International hotel chain Accor is banking on India’s growing middle class and elevated digital technology as it targets global net room growth of 5% this year.
“What drives the travel and leisure business is the middle class,” said Jean-Jacques Morin, group deputy chief executive and chief executive of the premium, midscale and economy division at Accor.
He said the global middle class is estimated to increase by 1.5 billion by 2030, up from 3.5 billion at present, most of whom hail from Asia, particularly India.
India became the most populous country in 2023, surpassing China.
This middle class phenomenon will likely have a market impact spread over five years rather than a splash this year, said Mr Morin.
China remains the largest outbound market, and Chinese guests account for roughly 15% of Accor’s hotel guests in Asia.
Similarly, the hospitality and tourism industry can expect more hotel development in India, as well as more Indian tourists visiting other destinations, such as the US, Europe, Asia and Thailand, he said.
Duncan O’Rourke, chief executive for the Middle East, Africa & Asia-Pacific for the premium, midscale and economy division at Accor, said the Indian aviation sector made a historic aircraft order of more than 1,000 aircraft for only two airlines — IndiGo and Air India — emphasising the high level of travel demand expected in the coming years.
He said many of these aircraft are single-aisle jets, which have flight times of 5-6 hours from India, precisely where Accor positioned its presence and growth.
As a result, this growth will benefit the Middle East and Asia in particular, said Mr O’Rourke.
Accor moved some of its workforce focused on technology development and distribution to Bangkok from Europe to better elevate growth in this region, he said.
Guests can expect greater efficiency in terms of digital services for their bookings and during their stays, said Mr O’Rourke.
Moreover, the recent trend of travellers merging their business and leisure on trips also benefits the hotel business, he said.
Mr Morin said Accor targets 5% growth in room numbers per year worldwide, adding the company’s stock posted the biggest increase on the Paris Stock Exchange last year.
Accor operates more than 5,700 hotels and 840,000 rooms in 110 countries, with another 1,300 hotels featuring 218,000 rooms in the pipeline.
In Asia excluding China, the chain has more than 430 hotels and 100,000 rooms under the premium, midscale and economy categories.
In Thailand, it operates 74 hotels with 17,000 rooms, with 20 hotels and 4,500 rooms in the pipeline under the premium, midscale and economy categories.
Hotels scheduled to open this year in Thailand include Mercure and Ibis in the Ratchathewi area of Bangkok and Tribe Phuket Patong.
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