NEWS | Accor re-hires one-third of 1,500 employees laid off during Covid in India

Accor re-hires one-third of 1,500 employees laid off during Covid in India

Thanks to a strong recovery following the deadly second wave, French hospitality major Accor Group says it has started re-employing staffers laid off during the pandemic. Based on the bounce-back rate the group, which currently has 55 properties in India, now is banking on October-December 2022 being back at the level of the same period in pre-pandemic 2019. Since international travel still has some restrictions, the bounce back is almost entirely on domestic travelers in the form of holidays, staycations and workations.

"We have 6,000 employees in India. During Covid and either no or very low revenues, unfortunately, 25% of them had to be laid off. We created a fund for employees from the amount that was to be paid as a dividend to shareholders just before the pandemic struck. The recovery following the second wave has been much stronger than anticipated and we have started re-employing the laid-off workforce in India," Marc Descrozaille, Accor's COO for India, Middle East and Africa, told TOI Tuesday.

So far about one-third of those laid back have been invited to join back. Some of those who got this call declined the offer as they had started doing something else during the pandemic, he said.

"While occupancy is looking up, average room rates (ARR) are lagging behind. People are now spending more on hotel stays on other things like food and beverage or upgrading their chosen hotel/room. A large number of guests are these days driving for breaks. Saving on airfares allows them to spend more on hotel stays (not rates which are still low but other amenities)," Descrozaille said.

The ongoing wedding season is bringing some more respite for hotels. "Since there are restrictions on the size of gatherings (200 in Delhi for instance), people are spending more (per guest) due to that," he said.

With pandemic fatigue setting in, hotels have to remind guests to adhere to Covid protocol. Guests walk into restaurants with masks on and a few drinks later the masks are off. Hotels then politely remind them to do so sending masks on a tray as a reminder.

While footfalls are up, revenue overall is still nowhere close to pre-pandemic levels. "We will end the calendar year 2022 at half of CY 2019 levels," Descrozaille said.

Accor has big growth plans for India and it plans to add 20 more hotels to its current portfolio of 55 properties over the next five years. The additions will include its top of the line Raffles in Jaipur and a Fairmont in Mumbai, apart from 6 Novotels and 4 Ibis.