CanadaDH

I'm curious how easy it is to rebrand properties, considering that the hotels are operated under a management contract. The hotel owners entered into a contract with FRHI to manage their properties, and I'd be surprised if the contract permitted the operator to swap the brand without permission. In many cases, we're not talking about cookie cutter properties. Surely there is some sort of veto or even an exit clause from the contract that the owner can invoke in such a situation? A lot of the Fairmont properties are iconic and have a reputation far greater than the current brand on the sign, and where I think FRHI/Accor needs the property in their collection more than the hotel owner needs FRHI/Accor to run it. If I was the owner of, say, the Fairmont Chateau Frontenac, and Accor wanted to rebrand it as a Sofitel (not that I think they would be dumb enough try that), I'd want to tell them to get stuffed, and go see if Four Seasons or another operator would like the chance to run the property.

Yul_voyager

The Chateau Frontenac as well as the QE and many others Canadian Fairmont are owned by the Caisse des depots et placements du Quebec (Quebec public retirement fund). Pretty sure Accor couldn't do anything without their approval.

YOWCDNFF

Agreed that rebrands would not happen "en masse" and that "incentives" might need to be provided for some properties to consider a change in brand while the current management contract remains in force. Now, it is not that long ago that those "iconic" Canadian properties were known as CP Hotels and not Fairmont... To me though, I see these iconic properties remaining within the Fairmont brand. Where I might see a push from Accor is for some of the less iconic city center property that may cater more to a business crowd or where the Fairmont brand does not have as strong brand equity. I can't remember where but I do recall reading that a significant area of focus for the Fairmont brand would be the leisure crowd and to a secondary extent conventions, not so much on the loyal single business traveler.

Adam Smith

I assumed this was some sort of glitch in Accor's or Fairmont's systems and I just now got around to digging in to this.

Was it made clear when they offered it that the status match was only for a limited time? I certainly don't remember that; my understanding at the time was that they were doing what Marriott and SPG had done, albeit only in one direction rather than both. That being said, it's possible that I either didn't fully read or don't fully remember the fine print.

Either way, I read the back and forth in this thread on this subjects and, without quoting a whole bunch of posts, I think I'm in agreement with most of the posters here that this is both an odd decision and one that quite annoys me as a customer.

From what I can tell, the Accor program is pretty crappy and while I'll probably stay at a Fairmont or other Accor property from time to time when circumstances converge, I highly doubt that I'll go out of my way or spend extra dollars to do so like I often have in the past with Fairmont. This certainly doesn't help build up the Accor program in my mind.

Yul_voyager

Actually, I think Accor doesn't know at all that their loyalty program sucks. I think they really think Le Club is better than FPC because of points and "upgrade" based on availability and they are completely clueless about why people liked FPC so much. Well, it's a French company and loyalty program is not really a part of French culture. I am pretty sure people in France and probably in other European countries are not members of loyalty program (Airlines, Hotels or Credit Card) as much as in North America and actually I don't know anyone who has a credit card which is earning points (and I don't even talk about insurance and travel benefits). That doesn't mean that Accor is a bad company globally speaking. They have a pretty decent portfolio, from hostels to top luxury brands, and pretty nice hotels. I've been in the Baltimore hotel in Paris (Sofitel, used to be M Gallery) and it's a very good and nice hotel, for example. Just, in term of loyalty program, they don't get it.

flybit

Fairmont is dead, i will have another stay to get another few certificates, but next week will be my last paid stay, unless the program changes. 5 friends and we are all Platinum and we have already switched our hotel brands for 2018-19.

Eagle_traveler

That makes sense. However Accor is in for a big surprise. They bough Fairmont for their luxury hotels in North America and things don't work the same way in North America as in Europe.

Remember when Target came to Canada? They didn't adapt to their new market, they did what they do in the US and they eventually failed. This is what Accor is doing. They buy Fairmont, but they wanna do the same thing they do in Europe. However, the difference in this case is that employees and customers tell them what we want but they don't listen.

