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ulia Simpson of WTTC and Accor CEO Sébastien Bazin – Image Credit Simon Callaghan Photography/IHIF EMEA via CoStar
Amid rising global tensions and economic uncertainty, Accor CEO Sébastien Bazin advocates for hoteliers to emphasize local experiences and distinctive service and to focus on domestic or regional travel demand.
The global hotel industry is sailing into uncharted territory, with economic instability, geopolitical tensions, and trade tariffs causing concerns. In the face of these challenges, Accor Chairman and CEO Sébastien Bazin is urging hoteliers to prioritize local experiences and standout service. According to Bazin, this strategy can help stimulate regional or domestic travel demand, even when international tourism faces headwinds.
During an interview at the International Hotel Investment Forum EMEA, Bazin expressed his belief that travel trends will continue evolving as they have always. He anticipates a shift towards more domestic travel, not at the expense of international travel, but as a complement. He further stated that destinations must work hard to attract investors, developers, employees, and locals to gain international visibility and appeal to travelers.
Bazin also discussed the impact of tariffs on the hospitality industry. While acknowledging that tariffs will raise business costs, he argued that the industry is resilient. He predicted that luxury travel, in particular, would not be significantly affected.
He also commented on the industry’s labor challenges, noting that the hospitality industry lost 100 million jobs during the COVID-19 pandemic. However, he also highlighted the positive trend of Accor hiring 142,000 people in the last 12 months, a sign that filling hospitality jobs is becoming easier.
Looking to the future, Bazin stated that the hospitality industry has a responsibility to continue growing globally to provide memorable travel experiences and stable jobs. He cited a World Bank prediction that in 10 years, 1.2 billion people aged between 18 and 25 will be looking for employment. According to Bazin, tourism and hotels could provide jobs for 425,000 individuals, underlining the industry’s crucial role in providing employment opportunities.
Bazin acknowledged the industry’s need to adapt to reach different generations of travelers. He noted that the average Accor guest is 47 years old and emphasized the need to consider younger travelers more in their plans.
In summary, despite the challenges faced by the global hotel industry, Accor’s CEO is urging hoteliers to pivot towards domestic and regional travel demand, prioritize local experiences, and provide standout service. The industry’s resilience and adaptability will be key in navigating these uncertain times.
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