Accor fine-tunes outlook to a new reality

Patrick Basset, Accor’s vice president of operations for Vietnam, the Philippines, Japan and South

Mr Patrick Basset

Korea, said with sustained economic growth and significant infrastructure investment leading to increased business travel volumes and continued leisure strength, opportunities remained for quality upscale hotel developments in Vietnam.

Why did Accor choose Vietnam to strengthen its presence by developing the expansion plan for Pullman brand hotels? 

Accor has always considered Vietnam as a strategic market to expand its hotel network.  The strong domestic economy and significant foreign investment increases are driving the demand for quality hotels. When combining these with a strengthening tourism trend, the outcome is positive for the hotel industry in Vietnam.

Accor will launch five Pullman brand hotels within the next three years in Vietnam. Is it an ambitious plan when the high-end hotel segment is part of the troublesome real estate market? 

To become a successful player leading the industry, we have to look ahead to the potential of the country as a whole. The Pullman brand is a good example of tapping into a niche market of business travelers who before had to choose between luxury or mid-scale hotels. 

The Pullman hotel brand has a unique positioning with signature five-star hotel facilities and services but priced at the affordable end of five-star category which we are certain that this is where the opportunity is in the business travel market in Vietnam today and into the foreseeable futur

In contrast to luxury hotels which are struggling in the market, economical hotels are operating increasingly effectively. Is it also true for all Accor-managed hotels in Vietnam? 

Through extensive marketing and sales distribution channels, Accor hotels in Vietnam are performing well. The traveling trend of domestic travelers is on the rise, especially in larger cities such as Hanoi and Ho Chi Minh City, as we can see by the increased numbers of domestic customers in our hotels. This reinforces our decision to introduce two economy ibis brand hotels to the country.

Many hotel experts said the number of domestic customers using high-end hotels had increased. Do you think that serving domestic customers could be a way to escape the down-turn in high-end hotels in Vietnam?

The emergence of a strong domestic travel market has existed in the country for some time and continues to strengthen. It is true to say that those new to travel within the country are more likely to choose economy-priced hotels. However, there is also a strong domestic demand for mid scale through luxury hotels by Vietnamese travelers too.

Throughout the years, it is important to note that our hotels have strived because domestic customers have enjoyed our services, especially in the food and beverage sector. Revenues from these domestic customers who come to the hotel to dine in our restaurants and bars and hold weddings and meetings contributed greatly to the overall hotel performance.

With forecasted fast increases in domestic and international tourists in Vietnam in the next few years, will there be a balance of supply and demand for all types of accommodation? 

As the country’s economy grows, we can expect more middle-income professionals and younger travelers from countries around  the region and including China, Thailand, South Korea and Japan to travel to Vietnam for both business and leisure, while domestically Vietnamese will increasingly venture to tier two and three cities such as Danang, Hue, Phu Quoc and Vung Tau for leisure purposes.

Accor, with an extensive range of hotel brands from luxury Sofitel, upscale Pullman and MGallery label, mid scale Novotel and Mercure, to economy ibis, has chosen its products and brands carefully to meet the demands of both local and regional travelers, ensuring that the hotel brand chosen for each individual city will suit the incoming market.