One would think that, at a time of pressing economic crisis, luxury hospitality would be one of the first sectors to crumble under the pressure.
Surprisingly, it isn’t, and it is certainly on the accelerated track to growth as the global luxury tourism sector is poised to rake in around US$1.8 trillion by year’s end.
But there is a caveat: the old “more is more” way of thinking does not apply under current circumstances, and the playbook for luxury hospitality has changed.
In this feature, we point out five growth areas that those in the luxury hospitality sector need to look into if they want to grow their businesses to their fullest potential despite the crisis.
What do the pros need to do
Experts point out that growth in today’s luxury travel scene needs to get personal, both figuratively and literally.
Remember the one island, one resort mindset being promoted in the Maldives?
It plays on the concept of exclusivity, the ability to offer guests an experience that seems to be crafted for them alone in a space that, for the time being, is exclusively theirs.
That said, the factors that come into play are personalisation or catering the experience to the specific preferences of the customer; and immersive experiences, or offering activities and amenities that allow guests to sink deep into local culture for a more memorable and meaningful experience.
Indeed, it would not be going too far to say that today’s concept of luxury hospitality goes beyond the material aspect as it delves into a truly holistic experience.
Five areas to ponder
- Consider leaning towards hyperpersonalisation One good strategy we can recommend to luxury hoteliers is to reach out to guests well before they arrive in order to learn their likes, dislikes, possible allergies, and interests. By doing so, properties can actually tailor a stay to the guest, vastly enhancing their in-room comfort with little touches that tell them: “We see you; we know what you like, and we want you to have a great time with us;”
- Sustainability and ethics matter Nowadays, many establishments are applying the precepts of ethical luxury in their operations, essentially offering bespoke experiences that do not harm the environment or put local communities at a disadvantage. In the context of hospitality, this means merging exceptional service and comfort with environmental stewardship, social responsibility, and transparency;
- Get immersive Today’s luxury travellers want it all, and they especially need to feel that they are part of the area they’re travelling in. We have already seen this aspect of contemporary luxury in Thailand and Vietnam where hotels and restaurants offer classes specialising in traditional cuisine or in the crafting of items endemic to the region. Contemporary hotels also work with travel agencies to offer tours to key local destinations, especially those with historical and cultural significance;
- Contemplate a wider use of technology in your operations It’s funny how people think that technology will be taking over all aspects of hotel operations, as seen in establishments like Japan’s Henn-na Hotel chain wherein robotics and other technologies have replaced human employees at the front desk and housekeeping. However, time proved that this operating model was flawed in too many ways to remain viable. But technology has its role to play in automating back-of-the-house processes, especially with AI making a number of tasks more efficient and also ensures that service quality is maintained throughout an establishment. Human employees, on the other hand, can be redeployed to be more hands-on with guests, further heightening the sensation of true pampering; and
- Get family-friendlier Think about it: with Gen Alpha influencing their parents’ decisions as to where to go and stay, hotel management companies can amp up the luxe factor for those travelling with family by way of well-appointed suites, activities that teens and older kids can enjoy with their peers, and even in-house childcare that enables parents to enjoy the best that the property has to offer.
