Last edit by: starflyergold
What we know:
On 9 December 2015 Accorhotels announced an agreement with the Qatar Investment Authority (QIA), Kingdom Holding Company (KHC) of Saudi Arabia and Oxford Properties, an Ontario Municipal Employees Retirement System (OMERS) company for the acquisition of FRHI Holdings Ltd (FRHI), parent of Fairmont, Raffles, and Swissôtel. Accorhotels will be paying $840 million in cash and by issuing 46.7 million new shares. As part of the transaction, QIA will have two seats on Accor’s board while KHC will take another.
FRHI?
FRHI is the holding company for the Fairmont, Raffles, and Swissôtel brands. FRHI is a management company and the portfolio is almost exclusively on long-term management contracts; i.e. this does not include the brick and mortar in most cases but long term leases of the hotels concerned. 155 hotels are included in the deal and 40 developments which equates to 56,000 rooms in total.
Fairmont
Fairmont Hotels & Resorts is a Canadian-based operator of hotels and resorts. Currently, Fairmont operates properties in 19 countries.
Canada: Banff, Calgary, Charlevoix, Edmonton, Jasper, Lake Louise, Mont Tremblant, Montebello, Montreal, Ottawa, Québec City, Toronto, Vancouver (4), Victoria, Whistler, Winnipeg
United States: Berkeley, Boston, Chicago, Dallas, Hawaii, Maui, New York, Newport Beach, Pittsburgh, San Diego, San Francisco (2), San Jose, Santa Monica, Scottsdale, Seattle, Sonoma, Telluride, Washington DC
Asia: Bali, Beijing, Jaipur, Jakarta, Kunshan, Manila, Nanjing, Shanghai, Singapore
Europe: Baku, Barcelona, Hamburg, Kiev, London, Monte Carlo, Montreux, St Andrews
Mexico, Caribbean and Bermuda: Barbados, Hamilton, Riviera Maya, Southampton
Middle East and Africa: Abu Dhabi, Ajman, Cairo (3), Dubai (2), Makkah, Masai Mara, Mount Kenya, Nairobi, Zimbali (2)
In Development: Amman (2015), Austin (2017), Chengdu (2015), Fujairah (2015), Istanbul (2016), Lagos (2016), Moscow (2016), Riyadh (2015), Sharm el Sheikh (2015), Soma Bay (2020), Suzhou (2018), Taiyuan (2016), Zhengzhou (2018).
Fairmont has its own Flyertalk forum. It's current loyalty programme is called President's Club. The programme also covers Raffles and Swissôtel though the latter also operates its own loyalty programme.
Raffles
Raffles was established in 1887 in Singapore and currently comprises 12 luxury hotels with 4 in development.
Asia: Beijing, Hainan, Jakarta, Manila, Phnom Penh, Siem Reap, Singapore,
Europe: Istanbul, Paris,
Middle East and Africa: Dubai, Makkah, Praslin,
In Development: Jeddah (2018), Sharm el-Sheikh (2019), Shenzhen (2019), Warsaw (2017)
Swissôtel
Swissôtel was founded in 1980 as a joint venture between Swissair and Nestlé and currently includes 37 properties in 17 countries.
Australia: Sydney
Asia: Beijing, Foshan, Kunshan, Shanghai, Kolkata, Osaka, Singapore (2), Bangkok (2), Phuket
Europe: Tallinn, Berlin, Bremen, Dresden, Düsseldorf-Neuss, Amsterdam, Moscow, Sochi, Basel, Geneva (2), Zurich, Ankara, Bodrum (2), Istanbul (2), Izmir
Latin America: Quito, Lima,
United States: Chicago
Middle East: Makkah
In Development: Dhaka (2017), Sofia (2018), Changsha (2016), Chengdu (2016), Hangzhou (2019), Jinan (2020), Guayaquil (2017), Cairo (2020), Sharm el Sheikh (2016), Bali (2017), Jeddah (2017), Dubai (2018).
Swissôtel operates its own loyalty programme called Swissôtel Circle. This and Swissôtel hotels are currently being discussed in the Other Hotel Chains forum.
What happens next?
On 26 April 2016 Accor announced that it has received antitrust clearance for the purchase in relevant jurisdictions. The next step with be an extraordinary shareholders meeting (to be held on the 12th July 2016) to approve the capital increase and proposed board composition.
The deal closed on 12 July 2016. Nothing from a loyalty perspective will change immediately and the respective programmes and hotels will continue to operate as before.
