Accor Hotels has signed a new partnership that promises to transform the growth of its brands across India.
The agreement, with Indian travel and hospitality group InterGlobe, builds on a twenty year relationship that has already seen the pair build a portfolio of Ibis hotels together. Now, they are combining their resources to drive forward as a new force in hotels in India.
A global powerhouse in travel
The move happens as it becomes clear India is not only growing as a global economic powerhouse, with a booming middle class, but is set to become a top five market for inward and outbound travel, in just a few years. Predictions are that by 2027, India will be the world’s fifth-largest outbound travel market, and third-largest domestic travel market.
The pair will work together on a number of levels. By combining their Indian hospitality resources, they will drive forward Accor’s brand growth in the country. Accor has confirmed the new Indian partnership will carry responsibility for both Accor brands, and the Ennismore lifestyle and luxury brands too.
At the same time, Accor and InterGlobe have committed to acquiring a majority stake in Indian hotel management group Treebo. Treebo currently manages 800 hotels across 120 Indian cities, and will work under a master license agreement to develop the Ibis and Mercure brands across Europe. The new working partnership starts with some momentum, as Treebo has already signed agreements to add ten new Mercure hotels.
As well as partnering over the last two decades with Accor to grow its brands locally, InterGlobe has built its business in other key areas. It developed India’s own low cost airline, IndiGo, which today lays claim to be the largest in the country, and recently placed the largest ever order with Airbus for new aircraft. While the business has since listed on the Indian stock market, InterGlobe remains a significant stakeholder.
InterGlobe has also built up its own portfolio of hotels across Europe. Some of these feature under a new luxury brand, Miiro, which InterGlobe is rolling out across key destination cities including Barcelona, London and Paris.
Thanks to acquisitions, the Miiro brand now has a pipeline of a total of 15 properties either open or in development across Europe. Upcoming hotels include the Templeton Gardens in London, and Hotel Maria Theresia in Vienna.
Working together to build loyalty
Accor is looking for other ways to leverage the partnership. There are plans to combine the loyalty programmes of Accor, with that of the IndiGo airline, allowing members of either programme to share benefits. Accor Live Limitless has a global membership of more than 100 million, and already links with partners in car hire and other lifestyle brands.
IndiGo has only recently launched its BluChip loyalty programme, but in just its first six months, enrolled more than two million members. Allowing frequent flyers to spend points on Accor hotel accommodation, while allowing ALL members to use points towards airline tickets, should help drive growth for both programmes.
