IN CONVERSATION - SÉBASTIEN BAZIN, CHAIRMAN & CEO, ACCOR, ON LATEST TRAVEL AND HOSPITALITY TRENDS AND WHY BUSINESSES CAN'T IGNORE INDIA AND CHINA.

THE LUXURY & LIFESTYLE segment is doing well. What is aiding this growth? Can it sustain?

- RUKMINI RAO

LUXURY FOCUS

What led to recovery was revenge travel. For two-and-a-half years, a lot of people were unable to travel because of Covid. A lot of them were afraid of dying.

They promised themselves and their loved ones that they are going to discover the world and enjoy themselves the minute it ends.

The money saved in Covid was spent in 2021, 2022 and 2023 . That revenge travel has probably halted now but a lot of people want to see more. Also, as many people were not going to office, a new trend emerged-staycation. Even now, people don't go to office more than two or three days a week. A lot of people in U.S. and Europe leave home on Thursday night by car or train; 90% travel to a town next to theirs that they have never seen and work on wi-fi from the hotel on Friday and Monday.

We call it Bleisure because we don't know if it's leisure or business. And they are repeat customers. Travel and tourism, the planet's second-largest industry roughly 12% of GDP and 12% employment-has been doing great for 50 years by growing 3-5% per year except during Covid and after 9/11. But number of hotels has been increasing by only 2%. Emergence of middle class and growth of demography mean that for 20 years, demand will probably grow at 6% while supply will grow at 2%.

Has bullishness in luxury segment made you realign strategy?