Accor Explores Corporate Partnerships to Revive Cratered Revenue
Photo Credit: A travel recovery is underway at Accor, but revenue is still down 69 percent from where it was last year. Flickr / David McKelvey
Skift Take
Accor sees plenty of revenue growth opportunities, but it needs to move swiftly against competitors to dig out of current financial realities and pandemic misery.
The worst financial impact from coronavirus is in the past for Accor, company executives announced during a third quarter earnings call Thursday.
But the company’s current financial performance isn’t exactly something to celebrate, and Accor leaders are pursuing an array of partnerships to goose up revenue in a low-demand environment.
Everything appears to be on the table at Accor headquarters in mapping out a recovery strategy from the worst year on record for travel demand: renegotiated corporate rates with airlines, rental car partnerships, and even coworking offerings. But company leaders emphasize these potential new business lines aren’t a sign Accor, owner of brands like Raffles and Novotel, is moving away from its traditional revenue stream of hotel management agreements.
“The Covid crisis has taken its toll. It’s really painful to do business for some corporations,” said Accor Deputy CEO Jean-Jacques Morin. “But we are staying on the same course.”
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