Accor changes name, steps up digital push to fight online travel agents

In a bid to fight back against online travel agents and to open its own online travel booking services to independent hoteliers, French hotel group Accor will be spending 22 million euros, according to Reuters.

As its strategy, the hotel has also changed its name to AccorHotels which is in line with its upcoming online booking website.

AccorHotels, the world's fourth-largest hotel group will be investing 225 million euros to strengthen its digital business by 2018.

Its main competitors InterContinental, Marriott and Starwood are also trying to fend off online travel agents (OTA) as they charge an exhorbitant commission for each room they book.

AccorHotels has 3,700 hotels - from the luxury Sofitel to the budget Ibis brands - and its new plan is expected to triple the hotel's offering to 10,000 hotels within three years via the hotel's new website to be launched in this July.

These steps are shy away from online travel agents as they charge around 20 percent as fee per room booked. Coupled with this a portion of the booking made at AccorHotels are done via online travel agents.

AccorHotels has acquired French travel software company Wipolo and most recently, FASTBOOKING, a digital services provider for the hotel industry. It will be using the two companies' expert knowledge to come out with the website, where selected independent hoteliers will be offered online booking service.

Chief executive Sebastien Bazin said he expected commission rates to be one-third cheaper than those currently charged by online booking agents, as reported by the Financial Times.

The company's plan effectively makes it the first major hotel group to diversify to OTA. And if it is successful in executing its plan it will help cut gains of online travel agents including two of the most recognised online travel agents: Expedia and Booking.com.