BERLIN — Much of the Western world is closely following the latest on the Iran war, worryingly checking the news for updates on the Middle East. But Accor Chairman and CEO Sébastien Bazin decided he needed to do more.
Rather than stay at Accor's global headquarters in Paris, Bazin — a nearly 13-year veteran chief executive — flew to the United Arab Emirates to check on Accor's hotel employees.
“Our staff members are under stress, [so I could not] stay in [my Paris] office,” he said during a keynote address at this week's International Hotel Investment Forum EMEA. “I wanted to have a view on what is going on. You learn 10 times more, and you learn something new.
“I just asked, 'Can I just be part of it?' It was not about exploiting the situation. I just had something in my stomach, and I had to go.”
Bazin said he remains confident in the resiliency of the global hotel industry, and that optimism includes the Middle East despite its recent crises.
“Anywhere there is an attack, it is 24/7 in the news. [Headlines such as] ‘Dubai on fire,’ and ‘Abu Dhabi on fire.’ Of course, it is scary, but it is not on fire,” he said.
In such tense situations, leaders — whether they're in business or in government — need to prove their worth and make their vision clear to all stakeholders, Bazin said. Accor's portfolio includes approximately 5,800 hotels with 880,000 rooms. Companywide, Accor employs approximately 360,000 staff members.
“One needs a three-year plan,” Bazin added. “I have now had four. … Do not change course. Don’t stop. Do not leave people behind, and do not exit a country. It is about longevity, trust and care.”
He added it is easy to sell hotels and exit a particular country that's in crisis, but that is a huge mistake that takes a lot of time to rectify.
“It is easy to stay in the good days. Anyone can do that. I may develop a little less in some markets, but I never change course,” Bazin said.
Global greatness
The global hotel industry is keeping pace with the developing world, Bazin said.
Europe might be a mature hotel market, and India might be a developing hotel market, but the growth runway for both is notable, he said.
“India’s potential is immense. … We’ve all been there for 25 years, and we failed in terms of scale, [as] it took us decades to get to where we are now,” Bazin said.
India’s technology prowess and growing airline industry are two levers that will propel growth in a country where internationally branded hotel firms remain far from reaching the same market share they enjoy in most other places.
To expand in India, global hotel brands need to “trust the people on the ground. Give them the keys,” Bazin said.
“The good news is we are all going to win,” he added.
Bazin also said Europe is not saturated with too many hotels.
“Europe has Paris, London, Berlin. Half the tourists in any European capital are Europeans, as we want to travel to these places,” he said.
Yet there are tourism markets even in Europe where Accor have not penetrated with scale.
“Accor never got a crack at Scandinavia, and we sort of missed Spain. In Italy, 95% of all hotels are non-branded, and in Italy, that works just fine,” he said. “Where we are growing the fastest is Poland. They accept crises, they are welcoming, and they are hard-working.”
Change is constant, and global hoteliers are used to change. Across hospitality itself, booking lead times are dropping even more dramatically and AI is taking a more dominant role with every month.
Bazin said AI has the potential to help decrease guests’ travel anxieties, especially with 60% of them now choosing a destination 12 days before they arrive.
In April, Accor will launch its first yacht, the 54-berth Orient Express Corinthian. Bazin said the first seven bookings of the yacht were full buyouts.
A sister ship will launch in 2027, with both yachts nodding at the grandeur of travel in the years between 1925 and 1935.
“Everything was refined [then]. We have let that go,” Bazin added.