Maud Bailly

The need to travel is now more powerful than ever

KP: What is the project that takes up most of your time these days?

MB: After a year weathering the most violent crisis that has ever hit the tourism sector, we are obsessed with the recovery. We have been awaiting it ever so eagerly. All our energy these days is going into being ready with our teams. What we are looking forward to the most are the announcements from the various governments on the timeline to reopen restaurants and bars, ease the restrictions so people can start traveling again, and of course the vaccination timeline. Because we know that the percentage of the population that has been vaccinated is closely correlated to the upswing in economic activity—as we are seeing in Israel and England, for instance. 

KP: On a personal level have you seen your travel mentality changing over the past year?

MB: I made the most of this period to explore regions I didn’t know well, and spent more time there than usual. That is something many Europeans did due to the travel restrictions. Some of them might continue to do this over the coming years. I also changed my perception of air travel, I am more aware of the carbon footprint and in the post-Covid era I will certainly avoid for example return trip Paris Bangkok or Paris New York for a short meeting or conference, however important they may be.

KP: By definition your role encompasses successful leadership and guidance across multiple projects and teams in various locations. What is the one key project that you hold as the most important in marking a change for the Group in the long run?

MB: A project that is particularly close to my heart is the development of a sustainable hospitality. Travelers’ expectations have changed. Customers are now increasingly focused on hotel experiences that respect people and the world around them. 

At Accor, CSR plays a central role in our strategic deployment and our day-to-day commitments. We have been a pioneer in many areas, with emblematic programs against food waste and single-use plastic,  support for agroforestry with our Plant For The Planet program, new carbon target with the engagement to reduce  carbon emissions 46% by 2030 and achieve net-zero by 2050. On the social front, the group is also committed to a number of programs to promote diversity and inclusion in our businesses, such as the UN’s “HeForShe” program. 

The pandemic has also revealed an ecological and societal crisis…. on the other hand, solidarity has never been so strong and sustained by tremendous outpourings of support for the most vulnerable. What I have learned from this is that collectively we are more resilient, we are capable of changing our habits and adapting to new realities for the common good. A challenge for a sustainable recovery. 

In 2019 Accor has rewritten the rules and presented “greet”, a new alternative hospitality and sustainable tourism brand that combines environmental considerations with a socially responsible approach for travelers seeking authenticity. Each hotel owner is free to express himself while staying true to the 3 ways of being greet: by salvaging objects sourced via second-hand networks or from eco-responsible suppliers; by upcycling unusual decorative items, and by revisiting these objects to repurpose them and give them a second lease of life. Up today we have 4 greet hotels in France and others to come. Let’s go back to what’s essential.

KP: What is the most treasured lesson that you think that the hospitality industry got during this challenging period.

MB: The main lessons we have learned from the crisis and that emerge from frugality: Safety first; more creativity, more versatility and therefore more agility; continue to train and help our leaders to manage uncertainty and complexity; act for the common good/welfare.

Solidarity had never been so important: Up today we have granted aid to more than 70,000 people with our“ ALL Heartist Fund”,  employees, pledging to pay for their COVID-19-related hospital expenses, for those who do not have social security or medical insurance; furloughed employees suffering great financial distress or individual partners facing financial difficulty.
Generally speaking, because our DNA is precisely the concern and welcome of others, we have put in place many initiatives, in agreement with our owners, to keep a usefulness and a raison d’être despite a crisis that seemed to put us to the ground: in France, we have thus made available, through agreements with the public authorities, more than 700,000 nights for the reception of caregivers, women victims of domestic violence, homeless people or students in precarious situation.

What I have learned from this is that collectively we are more resilient, we are capable of changing our habits and adapting to new realities for the common good. This need for meaning will survive the crisis, and I am convinced that the ability of companies to embody deep values will become an essential criterion of choice, like a signature, for their guests as well as for the future talents or owners who will decide to join them. My only concern is that there is no going back. A challenge for a sustainable recovery. 

KP: Accor’s strategy for the Greek market.

MB: Greece’s unrivalled archeological, historical and cultural heritage rank it among Europe’s top 10 destinations. And its natural appeal is unquestionable. It is a key destination for us, for business tourism and leisure tourism, and we plan to foster and strengthen it. We already have five hotels, including four in Athens with the Sofitel, Mgallery, Novotel and ibis Styles brands, and one ibis Styles hotel in Heraklion.
We are fortunate to have been able to build very close, long-term relationships with local partners, including the Mitsis group, with which we opened the Sofitel in 2001. More recently, last year, we teamed up with the Lampsa group to open the magnificent Mgallery Capital in Athens.
And we want to keep on growing in two directions: with our longstanding brands on the business and leisure segments in Athens and Thessalonica, and with our Premium and Luxury resort brands in other tourist-oriented destinations. Speaking of that, this June we will be opening a resort under the premium Angsana brand in Corfu. We are also confident in the outlook for growing our Rixos brand in the all-inclusive luxury market. In November 2020 I participated to 4th International Hospitality Forum Hellenic Chamber of Hotels and I have really appreciated the discussion about the market and the future of our industry. I love so much Greece and I will be visiting our properties in the Country at the end of May. Can’t wait to be back!

KP: How has the Group managed to exit the pandemic stronger and better positioned for its future growth?

MB: Sebastien Bazin, our CEO, often says “we should never spoil a crisis.” We have kept our strategic course, while adapting our roadmap. We have reviewed all our processes and activities in depth to focus on the essentials.

It’s crucial to continue to invest: invest in people, invest in technology, invest in development. 

