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Accor's Two-Track Strategy: Luxury for Growth, Economy for Profit

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Skift spoke with Group Deputy CEO Jean-Jacques Morin about Accor's strategic pivot in key areas, such as why half of its new hotels will be in Asia this year.
Accor, a major player in the hospitality industry, is employing a dual strategy to navigate the current economic landscape. On one hand, the company is focusing on expanding its luxury segment, which is seen as a growth driver due to increasing demand from affluent travelers. This includes the development and acquisition of high-end brands like Fairmont, Raffles, and Orient Express, aiming to capitalize on the trend of luxury travel. On the other hand, Accor is also enhancing its economy brands like Ibis and HotelF1 to ensure profitability. These brands are being optimized for cost efficiency, appealing to budget-conscious travelers, and are expected to provide stable, if not spectacular, returns. This two-track approach allows Accor to cater to different market segments, balancing growth through luxury with profitability through economy offerings, thereby positioning the company to thrive amidst varying economic conditions.

Read the Full MSN Article at:
[ https://www.msn.com/en-us/money/economy/accor-s-two-track-strategy-luxury-for-growth-economy-for-profit/ar-AA1ztlGD ]


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