United Kingdom
United States
Asia Pacific
Accor plans 75m euro cost cuts
Accor is to make 75 million euros-worth of cost savings over the next two years.
Corporate overheads, organisation of head offices in Latin America and the US, marketing expenditure, purchasing, and new IT projects have all been targeted.
The measures come as the French hotel giant said it anticipated an economic environment “that might remain difficult†in 2009.
The company saw half year net profit reduce by 48% from 596 million euros to 310 million euros.
Operating profit before tax and non-recurring items was 393 million euros, up 16% like-for-like, the company said.
As part of a restructuring, including the sale or non-core assets such as French operator Go Voyages, Accor’s full-year target is to report profit before tax and non-recurring items of between 910 million euros and 930 million euros, reflecting a 16% increase in profit.
Like-for-like RevPAR in July for in upscale and midscale hotels in Europe rose by 3%, with increases of 4.2% in France, 4.7% in Germany and 0.4% in the rest of Europe.
In economy hotels in Europe, like-for-like RevPAR was up 1.7% overall, rising 3.1% in France, 1% in Germany, and 0.4% in the rest of Europe.
In economy hotels in the US, RevPAR was down 3.0% in July, in line with the market, Accor said.
by Phil Davies
Phil Davies
Tony from Gatto’s Pizza on Columbus’s Unique Pizza Trail
Sophia Hyder Hock on Global Social Inclusion in Tourism
Sustainable Tourism: Don Welsh on Community Values and Global Collaboration
Jane Cunningham: Enhancing European Engagement in Tourism
Kristin Dunne: Navigating Destination Strategy
Revolutionizing Mobile Connectivity: Boris Bijlstra on HUBBY eSIM
Capturing Glasgow’s Vibrancy: An Interview with Susan Deighan, Chief Executive of Glasgow Life
Lebua Hotel & Resorts: Rajan Khurana on Hospitality and Bangkok’s Charms
Sustainable Tourism and Growth: Insights from Chiravadee Khunsub from Tourism Authority of Thailand
Revolutionizing Travel: SmartSIM USA’s Dale Takio Unveils the Power of E Sims
TravelMole Interview with Hishan Singhawansa, Deputy CEO of Cinnamon Hotels & Resorts, Sri Lanka
Unveiling the Essence of Magari Tours: A Dive into Authentic Italian Experiences
EU airports bring back 100ml liquid rule
CLIA: Anti-cruise demos could cause itinerary changes in Europe
Co-pilot faints, easyJet flight issues ‘red alert’
Dozens fall ill in P&O Cruises ship outbreak
Woman dies after getting ‘entangled’ in baggage carousel