Here are 5 key trends that the
luxury industry should embrace
when working to attract the new
generation of luxury clients.
ADAPTING YOUR LUXURY
BRAND MANAGEMENT
Heritage brands can no longer cling
to their prestigious past while turning
their backs to innovation. Instead, it is
imperative brands find a way to balance
legacy and modernity.
While an immediate way to embrace
innovation is by adopting some of the
leading trends in technology such
as artificial intelligence, smart hotel
rooms, and recognition technology –
storytelling still plays a crucial role in
attracting new guests and conveying
value to consumers.
After all, the goal should be for
brands to remain timely and timeless.
Balancing tradition all the while
effecting change is an essential
innovation challenge for luxury brands.
CREATING UNIQUE
EXPERIENCES
A recent study conducted by Harris
Poll and Eventbrite found that 78%
of Millennials say they would rather
spend their money on experiences
versus things. Within travel and tourism,
this move away from material goods
has guests looking beyond luxury
accommodations to have a memorable
stay.
Today’s young traveler is likely to seek
authentic, local experiences rooted
in culture, sustainability, and social
responsibility – all of which can work
together to meet guest expectations.
For example, locally sourced food and
beverage options not only offer an
authentic dining experience, but also
appeal to young consumers’ sense of
ethics.
With more people traveling than ever
before, hotels also need to consider their
diverse range of clients when aiming to
deliver these unique experiences.
22 ILHA
“Brands must be culturally aware and
avoid alienating consumers through
tone-deafness,” explains Dr. Nicoletta
Giusti, Clinical Professor and Director
of the MSc in Luxury Management and
Guest Experience at Glion Institute of
Higher Education. loyalty.
DELIVERING PREMIUM
OMNICHANNEL SERVICE This real-life interaction is crucial for
brands to deliver an experience in
which guests can feel both at ease and
pleasantly surprised by service that goes
above and beyond expectations. With
experiences and authenticity being
of such high value to Millenials, these
shared moments of personal service
could very well be the type of luxury
modern guests crave.
Brands need to create a seamless
transition between offline and online
experiences to meet the needs of
omnichannel customers. In the world
of luxury hospitality, brands must find a
way to deliver the same exceptional level
of service through tech, that guests are
accustomed to receiving from hotel staff.
For example, AI-powered chatbots
and smart search results can provide
online customers with useful travel
recommendations when researching the
property. Online platforms can also be
used to provide luxury clients with the
means to customize their stay.
“[S]mart uses of technology will save
time, offer greater personalisation and
enable businesses to anticipate guest
needs, “The benefits of convenience and
discretion are particularly relevant for
business travellers, who value privacy
and time-saving service,” says Marie-
France Derderian, Senior Lecturer and
Director of the MSc in Hospitality,
Entrepreneurship and Innovation at
Glion Institute of Higher Education.
“And although privacy concerns do exist,
many customers are willing to entrust
brands with some data in exchange
for the benefits of convenience and
personalised service.”
EMBRACING THE VALUE OF
HUMAN INTERACTION
Despite the rise of new technologies,
luxury brands can’t ignore the value of
the human touch in building customer
relationships. In 2019, we see a
heightened need for hotels to extend
their offline experiences to deliver a
bespoke experience while nurturing the
personal relationships that build brand
“From the hotel concierge who
remembers a guest from a previous
stay to the personal guide who reveals
the secret corners of a city, human
interaction remains core to the
hospitality industry,” says Derderian.
ENTERING THE CIRCULAR
ECONOMY
The Ellen MacArthur Foundation
defines a circular economy as being
“restorative and regenerative by design,”
i.e. sustainable – a huge selling point for
the green-minded Millennial guest.
A prime example of this ideology is the
QO Amsterdam. This hotel features
an exterior with thermal panels that
react to the outside climate to conserve
the energy needed to regulate indoor
temperatures. It’s been designed with
recycled materials such as carpeting
made from 100% recycled yarn
previously used in fishing nets. And to
conserve water, QO has developed a
greywater system which re-uses water
originating from showers and sinks to
flush toilets.
Scheduled to open in 2021, Norwegian
hotel Svart’s will harvest enough solar
energy to cover both hotel operations
and the construction of the building,
yielding a yearly energy consumption
that’s 85% less than most modern
hotels!
When it comes to sustainability, hotels
need to step it up if they want to meet
the moral standards of many modern
guests. Low-flow toilets and asking
guests to re-use their towels just won’t
cut it anymore.