Accor’s Maud Bailly on how AI can enhance the luxury hotel experience

Maud Bailly joined Accor in 2017 as chief digital officer,
in charge of the French hospitality company’s information systems, hotel and
guest systems, digital products, data and global sales. In late 2020, she
became CEO for the company’s businesses in Southern Europe and then in January
2023 she moved into the role of CEO for four of its luxury brands: Sofitel, Sofitel
Legend, MGallery and Emblems. 

In February Accor reported its financial results for the
fourth quarter and full year 2023, with record EBITDA of $1.08 billion for the
year, up 49% compared with 2022, and revenue up 20% to $5.5 billion. 

The Luxury and Lifestyle division, where Bailly’s brands sit,
posted revenue of $2.4 billion, up 22% year over year on a like-for-like basis.

And Bailly sees opportunities for much more growth ahead.

In a conversation in the PhocusWire studio at the Americas
Lodging and Investment Summit in Los Angeles in January, Bailly shared how new
customer expectations and habits are driving more interest in the luxury
hospitality sector. 

Coming out of the pandemic, she said, consumers “want to be
part of something” and are willing to spend more on truly meaningful experiences.

“Our guests choose our brands to embrace a promise,” she
said.

“The minute you stay in our hotels, it’s not transactional,
it’s not a commodity. You are not there to sleep or enjoy scrambled eggs. You
are here to discover something authentic, ideally deeply, locally rooted, and
it’s going to be different in each destination.”

And despite some in the industry expressing concern that increased
use of technology such as artificial intelligence risks destroying the human element of the
hospitality experience, Bailly does not share those concerns.

Especially in the luxury sector, she said, “digital is an
enabler” for hotel staff to create an enhanced, more emotional connection with
guests.

“AI [is] allowing us to remove people, our staff from the back
of the house, relieving them from the heavy tasks with no real added value for
the guests and replacing them in the center where they belong in front of the guest.
It makes a lot of sense,” she said.

“So we are massively working through technology and AI to
really get rid of the reporting and data collection stuff, improve our forecast
accuracy, our personalization and then allow our staff to be really where they
belong – with the guests.”

Bailly also discussed the importance of driving total revenue per available room through dining, wellness and other experiences. She also explained why the
“luxury of tomorrow has to be sustainable” and how her brands are taking concrete
actions to improve their social and environmental impact. 

And she has three pieces of advice for young women entering the
travel industry today.

Watch the full discussion below.