FRHI inventory was loaded onto the Accor system on 12 July 2016, however none of the hotels will earn any points or can be used to redeem them. At the shareholder meeting Accor seemed to indicate that it will take 18 months for the loyalty aspects to be sorted. However it was clear that Le Club will be the future loyalty programme for all hotels.
Loyalty Integration
As of 2 July 2018 the Fairmont President's Club will cease to exist (the same goes for the Swissotel Circle). Both programmes will be folded into Le Club Accorhotels.
What does this mean for Le Club members? You will be able to earn and redeem points, and receive status related perks at all former FRHI hotels. This includes: early/late check in, welcome drink, upgrade (subject to availability), welcome amenity, free wifi. Lounge access for Platinum members will apply to Swissotel (where available) but does not include the Fairmont Gold Service (unless of course booked, including with points). Any stays at former FRHI hotels from January will contribute to your "night count" but no points will be accrued until 2 July.
What does this mean to FPC members? Members will be transferred into Le Club in July. Platinum members will become Le Club Platinum members, Premier will be Silver, Club will be standard members. The "nights stayed" count will transfer to Le Club in July and contribute to status in Le Club. However points will only accrue from July. Suite certificates can be used up beyond July.
On 9 December 2015 Accorhotels announced an agreement with the Qatar Investment Authority (QIA), Kingdom Holding Company (KHC) of Saudi Arabia and Oxford Properties, an Ontario Municipal Employees Retirement System (OMERS) company for the acquisition of FRHI Holdings Ltd (FRHI), parent of Fairmont, Raffles, and Swissôtel. Accorhotels will be paying $840 million in cash and by issuing 46.7 million new shares. As part of the transaction, QIA will have two seats on Accor’s board while KHC will take another.
FRHI?
FRHI is the holding company for the Fairmont, Raffles, and Swissôtel brands. FRHI is a management company and the portfolio is almost exclusively on long-term management contracts; i.e. this does not include the brick and mortar in most cases but long term leases of the hotels concerned. 155 hotels are included in the deal and 40 developments which equates to 56,000 rooms in total.
Fairmont
Fairmont Hotels & Resorts is a Canadian-based operator of hotels and resorts. Currently, Fairmont operates properties in 19 countries.
Canada: Banff, Calgary, Charlevoix, Edmonton, Jasper, Lake Louise, Mont Tremblant, Montebello, Montreal, Ottawa, Québec City, Toronto, Vancouver (4), Victoria, Whistler, Winnipeg
United States: Berkeley, Boston, Chicago, Dallas, Hawaii, Maui, New York, Newport Beach, Pittsburgh, San Diego, San Francisco (2), San Jose, Santa Monica, Scottsdale, Seattle, Sonoma, Telluride, Washington DC
Asia: Bali, Beijing, Jaipur, Jakarta, Kunshan, Manila, Nanjing, Shanghai, Singapore
Europe: Baku, Barcelona, Hamburg, Kiev, London, Monte Carlo, Montreux, St Andrews
Mexico, Caribbean and Bermuda: Barbados, Hamilton, Riviera Maya, Southampton
Middle East and Africa: Abu Dhabi, Ajman, Cairo (3), Dubai (2), Makkah, Masai Mara, Mount Kenya, Nairobi, Zimbali (2)
In Development: Amman (2015), Austin (2017), Chengdu (2015), Fujairah (2015), Istanbul (2016), Lagos (2016), Moscow (2016), Riyadh (2015), Sharm el Sheikh (2015), Soma Bay (2020), Suzhou (2018), Taiyuan (2016), Zhengzhou (2018).
Fairmont has its own Flyertalk forum. It's current loyalty programme is called President's Club. The programme also covers Raffles and Swissôtel though the latter also operates its own loyalty programme.
Raffles
Raffles was established in 1887 in Singapore and currently comprises 12 luxury hotels with 4 in development.
Asia: Beijing, Hainan, Jakarta, Manila, Phnom Penh, Siem Reap, Singapore,
Europe: Istanbul, Paris,
Middle East and Africa: Dubai, Makkah, Praslin,
In Development: Jeddah (2018), Sharm el-Sheikh (2019), Shenzhen (2019), Warsaw (2017)
Swissôtel
Swissôtel was founded in 1980 as a joint venture between Swissair and Nestlé and currently includes 37 properties in 17 countries.
