Evolving guest expectations
But appealing to the luxury guest of today is no mean feat as not only has there been a growth in the demographic of the luxury consumer, there are now different expectations to be met across the different rungs of the luxury demographic.
“Previously, a lot of focus was on room size, number of suites and F&B outlets - all of which are still important - but now it’s much more about how the guest feels and understanding their definition of luxury because everyone has a different definition of it,” says Maria Ashton, vice president - head of luxury development, Northern Europe at Accor.
Matt Walton, head of development - UK & Ireland at IHG agrees, adding that the meaning of luxury will differ from person to person and stresses that the diversity within luxury travellers means that brands must target each different type of luxury guest.
“Looking at our luxury estate - Kimpton, InterContinental, Regent, Six Senses – all these brands are different in their own right and have a different type of guest but they all sit in that luxury segment. Having that flexibility within your brand family to cater for all the different types of guests is hugely beneficial,” he says.
There’s also an increased focus on the experiences offered by a luxury hotel to its guests, with both Walton and Ashton stressing that experiential offerings are central to modern luxury.
“A lot of guests are driven by that experience and that exploration in terms of offering. It’s hugely experience driven. One of the things we’ve done is recently relaunching the IHG One Rewards programme which allows us to offer guests experiences by redeeming points from us. We’ve also partnered with a range of sports and music events such as being one of the main headline sponsors for the Leeds and Reading festival and giving our guests access,” Walton says.
Ashton adds: “Luxury is now all about the guest experience, more so than it has been. People want more out of their experience and expect more from the people at the hotels, especially if they’re paying a higher rate. They expect for you to know their name and their preferences. They want their stay to leave an impact.”
Luxury portfolio expansion
And for those seeking to expand their portfolios, the luxury segment presents a lot of opportunity both in the UK and in markets across Europe.
“Looking at IHG’s geographical spread across the UK, we have luxury offerings in every main market,” Walton says, advising “it’s about looking at every single opportunity in its own merit, whether there’s particular demand in that micro-location for a luxury guest and where the room rate exists to offset the money which will need to be spent on an asset to upgrade it to a luxury standard.”
He adds: “We're seeing a big uptick in enquiries in really good quality offerings in the UK whether it be country house or resort-led opportunities.”
And for expansion into emerging luxury markets, Ashton advises a strategic approach and careful consideration when it comes to brand selection.
“When you go into an emerging market, you have to enter with the right brand that’s not over-programmed. For example, we get a lot of interest for Fairmont in emerging markets but that’s not the best brand of ours to go into an unestablished luxury market. However, a brand like Sofitel would work because the physical requirements are slightly less stringent that for example that of a Fairmont. Sofitel is very well known globally, adapts really well into emerging markets and can help set and establish a luxury market in emerging destinations,” Ashton says.
She also stresses the importance of conducting thorough research when choosing partners.
“I would encourage people to really look for someone that knows luxury and has a solid background of it. There are some operators that think that they can do luxury but you really have to do research when you're looking to associate yourself with a brand and operator.”
Walton concurs, emphasising how IHG benefits in that regard. “We have huge amount of luxury lifestyle support within our franchised and managed estate. We have the skill set from the right people around everything from looking how the asset is going to be positioned from a design and technical point of view as well as in support - from an operations point of view, from an F&B point of view and from the other revenue streams point of view.”
The next era
Looking ahead, Ashton says the next era of luxury will be defined by the residential space, particularly standalone luxury residences.
“There isn’t a lot of innovation in the physical guest room, with innovation seen more in things like F&B and public spaces but for me, I think it’ll come from the residential side. That’s going to be the next big thing for luxury and we’re already starting already to see it come through,” she says.
By Ifeoluwa Taiwo
