Accor Aims to Combat Inflation With Pricing Power
Photo Caption: View from the rooftop restaurant at the SO/ Paris hotel, a brand belonging to Accor-backed Ennismore. Source: Ennismore.
Skift Take
Europe's biggest hotel group believes it will be able to overcome inflation through strong pricing power as guests are still showing they are willing travel at any cost. So far, so plausible, at least in the short term.
The summer in Europe and the U.S. has been especially good for tourism, and in turn for Accor. The Paris-based operator of about 5,357 hotels globally regained its pre-pandemic performance on key financial measures. This enhanced pricing power could help insulate the lodging company from rising inflation, by offsetting those costs with revenue gains on higher room rates.
In the third quarter, the group reported record revenues thanks to higher rates and strong demand in many markets. Revenue per available room, a key industry metric, was up 14 percent from the comparable pre-pandemic period.
Accor, which runs chains such as 25hours, Pullman, and Novotel, generated third-quarter revenue of about $1.16 billion (€1.15 billion), up 9 percent on 2019.
While it didn't reveal third-quarter net income, the group said it