Australia: Sydney
Asia: Beijing, Foshan, Kunshan, Shanghai, Kolkata, Osaka, Singapore (2), Bangkok (2), Phuket
Europe: Tallinn, Berlin, Bremen, Dresden, Düsseldorf-Neuss, Amsterdam, Moscow, Sochi, Basel, Geneva (2), Zurich, Ankara, Bodrum (2), Istanbul (2), Izmir
Latin America: Quito, Lima,
United States: Chicago
Middle East: Makkah
In Development: Dhaka (2017), Sofia (2018), Changsha (2016), Chengdu (2016), Hangzhou (2019), Jinan (2020), Guayaquil (2017), Cairo (2020), Sharm el Sheikh (2016), Bali (2017), Jeddah (2017), Dubai (2018).
Swissôtel operates its own loyalty programme called Swissôtel Circle. This and Swissôtel hotels are currently being discussed in the Other Hotel Chains forum.
What happens next?
On 26 April 2016 Accor announced that it has received antitrust clearance for the purchase in relevant jurisdictions. The next step with be an extraordinary shareholders meeting (to be held on the 12th July 2016) to approve the capital increase and proposed board composition.
The deal closed on 12 July 2016. Nothing from a loyalty perspective will change immediately and the respective programmes and hotels will continue to operate as before.
FRHI inventory was loaded onto the Accor system on 12 July 2016, however none of the hotels will earn any points or can be used to redeem them. At the shareholder meeting Accor seemed to indicate that it will take 18 months for the loyalty aspects to be sorted. However it was clear that Le Club will be the future loyalty programme for all hotels.
Loyalty Integration
As of 2 July 2018 the Fairmont President's Club will cease to exist (the same goes for the Swissotel Circle). Both programmes will be folded into Le Club Accorhotels.
What does this mean for Le Club members? You will be able to earn and redeem points, and receive status related perks at all former FRHI hotels. This includes: early/late check in, welcome drink, upgrade (subject to availability), welcome amenity, free wifi. Lounge access for Platinum members will apply to Swissotel (where available) but does not include the Fairmont Gold Service (unless of course booked, including with points). Any stays at former FRHI hotels from January will contribute to your "night count" but no points will be accrued until 2 July.
What does this mean to FPC members? Members will be transferred into Le Club in July. Platinum members will become Le Club Platinum members, Premier will be Silver, Club will be standard members. The "nights stayed" count will transfer to Le Club in July and contribute to status in Le Club. However points will only accrue from July. Suite certificates can be used up beyond July.
Accor buys FRHI Holdings (Fairmont, Raffles and Swissôtel)
#256
Moderator, Turkish Airlines Miles&Smiles & Accor ALL
Join Date: Apr 2009
Location: BRU
Programs: TK*G, Accor ALL Platinum
Posts: 7,587
Amazing that a year later there have been zero attempts to leverage any synergies from the FRHI purchase. The only visible change is that the poorly described FRHI hotel now appear on the Accor website (usually more expensive than elsewhere).
I stayed this week for the first time at a Swissotel. To say I was underwhelmed is an understatement. It was marginally better than a Novotel. Service was awful but they used every opportunity to up sell: upgrade etc. So much for the famed service at FRHI hotels...
I stayed this week for the first time at a Swissotel. To say I was underwhelmed is an understatement. It was marginally better than a Novotel. Service was awful but they used every opportunity to up sell: upgrade etc. So much for the famed service at FRHI hotels...
#257
FlyerTalk Evangelist
Join Date: May 2009
Location: FRA / YEG
Programs: AC Super Elite, Radisson Platinum, Accor Platinum
Posts: 11,874
I stayed this week for the first time at a Swissotel. To say I was underwhelmed is an understatement. It was marginally better than a Novotel. Service was awful but they used every opportunity to up sell: upgrade etc. So much for the famed service at FRHI hotels...
But I generally agree: With a very few exceptions, Swissotel properties are generic, rather unimpressive business hotels. As you probably know Swissotel and Fairmont have separate loyalty programs with very limited cross-brand benefits, and while I know many (very) loyal Fairmont customers, none of them would give a crap if Swissotel properties disappeared / got integrated into Accor etc.
#258
Suspended
Join Date: Oct 2016
Location: Out of position
Programs: Accor, IHG, LH, BAEC, DB
Posts: 266
Really? Stopped reading here. I expect polemic posts from n00bs, but not from veteran posters. You cannot seriously believe that synergies may solely arise through combination of the loyalty programs. Those constitute a tiny part of the chain.
