Ultra-Luxury Hotels Bet on Measured Growth
#1
Original Poster
Join Date: Nov 2019
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Ultra-Luxury Hotels Bet on Measured Growth
Interesting article on Skift today about ultra-luxe hotel brands and their expansion plans.
https://skift.com/2023/05/01/how-many-hotels-is-too-many-for-an-ultra-luxury-brand
What is your view - should ultra-luxe brands cap the number of properties, like Bulgari suggested at 15 or One&Only at 35? Would opening many more than that risk diluting the brand?
Also good point about the lack of loyalty programs:
https://skift.com/2023/05/01/how-many-hotels-is-too-many-for-an-ultra-luxury-brand
What is your view - should ultra-luxe brands cap the number of properties, like Bulgari suggested at 15 or One&Only at 35? Would opening many more than that risk diluting the brand?
Also good point about the lack of loyalty programs:
- Its also generally a mistake for global hotel groups to see ultra-luxury hotels as something to acquire to feed into their loyalty programs as places for members to burn points. If too high of a percentage of the typical guests at an ultra-luxury hotel look, talk, act, and dress like theyre not really one-percenters or the creative elite but are mainly roadwarriors burning points, then the brands core, wealthy customer base will notice who theyre rubbing shoulders with in the lobby and will turn away from the brand.
Last edited by CanaryWharf; May 1, 2023 at 8:31 am
#2
Join Date: Apr 2006
Location: NYC
Posts: 1,000
You know what’s a bigger mistake for ultra luxury hotels? To cater to influencers. Once I see that I’m “rubbing shoulders” with those after not having been subjected to this type of crowd for almost 2 decades of dedication to certain properties - I start looking elsewhere.
#3
Join Date: Jul 2013
Posts: 22
Thank you for sharing the very interesting article. In my estimation, it should not be a mistake if large loyalty programmes are also represented in the (ultra) luxury sector. After all, when choosing a loyalty programme, the possibility of redeeming points plays an important role. A loyalty programme that offers the possibility to redeem points also in very fancy hotels is likely to attract more members than a programme with less glamorous hotels. Therefore, in a blended calculation, the inclusion of luxury brands is likely to be more profitable for the programme as a whole. It should also be kept in mind that the users of the programme who have enough points for expensive hotels are more likely to be business consultants or other well-educated people whose behaviour is likely to be only marginally different from paying luxury guests.
#4
Join Date: Dec 2003
Location: NYC
Posts: 6,407
My only interests in other guests are that they are polite and quiet and that I don't feel out of place for not wearing high-end designer clothing. That being said, I'm hard pressed to think of a time that's been a problem at an ultra-luxury property. Some business consultant types are rather self-important DYKWIA types. EDIT: my wife reminds me of snooty guests and staff at the PH Vienna, which is not really a top tier hotel.
The problem with too large a footprint is quality control. I don't care about scarcity; I care about having a good experience.
Loyalty programs are rather far down on my list of priorities.
The problem with too large a footprint is quality control. I don't care about scarcity; I care about having a good experience.
Loyalty programs are rather far down on my list of priorities.
Last edited by richarddd; May 1, 2023 at 1:26 pm
#5
My only interests in other guests are that they are polite and quiet and that I don't feel out of place for not wearing high-end designer clothing. That being said, I'm hard pressed to think of a time that's been a problem at an ultra-luxury property. Some business consultant types are rather self-important DYKWIA types. EDIT: my wife reminds me of snooty guests and staff at the PH Vienna, which is not really a top tier hotel.
The problem with too large a footprint is quality control. I don't care about scarcity; I care about having a good experience.
Loyalty programs are rather far down on my list of priorities.
The problem with too large a footprint is quality control. I don't care about scarcity; I care about having a good experience.
Loyalty programs are rather far down on my list of priorities.
For example, Ritz-Carlton has never impressed me, but I continue to return to FS (with a few exceptions).
And that comment about other guests and loyalty programs is laughable to me. I generally give off a SF tech bro vibe. In most cases, I couldnt care less how the other guests dress or talk. Just that theyre unobtrusive/not obnoxious
#6
Join Date: Feb 2008
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The article seemed to be shakey with its assertions in many ways. The Ritz-Carlton one of the world's few "super luxury" chains. Really?
I thought it was odd that the article didn't even address the topic of hotel management/ branding. I don't see how you can even start to address the topic without thinking about what you own, how you license and who manages your hotels. It's the entire ball game.
