FEATURE
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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
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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
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