Anthology of fine financial results in tourism. All believable? Accor is getting into it…

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When we look at the financial results of large tourism companies, we can quickly understand the reasons for these great profits. Recently, Air France announced an operating profit. When working or not in travel, it is easy to see that the prices of plane tickets have risen sharply. It’s not just the travel mania of airline customers. They would have us believe that price increases are due to the price of kerosene or wage costs!

Today, Accor announces a very good result. Here again, the rise in the price of hotel rooms is partly the reason for a profit. You can see the same phenomenon in other industries. The pandemic and the crisis in Ukraine would be responsible for these price increases for the consumer.

GBTA Annual Forecast 2023

“Prices rose in all regions across most spending categories, fueled by pent-up demand, a desire to build an entrepreneurial culture and an uncertain economic outlook. The cost per attendee for meetings and events in 2022 is expected to be approximately 25% higher than in 2019. It is expected to increase by another 7% in 2023.”

“However, the report projects that they will increase by 18.5% in 2022, followed by an increase of 8.2% in 2023. Hotel prices have already eclipsed 2019 levels in some regions such as Europe, in the Middle East, Africa and North America and are expected to do so globally by 2023.

Hotel rates have risen sharply in some parts of the world, including a 22% rise in North America – and a forecast 31.8% in Europe, the Middle East and Africa – thanks to an accelerated recovery associated with persistent capacity constraints. »

See the report:

Even the experts are surprised by these results

The numbers were above market expectations. Accor points to a “very good” deal in December.

Hotel results for the second half were above pre-crisis levels in almost all regions. Only Asia, a region hit by China’s strict zero-Covid policy until the end of the year, is still well below 2019 activity levels.

Accor: 40 brands and earnings above expectations

The group reported 2022 earnings before interest, tax, depreciation and amortization (EBITDA) of 675 million euros, above the expected range of 610 million to 640 million euros. In a Refinitiv survey, analysts expected to an average EBITDA of 640.3 million euros. Revenue per available room (RevPAR) was 2% higher than pre-pandemic 2019 levels.

In some regions the revenue per room has increased by 73%

In the India, Africa, Middle East and Turkey region, Accor recorded a 73% increase in its RevPAR in the last quarter of the year compared to 2019, fueled by strong demand during the FIFA World Cup in Qatar.

Northern Europe is also progressing

Northern Europe saw a RevPAR increase of 5% in the fourth quarter of 2022 compared to the same quarter in 2019. However, the development was characterized by a slight slowdown compared to the third quarter of 2022, mainly due to the Germany, according to Accor. RevPAR in Northern Europe for the full year 2022 was 6% lower than in 2019.

Southern Europe does even better

Southern Europe, led by France, saw its RevPAR increase by 12% in the fourth quarter of 2022 compared to the comparable quarter of 2019. Commercial performance increased quarter on quarter and the RevPAR of the year 2022 exceeded that of 2019 by 3%.

In Asia Pacific, revenue per room is increasing

In Asia-Pacific, Accor benefited from continued improvement in RevPAR (+3 percentage points between Q3 and Q4) and was -6% in Q4 2022 compared to Q4 2019. RevPAR in Asia-Pacific for 2022 overall was 18% lower than 2019, however.

The CEO is of course satisfied

Sébastien Bazin, Chairman and CEO of Accor, said: “Tourism experienced a significant recovery in 2022 and our services, which have grown strongly in all regions, reflect this recovery. We exceeded our financial and non-financial targets and can look to the future with confidence. Our brands are attractive, our distribution is powerful, our teams are talented and motivated, and our organization has adapted to better support future growth. These strengths, combined with the true culture of the Group, which places people and their talents at the heart of its model, give meaning to what we do. Our objective for 2023 is to continue our growth and strengthen our leading position

Catherine Mills Avatar