AccorHotels is a French multinational hotel group offering accommodation in luxury to economic hotels worldwide. Since recently, Accor’s Chairman and CEO, Sebastien Bazin, faced several challenges in the hospitality industry. The digitalization of the world had revealed new kind of strong competitors such Airbnb and the group is also threatened by biggest American hotel chains, which rapidly expand through considerable acquisitions globally. To stay the course in a changing environment the group decided to strengthen its brands portfolio and focus on the luxury/upscale segment where Airbnb was not operating yet. April 2016, he decided to enter the luxury vacation rental market by acquiring OneFineStay, an upmarket version of Airbnb. July 12th 2016, AccorHotels’ acquired the Canadian luxury hotel group FRHI too, making Accor a key leader in the traditional luxury hotel market. This transaction allows the company to reinforce its presence in both Asia and North America. Bazin thought to be tranquil regarding the rise of Airbnb. But February 2017, the Airbnb platform, valued at $25.5 billion, acquired Luxury Retreats making a huge move in the luxury vacation rentals market and following Accor in its footsteps. Bazin was sitting in his office thinking about the coming meeting with Accor’s executives to discuss about the group’s next expansion steps. The French group seems to be permanently challenged by the e-competitor. Bazin was wondering how AccorHotels could survive the rise of the vacation rental market affecting both its midscale/economy and luxury/upscale brands now. How Accor could be a key player in the luxury and upscale segment while keeping its leadership position in the economy and midscale hospitality market? In which market between the luxury vacation rental or traditional luxury hotel should Accor focus?