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Accor’s Ibis Megabrand Restructure Now Paying Dividends

October 15, 2013 Corporate No Comments Email Email

Australia’s largest hotel operator reports record customer satisfaction & revenue growth figures.

Just two years after Accor revolutionised the hotel sector in Australia by bringing its economy hotels under the three-tier Ibis megabrand, Accor says it has seen a remarkable increase in revenue growth and consumer satisfaction is up over 100% across the Ibis portfolio.

In 2011 Accor – the largest hotel operator in Australia and world leader in economy hotels – decided to put Ibis at the core of its economy strategy, rebranding Formule 1 hotels to Ibis Budget and all seasons to Ibis Styles, with the existing Ibis brand retained. The result gave the three-tiered Ibis brand better visibility in the market while introducing greater clarity, consistency and strength to the network. More than just a name-change, the strategy centred around a massive modernising of the brands, with new bedding, newly configured common areas, new food and beverage offerings, and an even stronger focus on customer service.

Thanks to a fast-growing middle class of travellers from developing countries and an influx of low-cost airlines entering Australia, the Ibis strategy has proven successful, keeping pace with the evolution of travel by meeting the expectations of the modern, value-conscious traveller.

Demonstrating the group’s confidence in the economy sector, Accor has this year invested close to $10 million transforming its Ibis portfolio with $3.2 million alone being spent on renovating Ibis Styles Kalgoorlie. Close to $1 million is being spent on upgrading Ibis Budget Melbourne Airport which is set for completion in November 2013, and Ibis Styles Geraldton will show off a $1.3 million renovation in 2014.

Revenue growth for Accor’s Ibis Budget portfolio has seen 5% revpar growth against relatively flat competitor and market conditions,  while consumer satisfaction has exceeded all expectations.

Using the worldwide measure of Net Promoter Scores (NPS) to calculate consumer satisfaction, Ibis Budget’s NPS scores have increased a staggering 240%. The Ibis family has seen an overall NPS increase of 140% which can be attributed to Accor’s investment in upgrading its hotels, its ongoing commitment to improving customer service standards and continued staff training.

“Accor’s confidence in strengthening its economy portfolio has resulted in overwhelmingly positive results in revenue growth and consumer satisfaction,” said Simon McGrath, Chief Operating Officer for Accor Pacific. “The NPS scores we are seeing across our Ibis hotels have exceeded all expectations, which proves that our strategy in consolidating our economy brands has been a key driver of brand recognition and consumer engagement in the Australian market.

“This strategy of increasing our Ibis megabrand footprint to over 60 hotels in Australia could not have been executed without an obsessive focus on the customer, which remains Accor’s highest priority.”

The strategy has also paid off with owners and investors, with the group expecting four new Ibis hotels to be under construction in 2014.

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