October 2, 2022
Chicago 12, Melborne City, USA
Travel

Accor boosted by ‘sustained’ demand and higher prices

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Hotel group Accor reported revenue of 1 701 million in the first quarter of 2022, up 85 percent from the same period in 2021, but the group’s sales are 23 percent behind in the first quarter of 2019.

Globally, Accor’s brand penetration rate reached 46.9 percent, down from 17.9 percent in the first quarter of 2019. However, the average daily rate for the first quarter was € 88, an increase of 3 percent from 2019.

The company noted that prices were above the 2019 level for four consecutive quarters, but this was partly driven by inflation. The systemwide income (ripper) per room available for the quarter was € 41, down 25.3 percent from the same period in 2019.

Company officials have dubbed the Covid-19 Omicron variant early in the first quarter, especially in Europe, but also labeled it a “brief hiccup” in the otherwise promising start of 2022.

Accor said in a statement that “there has been a steady increase in the number of business and leisure guests.”

President and CEO Sebastian Bajin added the company was “confident that our performance will continue to improve month after month, with prices already above the 2019 level”.

According to Deputy CEO and Chief Financial Officer Jean-Jacques Morin, international travel has pushed domestic sales by a large margin.

In an earnings call, Marin said international travel for the first quarter of 2022 was still “minus 48 percent” compared to 2019, but he predicted a stronger recovery as travel bans were lifted.

Maureen cites Germany as an example, where the rapper was 62 percent lower in the first quarter of 2022 than in 2019, but added that Acker saw a “very strong rebound” in Germany after lifting travel bans for April.

Covid-related restrictions in Europe began to reduce demand recovery in early 2022. Accor’s first-quarter rapper for Southern Europe was 21 percent higher than the 2019 level.

Paris lagged behind the smaller towns in the region due to the continued absence of international business travelers, but Acre noticed an increase after the quarter, with that part returning.

Northern Europe lags far behind in recovery, with Accor’s rapper down 38 percent in 2019 – regional cities are performing better than big business centers like London.

By the end of the first quarter, Accor opened 26 new hotels, representing approximately 3,700 rooms for a network growth of 2.5 percent in the first quarter of 2021.

Acre’s portfolio now includes 5,304 hotels worldwide with 777,800 rooms. It is expected to grow 3.5 percent by 2022 and is expected to accelerate opening from the second quarter.

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