A combination of growing demand from business travelers and a souring economy have led hotel developer Accor to focus on mid-range hotels in the world’s largest countries. So far in India, the formula seems to be a good one. As the country grows economically, more people will be traveling there for business purposes. Smaller businesses or independent entrepreneurs who don’t want to spring for a 5-star room have few options. Accor’s budget brand, Ibis, has already opened one location in Gurgaon. The company also has two Novotels in Hyderabad. These hotels are focused on providing solid service with a few extras, but nothing in terms of the over-the-top luxury seen at a 4 or 5-star. The strategy is to be attractive both to domestic and international business travelers.
Currently, over half of Accor’s India bookings come directly from corporate buyers seeking bulk rates. However, the mid-range prices and services could be attractive to independent travelers seeking an economical alternative to India’s current hotel options.