#259
Moderator, Turkish Airlines Miles&Smiles & Accor ALL
Join Date: Apr 2009
Location: BRU
Programs: TK*G, Accor ALL Platinum
Posts: 7,587
If you read my post again you will see that I did not say loyalty programme, and certainly that is not the only thing. I have yet to see another merger where there there have been any visible customer facing improvements. Leveraging your customer base is not a tiny part in my book.
#260
FlyerTalk Evangelist
Join Date: Aug 2009
Location: Paris, France
Programs: AF/KL Flying Blue Platinum for life/Club2000 Ultimate, Accor ALL Diamond
Posts: 21,927
What I find very surprising and disappointing is that we can now earn status points at non-Accor hotels but we still have 0 benefits at plenty of hotels belonging to the group for how long now ? 18 months ?
I know combining programs is complex and takes some time but at least there could be a reciprocal earning scheme of points between all the programs. That's usually not too long to implement.
I know combining programs is complex and takes some time but at least there could be a reciprocal earning scheme of points between all the programs. That's usually not too long to implement.
#261
What I find very surprising and disappointing is that we can now earn status points at non-Accor hotels but we still have 0 benefits at plenty of hotels belonging to the group for how long now ? 18 months ?
I know combining programs is complex and takes some time but at least there could be a reciprocal earning scheme of points between all the programs. That's usually not too long to implement.
I know combining programs is complex and takes some time but at least there could be a reciprocal earning scheme of points between all the programs. That's usually not too long to implement.
#262
Join Date: Jan 2011
Location: YYZ
Programs: Accor ALL Diamond, AC Aeroplan 25K, Nexus/GE
Posts: 2,732
What I find very surprising and disappointing is that we can now earn status points at non-Accor hotels but we still have 0 benefits at plenty of hotels belonging to the group for how long now ? 18 months ?
I know combining programs is complex and takes some time but at least there could be a reciprocal earning scheme of points between all the programs. That's usually not too long to implement.
I know combining programs is complex and takes some time but at least there could be a reciprocal earning scheme of points between all the programs. That's usually not too long to implement.
Conversely, I'd make Le Club Platinum too easily on a revenue based system if I was earning credit at Fairmont or Raffles hotels. Essentially, you can reach Le Club Platinum with EUR 5,600 in annual spend. I could hit that in less than one vacation at my favourite Fairmont property. If they make it too easy to reach the top tier, they might lose some people to other brands for their remaining travels during the year.
In theory, if they could make it work, some reciprocal earning is not a bad idea if they wanted to encourage people to visit the other brands. They first need to find a way to convert between the two different earning measures, in a way that motivates the customer behavior they want.
#263
FlyerTalk Evangelist
Join Date: May 2009
Location: FRA / YEG
Programs: AC Super Elite, Radisson Platinum, Accor Platinum
Posts: 11,874
That might be easier if both programs were actually points based. Accor's program is essentially revenue based, with points being earned being variable with what you pay. FPC is based on nights and stays. For an FPC member to earn nights or stays at Accor, they would essentially need to convert the stay into fractions based on the tier of the property somehow. Otherwise, it would be easy to earn FPC Platinum just by racking up nights/stays at a cheaper property.
Conversely, I'd make Le Club Platinum too easily on a revenue based system if I was earning credit at Fairmont or Raffles hotels. Essentially, you can reach Le Club Platinum with EUR 5,600 in annual spend. I could hit that in less than one vacation at my favourite Fairmont property. If they make it too easy to reach the top tier, they might lose some people to other brands for their remaining travels during the year.
In theory, if they could make it work, some reciprocal earning is not a bad idea if they wanted to encourage people to visit the other brands. They first need to find a way to convert between the two different earning measures, in a way that motivates the customer behavior they want.
Conversely, I'd make Le Club Platinum too easily on a revenue based system if I was earning credit at Fairmont or Raffles hotels. Essentially, you can reach Le Club Platinum with EUR 5,600 in annual spend. I could hit that in less than one vacation at my favourite Fairmont property. If they make it too easy to reach the top tier, they might lose some people to other brands for their remaining travels during the year.
In theory, if they could make it work, some reciprocal earning is not a bad idea if they wanted to encourage people to visit the other brands. They first need to find a way to convert between the two different earning measures, in a way that motivates the customer behavior they want.
