Accor flies high: Premium brand expansion takes off in Thailand
Global hospitality titan Accor is firing on all cylinders as it accelerates the rollout of its premium brands in Thailand and across the globe. The move is fuelled by bullish forecasts for booming travel over the next decade, with the company setting its sights on high-potential markets such as India’s growing middle class and China’s robust outbound travel scene.
Karelle Lamouche, Accor’s Chief Commercial Officer for premium, mid-scale, and economy (PM&E) brands, revealed the ambitious plans, noting that while Accor reigns supreme in mid-scale and economy categories worldwide, barring the US and China, it has room to grow in the premium sector.
“Eighteen months ago, we started distinguishing the PM&E segment from our luxury and lifestyle offerings to hone in on the unique strengths of each brand.”
A staggering 90% of Accor’s global hotel portfolio is comprised of PM&E brands, accounting for 66% of the company’s total fees. As of September 4, the chain boasted 1,780 mid-scale hotels and 2,826 economy properties.
However, with only 446 premium hotels under its belt, Accor sees a golden opportunity for growth in this segment. The prestigious line-up of premium brands includes Pullman, Mövenpick, and Grand Mercure.
Lamouche pinpointed key regions ripe for the debut of new premium lodgings: the Middle East and Asia, with a spotlight on Thailand, Indonesia, and Singapore.
“I don’t think we fear oversupply at this stage. You may see it in some markets or cities, but at the global level, we’re not there yet.”
Outbound tourism
The travel industry is currently driven by 7 billion travellers, a figure projected to reach 15 billion within the next 10 to 15 years. Another significant growth driver is the expanding middle class in large markets like India, which currently accounts for 30% of revenue. This figure is expected to rise to 60% within the next five to ten years, according to Lamouche.
Indian airlines are also projected to expand their combined fleet over the coming years, further supporting this growth. China, a country with a vast population, is expected to see a strong rebound in outbound tourism, with Chinese tourists frequently travelling to Europe, the Middle East, and Southeast Asia.
Lamouche stressed that Accor’s extensive network enables the company to mitigate the impact of any conflicts or macroeconomic downturns affecting specific regions.
“With our extensive network, we can balance any conflict or macroeconomic downturn affecting a specific part of the world.”
Accor’s portfolio includes 21 brands in the PM&E segment, featuring economy brands like Ibis and mid-scale brands like Novotel. The company does not plan to launch new brands in the short term but will focus on expanding existing brands to tap into extended stays or the residential market, similar to Novotel Living.
In Thailand, Accor operates approximately 75 hotels in the PM&E segment, with 17,919 rooms across 10 brands. Thailand stands out as one of the top-performing markets in the region, reported Bangkok Post
