Sebastien Bazin, chairman and CEO, Accor, has gained a reputation for thinking a little differently to other hospitality leaders. And when the group’s Fairmont the Palm hotel in Dubai was affected by an Iranian missile strike earlier this month, Bazin jumped on a plane to head out there.
“When you manage a company of our size, and you see some of your team members under stress, on high alert, you have to be there. They need to see you as much as you need to see them,” he told delegates at the IHIF EMEA in Berlin on Monday. “I needed to understand what they are going through and prepare for the rebound that comes after.”
He explained how his visit included a meeting with the Crown Prince of Dubai, who was “sincere and authentic”. Bazin went on to Abu Dhabi as well as part of the regional mission which only served to impress the French business leader. “The guys on the ground are strong, resilient, exemplary,” he said. “They have five things: leadership, vision, a plan, capacity to execute and talent.”
Asian plan
Beyond its faith in the Middle East, Accor is betting on Asia, with a focus on India and South East Asia, he added. “The potential is immense when it comes to India,” he underlined. “South East Asia meanwhile is not stopping; we have been there for 25 years and the pace of demand is increasing, although it depends somewhat on the Chinese outbound market.” The territory’s success, he said, was linked to its reputation for “warmth, a welcome, heritage, culture and food”.
He said that there was still a lot to do in India, however. “We have been there for 25 years also and we have failed for 25 years”, he said, reflecting on his and his peers’ inability to expand in the market. “None of us have been winning… but it’s right there,” he added, praising the leadership of prime minister Narendra Modi, as well as significant improvements in India’s airlines, health system and technology. “It doesn’t yet have the road infrastructure, airports or hotel capacity,” he added.
Assessing the major international flags, Accor included, he said that the international hospitality industry had managed to launch 40,000 hotels in China, but barely 1,500 hotels in India. That, however, meant massive potential for the sector. “It’s the most complex market to operate in, but you need to trust the people on the ground, give them the key and hope that they won’t make too many mistakes,” he added. “The good news is, we are all going to win, if we play, as there is enough space for us all to scale.”
European opportunities
While for many hotel groups, all eyes are on the east, Bazin said that Europe was still key to operations. “It’s not a saturated market because the wonders of the world are here – from Rome to Paris, London to Berlin,” he said. He noted that international traveller records since 1980 had tracked a consistent increase in global travel numbers, to reach some 1.5 billion annually today. “Half of those end up in Europe,” he said. “Everyone wants to go at least once in their lifetime.”
There are also underexplored pockets of Europe, he said, describing Accor as having missed the boat on “Scandinavia and Southern Europe”. He said: “We are getting back in Italy, Greece and Spain. Some 95 percent of hotels in Italy are still non-branded – generations of families are passing them down. In France, only 35 percent are branded, and in Germany, just 40 percent.”
Poland, however, is a market in which they continue to make great strides, he added, describing Polish people as “having something extra”. “They are resilient, smart, hard-working, welcoming”, he said, noting that the size of the country helped. However, he said that while the central and eastern Europe region was promising as a whole, Accor was “not getting too close to Russia”.
Strategic goals
Bazin underlined that his leadership revolved around three-year strategic plans for the business and that the fundamental part was “not changing your course” mid-plan, no matter what happened. “Don’t exit a country in conflict, just stop operating and lie low,” he said. “Trust and care are important. They will remember forever that you were there for them. It’s easy to stay in the good times and leave in the bad times.”
Another key part of the current strategy for Bazin is “killing” the idea of luxury travellers being “forced to go to the product”. “I asked: can we do the reverse?” he explained. “Can I bring the hotel to the customer?” The result is the Orient Express Corinthian, the world’s largest sailing yacht, which will be unveiled in Cannes on 24 April. “The first seven customers have booked up the entire yacht to take their 100 guests,” he said. Comprising 54 suites, the luxury experience also includes multiple high-end restaurants and public spaces all in the yacht’s Art Deco theme. “Its interior is recalling the best years of travel,” Bazin said. “Everything was refined, elegant in the twenties and thirties. People dressed up for it. I want to get back to that.”