Should Accor become and equity partner in Room Key? Why or why not? Should Accor become...
Should Accor become and equity partner in Room Key? Why or why not? Should Accor become a commercial partner of Room Key? Why or why not? What is the ROI of both of these strategies? (You may assume that Accor would pay a 10% commission to Room Key if they were an equity partner and a 15% commission if they were not an equity partner).
Homework Answers
The main aim of accor is growth in the global luxury market segement.it strategy is not in line with room key’s capabilities which are strong in North American luxury sector. Accor would not gain much by entering into an equity partnership with room key. It may potentially partner with room key as a short term commercial partner as it does not require capital investment. Room key can only help accor to strengthen in the North America luxury segment. Accor must treat room key as an OTA which requires reduced commission as a result of commercial partnership. It should implement a flexible digital hospitality platform.
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Should Accor become and equity partner in Room Key? Why or why
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