"Accor: Yess I bough Fairmont
Fairmont: cool, make sure to keep FPC progra..
Accor: I'm gonna destroy FPC!
FPC Members: we want to keep FPC, we don't care about Le Club
Accor: Le Club is better than FPC
FPC Members: ... **make reservations with competitors**
Fairmont: ..
Accor: then we will remove employee perks, that's the best way to attract the best employees and keep them motivated
Best Fairmont employees: **find new jobs with chains that treat them well**

2 years later
Accor: what is happening? we have seen a diminution of members in North America and a higher employee turnover. What is it that they want???
Fairmont: FPC program + employee perks
Former FPC members: FPC program
Accor: guess we'll never know"
:P

tris06

Lol funny. I
Keep dreaming boys. More likely...
FPC members: Keep FPC and Dont allow the le club members in our hotels or else we will leave.
Accor: Okay bye.
Accor members: Excellent more for us!
Accor: Your welcome.
2 years later.....
Fairmont hotels: Wow our hotels are busier than ever and making more money than ever.

Yul_voyager

Well I doubt they are many active Le Club member in North America, and I also doubt they are much European Le Club member which are going to stay in Fairmont because of Le Club. I mean, yes some European are going to stay at Fairmont hotels but because they are iconic properties in unique places, not because of a crappy 6% (or something like that) cash back which are difficult to use anyway.
So they may not notice a difference in occupation because of the end of FPC, as they are not that much FPC members to start with, but I am very skeptical they will have more people because of Le Club.
As for the better employees leaving, I think this is a more serious problem for them. But they will notice it too late.

mahasamatman

I had a front desk employee at the Chateau Whistler try to convince me that Le Club is the best program out there. I didn't have the heart to ask him what flavor the Kool-Aid was.

escape4

That is not impossible, but in my humble opinion it is unlikely. If you buy a hotel chain and you lose its most loyal customers, then you have a steep hill to overcome if you want to make it work. You will need lots of your existing Accor customers to make additional stays in Fairmont (without reducing their Accor stays) to make up for the lost customers.

As far as FPC members asking to not allow Le Club members in Fairmont hotels, that is a ridiculous comment. The rest of your post is fair game however and time will tell if correct or not; my money would be that Accor is not making the right move, but that is only one man's opinion so we'll see.

Brendan

How exactly do such things as hotels & frequent-guest programs work differently in N. America than in Europe?!

Jasper2009

It could be argued that US-based hotel chains and loyalty programs (e.g. Hyatt, Starwood, Hilton, Carlson, IHG etc.) offer far superior benefits than Europe-based hotel chains / loyalty programs (such as Accor, NH Hotels, Melia etc.). You could attribute this to the North American market being much more competitive, or the various hotel chains listed above trying to dominate the int'l hotel market, or just being ahead of their European competitors, or whatever explanation you prefer....though it's hard to compare since there are few truly "global" hotel chains that are based in Europe.

But it's rather telling IMO that, for instance, Hilton Gold status - which can be easily obtained in various countries by simply keeping a co-banded credit card with an annual fee of $50-$100/year - offers more meaningful benefits than Accor Platinum status.

If Accor management thinks that Le Club Accor is competitive in the global market, they're rather delusional.

Jasper2009

Everyone's entitled to their opinion, but this would be the first large corporation I'm aware of that increases profitability by both firing its loyal customer base and alienating its employees who have a reputation for providing excellent customer service. This is particularly true in the travel industry where a small number of loyal clients contribute a disproportionately high % of revenue/profit.

If Accor management's strategy is to get rid of Fairmont's current customer base, I wish them good luck since it's a rather brave move.

1flyer

Who says the users active in this subforum are Fairmont's most loyal customers? Who says that FPC's most loyal customers will leave after FPC has been folded up into LCAH? And, most importantly, even if they leave, who says it will be a "steep hill to overcome" for Accor?

My impression as an irregular visitor of this subforum: People are a bit pissed that this extremely generous loyalty program is coming to an end. Some folks seemed to have thoroughly enjoyed maximing this program. And now they're biatching and perhaps exaggerating their importance to the hotels formerly belonging to FRHI.