Hotel Owner October 2018 | Page 18

FEATURE | FEATURE LUXURY HOTELS How has the luxury hotel market evolved? Millennials are less materialistic and more experience-driven, and their tastes present a challenge to hoteliers – how do you excite a customer who does not care for fine dining or sumptuous decor? By LEWIS CATCHPOLE “I think the likes of the Claridges and the in conversation with a friend and colleague a trend fairly evenly represented across Ritz - beautiful properties and wonderful from his days studying in Switzerland, Paul the globe for a “pursuit for experiences places but attract mostly the older Cordier, and realised that “we were on the over possessions”. Recognising this shift in generation - will have to make some same wavelength in the sense that there preferences, other hotel chains reacted fast. changes eventually or be left behind,” was a big gap in the market on the luxury Hyatt launched the ‘Unbound Collection’ says Ronald Homsy, CEO and co-founder independent properties for the new luxury in March 2016, offering non-hotel travel of the Utopian Hotel Collection, a newly traveller of today”. experiences such as river cruises and other Europe’s biggest fig plantation at the Hotel she says. “Consumers, and the way in the drop-off point within the grounds of York Racecourse, a five-minute drive away.” Vitznau adventures. Similarly, Hilton’s Conrad Hotels’ Furnirussi Tenuta’s in Italy, to the Nolinski which they make purchasing decisions, meet what they saw as a big opportunity, latest marketing strategy emphasises Paris where guests can have an old-school have changed; it’s not enough to have a and conducted research which found that selling experiences through blog-style photoshoot experience at Studio Harcourt, good product or competitive price, guests “authentic attitude”, as much as it is about hospitality management in Switzerland 72% of people would rather spend money on local guides, enabling a fully customisable or even Heli-yoga at the Le Grand Bellevue demand unique experiences to keep their the experience. “People want to experience before deciding at the age of 24 he wanted experiences than ‘things’. This is indicated experience. Homsy and Cordier’s answer Hotel in Switzerland. “We believe that luxury interest and keep them coming back.” things as locals do” and it is important to own his own restaurant - turning one that “travellers are now seeking more to a rapidly growing space was to find in the old days, all about gold ornate, over restaurant in Beirut into over 30 outlets than just exceptional service, fittings and 25 luxury independent hotels created to time has become more about experiences, technologies has changed guest including bars, nightclubs and catering furnishings”, says Homsy. capture “a new sense of luxury”. but what we believe here at Utopian that it expectations and has also redefined is all about attitudes. the “customer journey”, altering the in Paris and not recognise that they are in way in which hoteliers reach out to and Paris or New York or Bangkok because it is a created hospitality consortium of luxury independent hotels. Homsy started his career studying companies across the Middle East and In 2015 the pair embarked on a plan to He believes there is an “appetite for the She says the emergence of new Homsy explains it is as much about the to them to be in properties that are very “authentic to their destination”. “They do not want to wake up in a hotel Europe. After 17 years he wanted to return to intangible” and a “desire for truly authentic NEW SENSE OF LUXURY the hotel industry, so he sold his company. adventures which enrich and surprise”. This They curated a list of five key ‘principles’. perspective. We need to make sure we communicate with consumers, as well as the chain hotel - they want to feel the Parisian “I missed the hospitality and hotel side of trend is one that is not only found in the “We are really looking for quality not are catering for our clients depending on way in which they book. experience,” he exclaims. “Gone are the things,” he says, “and wanted to combine luxury hotel market but one felt across all quantity, and consistency inside our luxury what they are really looking for and not this with a technology component.” He was sectors. A 2017 Euromonitor study found properties is crucial,” says Homsy. “We are coming back to our clients with the same make their mark in this new experiential and the first thing they ask you is for your curators - what we do is go into a property, rhetoric, there is no point offering a luxury landscape? The Grand York offers a passport or credit card or ‘how was your we live the moment, talk to the people, golf experience for someone that has no personal helicopter transfer service which flight?’ - which obviously isn’t going to be and use the spas, and if we come to the interest in golf.” will allow guests to be whisked, VIP-style great if you’ve been on a plane for 10 hours.” “Everyone sees luxury from a different conclusion that the property meets our ‘five www.hotelowner.co.uk from their homes and back again - the only understanding what clients want personally such service in the UK. Philip Bolson, general A ‘YOUNGER MINDSET’ TO LUXURY people to people service’, ‘the unexpected - something “you could not do back in the manager says he was asked by guests Data from Mintel in 2016 shows that adventure’, ‘the playful character’, and ‘the day”. However Homsy admits nowadays about whether such a service could be older millennials (aged 25 – 34) spend seamless technology’ then it meets what data allows business owners to cater rendered. “To fulfil this,” he says, “we have the most on holidays. Londoners in we are looking for in a luxury hotel. If on for their customers’ needs and be as teamed up with a local aviation company particular are key targets for luxury travel top of that if that it also has the design personalised “as humanly possible”. who can provide transfers in two types of operators with consumers living in Inner helicopter depending on how many guests and Greater London spending the most will be staying with us. on the holidays. This is also supported Clare Thomas, director of marketing engage with the properties and propose at the Grand York Hotel and Spa - York’s that it joins Utopian.” first five-star hotel and the only AA “Where possible, our helicopter will pick by research from Forbes which shows five-star rated hotel in Yorkshire - is on up guests from the grounds of their homes, as many millennials today enter their certainly offers guests more than the the ‘experience’ bandwagon. “As with or land nearby, and fly them to York where peak earning years, this generation will standard luxury stay. From fig-picking in everything, it’s all about the experience,” our chauffeur service will collect them from experience affluence forever, and will The portfolio of the Utopian collection 18 days when you want to get to the hotel principles’ - ‘the story of everything’, ‘the characteristics we want... that is when we El Chiringuito Marbella He adds luxury is now about So what are these hotels doing to October 2018 October 2018 www.hotelowner.co.uk 19