From a loyalty program perspective, there are many issues to address:
- Fairmont FPC Premier/Platinum members generally think that the FPC program is excellent while the general consensus is that the Accor program, despite its minor improvements over the last five years, is mediocre
- Fairmont FPC Platinum members have been offered rather generous status matches to Accor Platinum while Accor Platinum members have been offered very few incentives to stay at Fairmont properties. Ironically, comp. Accor Platinum status doesn't seem to be sufficient to convince many FPC Platinum members to try Accor properties
- there's obviously an impression of a poorly handled integration (and from an Accor Platinum perspective I can certainly appreciate that point of view)
- The Accor program is largely a revenue-based discount program with a handful of benefits thrown in while the Fairmont FPC program is largely benefits-based
Leaving aside loyalty programs, there's a general impression among FPC customers that Accor just doesn't get the idea of loyalty or excellent and consistent service. Having held Accor Platinum status for the most part of the last five years, I can say I made a sincere effort to understand and appreciate the Accor program, but apart from a few Accor properties (mainly Sofitel hotels) which are excellent, the overall experience has been mediocre.
Assuming that Accor won't drastically improve its loyalty program and corporate culture, I would suggest these changes:
1) keep the two loyalty programs separate while encouraging members to experience the other brands
2) allow Accor members to earn points at all FRHI properties
3) allow FPC Premier and Platinum members to receive stay credit at Sofitel properties only
4) add "room upgrade based upon availability" as an Fairmont Premier/Platinum status benefit
5) give FPC Platinum members comp. Accor Platinum status and Accor Platinum members comp. FPC Premier status
#264
Join Date: Jun 2007
Location: ASIA
Programs: TK Elite, ALL Plus Diamond, Marriott Platinum, Hertz PC
Posts: 3,530
Not going to talk about the lack of integration.
To argue about the quality of service at a Fairmont vs other hotels somewhat defeats the purpose when all there are only 70+ properties worldwide. That's a bit like arguing why Singapore is so safe compared to Thailand.
I agree that some Sofitels are at a similar level, but many have quite a bit of catching up to do.
Yet, I don't expect to stay at (nor will they build) a Fairmont in Kuching, East Malaysia. So what am I missing here? It is a known fact that the majority of FPC members are based in the US and Canada. I assume there is no interest to stay in Accor properties as FPC members only travel and stay in large cities where you can find a Fairmont? What does a FPC member do who travels the world and needs to stay in secondary and tertiary cities. The merger with Accorhotels has now opened up a large chunk of properties in cities where you will never find a Fairmont. And you will most likely also not find a property which is comparable to a Fairmont there. Is this just all a FPC "bubble"?
To argue about the quality of service at a Fairmont vs other hotels somewhat defeats the purpose when all there are only 70+ properties worldwide. That's a bit like arguing why Singapore is so safe compared to Thailand.
I agree that some Sofitels are at a similar level, but many have quite a bit of catching up to do.
Yet, I don't expect to stay at (nor will they build) a Fairmont in Kuching, East Malaysia. So what am I missing here? It is a known fact that the majority of FPC members are based in the US and Canada. I assume there is no interest to stay in Accor properties as FPC members only travel and stay in large cities where you can find a Fairmont? What does a FPC member do who travels the world and needs to stay in secondary and tertiary cities. The merger with Accorhotels has now opened up a large chunk of properties in cities where you will never find a Fairmont. And you will most likely also not find a property which is comparable to a Fairmont there. Is this just all a FPC "bubble"?
#265
Join Date: Feb 2000
Location: New York, NY, USA
Programs: BAGold; AA3MMPlat; UA1MMGold; FBGold; MarriottAmb; AccorPlat; HHGold; ICPlatAmb; HyattDiscoverist
Posts: 4,378
Not going to talk about the lack of integration.
To argue about the quality of service at a Fairmont vs other hotels somewhat defeats the purpose when all there are only 70+ properties worldwide. That's a bit like arguing why Singapore is so safe compared to Thailand.
I agree that some Sofitels are at a similar level, but many have quite a bit of catching up to do.
Yet, I don't expect to stay at (nor will they build) a Fairmont in Kuching, East Malaysia. So what am I missing here? It is a known fact that the majority of FPC members are based in the US and Canada. I assume there is no interest to stay in Accor properties as FPC members only travel and stay in large cities where you can find a Fairmont? What does a FPC member do who travels the world and needs to stay in secondary and tertiary cities. The merger with Accorhotels has now opened up a large chunk of properties in cities where you will never find a Fairmont. And you will most likely also not find a property which is comparable to a Fairmont there. Is this just all a FPC "bubble"?
