The reported decline of 0.4% broke down as follows:
- Like-for-like – 0.6%
- Business expansion + 3.7%
- Currency effect – 1.4%
- Asset disposals – 2.1%
Hotels: stable
Hotel sales were stable, reflecting a 3.3% gain from business expansion and a 1.8% decrease due to asset disposals. On a comparable basis, sales improved slightly in the second quarter, declining by 1.2%, as opposed to a 1.9% contraction in the first three months.
Services: up 2.5% (16.1% excluding currency effect)
Sales of Services enjoyed sustained growth, rising 16.1% at constant exchange rates. The negative 13.6% currency effect was due mainly to devaluations in Latin America, which had almost no impact on earnings because of higher interest rates and the fact that operating expenses are denominated in the local currency.
Other travel and tourist activities: down 2.3%
- Travel agencies – 10.5% (- 11.0% on a comparable basis)
- Casinos + 2.0% (+ 0.7% on a comparable basis)
- Restaurants – 2.3% (+ 3.5% on a comparable basis)
- Onboard train services + 3.4% (+ 2.5% on a comparable basis)
Full-year outlook
Hotels
In light of business trend in Europe at June 30 (revenue per available room, or RevPAR, down 3.5% in Business and Leisure and up 2.9% in Economy), Accor is maintaining its RevPAR forecast for the second half in Business and Leisure Hotels Europe and increasing its forecast in Economy Hotels Europe. For the full year, RevPAR in Europe is expected to increase by 1.8% in the Business and Leisure segment (compared with an initial forecast of 2.4%) and 3.6% in the Economy segment (unchanged).
In Economy Hotels US, the recovery has been slower than expected, with RevPAR at June 30 down 4.5%, the same decline as recorded in the first three months. For the full year, Accor is forecasting a 1.5% decrease, versus the 0.3% gain initially announced.
Services
Sales of Services at June 30 were higher than expected, which has enabled Accor to increase its full-year issue volume target to 11.5% on a comparable basis, versus the 10.2% previously forecast.
With 147,000 associates in 140 countries, Accor is the European leader and one of the world`s largest groups in travel, tourism and corporate services, with two major international activities:
hotels: more than 3,700 hotels (415,000 rooms) in 90 countries, casinos, travel agencies, and restaurants; services to corporate clients and public institutions: each day, 13 million people in 31 countries use a broad range of services (food vouchers, people care and services, incentive, loyalty programs, events) engineered and managed by Accor.
Theodore is the Co-Founder and Managing Editor of TravelDailyNews Media Network; his responsibilities include business development and planning for TravelDailyNews long-term opportunities.
