Briefing: Unique experiences engage guests

According to research by Gallup, luxury brands have the highest customer engagement level of all hotel segments, with 33% of luxury guests being fully engaged in a brand.

In the luxury/high end market, excellent service and memorable experiences are more important to guests than getting a bargain, so the potential for brand loyalty is higher. But it is becoming more and more difficult for hotels to offer a truly unique experience and keep up with what guests want.

In these videos industry experts discuss how they are attracting guests:

Engagement is important because, according to Gallup; ‘Hotel guests who are fully engaged spend 46% more per year than actively disengaged guests.’ If guests are engaged and returning to the same brand or property time and again, then these guests must be recognised and valued, as discussed above by Dan Wakeling. Gallup’s 2014 Hospitality Industry study found that ‘79% of guests who strongly agree that the hotel they visit most frequently takes care of their well-being, are fully engaged,’

Those who are willing to pay more for a high end stay have more requirements on their minds than a king size bed. Research by Booking.com found that sustainability is increasingly sought after and that ‘sustainable travellers’ were 50% more likely to intend to book more luxury accommodations in 2015 than they did in 2014, as compared with other traveller types.

The way that people engage with brands has changed. So how can one hotel make itself stand out over another?

The Zighy Bay Resort in Oman gives guests the option to paraglide into the resort on arrival.

In Sweden guests can stay in an Ice Hotel.

Some hotels and restaurants are epitomising ‘luxury’ by offering diamonds as part of their package.

And, as mentioned in the above video, Club Med offers a Cirque du Soleil experience.

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Video clips produced by ybc.tv for the Hospitality Channel, including interview from industry conferences such as the IHIF conference as well as specific Hospitality Channel shoots.

Briefing: Hospitality and tourism drive luxury consumption

The latest edition of the Bain Luxury Study has found that the overall luxury market exceeded €850 billion in 2014 and showed a growth of 7% overall. The report says that luxury hospitality (9%) was driving this growth, along with luxury cars (10%).

The worldwide market study states that: ‘The luxury-goods industry in most markets is now driven by touristic spending.’ It says that many tourists are willing to spend more when abroad than at home, and that this is particularly true of Chinese tourists who spend three times more when abroad. It is interesting to note that in 2014 luxury spending within China showed a negative trend of 1% growth for the first time since the study has been published. However, the consumer segment which report calls the ‘upper-middle-class “wannabe”’ in China is expected to double by 2017.

In this briefing experts discuss luxury brands and consumer behaviour worldwide:

In the hospitality market, luxury hotels have had steady growth (up 9%). According to the report it is ‘younger generations seeking superior lifestyle experiences’, who have helped to fuel 5% growth in the cruise market.

Research by the Travel Leaders Group found Luxury hospitality bookings in the U.S are going strong. The survey states that 92% of luxury oriented travel agents had increased or steady bookings in 2014.

The Affluence & Wealth Survey by Time Inc. and YouGov sheds some light on the luxury consumer. In a survey of high earning individuals (predominately American), 78% of people said they enjoy being treated like a VIP. 73% said they worry less about money while on holiday.

So how can brands appeal to luxury consumers? The Affluence & Wealth Survey found that 82% of people prefer brands that reflect their values, and 82% prefer brands that stay true to their history and heritage. There is also a strong use of mobile devices among luxury consumers. According to Criteo, 33% of Fashion and Luxury Transactions are on mobile.

If you’ve been sent to this page and you’re not yet on the circulation list to receive these regular briefings and you would like to sign up, you can do see here. It’s free.

Video clips produced by ybc.hpgcms.wpengine.com for the Hospitality Channel, including interview from industry conferences such as the IHIF conference as well as specific Hospitality Channel shoots.

Briefing: a focus on the 5* hotel segment

At the top end of the hospitality market it is not all about growing an empire as quickly as possible. It is about getting things right and pushing the product to be the very best it can be.

There is a focus on attracting ‘the right kind of customer’, who will bring in a lot of revenue. Consumers are attracted to 5* properties because they are a step above the rest and can be relied upon to offer them what they need.

So what kind of customers use 5* hotels? How important is it to build brand awareness? And where does a 5* product sit within the rest of the market? Answering these questions are:

  • Andrew Boshoff, Head of Strategy & Development, Global Hotel Alliance on a loyalty programme that targets upmarket, international travellers

  • Haddis Tilahun, Executive Director, United Africa Group on leading the way with five star hotels

  • Reto Wittwer, President & CEO, Kempinski on the idea that luxury equals individuality

  • Taras Ettl, VP – Development, Middle East & Africa, InterContinental Hotels Group on answering the demand for a five star business brand

 


If you’ve been sent to this page and you’re not yet on the circulation list to receive these regular briefings and you would like to sign up, you can do see here. It’s free.

Video clips produced by ybc.hpgcms.wpengine.com for the Hospitality Channel, including interview from industry conferences such as the IHIF conference as well as specific Hospitality Channel shoots.

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