What makes a luxury chain to me is both hardware and service levels which are at a consistently high level and with some common themes across the world. I stayed at the Chedi Lustica Bay over the weekend and while there were no issues with my stay, it had nothing in common with what I associate with the Chedi brand.
I thought it was odd that the article didn't even address the topic of hotel management/ branding. I don't see how you can even start to address the topic without thinking about what you own, how you license and who manages your hotels. It's the entire ball game.
What makes a luxury chain to me is both hardware and service levels which are at a consistently high level and with some common themes across the world. I stayed at the Chedi Lustica Bay over the weekend and while there were no issues with my stay, it had nothing in common with what I associate with the Chedi brand.
#7
formerly htang333
Join Date: Apr 2014
Location: Wi-Fi
Programs: Virtuoso, Top Ranked: Four Seasons (Top 25 Advisor), AMAN (Top 50), Rosewood, Hyatt Prive, etc.
Posts: 1,454
I'd imagine the problem with these articles are that many of the writers (my assumption) have very little experience in true ultra-luxury travel. i.e. paid on their own dime.
If you're a writer grossing $90k - $120k per year (which is objectively a great/above avg. income), no way you're frequently visiting Laucala, Singita, Aman (the higher priced ones), Cheval Blanc, The Brando, Fregate Island, etc. on your own.
When the company sends you on a free/research trip to a mid tier luxe hotel, and you're then fed the brand's presentations, of course you'd drink the kool-aid and (honestly) write with 100% confidence in what you're being told.
So I get it but also, a bit nuts.
I think I misread the above in my sleep deprived state so my comment is less relevant but I stand by it for many of the articles I read on a day-to-day basis.
But someone can easily say my POV is crap. Fair enough
If you're a writer grossing $90k - $120k per year (which is objectively a great/above avg. income), no way you're frequently visiting Laucala, Singita, Aman (the higher priced ones), Cheval Blanc, The Brando, Fregate Island, etc. on your own.
When the company sends you on a free/research trip to a mid tier luxe hotel, and you're then fed the brand's presentations, of course you'd drink the kool-aid and (honestly) write with 100% confidence in what you're being told.
So I get it but also, a bit nuts.
I think I misread the above in my sleep deprived state so my comment is less relevant but I stand by it for many of the articles I read on a day-to-day basis.
But someone can easily say my POV is crap. Fair enough
Last edited by BESVISOR; May 2, 2023 at 11:13 am
#8
Join Date: Jun 2013
Posts: 1,223
Slightly OT, but I've experienced my fair share of obnoxious guests at hotels and resorts where there is no loyalty scheme and everyone is paying cash to stay. Unfortunately, they can crop up anywhere. Some of the most obnoxious have been at some of the most exclusive properties. That said, there are still some hotels where nouveau are kept in check by owners who don't put up with any nonsense.
#9
Money does not secure a level. I know very rich people who I would hate to stay in a hotel with and relatively poor people who are incredibly pleasant and sophisticated. What is nonsense is always in the eye of the beholder.
The problem with press articles on luxury is well known. I often use such articles as a source of amusement.
The problem with press articles on luxury is well known. I often use such articles as a source of amusement.
#10
Join Date: Jan 2015
Location: England
Posts: 1,361
Slightly OT, but I've experienced my fair share of obnoxious guests at hotels and resorts where there is no loyalty scheme and everyone is paying cash to stay. Unfortunately, they can crop up anywhere. Some of the most obnoxious have been at some of the most exclusive properties.
#12
In the ultra-luxury segment think names like Aman, Four Seasons, 1Hotel, One&Only, Park Hyatt, Peninsula, Raffles, The Ritz-Carlton, and Six Senses it can be a mistake to grow a brands footprint too fast or widely. After all, luxury is partly about scarcity.
It's the Ritz Carlton.
#13
#14
#15
Original Poster
Join Date: Nov 2019
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For me, Four Seasons is the most consistent brand. There are FS that are less amazing (like the ones in Egypt for example), but overall I never had a disapponting stay.
Meanwhile, some of the St. Regis, Ritz-Carlton and Waldorf Astoria properties I stayed at were far from being luxury and only a slightly better version of a standard Marriott or Hilton hotel.
Meanwhile, some of the St. Regis, Ritz-Carlton and Waldorf Astoria properties I stayed at were far from being luxury and only a slightly better version of a standard Marriott or Hilton hotel.