accor was the first hotelier to partner with TripAdvisor in 2010
1.3M
Push mail to share through TripAdvisor
Reviews from Accor customers
reviews
Access reviews from all customers
Digital on the Move > Customer Focus
59
Building a stronger Le Club Accorhotels program: 17M members in 6 years
•
Members from all over the world
- Europe: 51%
- ASPAC: 26%
- Americas: 18%
- MEA: 5%
Digital on the Move > Customer Focus
•
Increased generosity since July 2014
with up to 25% more points earned
•
The most flexible redemption program
60
Digital is already on the move within Accor
PARTNER
DATA VISUALIZATION
Analytics for hotels
9 KEY INDICATORS
- Topline
- Channel & sales
- Quality
- Constraint days
- Web direct / indirect
- Web lead-time
- Family rate analysis
- Top clients origin
- Loyalty
Digital on the Move > Partner Focus
+1M
3.5K
reports/year
users/month
Creation of Business
Intelligence Competence Center
(BICC) with distribution,
finance and IT experts
61
Digital is already on the move within Accor
EMPLOYEE
AccorLive: launched in January 2014
2M
visits/month
Digital on the Move > Employee Focus
62
AccorLive
63
#ACCORDIGITALDAY
ACCOR
LEADING DIGITAL HOSPITALITY
1
2
3
4
DIGITAL IS
NOW
ACCOR’S
DIGITAL PLAN
DIGITAL ON
THE MOVE
SUCCESS
FACTORS
Success Factors
PROGRAMS OF THE DIGITAL PLAN
Governance
Innovation
Resources
Success Factors
65
Digital Plan Governance
Program Owners
Romain Roulleau
Emanuel Baudart
Carlo Olejniczak
Christine Pouletty
MOBILE FIRST
CUSTOMER CENTRIC
MICE & B TO B
SEAMLESS JOURNEY
Laurent Idrac
To Be Nominated
INFRASTRUCTURE
TRANSFORMATION
BI & ANALYTICS
Global PMO
Isabelle Daviaud
Christine Ravanat
Christophe Nowak
EMPLOYEE FRIENDLY
Success Factors > Governance
OWNER &
FRANCHISE CENTRIC
66
Digital Plan Governance
PMO
DIGITAL STEERING
COMMITTEE
Success Factors > Governance
8 DIGITAL PROGRAM
COMMITTEES
PROJECT
MANAGEMENT
67
Accor and Innovation Factory partner to reinforce
open innovation and co-creation
Success Factors > Innovation
•
Innovation Factory belongs to the 1st
Paris Campus-Cluster, gathering both
professionals and students in one place
•
Main objectives:
- New opportunities
- Renew the innovation process
- Speed up process
•
Current collaboration: a connected
housekeeping cart
68
Accor acquires Wipolo to enrich
customer travel experience
•
•
Wipolo is a web and mobile platform managing trip itineraries
Smooth integration with Facebook and Twitter, to automatically share trips and receive
comments and tweets in return
Success Factors > Innovation
69
Accor Google Glass Challenge
•
The challenge: from May to June 2014, with
IT and e-commerce teams.
•
The award ceremony on 15/10 at Google
Paris Headquarters, winning projects:
- A free local city guide to be borrowed at
hotel desk for direct client only
- Always in connection with the kitchen
- Google Glass Concierge
Bertrand Bilbault - Projects Front Office & Réservation - IT - France
Mary Kon-Sun-Tack - E-Commerce - Middle East Dubai
Thibault de Saint-Martin - E-commerce, Digital et Fidélisation - France Success Factors > Innovation
70
A 5 year strategy
€225M to foster growth
In €m
Estimated figures
Offensive: 40%
Defensive: 60%
Capex 55% - Opex: 45%
Success Factors > Resources
71
Ambitious KPIs
Today
Tomorrow
1. Web Channel (Direct & Indirect)
35%
50%
2. Mobile in Direct Web Channel
12%
40%
3. Le Club Business Volume
24%
40%
4. TARS contribution
59%
70%
Success Factors > Resources
72
Our assets at the end of the Digital Plan
1
The best « mobile first » oriented, scalable distribution system of the
hospitality industry
2
One of the largest, highly qualified Guest database of the travel industry
3
An innovative seamless journey solution offering repeated and relevant
real-time interactions with our guests
4
Shaped to work with the best digital players and partners
EXPAND WITHIN THE TRAVEL VALUE CHAIN TO LEAD THE INDUSTRY
73