Introduction
IBIS is an international economy range of hotels, which is owned by Accor hotels. Accor hotels has more than 168,000 associates in 140 countries, it is the leader in Europe and also is one of the largest company in the world with travel, tourism and corporate services. In 1974, the first IBIS hotel is set up in Bordeaux. In the following years, it is famous for its high quality service and competitive price in the world. Its core value is providing the most preferential price in the local market and modern hotel service to customers. In 2013, equipped with 1,277 hotels and 121,882 rooms in Europe, IBIS has become the largest hotel company in this area.
SWOT Analysis
Strengths
Innovative quality
IBIS has creative designs for rooms, an innovative concept for restaurants, multi-skilled employees, sustained investment to ensure customers enjoy a premium services without extra cost. For example, IBIS has an innovative change on beverage service that customers can get bar service or reception service at any time to enjoy a meal. In addition, its breakfast time is from 4am to 12 am, which is called unique “eight hours breakfast”. Nowadays, due to the innovative quality that is provided by IBIS, its quality standard has been recognized by the world. In 1997, IBIS obtained the ISO9001 International Quality Standard System Certification, which is admitted by more than 150 countries, and becoming the first economical chain hotels that are certificated by this system. In addition, IBIS pays attention on environmental protection, and becoming the first economical chain hotels to pass the ISO14001 International Environmental Management System Certification
Convenient locations, excellent rooms and facilities
As the leading brand in the industry, IBIS create economic benefits and quality assurance to customers with preferential prices, the international uniform service and quality standards. It is usually located close to city centre, airports, railway stations, commercial and tourist destinations, which is beneficial for customers to go anywhere. The rooms have been elaborate designed with bath rooms and facilities, which can provide a best sleeping environment for customers. Excepting for TV with international, domestic channels, network, shower and toilet facilities, it maintains the sound insulation around 43 db.
Weaknesses
Unbalanced network
Nowadays, IBIS focus on Europe market. It has more than 691 hotels with 72,984 rooms in this continent. However, it only has 59 hotels in Latin America, and 31 hotels in Africa and the Middle East. So this is not good for IBIS to take more market shares with the unbalanced network.
Lower profits
As economical chain hotels, most of IBIS’s competitors are keeping a low operation costs to gain more profits. However, IBIS has a high operation cost on providing high quality of services and excellent rooms and facilities, which is influencing its revenue.
Opportunities
According to Maslow's theory of the level of demand, people will pursuit for a spiritual need after achieving certain level of living status. Nowadays, with the rapidly development of economy, more and more people tend to travel around, as a result, the consumption of hotels will increase. On the other hand, some emergency markets in developing countries, such as China, Latin America become a huge opportunity for IBIS to expand its market shares in these areas. IBIS not only can set up new hotels in these areas, but also can attract travelers in these areas to living in IBIS with its global reputation and high service quality when they travelling aboard.
According to Michael E. Porter’s theory of Five Forces Model, we can see that IBIS is facing a fierce competition in economical chain hotels. Its main competitors are including Days Inn and Super 8 from America, 7 Days Inn and JINJIANG INN from Mainland China, Tune Hotels from Kuala Lumpur and so on, these economical chain hotels also providing high quality of services with low cost to attract travelers. So the competitive rivalry, bargaining power of suppliers and buyers are high. For example, when customers want to change to other hotels, it has a lower switching cost. In addition, except for travelling, people have more interesting things can do, for example singing in KTV, hiking and so on, so it has a high threat of substitute. However, due to the high entrant cost of capital requirements, such as real estate, fixed cost and so on, it faces a low threat of new entrants.
Differentiation strategy and target audiences
In order to survive in fierce competition, company should different from others with its competitive advantages in terms of product differentiation, service differentiation, channel differentiation, people differentiation and image differentiation. For service differentiation, it provides a high quality of service, such as “eight hours breakfast”. And it takes large advantage of social media, such as facebook, to get closer to its customers, and have lots of interaction with them, which will attract them and gain brand loyalty from them. For channel differentiation, except for traditional promotion ways, such as advertisements, we providing a more effective way to reach more audiences, which is collaboration with a famous traveler website named www.backpacker.com.tw. It has the same target audience with IBIS’s differentiation strategy that who are likely to travel all over the world, and these international backpacker prefer to living in a good economic hotel with high quality of service and good facilities, and making friends with whom are come from different cultural backgrounds.
