THE PEOPLE ISSUE
In the past year alone , Franco said Luxury Frontiers has seen five years ’ worth of acceleration as hotel developers and investors seek ways to satisfy growing demand .
“ People ask me , ‘ what did you adjust or change about your business because of COVID-19 ’ and I always answer , ‘ nothing ,’” he says . “[ We ’ re ] just announcing our model , which has always been about embracing nature in a very respectful way , learning from nature and [ resolving ] challenges .”
PITCHING THE TENT Today , Luxury Frontiers has set up more than 25 experiential camps and lodges across six continents , most notably Camp Sakira at the luxe Amangiri resort in Canyon Point , Utah , and the Nayara Tented Camp at Costa Rica ’ s Arenal Volcano National Park . Brands including Four Seasons , Ritz-Carlton Reserve , Six Senses , Belmond , Abercrombie & Kent and Wilderness Safaris have all used Luxury Frontiers ’ one-stop shop of design and implementation services . The company has offices in San Francisco , California , and Johannesburg , South Africa , and a team of about 40 employees , many with decades of experience building luxury eco-lodges .
Of course , getting Luxury Frontiers off the ground wasn ’ t exactly an easy sell . There wasn ’ t a prototype that Franco could point to , nor was there significant demand for luxury tents in the Americas . He used his personal rolodex to contact top executives from Four Seasons , Ritz-Carlton and Blackstone , but was rebuffed by many .
“ They were calling me ‘ The Tent Guy ,’” he says , adding that while executives thought the idea of tents was “ cool ,” they didn ’ t think tents would fare well outside of Africa . “ It was a tough sell for the first few years .”
Yet by 2012 , Luxury Frontiers had worked on Wilderness Safaris ’ Abu Camp in Bostwana and had developed tree houses in Italy , Franco ’ s homeland , as well as Mallorca . Projects such as the Belmond Savute
Elephant Lodge and the Belmond Eagle Island Lodge , both in Botswana , followed as well .
Once Camp Sakira and Nayara were completed in late 2019 , Franco says Luxury Frontiers had two sucessful case studies in the Americas that people could visit and experience . At Camp Sakira , a one-bedroom canvas tent with a private plunge pool sells for US $ 3,000 a night while a two-bedroom tent often fetches US $ 6,000 a night . Occupancy rates are frequently above 90 %.
With rates at a premium for immersive stays (“ there is no price resistance in [ the pandemic ],” Franco notes ), Luxury Frontiers can deliver its clients a healthy return of investment .
Franco estimates that after two to three years , a Luxury Frontiers add-on project will break even . Within five years , a resort will see a return of investment of about 40 %. For a project that is a circuit of camps and lodges ( meaning guests can spend three nights at one camp and three nights at another camp in the same destination ), owners can expect a 20 % to 25 % internal rate of return .
With owners and developers seeking quick experiential concepts for their portfolios , Luxury Frontiers does have healthy competition from other companies , namely Collective Retreats , Under Canvas and to some extent AutoCamp , which uses Airstream trailers as lodging . Yet Luxury Frontiers remains focused on its mission to deliver transformational luxury experiences true to the destination .
“ It ’ s not just about the product ,” Franco says . “ It ’ s about a really meaningful journey and experience , whether it be in a tent , a treehouse or a cocoon .”
In the meantime , Franco and his team are working on coming up with a term other than “ glamping ” to describe the services that Luxury Frontiers provides . While glamping is great for SEO , Franco says it doesn ’ t capture the essence of what they do .
“ In Africa , there are so many tents , but no one calls it glamping ,” he says . “ Because it ’ s not about fancy tents ; it ’ s about conservation and sustainability .”
IN 2011 , EXPERIENTIAL TRAVEL WAS JUST A TREND . NOW IT ’ S A STRONG MARKET THAT ’ S HERE TO STAY AND GROW .
LUCA FRANCO
42 hotelsmag . com March / April 2021