HM Q&A
Accor’s Handwritten Collection launched in January 2022 with two hotels now operating in Australia
Premium approach ACCOR GLOBAL CHIEF DEVELOPMENT OFFICER – PREMIUM, MIDSCALE AND ECONOMY DIVISION, CAMIL YAZBECK, SPOKE TO RUTH HOGAN ABOUT PREMIUMISATION IN THE HOTEL SECTOR AND HIS 2024 OUTLOOK.
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he economy segment has elevated in recent years with a stronger focus on design, technology and service. How is Accor elevating economy and what does that means for rates?
Globally, we are witnessing a consumer trend toward ‘premiumisation’ in all sectors – cars, airlines, dining, retail shopping, and so forth. Consumers have always appreciated a well-priced product or service that delivers good value – and in our current market, good value can be felt through an experience of wellbeing, an appreciation of good design, or genuine, heartfelt service. The fact is, there is no reason why an economy or mid-priced brand cannot make their customers feel respected, connected and valued – these are not qualities exclusive to luxury, rather, it is the essence of delivering a great hospitality experience. 34
HM The Business of Accommodation
Among Accor’s brands for example, Ibis was one of the first in the industry to deliver modern, comfortable hotel experiences at an economic price. Today, Ibis Styles leverages the powerful awareness of the Ibis name, while bringing a fresh, trendy, and delightful experience to design-driven guests and families. With 650 hotels open and ambitious development underway, Ibis Styles enjoys an excellent brand love score and one of the strongest ADRs in the market. We also have Ibis Budget, which allows guests at a lower price point to also enjoy the quality of ibis with a fun, social, and sports-driven experience. Tribe is another fast-growing brand in the midscale segment. Tribe offers well-priced and cleverly designed guestrooms with advanced technology, lively bars and outdoor terraces for great social experiences. So, while we continue to elevate the experiences of our economy brands, the purpose is not to aggressively raise rates, it is to continue to offer a rich diversity of experiences across all our guest segments.
The economy segment is not as dominant in Australia as it is in other markets like the US and Europe. Why do you think this is and do you see it changing?
We do see the current economic climate as temporary, yet very challenging. We continue to support our partners and hotel owners by helping them find the right solutions and opportunities in their markets. Having the most diverse portfolio of hospitality brands in the world