Talking about technology, for example, we had launched online check-in and check-out before the crisis. We put in place solutions like QR codes for restaurant menus, click&collect, we recently announced “Accor Key”, a contactless digital key solution that we plan to deploy in 500 hotels by 2021, and we launched “ALL Connect”, a new hybrid meeting concept powered by Microsoft.
We strongly believe in digital technology, which simplifies logistics and office tasks, while leaving room for human interaction, the very essence of our business.

We also invested in people: I am proud and very grateful to Sébastien Bazin, our CEO, who had the idea of creating a fund, and to the board of directors for agreeing to allocate 25% of the planned dividend (€70 million) to the launch of the “ ALL Heartist Fund”, which I mentioned earlier.

We will also keep the best practices we’ve put in place during the crisis. In crisis management, it is essential to move faster, shorten decision process, test and recognize the right to make mistakes, and be even more creative and agile. Frugality allowing us to leave our comfort zone. We’ve learned to work differently. Many things have been made possible thanks to Digital. You can animate and engage people on Teams and Zooms, even if it is challenging to find the right balance between “HomeOffice / Presential”. 

We continue to train and help our leaders to manage uncertainty and complexity: More than ever in this crisis period, our role as a leader is to demonstrate our capacity to manage, train and empower our teams in this uncertain & volatile period.  

Invest in development: We still managed to develop 200 new hotels worldwide representing 30,000 rooms in 2020 and in the 7 Southern European countries I manage, we plan to open one hotel every 4 days in 2021. We have some iconic openings in 2021 : So/ in Sotogrande in Spain, MGallery in Pompei, the first Mama Shelter in Rome and the first Angsana in Corfu…and more to come.

KP: Accor’s strategic positioning as regards lifestyle brands (Ennismore & Faena) and how this will affect its Southern Europe business?

MB: Accor recently solidified its position in the Lifestyle segment, one of the fastest-growing in the hospitality industry worldwide, by teaming up with Ennismore to create the largest Lifestyle platform including emblematic brands such as The Hoxton, Mama Shelter, Gleneagles, Faena and Tribe. We have big plans to develop these brands in Southern Europe because we can sense real interest among clients and investors. Lifestyle hotels are “places to be”, much more than just a “great design”. They curate an elevated & distinctive experience attractive to both travelers & locals. These hotels have a strong F&B activity (approx. +45% of revenue) and strong local client base. It will be even more important in the rebound and post-covid world as we expect leisure, F&B and local activity to bounce back first. We must not forget, however, that Accor’s 50+ years of history began in France with leading edge concepts in hospitality, bringing leisure travel and hotel stays to the broader public with offerings such as Sofitel, Novotel, Mercure, ibis. Thanks to their volume, high visibility, credibility and profitability, these powerful brands continue to provide Accor with a steady flow of high-volume, long-term growth. They continue to be as popular with guests as they are with property owners, due to their strong brand awareness and local market leadership. And they are able to offer “lifestyle” experience though the brands passions: ibis with music, ibis styles with design, Mercure with local food… because basically, lifestyle means also sticking to the new expectations of customers.

KP: Key opportunities for the hospitality industry in the next 5 years?

MB: The Crisis will have taught us to think differently, to reinvent ourselves due to the changes in our guests’ profile and expectations. The desire to travel is as deeply rooted and as strong as ever. Over the past year, people around the world put their travel aspirations on hold. But activity will swing back up, in the leisure and business segments alike. 

I would summarize it in 5 points.

From my point of view, the future of Hospitality will be …

Safety first! Safe travel is here to stay. There’s no turning back on Health standards. Reassurance to customers will be essential. For 77% of our guests, hygiene, physical distancing and hotel policies are the most important factors they consider when they choose where to stay. We created “AllSafe” a dedicated program incorporating the most rigorous cleaning standards and operational protocols in the hospitality world. 99% of our network in Southern Europe follow the protocols and we are about to celebrate the 1000th hotel certified by an independent organization.

More flexible: people want to come and go as they please, anytime, and want easy booking and cancellation terms and conditions. We have stepped into the “all-flex” age. 

Multi-dimensional in terms of usage, places to work, the hotel-office initiative, hybrid meeting concept, as well as the boom of Lifestyle, creating unique experiences by mixing great F&B and incredible entertainment.

More digital. Digitalization of our business was already a strong trend in the sector and accelerated with the health crisis. 

Last but not least, more responsible. People are eager to experience “positive-impact travel” perhaps visiting fewer destinations but staying there longer, to better immerse themselves, to recharge their batteries. 

KP: As regards the value proposition of your international hotel brands, what is the key driver that will drive mid-term & long-term growth for Accor in Southern Europe?

MB: Accor has an unrivalled portfolio of more than 40 respected, diverse and complementary brands covering the full market spectrum from Economy to Luxury. And I’d say even ultra-luxury with emblematic brands such as Raffles and Orient Express. If an owner wants to open a hotel, they know there is a brand that will be right for their needs and market. In Southern Europe, we are fortunate to be operating about 20 brands. And we are pushing ahead with our development. 

The second factor that I think will be crucial to support our growth is our database of loyal customers, who are keen on our ecosystem of offerings and services, through our worldwide loyalty program, ALL – Accor Live Limitless. 

The third one is the long-term relationships we have established with our partner owners. These relationships are based on trust, transparency and cooperation, which are at the heart of Accor’s development strategy. 60% of the Group’s expansion comes from existing partners: this strategy has proven it is effective, and hotels, investment groups and property developers appreciate it. 

One last consideration: Southern Europe is objectively the most beautiful Hub in the world with 7 countries with exceptional tourist destinations and I’m so proud to lead it!!