How is MorningCroissant positioned in relation to traditional hotels?
Alix Tafflé - We're not competing with the traditional hotel industry, we're creating a new form of accommodation that didn't exist before, which consists of using the vacant housing stock of major property groups and transforming it into accommodation for stays of a few nights or several months. This is a hitherto untapped segment of the market, and one in which we have every credential.
How is this offer perceived in the business travel market?
A. T. - Demand is growing, and the average rental period is also increasing. It's now around ten nights. We are seeing more and more professionals looking for flexibility and savings on medium-term rentals. In 2015, we are expecting 300,000 overnight stays, four times more than last year. We have a total of just over 10,000 accommodation units, corresponding to a capacity of 13,000 places.
Who are MorningCroissant users?
A. T. - It's very varied: it's the site manager on an assignment for one or two months, the person on a professional transfer who needs accommodation for two or three weeks before settling down... We also have a lot of people on sandwich courses or training courses. All people who are generally looking for good value for money. Our exclusive offers of between €20 and €40 a night are bound to appeal to them...
What proportion of your customers are business travellers?
A. T. - A good half of our customers are professionals. We're really looking to differentiate ourselves and grow in this business segment, but we follow customer usage.
How can we meet this customer's need for flexibility, for example for professionals arriving at their destination in the middle of the night?
A. T. - Some homes have a key-operated safe. We are looking into the possibility of developing electronic locks. I think this is the way of the future, especially as it would make it easier to locate the traveller in the event of a problem, knowing whether they have taken possession of their accommodation. The property groups we work with are not insensitive to the subject, but it does involve an investment. Everything in its own time, even if it can be a huge competitive advantage.
How do you differ from other players in the market?
A. T. - Most of our overnight stays are with large property groups, which can only be booked with us, and which have the enormous advantage of being available 365 days a year. In terms of availability, these properties are equivalent to ten or fifteen private homes. This allows us to offer instant booking, which is a big plus for our professional customers. Our status as an estate agent guarantees the legality of our offer, allowing us to conclude these contracts with property groups, and to provide each customer with a rental contract and invoice in due form. That's a big plus for our professional customers.
Is there room for everyone in this non-hotel accommodation sector?
A. T. - Airbnb has conquered the private rental market, that's a fact. There's no question of competing with them head-on. That's why we're positioning ourselves in the business-to-business accommodation segment. We're not rejecting private accommodation, but it's not our main area of development. The other players don't have professional accommodation: we are in a special position, between Airbnb and the hotel groups.
Reassuring the company: that's one of the biggest challenges facing an alternative offer like yours...
A. T. - Of course it is. But it's much simpler when you are fully compliant with French legislation, which is more complex for American groups, for example. So it's a big plus for us, and we make a point of stressing that.
Are all companies receptive to this approach?
A. T. - Some of them will remain loyal to the traditional hotel business. But large groups, which we didn't necessarily think would be interested in an offer like ours, are starting to contact us. There are two trends in our favour: the search for cost savings and the use for business purposes of solutions that have been tried and tested in the private sector. The structural shortage of hotel capacity in certain towns is also prompting companies to look for other alternatives, whether for short or medium stays. We provide a surplus of accommodation that didn't exist before.
Are you developing new products and services?
A. T. - A few weeks ago, we extended our offering with pre-booking, which has been very well received by business customers. At the end of October, we will be launching a 'business' account that will enable a company to link employees and departments to an account in its own name, to centralise reporting, and to register a means of payment. We are also going to develop additional, à la carte services, such as parking and exit cleaning, and we are thinking about a breakfast service, even if this is more complex from a logistical point of view. All we've done is integrate the features that our business customers have been asking for. The open booking phenomenon can scare some companies, so they are reassured by approaches like these: we are not savages, we want to give them maximum traceability.
What about international markets?
A. T. - For the time being, our homes are only located in France, but some of our tenants come from abroad, to the tune of 20%. One of our objectives for 2016 is to expand internationally, particularly in Spain and the UK, by applying the same model, which is based on partnerships with major property groups.
Are you considering agreements with other players in the business travel market?
A. T. - We are talking to companies like Concur and KDS, but nothing has been done. It wouldn't be illogical to work with such players. There's a virtuous circle in the making: the end customers of these companies are asking them to integrate our offering. We need to identify the right players, without piling on the commissions!