Above all, as IBIS targets at international travelers, how to reach them as well as letting its target customers find IBIS are very essential for its business. In order to achieve this international connection, IBIS finds backpackers.com.tw, a platform which is a travel information sharing corner that is registered by backpackers who loves self-service traveling around the world. By collaborating with this well-know international platform, both two parties, IBIS and its targeted customers, can find and reach each other efficiently and virtually. Can this collaboration be in a non-virtual way? The answer is definitely not, because it will be impossible or time-consuming and costing for IBIS to dig into the whole world to get contact with its customers personally.
The collaboration between IBIS and Backpacker.com
How can this collaboration be realized? The IBIS will sign a contract with www.backpackers.com to establish an online virtual company called www.roomsharing.com. It is a virtual platform and the mission of which is to assist international backpackers to find room to stay and a roommate to stay with.
How does this whole process work? First of all, a backpacker needs to register in the www.roomsharing.com to be a member of the virtual company. Then, he can see the room information provided by IBIS, including the room size and layout, price, specific location, available dates, available number and so on. With that information, a backpacker can choose whatever he likes, which is very similar to Booking.com. Meanwhile, the backpacker can choose the roommates to share a room as well as the room charge. There are two ways he can do to make the choice. The first way is by conditional searching. There are mainly three information catalogue he can refer to. The first catalogue is the basic information including gender, age, nationality, education background, etc. The backpacker can choose the suitable terms. The second catalogue is advanced information, including trip experience and plan, as well as personal habits. This catalogue is very important. For example, a backpacker may find the roommate who has been to Europe before or with the same plan to explore the mysterious Egyptian, then he can find the right person by adding there searching terms. About the personal habits, it is especially important when the backpacker wants to get rid of someone who smokes, or for the backpackers who has a certain religious belief with certain special habits and does not want to disturb by someone outside his religion. The third information catalogue is social media information share. The backpacker can click the link of the roommates, recommended by the websites according to his chosen requirements, to see his social media home page so as to further verify whether that person is suitable to be the roommate. After the three rounds of verifications, it is very possible that he can find the right roommate. In addition to conditional searching, another way to find a roommate is posting a notice which lists your specific requirements and to wait for others to find you. This way may be a little time-consuming for the backpacker who is in a hurry to find roommates. When the two or three backpackers decide to share the room, they can accept to create a community with a same ID. With this mutual ID, they can choose a suitable room together. Then, after the room agreement is signed, they can go into the payment page to pay their shared room charge. Till now, the transaction is finished.
The virtual company’s attractions to backpackers
What are the online platform’s attractions to the backpackers? There are mainly three. Firstly, the virtual platform is far more than a room booking system. It is a social platform which can realize virtual relationship. During the process of finding roommates and interacting with different roommates who are also the backpackers, they can make real friends with each other. Besides, as this virtual platform gives them the opportunities to sharing, it is very appealing to the backpackers, a group of people who like self-service traveling as well as sharing traveling experience. Another advantage of this platform is its international nature, that is, backpackers can share with people from all over the world, which makes the sharing experience fantastic and exciting. Secondly, it is the economic benefits that attract the backpackers. As the room charge is shared, a backpacker can pay less money to have a good room living experience in IBIS. Besides, they can get additional service package from the hotel. For example, the backpackers who are the member of the virtual company can only spend a small amount of money to get a package plan for the trip.
Problem faced by the virtual company and solutions
Although the virtual company is very attractive, there’s one essential issue it needs to solve, that is, the safety issue which can influence its reputation and if it is not coped well, there will be a high legal risk. Besides, it is also an issue that its backpacker users and its business partner IBIS worry about. In order to solve this problem and keep the safety of the backpackers who live in IBIS through this platform, www.roomsharing.com has a very strict certification of its members. First of all, the backpackers who want to register in www.roomsharing.com need to be the member of www.backpackers.com first, which also have very strict verifications of its members. And both of them are using real-name registration systems. In addition to these two protectors, a third one is social media authentication. In this case, Face book is used. People who want to register in www.roomsharing.com also need to provide their social media accounts through which some of their social relationships can be traced. By those three protectors, the virtual company can make sure most of its members are qualified. Another protector system used by the virtual company is user/member evaluation system which is very similar to the evaluation system of www.TaoBao.com. Its members can comment and grade on each other for their room sharing experience. Those who have very low grades and bad comments will not be in the roommate recommendation lists of the virtual company, neither can they be chosen as roommates by other members. Above all, IBIS will sign a safety agreement with the virtual company to provide 24 hour safety patrol as well as security reporting hotline to enhance the safety level.Reasons for choosing backpacker.com.tw
Before we introduce the advantage for the cooperators from the virtual company, it is very necessary to explain why we as IBIS chose backpacker.com.tw to become our cooperators.
