Luxury Hoteliers Magazine 3rd Quarter 2016 | Page 10

SPOTLIGHT ON Carina Svensen Global Brand Director, Quorvus Collection By Sharon Hirschowitz Carina explores how luxury hospitality has become more experiential and the modern customer more diverse as she looks at the new definition of luxury. She examines today’s consumer and their constantly evolving search for an experience that is authentic, meaningful and unique. How has luxury changed the last few years and how has this impacted luxury hospitality? There are obviously a number of forces in motion and some fundamental shifts in consumer demographics. But, in my opinion, the single largest change of the last few years has been the movement away from Luxury products towards Luxury experiences. In both value and demand, the market for experiences has overtaken Luxury’s traditional heartland – Personal Luxury Goods – as well as most big-ticket categories. What we’ve witnessed has been a natural evolution in the pursuit of greater exclusivity. Difficult to replicate and impossible to counterfeit – experiences guarantee a unique 10 ILHA relationship with Luxury brands that product cannot. For Luxury Hospitality, this means two things: 1. Increasing Opportunity Hotel brands that shape their offer around the guest experience are in a unique position to capture opportunity. Both Travel and Hospitality (in its broadest sense) are intimately connected with personal experiences – and the industry has been one of Luxury’s largest beneficiaries in terms of consumer spend and investment interest. 2. Intensifying Competition The other side of the coin is that Luxury brands are falling under increasing pressure to innovate and engage audiences on an experiential level. Once differentiating offers – like product personalisation, anticipatory service, a sense of theatre or even an immersive digital platform – are all becoming industry-wide standards. The average level of consumer expectation is being pushed ever higher and nowhere is the expectation for Luxury experiences greater than in Hospitality. Who is the new Luxury Consumer? Do we understand them? Trying to understand the new Luxury Consumer is an inherently complex matter. If we take those who buy into Luxury as a whole, our audience has never been broader or more diverse – in age, in culture or in affluence. So treating “The Luxury Consumer” as a type – or even as a set of discrete customer profiles – is something of a misnomer. For brands today, it’s perhaps more useful to try and understand the common lifestyles, values and sensibilities which unite an increasingly diverse customer base – rather than thinking about traditional segmentation. In fact, there are a number of significant consumer traits that are shaping the way we do business today, and which would have been considered marginal