Accor, the France-based global hotel group, is prioritizing the growth of its luxury brands in North America and expanding its all-inclusive offerings in Central America and other regions, according to CEO Sébastien Bazin. Speaking at a recent press event, Bazin outlined the company’s strategic plans and shared insights on global tourism trends, geopolitical concerns, and the future of hospitality.
Bazin emphasized that Accor’s diverse portfolio of 47 brands positions it as a strong partner for the travel industry. Reflecting on the past eight years, he described the company’s efforts as “doing the dirty work” of building a robust brand collection. Now, Accor is well-equipped to meet the needs of any traveler. Bazin expressed optimism about global tourism growth, citing the rise of the middle class and advancements in air travel.
When asked about geopolitical tensions, Bazin remained pragmatic. “As a Frenchman, I am concerned, but as CEO of Accor, I am not,” he said. He believes that travel between Europe and the U.S. will continue uninterrupted. Additionally, he dismissed concerns about tariffs, noting that Accor, as a service-based company, is not directly affected by trade policies.
Luxury Growth in North America
While Accor operates numerous midscale and limited-service brands, Bazin stated that the company will not focus on expanding these in North America. Instead, it will concentrate on its luxury offerings. He highlighted the success of the Raffles brand, particularly the Raffles Boston, which opened two years ago and has become a top performer in the city. Bazin confirmed that fewer than a dozen Raffles properties will be established in North America, all in major cities.
Omer Acar, CEO of Raffles & Fairmont, revealed that the company is in advanced discussions to open Raffles properties in Beverly Hills, Miami, and Mayakoba, Mexico, with announcements expected in the coming months. Accor also plans to expand its Fairmont brand, including hotels and ski resorts. The recently opened Fairmont Breakers Long Beach serves as a model for future developments, with Bazin praising Fairmont as a strong option for meetings and events.
Global Dominance and Lifestyle Brands
Bazin acknowledged that Accor faces stiff competition in certain markets, such as North America and China, but emphasized its global leadership. “We have 350,000 rooms in Europe—more than the next three biggest companies combined,” he said. The company is also exploring opportunities to grow its lifestyle brands in the U.S. through its joint venture with Ennismore, which includes 17 lifestyle brands like Mondrian, Delano, and SLS.
All-Inclusive Expansion
Accor is also betting on the all-inclusive market, leveraging the expertise of Rixos Hotels, its joint venture partner. Bazin highlighted the success of the SLS all-inclusive in Cancun, which has exceeded expectations. He noted that the company only recognized the potential of all-inclusives five or six years ago and now sees significant growth opportunities in this segment.
Post-Pandemic Travel Trends
Bazin addressed the impact of the pandemic on business travel, noting a 30% reduction in international long-haul trips due to the rise of virtual meeting platforms like Zoom and Microsoft Teams. However, he observed that while trips are fewer, stays are longer.
Embracing Technology and Loyalty Programs
On the topic of artificial intelligence (AI), Bazin said Accor has been collaborating with tech companies for over a decade but remains cautious about its long-term impact. “It will be big but not devastating,” he said, emphasizing the need to choose the right partners.
Accor’s loyalty programs, meanwhile, continue to thrive, with nearly 100 million members globally. Bazin noted that loyalty members spend twice as much and stay 50% longer than non-members, making these programs a key tool for customer engagement.
Venturing into Cruises and Sustainability
Accor is also entering the cruise industry with two Orient Express yachts on order and options for two more. Bazin described the Orient Express brand as his “baby” and said the company will evaluate the success of this venture before exploring other cruise opportunities.
Finally, Bazin stressed the importance of sustainability, balancing the environmental impact of hotels with their economic benefits. “The positive has to outweigh the negative,” he said, noting that Accor now opens fewer but more profitable properties, with a focus on resource efficiency and community contributions.
Accor’s strategic focus on luxury, all-inclusives, and sustainability reflects its commitment to adapting to evolving traveler preferences and global trends.
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