Accor
THE CLIENTS
Accor Hotels is a global hospitality chain operating 5,600 properties in 110 countries across the world. The chain owns 45 distinct brands, ranging from luxury palaces to smart economy hotels, serving the diverse demand of a very broad market. Accor’s UK division, composed of over 260+ properties, sought to optimize its managed properties’ accounting operations and consolidate into a new, reliable system.
THE PROBLEM
The vendor which was previously serving many of the managed properties under Accor in the UK had several shortcomings in their service delivery. They were heavily reliant on the hotels’ operations teams for maintaining daily accounts, and integration between properties was ineffective. Without an active data management strategy, the vendor faced challenges in providing accurate financial information within reasonable timelines.
THE IMPACT
The chain’s hotel operations management team had limited visibility over their transactions, sales, purchases, income or expenses. Since reliable data was not available when it was needed, there were severe challenges in data-driven decision making, efficient budget allocation and regulatory compliance. There was considerable potential for improving the financial condition of these hotels with better clarity and reliability.
OUR SOLUTION
Virgate implemented a thorough overhaul of the accounting operations for managed hotels under Accor UK. All systems were integrated, and processes were onboarded within just 3 weeks from the start date, with minimal downtime. The very next accounting period was kicked off successfully on Virgate’s system, eliminating all dependencies on the old vendor.
• Customized technology platforms were deployed to effectively integrate various aspects of the business operations and finance departments of each property. This guaranteed integrity of data by eliminating the need for separate data entry at each point.
• A dedicated account manager took up the reins of the entire engagement, starting with the facilitation of an open channel for communication between Virgate’s accounting operations team and the hotels under Accor’s UK division. This enabled effortless clarification of all details related to payables, banks payments, payroll etc.
• Clear SLAs were defined for the engagement — complete closure of account books within 3 working days, and live data available on-demand at any time pre and post closure.
• A customized live report pack was created by Virgate’s FinTech team, and delivered to all hotels, allowing the management to effectively review the performance of each department.
RESULTS DELIVERED
• Accor managing the hotels were able to effectively manage their books, ensuring integrity and availability of accurate data on demand
• The management is empowered with a clear picture of the financial health and daily transactions of each hotel under the division
• Informed decision making helps the division to sustain efficient operations and effective implementation of the business strategy across the entire division
• The partners cut dawn on their IT expenses, and gained further predictability over their spending, because Virgate’s service fee included hosting and maintenance of financial management of software applications. All redundant software assets were removed from the ecosystem.
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