Accor to Focus on Economy Hotels in Middle East
Accor, one of the leading players in the hotel industry, has announced its intention to step up its development budget hotels in the middle east. The move comes as demand for affordable accommodation options in a region traditionally associated with luxury resorts and high-end service grows. A key message from Accor’s management was that “mass market is not a dirty word,” opening up new horizons for expansion and renewal in the hospitality industry.
Current trends in the Middle East market
According to reports, the number of tourists visiting the Middle East continues to grow each year. According to the World Tourism Organization, the number of international arrivals to the region increased by 5% in 2022. This creates a huge opportunity for development budget hotels in the middle east, which can attract a wider range of travelers.
- Increase in the number of passengers on flights.
- Reduction in prices for air tickets.
- Growth of domestic tourism among residents of the Middle East.
In addition, the emergence of new low-cost airlines makes the country more accessible and reduces travel costs, increasing interest in economy-class accommodation. Accor expects that the creation of a network of affordable hotels will attract both international and local travelers seeking quality, but budget-friendly leisure.
Accor's Economy Segment Development Strategy
Accor plans to increase the number of its hotels versions of Ibis Budget and other brands in countries such as the UAE, Saudi Arabia and Egypt. The company's management believes that there is great potential for growth in this segment. There are several reasons why Accor believes that budget hotels in the middle east are key to expansion:
- Adaptation to customer needs: More than 50% travelers are expected to choose budget accommodation options.
- Variety of offers: Availability of a variety of hotels to suit different tastes and budgets.
- Innovative services: Implementation of modern technologies to improve customer experience, such as mobile booking applications and special loyalty programs.
This strategy by Accor could lead to a significant increase in market share in the affordable accommodation sector, especially in an environment of constantly changing travel preferences and expectations.
Economy Hotel Market: Facts and Figures
As of 2023, the share of economy hotels in the Middle East was 25% of the total number of hotel properties in the region, and this figure is projected to increase to 35% by 2030. This indicates that the demand for budget hotels in the middle east will only grow. Leading analysts have already begun to note trends indicating a preference for budget accommodation among the younger generation of travelers.
It is also worth noting that as part of the expansion of this segment, companies are considering the possibility of introducing new sustainable practices and technologies in hotel management, which will have a positive impact on the environment and brand image.
Thus, Accor not only strengthens its position in the Middle East, but also actively adapts to changing consumer demands, focusing on development budget hotels in the middle east as a key element of its long-term strategy.