At first, as one of the Best Chinese BBS focusing on backpacker and budget travelling, Backpacker.com.tw is a very valuable communication platform. According to a new report by the United Nations World Tourism Organization (UNWTO), Chinese travelers are now the top source of tourism cash in the world. For the huge market in Great China, a successful professional website in travelling industry should be considered as the most suitable partners for IBIS. Its advantage in information communication could help IBIS in marketing effectively.
Secondly, the target audiences of Backpacker.com.tw have a high compatibility with the one of IBIS. Our hotel IBIS is worldwide economic hotel and supply the service to the global travelers with middle income which want to enjoy a high quality service with a limited budget. Cost performance of service is a significant factor for them. The users of Backpacker.com.tw belong to this group precisely.
Third one, the excellent reputation of the users of Backpacker.com.tw solves the concern about the safety problem in the process of room sharing and could take more opportunities for IBIS to increase benefits. According the date from Backpacker.com.tw, We could find all of the users of Backpacker.com.tw should have mobile phone certification. All of the real personal information should be confirmed. The excellent user could avoid more risk of people. Moreover, most of users of Backpacker.com.tw have a good education background and income. Their power of consumption is very strong and takes potential benefit to our hotel IBIS.
To summarize, Backpacker.com.tw in the room sharing corporation play an important role and Choosing Backpacker.com.tw as the cooperator have been a foundation for win-win situation.
Value added to IBIS
A clear and potential business mode does not mean the virtual collaboration between IBIS and backpacker.com.tw will be a win-win situation. So for this business virtual collaboration, I could mention more detail about what the collaboration adds value. That will prove the win-win situation should happen in this case. Back to the problem that what does the collaboration add value, the virtual corporation indeed take a series of benefit for participator. I give some positive influence for our hotel IBIS as follow:
1. Stable Client and Reduce of Fixed Cost
The benefits are obvious for our hotel IBIS. Through the virtual corporation, a stable client will come from the Roomsharing.com. For our hotel which locates in the place with a poor competitiveness, this will reduce the fixed cost of rooms. No doubt, the directive benefit could help our hotel develop.
2. Benefits from Value-added Services
Cooperated with the virtual corporation, our hotel will promote a series of value-added services like trip package ,car rental, pick up service from airport, air ticket booking and so on. The value-added services will take substantial profits to us.
3. Reputation building and Differentiation strategy
Based on the benefits above, our hotel will create a professional image as a supplier integrated with various travel products and service. This will improve the reputation for IBIS and build a differentiation with other economic hotels, especially for global backpackers.
Value added to Backpacker.com.tw
Meanwhile we could brief the value which Backpacker.com.tw could add from the virtual corporation as follow:
1. User and AD Income Increase, Commission rebate
The attractiveness of Roomsharing.com for costumers will lead to the influence improvement of Backpacker.com.tw. More and more user will enjoy the service of Backpacker.com.tw, followed by AD Income Increase. In addition, commission rebate from hotel room fee will be a considerable directive income.
2. Resource Integration and strategic transformation
In the long term, Backpacker.com.tw could transform to a website with social ability and E-business ability. This will integrate the resource effectively. And the kind of website is very scarce in the recently market.
Evaluation of the performance of the Virtual Company
Through the analysis above, we could find the virtual corporation must be a win-win situation for both of IBIS and Backpacker.com.tw. Furthermore, our hotel defines several key indexes to evaluate the performance of the virtual company for make the whole corporation more scientific and feasible.
1. Quantity of user and successful room sharing partner.
The date will be from the website. We will gathering the quantity of user and successful room sharing partner daily, monthly, quarterly and annually. This date could reflect the operation of Room sharing.com. And compared with different date, we will do a market research too.
2. Cost of website maintenance and marketing promotion.
Cost is an important index we need care. We will pay more attention to cost of website maintenance and marketing promotion, because it will cost relatively large number of inputs.
3. Customer satisfaction
Customer satisfaction has a close relation with the performance of Roomsharing.com. Good user experience will create positive influence for the virtual company, even the cooperators.
4. Sales of value-added services
For our hotel IBIS, sales of value-added services should be an index for measure the performance of the virtual corporation. This part will take a special income and tell us the truth about how benefit we get from the virtual company.
Chinese travelers the world's biggest spenders By Karla Cripps, CNN
Markus, M. L., & Brook Manville Carole, E. A. (2000). What makes a virtual organization work? MIT Sloan Management Review, 42(1), 13-26.
Venkatraman, N., & Henderson, J. C. (1998). Real strategies for virtual organizing. Sloan Management Review, 40(1), 33-48.

