Millennials 'less interested' in loyalty points, price reductions, says Accor CEO
Accor’s CEO, Sebastien Bazin talks about millennials and what drives them in the hospitality industry
Accor’s CEO, Sebastien Bazin spoke to sister title Arabian Business about millennials and what drives them in the hospitality industry
Millennials are less interested in loyalty programmes’ points and price reductions when compared to older generations, according to the CEO of French international hotel group Accor.
Speaking to Arabian Business, Sébastien Bazin said the younger generation are driven by social responsibilities and sustainable development instead.
“Millennials are very clear in what they want. They’re very much value-driven, eco-friendly, respect social responsibilities and sustainable development. They’re much less interested in points and price reductions,” he said.
The younger generation uses loyalty programmes for concerts, dining and sports, but are not interested in traditional programmes which offer table books or chocolates for rewards.
“For anything which is concert, culinary and sports, yes, but if you give them a table book and a bottle of [grape] and chocolate in their hotel rooms, they don’t give [care]”, Bazin said.
Accor recently launched a new loyalty programme called Accor Limitless, which will incorporate the existing Le Club Accorhotels under the new global platform with a portfolio of over 30 hotel brands and 10,000 restaurants of Accor.
It will also allow members to access chef masterclasses, concert tickets and more, as the group signed a deal with French football club PSG to become its principal partner and shirt sponsor from the 2019/2020 season.
“[Members] will be able to burn their points to get to anywhere, even Coldplay concerts, food festivals etc. So the more valuable propositions and ‘money can’t buy’ experiences, that’s what people want. They want to feel welcomed and valued,” Bazin said.
“Loyalty programmes have never been stronger if there is a true offer. If you have a loyalty programmes which is only specific to your brands, with no ability to burn your points any place else, it is dying. Because people want to be a loyalty member and can use the points in any industry of their choice,” he added.
Accor will reportedly invest €225 million (AED934m) to support the new initiatives.