To argue about the quality of service at a Fairmont vs other hotels somewhat defeats the purpose when all there are only 70+ properties worldwide. That's a bit like arguing why Singapore is so safe compared to Thailand.
I agree that some Sofitels are at a similar level, but many have quite a bit of catching up to do.
Yet, I don't expect to stay at (nor will they build) a Fairmont in Kuching, East Malaysia. So what am I missing here? It is a known fact that the majority of FPC members are based in the US and Canada. I assume there is no interest to stay in Accor properties as FPC members only travel and stay in large cities where you can find a Fairmont? What does a FPC member do who travels the world and needs to stay in secondary and tertiary cities. The merger with Accorhotels has now opened up a large chunk of properties in cities where you will never find a Fairmont. And you will most likely also not find a property which is comparable to a Fairmont there. Is this just all a FPC "bubble"?
#266
Moderator, Turkish Airlines Miles&Smiles & Accor ALL
Join Date: Apr 2009
Location: BRU
Programs: TK*G, Accor ALL Platinum
Posts: 7,587
What I find very surprising and disappointing is that we can now earn status points at non-Accor hotels but we still have 0 benefits at plenty of hotels belonging to the group for how long now ? 18 months ?
I know combining programs is complex and takes some time but at least there could be a reciprocal earning scheme of points between all the programs. That's usually not too long to implement.
I know combining programs is complex and takes some time but at least there could be a reciprocal earning scheme of points between all the programs. That's usually not too long to implement.
#267
#268
Join Date: Mar 2011
Programs: Hyatt Globalist, Marriott Titanium
Posts: 1,179
I agree it is bizarre they are offering status points etc at "partner" hotels but nothing at Fairmont etc. The least they could do is a real status match until they sort it out, like SPG and Marriott.
#269
Again seems FRHI members have not been keeping up with the last 5 years.
Only a couple of okay hotels in Europe?
I think one could say quite confidently that Europe would have 10-20 Accor hotels which I could rate as great improvements. There are plenty of hit and misses though.
We are looking forward to our Novotel Canary wharf stay which we have high expectations and good reviews so far. Also definitely recommend Sofitel London near Pall Mall which is not huge and very pricey maybe slightly lower than Savoy but also a bit cheaper (relative of course). Sofitel London is fine especially considering many people say its the best airport hotel they have been to. How many fairmonts are located so close to an airport???
A few in Amsterdam like Legend Sofitel and M gallery stand out as great choices. I remember a few eastern European hotel reviews have been good again relative to what your paying and likely no local fairmont nearby to compare.
Again I think FRHI members have creeping hopes the program will last for decades to come.. unless they sell it off I think your dreaming.
Only a couple of okay hotels in Europe?
I think one could say quite confidently that Europe would have 10-20 Accor hotels which I could rate as great improvements. There are plenty of hit and misses though.
We are looking forward to our Novotel Canary wharf stay which we have high expectations and good reviews so far. Also definitely recommend Sofitel London near Pall Mall which is not huge and very pricey maybe slightly lower than Savoy but also a bit cheaper (relative of course). Sofitel London is fine especially considering many people say its the best airport hotel they have been to. How many fairmonts are located so close to an airport???
A few in Amsterdam like Legend Sofitel and M gallery stand out as great choices. I remember a few eastern European hotel reviews have been good again relative to what your paying and likely no local fairmont nearby to compare.
Again I think FRHI members have creeping hopes the program will last for decades to come.. unless they sell it off I think your dreaming.
#270
FlyerTalk Evangelist
Join Date: May 2009
Location: FRA / YEG
Programs: AC Super Elite, Radisson Platinum, Accor Platinum
Posts: 11,874
It certainly will be interesting to see how the integration will happen. Not only could the loyalty programs not be any more different, but also is the corporate culture at the two companies very, very different.
If Accor merely eliminates FPC and adds Fairmont as another brand to the Accor program, they'll lose many very loyal customers. If customer service deteriorates at Fairmont properties as a result of the integration, they'll lose even more customers.
At the same time it's unlikely the Accor program and corporate culture will dramatically improve as a result of the Fairmont acquisition; Fairmont is just too small to have that kind of impact.
I wonder whether Accor could be successful with a two-tier program similar to IHG/RA:
- keep the current Accor program for all brands (e.g. points, promos etc.)
- have a separate program focused on providing *meaningful benefits* for members who regularly stay at Fairmont, Raffles, Sofitel (and possibly Swissotel) properties.