behaviours only a few years ago.
Just to give one of the most interesting
examples, many of today’s emerging
Luxury consumers are willing to ‘mix and
match’ more than ever before. They are
prepared to trade down on one purchase,
in order to trade up on another they
deem more aspirational. In fashion, it’s
the kind of consumer who’s comfortable
pairing Zara with Céline, and for us – it’s
the kind of consumer who opts for an
Airbnb in one city and a five-star stay in
another.
We only have to look as far as the
success of Select Service concepts
for proof of its influence. But that’s
just one example of the way in which
our consumer is becoming far more
discerning and sophisticated across
the board. Luxury has become a high
risk/reward environment – where
opportunity abounds but brands need to
work harder in order to capture it.
Can we expect the definition of luxury
to continue to evolve? How can hotel
brands keep in touch with changing
expectations?
Luxury is amongst the world’s most
dynamic industries and – where cachet is
so closely associated with being ‘first-inline’ or ‘ahead-of-the-curve’ – change
is integral to its DNA. So yes, I fully
expect that the definition of Luxury will
continue to evolve.
Having said that, I think we can also
expect to see a lot of today’s emergent
trends play out on an even larger scale
in the future. It seems likely that a
number of attitude shifts – an increasing
sensitivity to intrinsic qualities and values
(beyond ostentation and overt display),
a growing preference for individual
significance (over universal recognition),
or a deepening interest in authenticity
and local relevance – will all play a part in
shaping new consumer expectations.
What’s interesting, of course, is that
many of these trends are also cyclical
in nature. Many traditional signifiers
of quality and exclusivity – such as
an emphasis on craftsmanship or the
value of personal relationships – have
experienced a recent renaissance, and
are being made increasingly compatible
with modern notions of brand and status.
It’s by looking at these shifts and
renewals that hotel brands can best hope
to pre-empt changing market dynamics
and to steal a march on the competition.
Yet ultimately, the consumer is the
author of industry change and it’s always
been my belief that – if you truly want
to understand where expectations are
moving – then that’s where you need to
start.
You talked about offering experiences
that go beyond the point of purchase.
Can you elaborate on this?
Quite simply, Luxury is no longer
perceived or consumed along purely
transactional lines – and many of today’s
Luxury consumers want more than a
product delivered or a service rendered.
Confronted with more choice than ever
before, Luxury is less about what you
buy and more about why you buy it. It’s
about demonstrating taste and status
through your wider lifestyle.
So for Luxury brands, there is a need
to emphasise the connection between
what they offer and the aspirational
‘way of life’ it’s part of. It’s no longer
enough to promote the superlative
‘product’ – consumers want a more
active and participatory relationship with
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