Northstar

TWA 21 Jun 2011

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NEWS Industry Insights: Asia according to Accor What makes Asia so "hot", as compared to the other continents in terms of hotel developments? Do you see that as just a "fl avor of the month" or something sustainable will continue into the next one or two decades? The growth of Asia is not something new. In fact, Asia has been the growth engine for the global tourism industry for over the past decade, and we foresee this trend continuing into the next decade. One of the major reasons is the increasing stature of Asia in the World Economy. Taking a look at the World Economic Outlook (April 2011) produced by the International Monetary Fund (IMF), growth in India is expected to be robust, with GDP growth projected at 8.25 per cent in 2011 and 7.75 per cent in 2012. China's growth is expected to remain robust at 9.5 percent this year and next, with the drivers of growth shifting increasingly from public to private demand. The ASEAN-5 economies, which include Indonesia, Malaysia, Philippines, Thailand, and Vietnam, are projected to expand by 5.5 percent in 2011 and 5.75 percent in 2012. By no coincidence, these are the countries in which Accor intends to focus in terms of hotel developments. You are defi nitely not alone in making the beeline to Asia? So what makes Accor stand out from the rest? Accor has operated in the region since 1982 and has been continually expanding in the region since then and maintains the mantle of being the region's largest operator of hotels with almost 450 today. Beyond this in 2011 alone, Accor will open in excess of 50 hotels. The importance of the region as a part of the global strategy is evidenced through the fact that some 43 per cent of our global growth is committed in the Asia Pacifi c region. China vs. India. What is your outlook for these two markets? What are the differences in your development strategies in both countries? How different are the customers from these two markets, and how will you be adapting your marketing strategies accordingly? In reference to the report which we cited from the IMF, we see both markets (China and India) as the leading economies of the Asian boom. For China, we have committed to open at least 51 new hotels and operate today 108 hotels and have been operating in China for over 25 years. India on the other hand we entered in 2005 and have nine operating hotels today and 62 hotels committed to the country, 21 of which will open before the end of 2012. How about Southeast Asia? Where do you see growth opportunities? We are looking to solidify our positions in the Thai and Indonesian markets, which more than 15 and 29 hotels poised to open by 2012. Accor has also commitments to double its network in Vietnam where it already operates 11 hotels. 8 | ■ TRAVELWEEKLY ASIA | 21 JUNE 2011 " Evan Lewis, vice president Communications – Accor Asia Pacifi c What are the new brands that we can expect to see from Accor emerging in the different Asian countries for the very fi rst time in 2011 and 2012? You can expect to see the emergence of Sofitel, Pullman, Formule 1 and ETAP hotels in India in 2011. Across Southeast Asia, M Gallery will be opening its doors for the fi rst time in Cambodia, ibis will open in Vietnam and Laos by 2012, Pullman will also enter the Vietnam market by 2012. In addition, All Seasons will set up shop in Malaysia by 2012. What are the notable hotels that are opening in South East Asia this year? In Cambodia, we have Sofitel Phnom Penh Phokeethra which is the second Accor hotel in the country after Sofitel Angkor Phokeethra Golf and Spa Resort. In Thailand, there is Novotel Bangkok IMPACT, which is at IMPACT Convention & Exhibition Centre, Novotel Bangkok Suvarnabhumi Airport at Bangkok Suvarnabhumi Airport and Pullman King Power. In addition, there are two new Pullman hotels in Indonesia and Malaysia, Pullman Bali Legian Nirwana and Pullman Kuala Lumpur Bangsar respectively. In Singapore, we have the second ibis hotel which just opened, the ibis Singapore Novena. How has Web 2.0 changed the landscape of your business? The internet has contributed to a significant portion of our revenues through direct bookings. To supplement this, search marketing and search engine optimisation are integral pillars in our online marketing mix. Beyond this Accor has developed 'apps' for use on iPhones and Blackberry's and has an Android version due out very soon. This new booking channel is expected to deliver some 20 million Euros in revenues this year to Accor. A specially dedicated e-commerce team drives our e-marketing initiatives. In addition, we have been aggressively using social media such as Facebook and Twitter to engage with our end customers, and we are also working closely with highly popular tourism related websites such as Tripadvisor and Expedia to drive traffi c to our sites. www.travelweeklyweb.com In this column, industry leaders share their expertise and insights with TravelWeekly Asia readers. For this column we feature Evan Lewis, vice president Communications – Accor Asia Pacifi c Accor has operated in the region since 1982 and has been continually expanding in the region since then and maintains the mantle of being the region's largest operator of hotels with almost 450 today. Beyond this in 2011 alone, Accor will open in excess of 50 hotels. "

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