So, what is the new ultimate
form of luxury in the rarified
air of the HNWI?
Authentic human
contact.
In a world
saturated
with digital
communication and
digital services, it is
perhaps unsurprising
that HNWIs are
turning away from
devices in favour of
human contact IRL
and in-the-moment
experiences as the
ultimate form of
luxury. And the shift
goes hand-in-hand
with the rise of the
experiential
economy.
So, what does this mean for the hotelier?
Plenty. But it’s important to first have
perspective on the experiential economy
mentioned above. luxury audiences—and increasingly,
others—seek out enjoyable experiences
rather than goods. Think a once-in-a-
lifetime family trip to Reykjavik, Iceland.
THE LUXURY ECONOMIES BEYOND EXPERIENCE
Within the luxury hospitality industry,
we’ve heard a lot about the progression
of luxury-based economies. In previous
decades, luxury was often defined by
the accumulation of high-end material
goods. This is generally referred to as the
Consumption Economy, where luxury
audiences sought to own and consume
products. But what’s on the horizon? How can
hoteliers take advantage of the next
evolution? According to Orit, CEO/
Partner of The O Group, a NYC-based
branding agency focused on luxury,
the future is Transformational. In other
words, an economy where experiences
are elevated from mere enjoyment to
vehicles of personal transformation.
Says, Orit: “This new Transformational
Economy opens up interesting
possibilities for luxury hospitality brands
– specifically inside strategies that
But beginning in the 90s, the
Consumption Economy began evolving
into what we understand today as the
Experience Economy. This is where
98 ILHA