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Big changes ahead for hotel industry

According to AccorHotel's Asia Pacific chief executive Michael Issenberg, there are three mega trends that will reshape Australia’s hotel industry.

Speaking at AccorHotel's 25th anniversary celebrations in Australia, Issenberg said the sector was entering a new “dream phase”

Mr Issenberg said that despite the sharing economy, combined with guests ability to plan and book a room by themselves and put every experience online, it still came down to old fashioned service. That, he said, had to be the focus for hotel operators.

"Travel is now about the time it takes to plan and then book a holiday and select the appropriate hotel, which we call the dream phase, but once the guest arrives it's back to offering the best service we can to make the stay enjoyable," Mr Issenberg said.

"Everything has changed with technology and the sharing generation, so service is the differential for hotel operators."

He cited the sharing economy was one of three mega trends changing the industry. The others were the inflow of Asian travellers and the increased use of private stay accommodation, such as the group's Onefinestay business.

"The growth of visitors from Asia is an important mega trend that is changing the hotel and tourism sector," he said. "That includes having dual-speaking staff and different and more varied food, among many other services." 

He said demand for cable TV was falling with people bringing their own electronic devices and downloading movies. On the other hand, it meant increased demand for better Wi Fi and technology in hotels.

The Accor Hotels group just keeps growing and growing. The group started in Australia with the launch of the Novotel. It now boasts 208 hotels under 12 brands across the country.

And it has plans to expand following the $3.9 billion acquisition of the Fairmont, Swissotel and Raffles hotel.

by Leon Gettler, September 12th 2016